Q3 2025 Medtronic PLC Earnings Call Transcript
Key Points
- Medtronic PLC (MDT) reported its ninth consecutive quarter of mid-single-digit revenue growth, with strong performances in Cardiac Ablation Solutions, Leadless Pacing, Neuromodulation, and Diabetes.
- The company achieved a 22% growth in Cardiac Ablation Solutions, driven by its Pulse Field Ablation (PFA) portfolio, and expects this rapid growth trajectory to continue.
- Medtronic PLC (MDT) reported high single-digit EPS growth, exceeding both consensus and the high end of its guidance range, with improvements in gross and operating margins.
- The company is advancing its innovation pipeline, including the Renal Denervation market, which is expected to be a significant growth driver.
- Medtronic PLC (MDT) is making progress with its Hugo soft tissue robotic platform, with plans to enter the US market and expand indications, which is expected to be a growth driver in fiscal '26.
- The Medical Surgical portfolio experienced a change in US distributor buying patterns, impacting surgical performance by a couple of hundred basis points.
- The Peripheral Vascular segment saw a low single-digit decline, attributed to volatility in the China market due to VBP (Volume-Based Procurement) issues.
- The company faces ongoing market and competitive pressures in its Stapling franchise, affecting growth levels in the Surgical business.
- Medtronic PLC (MDT) is dealing with foreign exchange headwinds, which have impacted financial performance, although efforts are being made to mitigate this risk.
- The company is navigating challenges in balancing investment in growth drivers with the need to continue driving margin expansion.
Good morning. I'm Ryan Weispfenning, Vice President and Head of Medtronic Investor Relations, and I appreciate that you're joining us for our fiscal '25 third quarter video earnings webcast. Before we go inside to hear our prepared remarks, I'll share a few details about today's webcast.
Joining me are Geoff Martha, Chairman and Chief Executive Officer; and Gary Corona, Interim Chief Financial Officer. Geoff and Gary will provide comments on the results of our third quarter, which ended on January 24, 2025, and our outlook for the remainder of fiscal year '25.
After our prepared remarks, the Executive VPs from each of our four segments will join us, and we'll take questions from the sell side analysts that cover the company. Today's program should last about an hour.
Earlier this morning we issued a press release containing our financial statements, divisional and geographic revenue summaries, and non-GAAP reconciliations. We also posted an earnings presentation that provides additional details on
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