Delivering durable revenue growth with strong
earnings power; strength in Pulsed Field Ablation, Pacing,
Structural Heart, Diabetes, and Neuromodulation
GALWAY, Ireland, Feb. 18,
2025 /CNW/ -- Medtronic plc (NYSE: MDT) today
announced financial results for its third quarter (Q3) of fiscal
year 2025 (FY25), which ended January 24,
2025.
Key Highlights
- Revenue of $8.3 billion increased
2.5% as reported and 4.1% organic
- GAAP diluted EPS of $1.01
increased 2%; non-GAAP diluted EPS of $1.39 increased 7%
- Company reiterates full year revenue and EPS guidance
- Cardiac Ablation Solutions revenue increased low-20s on
strength of pulsed field ablation (PFA) products
- U.S. Centers for Medicare and Medicaid (CMS) announced coverage
for Renal Denervation for the treatment of Hypertension expected to
become final on or before October 11,
2025
Financial Results
Medtronic reported Q3 worldwide
revenue of $8.292 billion, an
increase of 2.5% as reported and 4.1% on an organic basis. Organic
revenue growth comparison excludes:
- Other revenue of $32 million in
the current year and $53 million in
the prior year; and
- Foreign currency translation of -$103
million on the remaining segments.
As reported, Q3 GAAP net income and diluted earnings per share
(EPS) were $1.294 billion and
$1.01, respectively, representing a
decrease of 2% and an increase of 2%, respectively. As detailed in
the financial schedules included at the end of this release, Q3
non-GAAP net income and non-GAAP diluted EPS were $1.787 billion and $1.39, respectively, representing increases of 3%
and 7%, respectively.
"We delivered strong earnings this quarter, with significant
improvements in both our gross margin and operating margin on the
back of our ninth quarter in a row of mid-single digit organic
revenue growth," said Geoff Martha,
Medtronic chairman and chief executive officer. "We are starting to
see the results from our long term investments in groundbreaking
innovation, such as pulsed field ablation, to drive growth in some
of the most attractive markets in MedTech."
Cardiovascular Portfolio
The Cardiovascular Portfolio
includes the Cardiac Rhythm & Heart Failure (CRHF), Structural
Heart & Aortic (SHA), and Coronary & Peripheral Vascular
(CPV) divisions. Revenue of $3.037
billion increased 3.7% as reported and 5.0% organic, with
mid-single digit increases in CRHF and SH&A, and a low-single
digit increase in CPV, all on an organic basis.
- CRHF results included mid-single digit growth in Cardiac Rhythm
Management, driven by low-double digit growth in Cardiac Pacing
Therapies, including mid-20s growth in Micra™ transcatheter pacing
systems; Cardiac Ablation Solutions achieved low-20s growth on
rapid adoption of the PulseSelect™ and Affera™ Sphere-9™ PFA
systems
- SHA results driven by high-single digit Structural Heart
growth, excluding congenital, on the continued strength of the
Evolut™ FX+ TAVR system, and high-single digit growth in Cardiac
Surgery
- CPV growth driven by high-single digit growth in balloons and
mid-single digit growth in guide catheters and drug-coated
balloons
- Recent U.S. FDA approval for additional pulsed field ablation
manufacturing site in Galway; immediately boosts Affera™
supply
- Expanded U.S. presence in fast-growing carotid market with
exclusive Contego Medical distribution agreement; includes recently
FDA approved carotid stenting system and option to acquire; Contego
Medical running clinical trial on next-generation transcarotid
artery revascularization (TCAR) system
- Announced CMS opened a National Coverage Analysis (NCA) on
Renal Denervation for the treatment of hypertension, with coverage
expected to become final on or before October 11, 2025
Neuroscience Portfolio
The Neuroscience Portfolio
includes the Cranial & Spinal Technologies (CST), Specialty
Therapies, and Neuromodulation divisions. Revenue of $2.458 billion increased 4.4% as reported and
5.2% organic, with a low-double digit increase in Neuromodulation,
mid-single digit increase in CST, and low-single digit increase in
Specialty Therapies, all on an organic basis.
- CST driven by high-single digit Neurosurgery growth on
continued adoption of the AiBLE™ ecosystem of enabling technology;
CST in the U.S. grew high-single digits, winning share
- Specialty Therapies results driven by mid-single digit growth
in Pelvic Health on continued adoption of the InterStim X™ system;
ENT grew low-single digits on strength in PTeye™ capital and
disposables; Neurovascular, excluding China, grew mid-single digit with strength in
flow diversion
- Neuromodulation above market performance driven by low-double
digit Pain Stim growth, including high-teens U.S. growth, on the
continued launch of the Inceptiv™ spinal cord stimulator; Brain
Modulation grew mid-teens globally and mid-twenties in the U.S. on
the continued launch of the Percept™ RC deep brain stimulator (DBS)
with BrainSense™ technology
- Received CE Mark for BrainSense™ Adaptive Deep Brain
Stimulation (aDBS), a real-time closed-loop system
Medical Surgical Portfolio
The Medical Surgical
Portfolio includes the Surgical & Endoscopy (SE) and the Acute
Care & Monitoring (ACM) divisions. Revenue of $2.072 billion decreased 1.9% as reported and
decreased 0.4% organic, with flat organic result in SE and
low-single digit organic decline in ACM.
- SE results were affected by ongoing stapling segment pressures
and a transient change in U.S. distributor buying patterns,
partially offset by high-single digit growth in Emerging Markets
and high-single digit growth in Advanced Energy on continued
adoption of LigaSure™ vessel sealing technology
- ACM performance included high-single digit declines in Nellcor™
blood oxygen management products on a 30% year-over-year market
decline in U.S. respiratory-related hospitalizations in the
quarter; this was partially offset by high-single digit growth in
Perioperative Complications
Diabetes
Revenue of $694
million increased 8.4% as reported and 10.4% organic.
- U.S. revenue grew mid-single digits on the continued adoption
of the MiniMed™ 780G automated insulin delivery (AID) system, with
an increase in the MiniMed™ 780G installed base and strong CGM
attachment rates
- International revenue grew low-double digits on increasing CGM
attachment as users upgrade to the Simplera Sync™ sensor
Guidance
Medtronic today reiterated its revenue growth
and EPS guidance for FY25.
The company continues to expect FY25 organic revenue growth in
the range of 4.75% to 5%. The organic revenue growth guidance
excludes the impact of foreign currency and revenue reported as
Other. Including Other revenue and the impact of foreign currency
exchange, if recent foreign currency exchange rates hold, FY25
revenue growth would be in the range of 3.4% to 3.8%.
The company continues to expect FY25 diluted non-GAAP EPS in the
range of $5.44 to $5.50. This includes an estimated -5% impact from
foreign currency exchange based on recent rates. The company's
guidance represents FY25 diluted non-GAAP EPS growth in the range
of 4.6% to 5.8%.
