Medtronic Reports Strong Q3 Fiscal 2025 Results with $8.3 Billion in Revenue

Feb 19, 2025 11:56 CST Updated 11:56

Medtronic

Medical Device Manufacturer

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On February 18, 2025, Medtronic plc (NYSE: MDT) announced its financial results for the third quarter (Q3) of its fiscal year 2025.

*Medtronic's fiscal year ends on April 27 each year; therefore, the third quarter of fiscal year 2025 ended on January 24, 2025.

# Earnings Highlights

The report shows that the company's revenue reached approximately$8.3 billion(Contract6RMB 1.093 billion), increased by the reporting basis2.5%, increased according to the organic benchmark4.1%。
Based on the report, the GAAP net income and diluted earnings per share (EPS) for the third quarter were respectively$1.294 billionAnd$1.01, respectively decreased2%And Growth2%. NonGAAP Net Income and EPS were respectively$1.787 billionAnd$1.39, respectively increasing3%And7%。
Cardiac Ablation Solutions Business Revenue Increased20%The above is mainly due to the strong performance of the pulsed field ablation (PFA) products.
The Centers for Medicare & Medicaid Services (CMS) announced that it will cover renal denervation for the treatment of hypertension, with the final decision expected to take effect on or before October 11, 2025.

Medtronic Chairman and CEO Geoff Martha said, "We achieved strong profitability this quarter.For the ninth consecutive quarterDriven by the achievement of mid-single-digit organic revenue growth in China,Both gross margin and operating margin have significantly improved."We are beginning to see the results of long-term investments in breakthrough innovations, such as pulsed field ablation technology, which are driving growth."

# Cardiovascular Business

Cardiovascular Business Portfolio IncludesCardiac Rhythm and Heart Failure (CRHF), Structural Heart and Aorta (SHA), and Coronary and Peripheral Vascular (CPV) Departments. Revenue was$3.037 billion, based on the report growth3.7%, growing on an organic basis5.0%。

Among them, the CRHF and SHA departments achieved middle single-digit growth, and the CPV department achieved low single-digit growth.

CRHF：Cardiac rhythm management business achieved single-digit growth, mainly due toCardiac Pacing Therapy BusinessDouble-digit growth, of whichMicra™ Transcatheter Pacing SystemGrowthMore than 20%；
Cardiac Ablation Solutions Business Due toPulseSelect™ and Affera™ Sphere-9™ Pulsed Field Ablation SystemThe rapid adoption has exceeded growth20%。
SHA：Structural Heart Disease Business (excluding congenital heart disease) achieved high single-digit growth, primarily driven byEvolut™ FX+ Transcatheter Aortic Valve Replacement (TAVR) SystemThe sustained strong performance; the cardiac surgery business also achieved high single-digit growth.
CPV：Balloon products achieve high single-digit growth, while catheters and drug-coated balloons achieve mid single-digit growth.

Recent Developments

The U.S. FDA has approved the facility located in GalwayPulse Field Ablation Production Base, immediately enhancing the supply capacity of Affera™ products.
Through cooperation withContego MedicalThe exclusive distribution agreement expands Medtronic's presence in the rapidly growing carotid artery market in the U.S.; the agreement includes the recently FDA-approved carotid stent system and an acquisition option; Contego Medical is conducting clinical trials for the next-generation Transcarotid Artery Revascularization (TCAR) system.
Announcing the launch by the U.S. Centers for Medicare & Medicaid Services (CMS)National Coverage Analysis (NCA) of Renal Denervation for the Treatment of Hypertension, with the coverage decision expected to be finalized on or before October 11, 2025.

# Neuroscience Business

The neuroscience business includes the Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions. Revenue was$24.58 billion, based on the report growth4.4%, growing on an organic basis5.2%。

Among them, the Neuromodulation division achieved low double-digit growth, the CST division achieved mid-single-digit growth, and the Specialty Therapies division achieved low single-digit growth, all on an organic basis.

CST Performance:Thanks toAiBLE™ Technology EcosystemThe continuous adoption of neurosurgical operations achieved high single-digit growth; CST operations in the U.S. market grew at a high single-digit rate, further expanding market share.

Professional Therapy:Pelvic Health Business Due toInterStim X™ SystemThe sustained adoption of [context needed], achieving mid-single-digit growth; ENT (Ear, Nose, and Throat) business achieved low single-digit growth due to the strong performance of PTeye™ devices and consumables; Neurovascular business (excluding the Chinese market) achieved mid-single-digit growth due to the strong performance of flow diverter devices.

Neuromodulation:Outperformed the market, with the pain stimulation business achieving low double-digit growth, including near growth in the U.S. market.20%, mainly due toInceptiv™ Spinal Cord StimulatorThe continuous launch;

Global double-digit growth in brain modulation business, with the U.S. market growing close to...25%, mainly due to the搭载Percept™ RC Deep Brain Stimulator (DBS) with BrainSense™ TechnologyContinuous launch.

Recent Developments

BrainSense™ Adaptive Deep Brain Stimulation (aDBS)ObtainCE Certification.

# Medical Surgical Business

The Medical Surgical business portfolio includes the Surgical & Endoscopy (SE) and Acute Care & Monitoring (ACM) divisions. Revenue is$2.072 billion, decreased according to the report baseline1.9%, decreased according to the organic standard0.4%。

Among them, the SE department's organic performance was flat, while the ACM department's organic performance decreased by a single-digit percentage.

SE：Impacted by ongoing pressures in the stapler sector and temporary changes in purchasing patterns among U.S. distributors, but partially offset by high single-digit growth in emerging markets, benefiting fromLigaSure™ Vessel Sealing TechnologyContinuous adoption.
ACM：Nellcor™ Oxygenation Management ProductsDue to a year-over-year decrease in respiratory-related hospitalizations in the U.S. this quarter30%, resulting in a high single-digit decline; partially offset by high single-digit growth in the perioperative complications business.

# Diabetes Business

Revenue is$6.94 billion, an increase of 8.4% on a reported basis and 10.4% on an organic basis.

U.S. Market:Thanks toMiniMed™ 780G Automated Insulin Delivery (AID) SystemThe continued adoption of the product has led to mid-single-digit revenue growth, with an increase in MiniMed™ 780G installations and a high rate of continuous glucose monitoring (CGM) device integration.

International Market:As users upgrade toSimplera Sync™ SensorThe increase in the配套率 of CGM devices has driven revenue to achieve a low double-digit growth.

# Financial Guidance

The company continues to project organic revenue growth for the fiscal year 2025 in4.75% to 5%Within the range.

If the recent foreign exchange rate remains unchanged, including the impact of other income and foreign exchange transactions, the revenue growth for the fiscal year 2025 will be3.4% to 3.8%Within the range.

Diluted non-GAAP earnings per share for the fiscal year 2025$5.44 to $5.50Range, including the impact based on recent exchange rates.