Medtronic Plc (MDT) reported strong first-quarter 2025 results, exceeding analysts’ expectations on both revenue and earnings. The company’s sales reached $7.92 billion, surpassing the consensus estimate of $7.89 billion. Adjusted earnings per share (EPS) came in at $1.23, beating the consensus of $1.20.
Revenue growth was robust, increasing 2.8% year-over-year on a reported basis and a more impressive 5.3% organically. This growth was driven by strong performance across multiple franchises, including notable acceleration in Cardiac Ablation Solutions and Neuromodulation. Continued strength was also seen in Spine, Structural Heart, and Diabetes.
The Cardiovascular segment saw revenue reach $3.01 billion, reflecting a 5.5% year-over-year increase on a reported basis and a 6.9% organic growth. Key drivers within this segment included high-single-digit increases in Cardiac Rhythm & Heart Failure and Structural Heart & Aortic, alongside a mid-single-digit increase in Coronary & Peripheral Vascular, all on an organic basis.
Neuroscience revenues reached $2.32 billion, increasing 4.4% as reported and 5.3% organically. This growth was driven by a low-double-digit increase in Neuromodulation, a mid-single-digit increase in Cranial & Spinal Technologies, and a low-single-digit increase in Specialty Therapies, all on an organic basis.
Medical Surgical revenue, at $1.99 billion, decreased by 0.4% as reported but saw a 1.0% increase organically. Within this segment, there was a low-single-digit increase in Surgical & Endoscopy and flat results in Acute Care & Monitoring, both on an organic basis.
Diabetes revenue reached $647 million, demonstrating strong growth of 11.8% on a reported basis and 12.6% organically.
“Overall revenue outperformance flowed through to the bottom line, with adjusted EPS ahead of expectations,” said Gary Corona, Medtronic’s interim chief financial officer. “We’re raising our guidance today as we expect to sustain growth from new product introductions, continue to make the investments to support those launches, and deliver on our commitment to restore earnings power.”
Reflecting this positive outlook, Medtronic revised its fiscal year 2025 adjusted EPS guidance to $5.42 – $5.50, compared to the previous guidance of $5.40 – $5.50 and the consensus of $5.44. The company projects fiscal year 2025 organic revenue growth of 4.5% – 5%, compared to the previous guidance of 4% – 5%.
At the time of this report, MDT stock was up 0.51% at $85.25 during the premarket session.