"EPS came in above the high end of our guidance range. We were
pleased with the operational performance of the business this
quarter, turning mid-single digit organic growth into leveraged
earnings, highlighted by healthy gross margin improvement," said
Gary Corona, Medtronic interim chief
financial officer. "Looking ahead, our restored earnings power
continues. We will accelerate both top and bottom line growth in
Q4, resulting in high-single digit adjusted EPS growth in the back
half of our fiscal year."
Video Webcast Information
Medtronic will host a video
webcast today, February 18, at
8:00 a.m. EST (7:00 a.m. CST) to provide information about its
businesses for the public, investors, analysts, and news media.
This webcast can be accessed by clicking on the Events icon at
investorrelations.medtronic.com, and this earnings release will be
archived at news.medtronic.com. Within 24 hours of the webcast, a
replay of the webcast and transcript of the company's prepared
remarks will be available by clicking on the Events icon at
investorrelations.medtronic.com.
Medtronic plans to report its FY25 fourth quarter results on
Wednesday, May 21, 2025. For fiscal
year 2026, Medtronic plans to report its first, second, third, and
fourth quarter results on Tuesday, August
19, 2025, November 18, 2025,
February 17, 2026, and Wednesday, May 20, 2026, respectively.
Confirmation and additional details will be provided closer to the
specific event.
Financial Schedules and Earnings Presentation
The
third quarter financial schedules and non-GAAP reconciliations can
be viewed by clicking on the Investor Events link at
investorrelations.medtronic.com. To view a printable PDF of the
financial schedules and non-GAAP reconciliations, click here. To
view the third quarter earnings presentation, click here.
|
MEDTRONIC
PLC
WORLD WIDE
REVENUE(1)
(Unaudited)
|
|
|
THIRD QUARTER
|
|
|
YEAR-TO-DATE
|
|
REPORTED
|
|
|
|
ORGANIC
|
|
|
REPORTED
|
|
|
|
ORGANIC
|
|
(in millions)
|
FY25
|
|
FY24
|
|
Growth
|
|
Currency
Impact(3)
|
|
Adjusted
FY25(4)
|
|
Adjusted
FY24(4)
|
|
Growth
|
|
|
FY25
|
|
FY24
|
|
Growth
|
|
Currency
Impact(3)
|
|
Adjusted
FY25(5)
|
|
Adjusted
FY24(5)
|
|
Growth
|
|
Cardiovascular
|
$ 3,037
|
|
$ 2,929
|
|
3.7 %
|
|
$
(38)
|
|
$ 3,075
|
|
$ 2,929
|
|
5.0 %
|
|
|
$ 9,145
|
|
$ 8,702
|
|
5.1 %
|
|
$
(62)
|
|
$ 9,207
|
|
$ 8,702
|
|
5.8 %
|
|
Cardiac Rhythm &
Heart Failure
|
1,545
|
|
1,470
|
|
5.1
|
|
(18)
|
|
1,563
|
|
1,470
|
|
6.3
|
|
|
4,659
|
|
4,408
|
|
5.7
|
|
(26)
|
|
4,684
|
|
4,408
|
|
6.3
|
|
Structural Heart &
Aortic
|
874
|
|
843
|
|
3.7
|
|
(13)
|
|
887
|
|
843
|
|
5.2
|
|
|
2,610
|
|
2,475
|
|
5.4
|
|
(21)
|
|
2,631
|
|
2,475
|
|
6.3
|
|
Coronary &
Peripheral Vascular
|
618
|
|
616
|
|
0.3
|
|
(8)
|
|
626
|
|
616
|
|
1.6
|
|
|
1,876
|
|
1,818
|
|
3.2
|
|
(15)
|
|
1,891
|
|
1,818
|
|
4.0
|
|
Neuroscience
|
2,458
|
|
2,355
|
|
4.4
|
|
(21)
|
|
2,478
|
|
2,355
|
|
5.2
|
|
|
7,226
|
|
6,861
|
|
5.3
|
|
(29)
|
|
7,255
|
|
6,861
|
|
5.7
|
|
Cranial & Spinal
Technologies
|
1,250
|
|
1,204
|
|
3.8
|
|
(9)
|
|
1,259
|
|
1,204
|
|
4.6
|
|
|
3,632
|
|
3,465
|
|
4.8
|
|
(15)
|
|
3,646
|
|
3,465
|
|
5.2
|
|
Specialty
Therapies
|
732
|
|
726
|
|
0.8
|
|
(8)
|
|
740
|
|
726
|
|
1.9
|
|
|
2,181
|
|
2,126
|
|
2.6
|
|
(10)
|
|
2,191
|
|
2,126
|
|
3.1
|
|
Neuromodulation
|
476
|
|
425
|
|
12.0
|
|
(4)
|
|
480
|
|
425
|
|
12.9
|
|
|
1,413
|
|
1,270
|
|
11.2
|
|
(5)
|
|
1,417
|
|
1,270
|
|
11.6
|
|
Medical Surgical
|
2,072
|
|
2,112
|
|
(1.9)
|
|
(32)
|
|
2,104
|
|
2,112
|
|
(0.4)
|
|
|
6,196
|
|
6,219
|
|
(0.4)
|
|
(50)
|
|
6,246
|
|
6,219
|
|
0.4
|
|
Surgical &
Endoscopy
|
1,596
|
|
1,616
|
|
(1.2)
|
|
(26)
|
|
1,622
|
|
1,616
|
|
0.4
|
|
|
4,790
|
|
4,803
|
|
(0.3)
|
|
(40)
|
|
4,829
|
|
4,803
|
|
0.5
|
|
Acute Care &
Monitoring
|
476
|
|
495
|
|
(3.9)
|
|
(5)
|
|
481
|
|
495
|
|
(2.8)
|
|
|
1,406
|
|
1,416
|
|
(0.7)
|
|
(10)
|
|
1,417
|
|
1,416
|
|
—
|
|
Diabetes
|
694
|
|
640
|
|
8.4
|
|
(12)
|
|
706
|
|
640
|
|
10.4
|
|
|
2,027
|
|
1,829
|
|
10.8
|
|
(8)
|
|
2,035
|
|
1,829
|
|
11.3
|
|
Total Reportable Segments
|
8,260
|
|
8,035
|
|
2.8
|
|
(103)
|
|
8,363
|
|
8,035
|
|
4.1
|
|
|
24,593
|
|
23,610
|
|
4.2
|
|
(149)
|
|
24,742
|
|
23,610
|
|
4.8
|
|
Other(2)
|
32
|
|
53
|
|
(41.1)
|
|
(1)
|
|
—
|
|
—
|
|
—
|
|
|
17
|
|
164
|
|
(89.9)
|
|
(3)
|
|
—
|
|
—
|
|
—
|
|
TOTAL
|
$ 8,292
|
|
$ 8,089
|
|
2.5 %
|
|
$
(104)
|
|
$ 8,363
|
|
$ 8,035
|
|
4.1 %
|
|
|
$
24,610
|
|
$
23,775
|
|
3.5 %
|
|
$
(152)
|
|
$
24,742
|
|
$
23,610
|
|
4.8 %
|
|
|
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million and,
therefore, may not sum. Percentages have been calculated using
actual, non-rounded figures and, therefore, may not recalculate
precisely.
