Medtronic (NYSE:MDT) Shares Gap Up on Earnings Beat

Medtronic PLC (NYSE:MDT) shares gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $73.75, but opened at $77.12. Medtronic shares last traded at $77.07, with a volume of 3,798,719 shares.

The medical technology company reported $1.55 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.54 by $0.01. The business had revenue of $9.81 billion for the quarter, compared to analyst estimates of $9.61 billion. Medtronic had a return on equity of 14.82% and a net margin of 13.00%.Medtronic’s revenue was up 9.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.62 earnings per share.

Medtronic Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, April 17th. Stockholders of record on Friday, March 27th were issued a $0.71 dividend. This represents a $2.84 annualized dividend and a dividend yield of 3.7%. The ex-dividend date of this dividend was Friday, March 27th. Medtronic’s dividend payout ratio is presently 79.11%.

Medtronic News Roundup

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic beat Q4 earnings and revenue estimates, reporting adjusted EPS of $1.55 on revenue of $9.81 billion, helped by robust demand in heart devices and other core businesses.
• Positive Sentiment: Several growth engines showed standout performance, including Cardiac Ablation Solutions revenue up 78% globally and 124% in the U.S., while cardiovascular and medical-surgical segments also grew solidly.
• Positive Sentiment: The company raised its quarterly dividend to $0.72 per share for fiscal 2027, underscoring balance-sheet strength and ongoing shareholder returns.
• Positive Sentiment: Medtronic announced strategic expansion efforts for its Hugo robotic-assisted surgery system and additional cardiac ablation investments, signaling continued investment in higher-growth areas.
• Neutral Sentiment: FY26 was Medtronic’s strongest annual top-line growth in 10 years, but non-GAAP margin pressure and lower adjusted EPS growth suggest profitability remains a work in progress.
• Negative Sentiment: Management’s outlook for fiscal 2027 appears softer than some investors hoped, with tariff-related costs and other headwinds weighing on forward expectations.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on MDT shares. Stifel Nicolaus dropped their price target on shares of Medtronic from $105.00 to $95.00 and set a “hold” rating on the stock in a research report on Monday, April 6th. Jefferies Financial Group reissued a “hold” rating and issued a $95.00 price objective on shares of Medtronic in a research report on Thursday, April 23rd. Argus lowered their price objective on shares of Medtronic from $125.00 to $115.00 and set a “buy” rating on the stock in a research note on Monday, April 6th. Wall Street Zen cut shares of Medtronic from a “buy” rating to a “hold” rating in a report on Saturday, April 11th. Finally, Piper Sandler cut their target price on shares of Medtronic from $105.00 to $91.00 and set a “neutral” rating for the company in a research note on Wednesday, April 1st. Fifteen equities research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $105.45.

Hedge Funds Weigh In On Medtronic

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Curbstone Financial Management Corp boosted its position in Medtronic by 1.8% during the fourth quarter. Curbstone Financial Management Corp now owns 5,594 shares of the medical technology company’s stock worth $537,000 after purchasing an additional 100 shares during the period. New England Capital Financial Advisors LLC grew its position in Medtronic by 7.8% during the fourth quarter. New England Capital Financial Advisors LLC now owns 1,403 shares of the medical technology company’s stock worth $135,000 after buying an additional 101 shares in the last quarter. Ipsen Advisor Group LLC increased its stake in Medtronic by 1.7% during the 4th quarter. Ipsen Advisor Group LLC now owns 5,952 shares of the medical technology company’s stock worth $572,000 after acquiring an additional 101 shares during the period. Quadrant Capital Group LLC increased its stake in Medtronic by 0.3% during the 4th quarter. Quadrant Capital Group LLC now owns 32,477 shares of the medical technology company’s stock worth $3,120,000 after acquiring an additional 101 shares during the period. Finally, Baker Tilly Wealth Management LLC raised its holdings in Medtronic by 3.3% in the 4th quarter. Baker Tilly Wealth Management LLC now owns 3,221 shares of the medical technology company’s stock valued at $309,000 after acquiring an additional 102 shares in the last quarter. 82.06% of the stock is owned by institutional investors.

Medtronic Price Performance

The company has a fifty day simple moving average of $82.11 and a two-hundred day simple moving average of $92.49. The stock has a market capitalization of $98.95 billion, a price-to-earnings ratio of 21.47, a PEG ratio of 1.76 and a beta of 0.58. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.87 and a current ratio of 2.54.

About Medtronic

Medtronic plc is a global medical technology company that develops and manufactures a broad range of therapeutic devices and health care solutions. Headquartered legally in Ireland with principal operational offices in the United States, the company markets products to hospitals, physicians and health systems worldwide and has grown from its founding in 1949 into one of the largest medical-device manufacturers serving global health-care markets.

Medtronic’s offerings span several clinical areas, including cardiac rhythm and heart failure (pacemakers, implantable cardioverter?defibrillators and related cardiac therapies), minimally invasive and surgical technologies (laparoscopic and advanced energy devices, visualization systems and surgical innovations), restorative therapies (spine and orthopedics, neuromodulation and neurovascular treatments) and diabetes management (insulin-delivery systems and glucose monitoring solutions).