Author
Helen Barklam
Helen Barklam is a journalist and writer with more than 25 years experience. Helen has worked in a wide range of different sectors, including health and wellness, sport, digital marketing, home design and finance.
Medtronic plc (NYSE: MDT) has announced its financial results for the first quarter of fiscal year 2025, which concluded on 26th July 2024. The company reported a solid performance, fuelled by product innovation and growth across its diversified health technology portfolio, including advancements in Automated Insulin Delivery, Transcatheter Aortic Valve Replacement, Pulsed Field Cardiac Ablation, Pain Stimulation, and Deep Brain Stimulation.
Medtronic reported first-quarter revenue of $7.9 billion, with adjusted revenue reaching $8.0 billion, reflecting a 2.8% increase on a reported basis and a 5.3% increase organically. The company’s GAAP diluted earnings per share (EPS) stood at $0.80, while non-GAAP diluted EPS was $1.23. Buoyed by this performance, Medtronic has raised its guidance for both organic revenue growth and EPS for the full fiscal year.
Geoff Martha, Medtronic’s Chairman and Chief Executive Officer, remarked, “We have delivered another strong quarter, exceeding our commitments. Our core markets remain robust, and our commitment to innovation is driving growth across key health tech sectors. As we continue to innovate and execute on our strategic transformation, we are confident this will translate into substantial returns for our shareholders.”
The Cardiovascular division, which encompasses Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV), generated $3.0 billion in revenue, a 5.5% increase on a reported basis and 6.9% organically. Notable growth was observed in Cardiac Rhythm Management, with high-single-digit gains, particularly in Defibrillation Solutions and Cardiac Pacing Therapies, including over 20% growth in the Micra™ transcatheter pacing systems. The PulseSelect™ pulsed field ablation system also contributed to mid-single-digit growth in Cardiac Ablation Solutions.
Medtronic’s Neuroscience division, which includes Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation, reported revenue of $2.3 billion, a 4.4% increase on a reported basis and 5.3% organically. The Neuromodulation segment delivered a particularly strong performance, with mid-teens growth driven by the Percept™ RC deep brain stimulator (DBS) with BrainSense™ technology. Meanwhile, the Cranial & Spinal Technologies segment benefitted from continued adoption of the AiBLE™ ecosystem, with high-single-digit growth in both Core Spine and Biologics.
The Medical Surgical division, including Surgical & Endoscopy (SE) and Acute Care & Monitoring (ACM), recorded revenue of $2.0 billion, a slight decline of 0.4% on a reported basis but a 1.0% increase organically. The SE segment saw low-single-digit growth in Advanced Surgical Technologies and General Surgical Technologies, supported by sales of Endoflip™ and GI Genius™. The ACM segment reported flat organic growth, with a slight increase in Blood Oxygen Management.
Medtronic’s Diabetes division saw a robust performance, with revenue rising 11.8% on a reported basis and 12.6% organically, reaching $647 million. This growth was largely driven by the continued adoption of the MiniMed™ 780G automated insulin delivery system in the U.S., which saw mid-teens growth, and the strong performance of continuous glucose monitoring (CGM) products, including the newly FDA-approved Simplera™ CGM.
Following the strong Q1 results, Medtronic has revised its full-year guidance for fiscal 2025. The company now expects organic revenue growth of 4.5% to 5%, up from the previous range of 4% to 5%. Adjusted revenue growth, including the impact of foreign currency exchange, is expected to be between 3.4% and 4.3%. Additionally, Medtronic has adjusted its non-GAAP diluted EPS guidance to a range of $5.42 to $5.50, reflecting growth of 4% to 6%.
Gary Corona, Medtronic’s Interim Chief Financial Officer, commented, “The strong revenue performance has positively impacted our bottom line, with adjusted EPS exceeding expectations. We are confident in our ability to sustain growth through continued product innovation and strategic investments, and we remain committed to restoring and enhancing our earnings power.”
Medtronic will continue to update investors and stakeholders on its performance, with the next financial results for the second quarter of FY25 scheduled for release on 19th November 2024. The company remains focused on leveraging its strong portfolio and ongoing innovation to drive future growth and deliver value to shareholders.
For further information, Medtronic’s earnings release and a replay of the related webcast are available on the company’s investor relations website.
Helen Barklam is a journalist and writer with more than 25 years experience. Helen has worked in a wide range of different sectors, including health and wellness, sport, digital marketing, home design and finance.