Medtronic corporate update
- Medtronic trimmed its full-year non-GAAP earnings guidance while highlighting recent deals and product wins. - Guidance was lowered to $5.50–$5.54 per share and UBS cut its price target to $90. - Investors noted the guidance cut even as Medtronic closed a $585M CathWorks deal and touted a GE neurosurgery tie-up plus the Altaviva award (investing.com) (medicaldevice-network.com) (finance.yahoo.com)
Medtronic cut its full-year adjusted profit outlook to $5.50 to $5.54 a share, and the lower forecast overshadowed a burst of dealmaking and product news. (medtechdive.com) The company had guided in February to $5.62 to $5.66 a share for fiscal 2026, which ends in April, before reducing that range in a securities filing late in March. MedTech Dive and other trade outlets tied the cut to updates around Medtronic’s MiniMed diabetes business after its March 9 initial public offering. (medtechdive.com) (massdevice.com) UBS responded by cutting its Medtronic price target to $90 from $104 while keeping a Neutral rating, citing dilution from the MiniMed listing. Investing.com said the stock was trading around $83 when the note was published. (investing.com 1) (investing.com 2) The diabetes move is central to Medtronic’s current reset. MiniMed sold 45 million shares at $20 in March, and Medtronic had already told investors that the timing of the offering would reduce fourth-quarter earnings by about $0.04 a share. (iposcoop.com) (intellectia.ai) At the same time, Medtronic is still spending to add products in faster-growing parts of its portfolio. On April 20, the company said it completed its $585 million acquisition of CathWorks, whose FFRangio system analyzes coronary artery disease from routine angiograms without a pressure wire or a drug-induced stress test. (medtronic.com) Medtronic had worked with CathWorks since 2022 under a co-promotion agreement in the United States, Europe and Japan, and the acquisition includes possible additional earn-out payments. The company said the deal expands its cardiovascular business, one of its stronger recent growth areas. (medtronic.com) (medicaldevice-network.com) The company is also pushing hospital equipment partnerships. GE HealthCare said on April 9 that its bkActiv ultrasound system now integrates with Medtronic’s Stealth AXiS navigation platform for cranial surgery, giving surgeons live imaging alongside navigation during brain procedures. (gehealthcare.com) Another recent Medtronic product win came in pelvic health. Yahoo Finance said the company’s Altaviva system for urinary urge incontinence won an Edison Award this month, adding to a string of launches Medtronic has used to argue that its pipeline is improving even as the earnings outlook moved lower. (finance.yahoo.com) The near-term test is whether investors focus on the lower fiscal 2026 earnings base or on the businesses Medtronic is trying to build after MiniMed. The company is scheduled to report fourth-quarter and full-year fiscal 2026 results on June 3. (medtronic.com) (barchart.com)
