Medtronic Lifts Outlook as 2Q Profit, Sales Rise

Dow Jones11-18
 

By Connor Hart

 

Medtronic raised its fiscal-year outlook after logging higher profit and sales in its latest quarter, boosted by robust demand across end markets and healthy procedure volumes.

The medical-device maker said Tuesday it now expects organic revenue to grow about 5.5% from its last fiscal year, compared with a prior outlook of up 5%. The company also raised the low end of its adjusted earnings outlook to $5.62 a share from $5.60 a share, while maintaining the high end at $5.66 a share.

Analysts polled by FactSet forecast adjusted earnings of $5.62 a share.

Finance chief Thierry Pieton attributed the new outlook to Medtronic's outperformance during the first half of its fiscal year, as well as the company's confidence for continued revenue growth in the coming quarters.

Shares rose 4.9%, to $101, in premarket trading.

For its three months ended Oct. 24, Medtronic posted a profit of $1.37 billion, or $1.07 a share, compared with $1.27 billion, or 99 cents a share, in last year's comparable quarter.

Stripping out one-time items, adjusted earnings were $1.36 a share. Analysts were looking for adjusted earnings of $1.31 a share.

Net sales rose 6.6% to $8.96 billion and topped Wall Street models for $8.87 billion.

Revenue in Medtronic's cardiovascular unit climbed 11% to $3.44 billion, while revenue in its neuroscience segment gained 4.5% to $2.56 billion. The company's medical-surgical business notched revenue of $2.17 billion, up 2.1% from last year, and its diabetes segment posted revenue of $757 million, a 10% increase from a year earlier.

Chief Executive Geoff Martha said procedure volumes and end markets are robust. "Looking ahead, we are positioned for even greater acceleration of revenue growth in the back half of the year," he added.

 

Write to Connor Hart at connor.hart@wsj.com

 

(END) Dow Jones Newswires

November 18, 2025 07:31 ET (12:31 GMT)

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