|
|
(2)
|
Includes historical
operations and ongoing transition agreements from businesses the
Company has exited or divested, and specifically for the three
months ended July 26, 2024, impacting year-to-date figures, $90
million of incremental Italian payback accruals resulting from the
two July 22, 2024 rulings by the Constitutional Court of Italy
relating to certain prior years since 2015.
|
|
(3)
|
The currency impact to
revenue measures the change in revenue between current and prior
year periods using constant exchange rates.
|
|
(4)
|
The three months ended
January 24, 2025 excludes $71 million of revenue adjustments
related to $32 million of inorganic revenue for the transition
activity noted in (2) and $103 million of unfavorable currency
impact on the remaining segments. The three months ended January
26, 2024 excludes $53 million of inorganic revenue related to the
transition activity noted in (2).
|
|
(5)
|
The nine months ended
January 24, 2025 excludes $132 million of revenue adjustments
related to $90 million of incremental Italian payback accruals
further described in note (2), $106 million of inorganic revenue
related to the transition activity noted in (2), and $149 million
of unfavorable currency impact on the remaining segments. The nine
months ended January 26, 2024 excludes $164 million of inorganic
revenue related to the transition activity noted in (2).
|
|
MEDTRONIC
PLC
U.S.
REVENUE(1)(2)
(Unaudited)
|
|
|
THIRD QUARTER
|
|
|
YEAR-TO-DATE
|
|
REPORTED
|
|
ORGANIC
|
|
|
REPORTED
|
|
ORGANIC
|
|
(in millions)
|
FY25
|
|
FY24
|
|
Growth
|
|
Adjusted
FY25
|
|
Adjusted
FY24
|
|
Growth
|
|
|
FY25
|
|
FY24
|
|
Growth
|
|
Adjusted
FY25
|
|
Adjusted
FY24
|
|
Growth
|
|
Cardiovascular
|
$ 1,405
|
|
$ 1,373
|
|
2.4 %
|
|
$ 1,405
|
|
$ 1,373
|
|
2.4 %
|
|
|
$ 4,242
|
|
$ 4,149
|
|
2.2 %
|
|
$ 4,242
|
|
$ 4,149
|
|
2.2 %
|
|
Cardiac Rhythm &
Heart Failure
|
775
|
|
745
|
|
4.1
|
|
775
|
|
745
|
|
4.1
|
|
|
2,309
|
|
2,247
|
|
2.8
|
|
2,309
|
|
2,247
|
|
2.8
|
|
Structural Heart &
Aortic
|
372
|
|
363
|
|
2.6
|
|
372
|
|
363
|
|
2.6
|
|
|
1,129
|
|
1,087
|
|
3.9
|
|
1,129
|
|
1,087
|
|
3.9
|
|
Coronary &
Peripheral Vascular
|
258
|
|
265
|
|
(2.8)
|
|
258
|
|
265
|
|
(2.8)
|
|
|
804
|
|
816
|
|
(1.4)
|
|
804
|
|
816
|
|
(1.4)
|
|
Neuroscience
|
1,689
|
|
1,556
|
|
8.5
|
|
1,689
|
|
1,556
|
|
8.5
|
|
|
4,931
|
|
4,614
|
|
6.9
|
|
4,931
|
|
4,614
|
|
6.9
|
|
Cranial & Spinal
Technologies
|
943
|
|
875
|
|
7.8
|
|
943
|
|
875
|
|
7.8
|
|
|
2,724
|
|
2,560
|
|
6.4
|
|
2,724
|
|
2,560
|
|
6.4
|
|
Specialty
Therapies
|
419
|
|
407
|
|
3.0
|
|
419
|
|
407
|
|
3.0
|
|
|
1,235
|
|
1,202
|
|
2.7
|
|
1,235
|
|
1,202
|
|
2.7
|
|
Neuromodulation
|
327
|
|
275
|
|
19.0
|
|
327
|
|
275
|
|
19.0
|
|
|
972
|
|
852
|
|
14.1
|
|
972
|
|
852
|
|
14.1
|
|
Medical Surgical
|
893
|
|
947
|
|
(5.8)
|
|
893
|
|
947
|
|
(5.8)
|
|
|
2,718
|
|
2,763
|
|
(1.6)
|
|
2,718
|
|
2,763
|
|
(1.6)
|
|
Surgical &
Endoscopy
|
623
|
|
663
|
|
(6.1)
|
|
623
|
|
663
|
|
(6.1)
|
|
|
1,928
|
|
1,971
|
|
(2.2)
|
|
1,928
|
|
1,971
|
|
(2.2)
|
|
Acute Care &
Monitoring
|
269
|
|
284
|
|
(5.1)
|
|
269
|
|
284
|
|
(5.1)
|
|
|
790
|
|
792
|
|
(0.2)
|
|
790
|
|
792
|
|
(0.2)
|
|
Diabetes
|
236
|
|
224
|
|
5.6
|
|
236
|
|
224
|
|
5.6
|
|
|
683
|
|
629
|
|
8.7
|
|
683
|
|
629
|
|
8.7
|
|
Total Reportable Segments
|
4,223
|
|
4,100
|
|
3.0
|
|
4,223
|
|
4,100
|
|
3.0
|
|
|
12,573
|
|
12,154
|
|
3.4
|
|
12,573
|
|
12,154
|
|
3.4
|
|
Other(3)
|
15
|
|
20
|
|
(26.4)
|
|
—
|
|
—
|
|
—
|
|
|
51
|
|
65
|
|
(21.3)
|
|
—
|
|
—
|
|
—
|
|
TOTAL
|
$ 4,237
|
|
$ 4,120
|
|
2.8 %
|
|
$ 4,223
|
|
$ 4,100
|
|
3.0 %
|
|
|
$
12,624
|
|
$
12,219
|
|
3.3 %
|
|
$
12,573
|
|
$
12,154
|
|
3.4 %
|
|
|
|
(1)
|
U.S. includes the
United States and U.S. territories.
|
|
(2)
|
The data in this
schedule has been intentionally rounded to the nearest million and,
therefore, may not sum. Percentages have been calculated using
actual, non-rounded figures and, therefore, may not recalculate
precisely.
|
|
(3)
|
Includes historical
operations and ongoing transition agreements from businesses the
Company has exited or divested.
