Medtronic Reports Limited Tariff Impact on Profitability, Accelerates Strategic Acquisitions and Operational Efficiency

Smart Medical Device Network News, August 19, 2025: Medtronic announced two significant personnel and strategic initiatives: personnel adjustments, appointing two new independent directors.——Former CEO John Groetelaars (John Groetelaars) and former Stryker CFO Bill Jellison, increasing the number of board members to 13. Two strategic committees were established, focusing on mergers and acquisitions, R&D, and asset divestitures."Growth Committee" and "Operations Committee" to enhance efficiency and profitability,CEO Jeff Martha personally leads.

These initiatives are the result of collaboration with activist investor Elliott Investment Management and aim to accelerate company growth and optimize operations.

Medtronic announced at the same timeFirst Quarter 2026 Financial Results: Sales of $8.578 Billion，Year-on-year growth8%，As expected;Adjusted Operating Profit$20 billion, adjusted operating profit margin 23.6%；Net Profit$1.047 billion, slightly lower than the same period last year, indicating limited impact of tariffs.。

Specifically, this quarter, all four business segments of Medtronic achieved growth, but the growth rates varied significantly. Among them, the soon-to-be-spun-off diabetes business became the fastest-growing segment in terms of revenue.$7.21 billion, increased11.5%；Cardiovascular business comes second.，Revenue$3.285 billion, increased9.3%；Neuroscience and Medical Surgical businesses are in the same boat.，Neuroscience Business Revenue$2.416 billion，Performance growth only4.3%Left and Right; Medical Surgical Business RevenueAn increase of approximately 4.4% to USD 20.83 billion.

The standout performer this quarter is pulsed field ablation (PFA) products, revenue from cardiac ablation solutions increased by nearly 50%, with growth of approximately 70% in the United States and Japan, and around 30% in international markets., Medtronic statedMainly due toThe launch of the PFA system.Core ProductThe demand for PulseSelect catheters, Sphere-9 catheters, and the Affera mapping system is high, with excellent utilization rates, and growth in Q2 is expected to further accelerate.

Medtronic Expectations Are HigherSurgical Robot (Hugo）, Medtronic announcedHas entered the globalMore than 30 countries, tens of thousands of surgical cases, existing customers grow double-digit year-over-year; Hugo’s large vessel sealing LigaSure RAS receives CE approval; US FDA application in progress, expected to launch in the US in the second half of the fiscal year, which will drive growth; digital ecosystem growing rapidly.

Overall, Medtronic's this fiscal quarterRevenue and ProfitAmid the impact of the tariff war,Achieved onceStableOpening, while benefiting fromThe excellent performance of the new PFA product and its competitor, Boston Scientific, inStructural HeartExit from the field, with outstanding performance in related businesses。

Regarding the annual performance, MedtronicDunForceMaintainExpect organic revenue growth of approximately 5% for FY2026, with Q2 expected to see organic growth of 4.5%-5%, and growth accelerating in the second half of the fiscal year.ForTariff Impact, Medtronic statedTariff for the 2026 fiscal year is estimated at approximately US$185 million, excluding the worst-case scenario of US$350 million.

In terms of subsequent business enhancement,CardiovascularSupportCAS continues to expand, with Ardian (renal denervation), Peripheral Vascular (Contego carotid artery stent, Liberant mechanical thrombectomy system) becoming growth drivers.；NeuroscienceMain Driving ForcePelvic Health, Neurovascular New Products Drive Growth；SurgeryWill actively promoteHugo Surgical RobotCertification, PlanningSecond Half of the Fiscal YearInUnited StatesListed;DiabetesContinue to PromoteTwo New Sensors andMiniMed Flex Pump, ShortenInnovation Cycle.

Among radical investorsElliott Investment ManagementBecomeOne of the largest shareholders of MedtronicAfter, the number of seats on Medtronic's board of directors has increased to13，To Boost Stock Price, Medtronic to Add Two Senior Healthcare Technology Industry Experts to Its Board, among whichFormer Hillrom CEO John Groetelaars and former Stryker CFO Bill Jellison will join as independent directors.

In addition, Medtronic will establish two special board committees: one"Growth Committee," responsible for reviewing bolt-on M&A opportunities, R&D expenditure strategies, etc.; the other is the "Operating Committee," responsible for studying the optimization of operational performance. The new board and the addition of activist investors signify thatMedtronicChannels and Strategies May See Accelerated RevisionsCompetitors need to prudently respond to the changes in Medtronic's market strategy.。

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