Summary
Medtronic plc reported solid top-line growth for the nine months ended January 23, 2026, with net sales increasing by 8% to $26.6 billion. This growth was primarily driven by strong performance in its Cardiovascular and Diabetes segments, with the latter showing a notable 12% increase in sales due to international demand for its MiniMed 780G system. Diluted earnings per share (EPS) for the nine-month period slightly decreased to $2.76 from $2.79 in the prior year, reflecting increased costs and expenses. For the third quarter, net sales grew 9% year-over-year to $9.0 billion, supported by broad-based growth across most segments. However, diluted EPS saw a more pronounced decline to $0.89 from $1.01 in the prior year's quarter. This was influenced by higher cost of products sold, including increased duties from tariffs and asset write-offs, alongside increased selling, general, and administrative expenses related to new product launches and the planned separation of the Diabetes business. The company continues to manage its debt levels, with total debt decreasing slightly, and maintains a strong liquidity position.
Financial Highlights
54 data points| Revenue | $9.02B |
| Cost of Revenue | $3.26B |
| Gross Profit | $5.76B |
| SG&A Expenses | $2.96B |
| Operating Income | $1.46B |
| Net Income | $1.15B |
| EPS (Basic) | $0.89 |
| EPS (Diluted) | $0.89 |
| Shares Outstanding (Basic) | 1.28B |
| Shares Outstanding (Diluted) | 1.29B |
Key Highlights
- 1Net sales increased 9% year-over-year to $9.0 billion in the third quarter and 8% to $26.6 billion for the nine months ended January 23, 2026.
- 2Cardiovascular segment demonstrated strong growth, with net sales up 14% in the quarter and 11% year-to-date, driven by Cardiac Rhythm & Heart Failure and Coronary & Peripheral Vascular product lines.
- 3Diabetes segment sales rose 15% in the quarter and 12% year-to-date, primarily fueled by international adoption of the MiniMed 780G system.
- 4Diluted EPS decreased to $0.89 for the third quarter (from $1.01 year-over-year) and $2.76 for the nine months (from $2.79 year-over-year), impacted by increased operating costs and specific charges.
- 5Cost of products sold as a percentage of net sales increased due to higher duties from tariffs and asset write-offs.
- 6Selling, general, and administrative expenses increased, driven by new product launches, commercialization activities, and costs associated with the planned separation of the Diabetes business.
- 7The company announced its intent to acquire CathWorks Ltd. for up to $585 million, aimed at expanding its Coronary & Peripheral Vascular division.