|
|
MEDTRONIC
PLC
INTERNATIONAL
REVENUE(1)
(Unaudited)
|
|
|
THIRD QUARTER
|
|
|
YEAR-TO-DATE
|
|
REPORTED
|
|
|
|
ORGANIC
|
|
|
REPORTED
|
|
|
|
ORGANIC
|
|
(in millions)
|
FY25
|
|
FY24
|
|
Growth
|
|
Currency
Impact(3)
|
|
Adjusted
FY25(4)
|
|
Adjusted
FY24(4)
|
|
Growth
|
|
|
FY25
|
|
FY24
|
|
Growth
|
|
Currency
Impact(3)
|
|
Adjusted
FY25(5)
|
|
Adjusted
FY24(5)
|
|
Growth
|
|
Cardiovascular
|
$ 1,632
|
|
$ 1,556
|
|
4.9 %
|
|
$
(38)
|
|
$ 1,670
|
|
$ 1,556
|
|
7.3 %
|
|
|
$ 4,904
|
|
$ 4,552
|
|
7.7 %
|
|
$
(62)
|
|
$ 4,966
|
|
$ 4,552
|
|
9.1 %
|
|
Cardiac Rhythm &
Heart Failure
|
770
|
|
726
|
|
6.1
|
|
(18)
|
|
788
|
|
726
|
|
8.6
|
|
|
2,350
|
|
2,161
|
|
8.7
|
|
(26)
|
|
2,376
|
|
2,161
|
|
9.9
|
|
Structural Heart &
Aortic
|
502
|
|
480
|
|
4.6
|
|
(13)
|
|
515
|
|
480
|
|
7.2
|
|
|
1,482
|
|
1,389
|
|
6.7
|
|
(21)
|
|
1,503
|
|
1,389
|
|
8.2
|
|
Coronary &
Peripheral Vascular
|
360
|
|
350
|
|
2.6
|
|
(8)
|
|
368
|
|
350
|
|
4.9
|
|
|
1,072
|
|
1,002
|
|
7.0
|
|
(15)
|
|
1,087
|
|
1,002
|
|
8.5
|
|
Neuroscience
|
769
|
|
799
|
|
(3.7)
|
|
(21)
|
|
790
|
|
799
|
|
(1.1)
|
|
|
2,295
|
|
2,248
|
|
2.1
|
|
(29)
|
|
2,324
|
|
2,248
|
|
3.4
|
|
Cranial & Spinal
Technologies
|
307
|
|
329
|
|
(6.7)
|
|
(9)
|
|
316
|
|
329
|
|
(3.9)
|
|
|
907
|
|
905
|
|
0.3
|
|
(15)
|
|
922
|
|
905
|
|
1.9
|
|
Specialty
Therapies
|
313
|
|
319
|
|
(2.0)
|
|
(8)
|
|
321
|
|
319
|
|
0.4
|
|
|
947
|
|
924
|
|
2.4
|
|
(10)
|
|
957
|
|
924
|
|
3.5
|
|
Neuromodulation
|
149
|
|
150
|
|
(0.7)
|
|
(4)
|
|
153
|
|
150
|
|
1.8
|
|
|
441
|
|
419
|
|
5.4
|
|
(5)
|
|
446
|
|
419
|
|
6.5
|
|
Medical Surgical
|
1,180
|
|
1,164
|
|
1.3
|
|
(32)
|
|
1,211
|
|
1,164
|
|
4.0
|
|
|
3,478
|
|
3,456
|
|
0.6
|
|
(50)
|
|
3,528
|
|
3,456
|
|
2.1
|
|
Surgical &
Endoscopy
|
973
|
|
953
|
|
2.1
|
|
(26)
|
|
999
|
|
953
|
|
4.9
|
|
|
2,862
|
|
2,832
|
|
1.1
|
|
(40)
|
|
2,902
|
|
2,832
|
|
2.5
|
|
Acute Care &
Monitoring
|
206
|
|
211
|
|
(2.3)
|
|
(5)
|
|
212
|
|
211
|
|
0.2
|
|
|
616
|
|
624
|
|
(1.4)
|
|
(10)
|
|
626
|
|
624
|
|
0.3
|
|
Diabetes
|
457
|
|
416
|
|
9.9
|
|
(12)
|
|
470
|
|
416
|
|
12.9
|
|
|
1,344
|
|
1,200
|
|
12.0
|
|
(8)
|
|
1,351
|
|
1,200
|
|
12.6
|
|
Total Reportable Segments
|
4,038
|
|
3,935
|
|
2.6
|
|
(103)
|
|
4,141
|
|
3,935
|
|
5.2
|
|
|
12,020
|
|
11,456
|
|
4.9
|
|
(149)
|
|
12,169
|
|
11,456
|
|
6.2
|
|
Other(2)
|
17
|
|
34
|
|
(49.8)
|
|
(1)
|
|
—
|
|
—
|
|
—
|
|
|
(35)
|
|
99
|
|
(134.8)
|
|
(3)
|
|
—
|
|
—
|
|
—
|
|
TOTAL
|
$ 4,055
|
|
$ 3,968
|
|
2.2 %
|
|
$
(104)
|
|
$ 4,141
|
|
$ 3,935
|
|
5.2 %
|
|
|
$
11,986
|
|
$
11,555
|
|
3.7 %
|
|
$
(152)
|
|
$
12,169
|
|
$
11,456
|
|
6.2 %
|
|
|
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million and,
therefore, may not sum. Percentages have been calculated using
actual, non-rounded figures and, therefore, may not recalculate
precisely.
|
|
(2)
|
Includes historical
operations and ongoing transition agreements from businesses the
Company has exited or divested, and specifically for the three
months ended July 26, 2024, impacting year-to-date figures, $90
million of incremental Italian payback accruals resulting from the
two July 22, 2024 rulings by the Constitutional Court of Italy
relating to certain prior years since 2015.
|
|
(3)
|
The currency impact to
revenue measures the change in revenue between current and prior
year periods using constant exchange rates.
|
|
(4)
|
The three months ended
January 24, 2025 excludes $86 million of revenue adjustments
related to $17 million of inorganic revenue for the transition
activity noted in (2), and $103 million of unfavorable currency
impact on the remaining segments. The three months ended January
26, 2024 excludes $34 million of inorganic revenue related to the
transition activity noted in (2).
|
|
(5)
|
The nine months ended
January 24, 2025 excludes $183 million of revenue adjustments
related to $90 million of incremental Italian payback accruals
further described in note (2), $55 million of inorganic revenue
related to the transition activity noted in (2), and $149 million
of unfavorable currency impact on the remaining segments. The nine
months ended January 26, 2024 excludes $99 million of inorganic
revenue related to the transition activity noted in (2).
|
|
MEDTRONIC
PLC
CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
|
|
|
Three months ended
|
|
Nine months ended
|
|
(in millions, except per share
data)
|
January 24,
2025
|
|
January 26,
2024
|
|
January 24,
2025
|
|
January 26,
2024
|
|
Net sales
|
$
8,292
|
|
$
8,089
|
|
$
24,610
|
|
$
23,775
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of products sold,
excluding amortization of intangible assets
|
2,779
|
|
2,782
|
|
8,485
|
|
8,172
|
|
Research and
development expense
|
675
|
|
695
|
|
2,048
|
|
2,060
|
|
Selling, general, and
administrative expense
|
2,717
|
|
2,673
|
|
8,129
|
|
7,971
|
|
Amortization of
intangible assets
|
416
|
|
419
|
|
1,243
|
|
1,274
|
|
Restructuring charges,
net
|
43
|
|
20
|
|
120
|
|
114
|
|
Certain litigation
charges, net
|
22
|
|
—
|
|
104
|
|
105
|
|
Other operating
(income) expense, net
|
(5)
|
|
17
|
|
(38)
|
|
(13)
|
|
Operating profit
|
1,646
|
|
1,483
|
|
4,519
|
|
4,091
|
|
Other non-operating
income, net
|
(72)
|
|
(177)
|
|
(403)
|
|
(407)
|
|
Interest expense,
net
|
179
|
|
188
|
|
555
|
|
517
|
|
Income before income taxes
|
1,540
|
|
1,472
|
|
4,367
|
|
3,982
|
|
Income tax provision
|
237
|
|
135
|
|
737
|
|
936
|
|
Net income
|
1,303
|
|
1,337
|
|
3,630
|
|
3,045
|
|
Net income attributable to noncontrolling
interests
|
(9)
|
|
(15)
|
|
(24)
|
|
(23)
|
|
Net income attributable to
Medtronic
|
$
1,294
|
|
$
1,322
|
|
$
3,606
|
|
$
3,022
|
|
Basic earnings per share
|
$
1.01
|
|
$
0.99
|
|
$
2.80
|
|
$
2.27
|
|
Diluted earnings per share
|
$
1.01
|
|
$
0.99
|
|
$
2.79
|
|
$
2.27
|
|
Basic weighted average shares
outstanding
|
1,282.4
|
|
1,329.7
|
|
1,286.7
|
|
1,330.1
|
|
Diluted weighted average shares
outstanding
|
1,286.2
|
|
1,331.7
|
|
1,290.6
|
|
1,332.4
|
|
|
The data in the
schedule above has been intentionally rounded to the nearest
million.
|
|
MEDTRONIC
PLC
GAAP TO NON-GAAP
RECONCILIATIONS(1)
(Unaudited)
|
|
|
Three months ended January 24,
2025
|
|
(in millions, except per share
data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to
Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
|
GAAP
|
$
8,292
|
|
$
2,779
|
|
66.5 %
|
|
$ 1,646
|
|
19.9 %
|
|
$
1,540
|
|
$
1,294
|
|
$ 1.01
|
|
15.4 %
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
—
|
|
—
|
|
—
|
|
416
|
|
5.0
|
|
416
|
|
339
|
|
0.26
|
|
18.5
|
|
Restructuring and
associated costs(2)
|
—
|
|
(4)
|
|
—
|
|
46
|
|
0.6
|
|
46
|
|
37
|
|
0.03
|
|
19.6
|
|
Acquisition and
divestiture-related items(3)
|
—
|
|
(1)
|
|
—
|
|
28
|
|
0.3
|
|
28
|
|
23
|
|
0.02
|
|
17.9
|
|
Certain litigation
charges, net
|
—
|
|
—
|
|
—
|
|
22
|
|
0.3
|
|
22
|
|
18
|
|
0.01
|
|
22.7
|
|
(Gain)/loss on
minority investments(4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
68
|
|
52
|
|
0.04
|
|
22.1
|
|
Medical device
regulations(5)
|
—
|
|
(8)
|
|
0.1
|
|
11
|
|
0.1
|
|
11
|
|
9
|
|
0.01
|
|
18.2
|
|
Certain tax
adjustments, net
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
15
|
|
0.01
|
|
—
|
|
Non-GAAP
|
$
8,292
|
|
$
2,766
|
|
66.6 %
|
|
$ 2,169
|
|
26.2 %
|
|
$
2,130
|
|
$
1,787
|
|
$ 1.39
|
|
15.7 %
|
|
Currency
impact
|
104
|
|
61
|
|
(0.3)
|
|
(4)
|
|
(0.4)
|
|
|
|
|
|
(0.01)
|
|
|
|
Currency Adjusted
|
$
8,396
|
|
$
2,827
|
|
66.3 %
|
|
$ 2,165
|
|
25.8 %
|
|
|
|
|
|
$ 1.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended January 26,
2024
|
|
(in millions, except per share
data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to
Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
|
GAAP
|
$
8,089
|
|
$
2,782
|
|
65.6 %
|
|
$ 1,483
|
|
18.3 %
|
|
$
1,472
|
|
$
1,322
|
|
$ 0.99
|
|
9.2 %
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
—
|
|
—
|
|
—
|
|
419
|
|
5.2
|
|
419
|
|
354
|
|
0.27
|
|
15.5
|
|
Restructuring and
associated costs(2)
|
—
|
|
(12)
|
|
0.1
|
|
55
|
|
0.7
|
|
55
|
|
46
|
|
0.03
|
|
16.4
|
|
Acquisition and
divestiture-related items(3)
|
—
|
|
(12)
|
|
0.1
|
|
58
|
|
0.7
|
|
58
|
|
52
|
|
0.04
|
|
10.3
|
|
(Gain)/loss on
minority investments(4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
24
|
|
24
|
|
0.02
|
|
—
|
|
Medical device
regulations(5)
|
—
|
|
(18)
|
|
0.2
|
|
26
|
|
0.3
|
|
26
|
|
21
|
|
0.02
|
|
19.2
|
|
Certain tax
adjustments, net(6)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(92)
|
|
(0.07)
|
|
—
|
|
Non-GAAP
|
$
8,089
|
|
$
2,740
|
|
66.1 %
|
|
$ 2,042
|
|
25.2 %
|
|
$
2,055
|
|
$
1,728
|
|
$ 1.30
|
|
15.2 %
|
|
|
|
See description of
non-GAAP financial measures contained in the press release dated
February 18, 2025.
|
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million or
$0.01 for EPS figures, and, therefore, may not sum.
|
|
(2)
|
Associated costs
primarily include salaries and wages for employees supporting the
restructuring activities, consulting expenses, and asset
write-offs.
|
|
(3)
|
The charges primarily
include business combination costs, changes in fair value of
contingent consideration, and exit of business-related
charges.
|
|
(4)
|
We exclude unrealized
and realized gains and losses on our minority investments as we do
not believe that these components of income or expense have a
direct correlation to our ongoing or future business
operations.
|
|
(5)
|
The charges represent
incremental costs of complying with the new European Union (E.U.)
medical device regulations for previously registered products and
primarily include charges for contractors supporting the project
and other direct third-party expenses. We consider these costs to
be duplicative of previously incurred costs and/or one-time costs,
which are limited to a specific time period.
|
|
(6)
|
The net tax benefit
primarily relates to a change in a Swiss Cantonal tax rate
associated with previously established deferred tax assets from
intercompany intellectual property transactions and the step up in
tax basis for Swiss Cantonal purposes.
|
|
MEDTRONIC
PLC
GAAP TO NON-GAAP
RECONCILIATIONS(1)
(Unaudited)
|
|
|
Nine months ended January 24,
2025
|
|
(in millions, except per share
data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
|
GAAP
|
$
24,610
|
|
$
8,485
|
|
65.5 %
|
|
$ 4,519
|
|
18.4 %
|
|
$
4,367
|
|
$
3,606
|
|
$ 2.79
|
|
16.9 %
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
—
|
|
—
|
|
—
|
|
1,243
|
|
4.9
|
|
1,243
|
|
1,017
|
|
0.79
|
|
18.3
|
|
Restructuring and
associated costs(2)
|
—
|
|
(24)
|
|
0.1
|
|
154
|
|
0.6
|
|
154
|
|
124
|
|
0.10
|
|
19.5
|
|
Acquisition and
divestiture-related items(3)
|
—
|
|
(17)
|
|
—
|
|
15
|
|
0.1
|
|
15
|
|
3
|
|
—
|
|
73.3
|
|
Certain litigation
charges, net
|
—
|
|
—
|
|
—
|
|
104
|
|
0.4
|
|
104
|
|
86
|
|
0.07
|
|
17.3
|
|
(Gain)/loss on
minority investments(4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
41
|
|
14
|
|
0.01
|
|
61.0
|
|
Medical device
regulations(5)
|
—
|
|
(27)
|
|
0.1
|
|
38
|
|
0.2
|
|
38
|
|
30
|
|
0.02
|
|
21.1
|
|
Other(6)
|
90
|
|
—
|
|
0.2
|
|
90
|
|
0.4
|
|
90
|
|
70
|
|
0.05
|
|
22.2
|
|
Certain tax
adjustments, net(7)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
49
|
|
0.04
|
|
—
|
|
Non-GAAP
|
$
24,700
|
|
$
8,417
|
|
65.9 %
|
|
$ 6,162
|
|
24.9 %
|
|
$
6,051
|
|
$
4,999
|
|
$ 3.87
|
|
17.0 %
|
|
Currency
impact
|
150
|
|
(72)
|
|
0.5
|
|
241
|
|
0.9
|
|
|
|
|
|
0.15
|
|
|
|
Currency Adjusted
|
$
24,850
|
|
$
8,345
|
|
66.4 %
|
|
$ 6,403
|
|
25.8 %
|
|
|
|
|
|
$ 4.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended January 26,
2024
|
|
(in millions, except per share
data)
|
Net
Sales
|
|
Cost of
Products
Sold
|
|
Gross
Margin
Percent
|
|
Operating
Profit
|
|
Operating
Profit
Percent
|
|
Income
Before
Income
Taxes
|
|
Net Income
attributable
to Medtronic
|
|
Diluted
EPS
|
|
Effective
Tax Rate
|
|
GAAP
|
$
23,775
|
|
$
8,172
|
|
65.6 %
|
|
$ 4,091
|
|
17.2 %
|
|
$
3,982
|
|
$
3,022
|
|
$ 2.27
|
|
23.5 %
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
—
|
|
—
|
|
—
|
|
1,274
|
|
5.4
|
|
1,274
|
|
1,078
|
|
0.81
|
|
15.4
|
|
Restructuring and
associated costs(2)
|
—
|
|
(43)
|
|
0.2
|
|
237
|
|
1.0
|
|
237
|
|
198
|
|
0.15
|
|
16.5
|
|
Acquisition and
divestiture-related items(3)
|
—
|
|
(24)
|
|
0.1
|
|
165
|
|
0.7
|
|
165
|
|
149
|
|
0.11
|
|
9.7
|
|
Certain litigation
charges, net
|
—
|
|
—
|
|
—
|
|
105
|
|
0.4
|
|
105
|
|
81
|
|
0.06
|
|
22.9
|
|
(Gain)/loss on
minority investments(4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
113
|
|
109
|
|
0.08
|
|
4.4
|
|
Medical device
regulations(5)
|
—
|
|
(60)
|
|
0.3
|
|
88
|
|
0.4
|
|
88
|
|
70
|
|
0.05
|
|
20.5
|
|
Certain tax
adjustments, net(8)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
282
|
|
0.21
|
|
—
|
|
Non-GAAP
|
$
23,775
|
|
$
8,046
|
|
66.2 %
|
|
$ 5,961
|
|
25.1 %
|
|
$
5,965
|
|
$
4,988
|
|
$ 3.74
|
|
16.0 %
|
|
|
|
See description of
non-GAAP financial measures contained in the press release dated
February 18, 2025.
|
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million or
$0.01 for EPS figures, and, therefore, may not sum.
|
|
(2)
|
Associated costs
primarily include salaries and wages for employees supporting the
restructuring activities, consulting expenses, and asset
write-offs.
|
|
(3)
|
The charges primarily
include business combination costs, changes in fair value of
contingent consideration, and exit of business-related charges. The
nine months ended January 24, 2025, also include gains related to
certain business or asset sales.
|
|
(4)
|
We exclude unrealized
and realized gains and losses on our minority investments as we do
not believe that these components of income or expense have a
direct correlation to our ongoing or future business
operations.
|
|
(5)
|
The charges represent
incremental costs of complying with the new European Union (E.U.)
medical device regulations for previously registered products and
primarily include charges for contractors supporting the project
and other direct third-party expenses. We consider these costs to
be duplicative of previously incurred costs and/or one-time costs,
which are limited to a specific time period.
|
|
(6)
|
Reflects the
recognition of incremental Italian payback accruals resulting from
the two July 22, 2024 rulings by the Constitutional Court of Italy
relating to certain prior years since 2015.
|
|
(7)
|
Primarily relates to
amortization of previously established deferred tax assets from
intercompany intellectual property transactions.
|
|
(8)
|
The net charge
primarily relates to an income tax reserve adjustment associated
with the June 2023, Israeli Central-Lod District Court decision and
the establishment of a valuation allowance against certain net
operating losses which were partially offset by a benefit from the
change in a Swiss Cantonal tax rate associated with previously
established deferred tax assets from intercompany intellectual
property transactions and the step up in tax basis for Swiss
Cantonal purposes.
|
|
MEDTRONIC
PLC
GAAP TO NON-GAAP
RECONCILIATIONS(1)
(Unaudited)
|
|
|
Three months ended January 24,
2025
|
|
(in millions)
|
Net Sales
|
|
SG&A
Expense
|
|
SG&A
Expense as
a % of Net
Sales
|
|
R&D
Expense
|
|
R&D
Expense
as a % of
Net Sales
|
|
Other
Operating
(Income)
Expense,
net
|
|
Other
Operating
(Inc.)/Exp.,
net as a % of
Net Sales
|
|
Other Non-
Operating
Income, net
|
|
GAAP
|
$
8,292
|
|
$ 2,717
|
|
32.8 %
|
|
$
675
|
|
8.1 %
|
|
$
(5)
|
|
(0.1) %
|
|
$
(72)
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
divestiture-related items(2)
|
—
|
|
(13)
|
|
(0.2)
|
|
—
|
|
—
|
|
(13)
|
|
(0.2)
|
|
—
|
|
Medical device
regulations(3)
|
—
|
|
—
|
|
—
|
|
(3)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(Gain)/loss on
minority investments(4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(68)
|
|
Non-GAAP
|
$
8,292
|
|
$ 2,704
|
|
32.6 %
|
|
$
672
|
|
8.1 %
|
|
$
(18)
|
|
(0.2) %
|
|
$
(140)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended January 24,
2025
|
|
(in millions)
|
Net Sales
|
|
SG&A
Expense
|
|
SG&A
Expense as
a % of Net
Sales
|
|
R&D
Expense
|
|
R&D
Expense
as a % of
Net Sales
|
|
Other
Operating
(Income)
Expense,
net
|
|
Other
Operating
(Inc.)/Exp.,
net as a % of
Net Sales
|
|
Other Non-
Operating
Income, net
|
|
GAAP
|
$
24,610
|
|
$ 8,129
|
|
33.0 %
|
|
$
2,048
|
|
8.3 %
|
|
$
(38)
|
|
(0.2) %
|
|
$
(403)
|
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
associated costs(5)
|
—
|
|
(10)
|
|
(0.1)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Acquisition and
divestiture-related items(2)
|
—
|
|
(40)
|
|
(0.3)
|
|
—
|
|
—
|
|
42
|
|
0.2
|
|
—
|
|
Medical device
regulations(3)
|
—
|
|
—
|
|
—
|
|
(10)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Other(6)
|
90
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(Gain)/loss on
minority investments(4)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(41)
|
|
Non-GAAP
|
$
24,700
|
|
$ 8,078
|
|
32.7 %
|
|
$
2,038
|
|
8.3 %
|
|
$
4
|
|
— %
|
|
$
(443)
|
|
|
|
See description of
non-GAAP financial measures contained in the press release dated
February 18, 2025.
|
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million,
and, therefore, may not sum.
|
|
(2)
|
The charges primarily
include business combination costs, changes in fair value of
contingent consideration, exit of business-related charges, and
gains related to certain business or asset sales. The nine months
ended January 24, 2025, also include gains related to certain
business or asset sales.
|
|
(3)
|
The charges represent
incremental costs of complying with the new European Union medical
device regulations for previously registered products and primarily
include charges for contractors supporting the project and other
direct third-party expenses. We consider these costs to be
duplicative of previously incurred costs and/or one-time costs,
which are limited to a specific time period.
|
|
(4)
|
We exclude unrealized
and realized gains and losses on our minority investments as we do
not believe that these components of income or expense have a
direct correlation to our ongoing or future business
operations.
|
|
(5)
|
Associated costs
primarily include salaries and wages for employees supporting the
restructuring activities, consulting expenses, and asset
write-offs.
|
|
(6)
|
Reflects the
recognition of incremental Italian payback accruals resulting from
the two July 22, 2024 rulings by the Constitutional Court of Italy
relating to certain prior years since 2015.
|
|
MEDTRONIC
PLC
GAAP TO NON-GAAP
RECONCILIATIONS(1)
(Unaudited)
|
|
|
Nine months ended
|
|
(in millions)
|
January 24, 2025
|
|
January 26, 2024
|
|
Net cash provided by operating
activities
|
$
4,516
|
|
$
4,010
|
|
Additions to property,
plant, and equipment
|
(1,400)
|
|
(1,161)
|
|
Free Cash Flow(2)
|
$
3,116
|
|
$
2,849
|
|
|
|
See description of
non-GAAP financial measures contained in the press release dated
February 18, 2025.
|
|
(1)
|
The data in this
schedule has been intentionally rounded to the nearest million,
and, therefore, may not sum.
|
|
(2)
|
Free cash flow
represents operating cash flows less property, plant, and equipment
additions.
|
|
MEDTRONIC
PLC
CONSOLIDATED
BALANCE SHEETS
(Unaudited)
|
|
|
(in millions)
|
|
January 24, 2025
|
|
April 26, 2024
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,240
|
|
$
1,284
|
|
Investments
|
|
6,682
|
|
6,721
|
|
Accounts receivable,
less allowances and credit losses of $204 and $173,
respectively
|
|
6,115
|
|
6,128
|
|
Inventories
|
|
5,610
|
|
5,217
|
|
Other current
assets
|
|
2,865
|
|
2,584
|
|
Total current assets
|
|
22,513
|
|
21,935
|
|
Property, plant, and equipment,
net
|
|
6,593
|
|
6,131
|
|
Goodwill
|
|
40,819
|
|
40,986
|
|
Other intangible assets, net
|
|
12,184
|
|
13,225
|
|
Tax assets
|
|
3,614
|
|
3,657
|
|
Other assets
|
|
4,250
|
|
4,047
|
|
Total assets
|
|
$
89,973
|
|
$
89,981
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Current debt
obligations
|
|
$
2,622
|
|
$
1,092
|
|
Accounts
payable
|
|
2,286
|
|
2,410
|
|
Accrued
compensation
|
|
2,281
|
|
2,375
|
|
Accrued income
taxes
|
|
1,125
|
|
1,330
|
|
Other accrued
expenses
|
|
3,526
|
|
3,582
|
|
Total current liabilities
|
|
11,840
|
|
10,789
|
|
Long-term debt
|
|
23,985
|
|
23,932
|
|
Accrued compensation and retirement
benefits
|
|
1,063
|
|
1,101
|
|
Accrued income taxes
|
|
1,485
|
|
1,859
|
|
Deferred tax liabilities
|
|
452
|
|
515
|
|
Other liabilities
|
|
1,533
|
|
1,365
|
|
Total liabilities
|
|
40,358
|
|
39,561
|
|
Commitments and contingencies
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
Ordinary shares— par
value $0.0001, 2.6 billion shares authorized, 1,283,266,154
and
1,311,337,531 shares
issued and outstanding, respectively
|
|
—
|
|
—
|
|
Additional paid-in
capital
|
|
20,910
|
|
23,129
|
|
Retained
earnings
|
|
31,317
|
|
30,403
|
|
Accumulated other
comprehensive loss
|
|
(2,839)
|
|
(3,318)
|
|
Total shareholders' equity
|
|
49,387
|
|
50,214
|
|
Noncontrolling
interests
|
|
228
|
|
206
|
|
Total equity
|
|
49,615
|
|
50,420
|
|
Total liabilities and equity
|
|
$
89,973
|
|
$
89,981
|
|
|
The data in this
schedule has been intentionally rounded to the nearest million,
and, therefore, may not sum.
|
|
MEDTRONIC
PLC
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Nine months ended
|
|
(in millions)
|
January 24, 2025
|
|
January 26, 2024
|
|
Operating Activities:
|
|
|
|
|
Net income
|
$
3,630
|
|
$
3,045
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
2,021
|
|
1,993
|
|
Provision for credit
losses
|
96
|
|
62
|
|
Deferred income
taxes
|
(81)
|
|
(250)
|
|
Stock-based
compensation
|
340
|
|
303
|
|
Other, net
|
14
|
|
265
|
|
Change in operating
assets and liabilities, net of acquisitions and
divestitures:
|
|
|
|
|
Accounts receivable,
net
|
(184)
|
|
(140)
|
|
Inventories
|
(478)
|
|
(530)
|
|
Accounts payable and
accrued liabilities
|
(157)
|
|
(253)
|
|
Other operating assets
and liabilities
|
(685)
|
|
(485)
|
|
Net cash provided by operating
activities
|
4,516
|
|
4,010
|
|
Investing Activities:
|
|
|
|
|
Acquisitions, net of
cash acquired
|
(98)
|
|
(74)
|
|
Additions to property,
plant, and equipment
|
(1,400)
|
|
(1,161)
|
|
Purchases of
investments
|
(6,093)
|
|
(5,422)
|
|
Sales and maturities
of investments
|
6,255
|
|
5,142
|
|
Other investing
activities, net
|
(111)
|
|
(155)
|
|
Net cash used in investing
activities
|
(1,447)
|
|
(1,670)
|
|
Financing Activities:
|
|
|
|
|
Change in current debt
obligations, net
|
(1,070)
|
|
1,010
|
|
Issuance of long-term
debt
|
3,209
|
|
—
|
|
Dividends to
shareholders
|
(2,692)
|
|
(2,753)
|
|
Issuance of ordinary
shares
|
400
|
|
206
|
|
Repurchase of ordinary
shares
|
(2,961)
|
|
(510)
|
|
Other financing
activities, net
|
96
|
|
(44)
|
|
Net cash used in financing
activities
|
(3,018)
|
|
(2,091)
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
(95)
|
|
(170)
|
|
Net change in cash and cash
equivalents
|
(44)
|
|
80
|
|
Cash and cash
equivalents at beginning of period
|
1,284
|
|
1,543
|
|
Cash and cash equivalents at end of
period
|
$
1,240
|
|
$
1,623
|
|
|
|
|
|
Supplemental Cash Flow
Information
|
|
|
|
|
Cash paid
for:
|
|
|
|
|
Income
taxes
|
$
1,515
|
|
$
1,403
|
|
Interest
|
567
|
|
568
|
|
|
The data in this
schedule has been intentionally rounded to the nearest million,
and, therefore, may not sum.
|
About Medtronic
Bold thinking. Bolder actions. We are
Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare
technology company that boldly attacks the most challenging health
problems facing humanity by searching out and finding solutions.
Our Mission — to alleviate pain, restore health, and extend life —
unites a global team of 95,000+ passionate people across more than
150 countries. Our technologies and therapies treat 70 health
conditions and include cardiac devices, surgical robotics, insulin
pumps, surgical tools, patient monitoring systems, and more.
Powered by our diverse knowledge, insatiable curiosity, and desire
to help all those who need it, we deliver innovative technologies
that transform the lives of two people every second, every hour,
every day. Expect more from us as we empower insight-driven care,
experiences that put people first, and better outcomes for our
world. In everything we do, we are engineering the extraordinary.
For more information on Medtronic (NYSE: MDT), visit
www.Medtronic.com and follow on LinkedIn.
FORWARD LOOKING STATEMENTS
This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, which are subject
to risks and uncertainties, including risks related to competitive
factors, difficulties and delays inherent in the development,
manufacturing, marketing and sale of medical products, government
regulation, geopolitical conflicts, changing global trade policies,
general economic conditions, and other risks and uncertainties
described in the company's periodic reports on file with the U.S.
Securities and Exchange Commission including the most recent Annual
Report on Form 10-K of the company. In some cases, you can identify
these statements by forward-looking words or expressions, such as
"anticipate," "believe," "could," "estimate," "expect," "forecast,"
"intend," "looking ahead," "may," "plan," "possible," "potential,"
"project," "should," "going to," "will," and similar words or
expressions, the negative or plural of such words or expressions
and other comparable terminology. Actual results may differ
materially from anticipated results. Medtronic does not undertake
to update its forward-looking statements or any of the information
contained in this press release, including to reflect future events
or circumstances.
NON-GAAP FINANCIAL MEASURES
This press release
contains financial measures, including adjusted net income,
adjusted diluted EPS, and organic revenue, which are considered
"non-GAAP" financial measures under applicable SEC rules and
regulations. References to quarterly or annual figures increasing,
decreasing or remaining flat are in comparison to fiscal year 2024,
and references to sequential changes are in comparison to the prior
fiscal quarter.
Medtronic management believes that non-GAAP financial
measures provide information useful to investors in understanding
the company's underlying operational performance and trends and to
facilitate comparisons with the performance of other companies in
the med tech industry. Non-GAAP net income and diluted EPS exclude
the effect of certain charges or gains that contribute to or reduce
earnings but that result from transactions or events that
management believes may or may not recur with similar materiality
or impact to operations in future periods (Non-GAAP Adjustments).
Medtronic generally uses non-GAAP financial measures to facilitate
management's review of the operational performance of the company
and as a basis for strategic planning. Non-GAAP financial measures
should be considered supplemental to and not a substitute for
financial information prepared in accordance with U.S. generally
accepted accounting principles (GAAP), and investors are cautioned
that Medtronic may calculate non-GAAP financial measures in a way
that is different from other companies. Management strongly
encourages investors to review the company's consolidated financial
statements and publicly filed reports in their entirety.
Reconciliations of the non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in the
financial schedules accompanying this press release.
Medtronic calculates forward-looking non-GAAP financial
measures based on internal forecasts that omit certain amounts that
would be included in GAAP financial measures. For instance,
forward-looking organic revenue growth guidance excludes the impact
of foreign currency fluctuations, as well as significant
acquisitions or divestitures. Forward-looking diluted non-GAAP EPS
guidance also excludes other potential charges or gains that would
be recorded as Non-GAAP Adjustments to earnings during the fiscal
year. Medtronic does not attempt to provide reconciliations of
forward-looking non-GAAP EPS guidance to projected GAAP EPS
guidance because the combined impact and timing of recognition of
these potential charges or gains is inherently uncertain and
difficult to predict and is unavailable without unreasonable
efforts. In addition, the company believes such reconciliations
would imply a degree of precision and certainty that could be
confusing to investors. Such items could have a substantial impact
on GAAP measures of financial performance.
-end-
|
Contacts:
|
|
|
|
|
Erika
Winkels
|
Ryan
Weispfenning
|
|
Public
Relations
|
Investor
Relations
|
|
+1-763-526-8478
|
+1-763-505-4626
|
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SOURCE Medtronic plc
