Medtronic Posts Q2 ’25 Results, Raises Full-Year Guidance

Medtronic has released the financial results for its Q2 of fiscal year 2025, which ended October 25, 2024.

The company posted Q2 revenue of $8.4 billion, which was an increase of 5.3% as reported and 5% on an organic basis. Q2 GAAP net income and diluted earnings per share (EPS) were $1.27 billion and $0.99 respectively, representing increases of 40% and 46%.

Q2 non-GAAP net income and non-GAAP diluted EPS reached $1.26 billion and $1.26 respectively, reflecting a 3% decrease and 1% increase.

Cardiovascular revenue increased 6.1% as reported and 5.6% organic, totaling $3.1 billion. High single-digit increase was seen in Structural Heart & Aortic and mid-single digit growth occurred in Cardiac Rhythm & Heart Failure and Coronary & Peripheral Vascular businesses.

Q2 and recent highlights in the Cardiovascular business included:

• FDA approval for an early feasibility study of the Affera mapping and ablation system with Sphere-9 catheter
• Launch of the Avalus Ultra heart valve in Western Europe
• Rollout of the VitalFlow ECMO system

The Neuroscience business pocketed $2.45 billion in revenue, growing 7.1% as reported and 6.7% organic. Low double-digit increase was seen in Neuromodulation with mid-single digit increases in both Cranial & Spinal Technologies and Specialty Therapies.

The Medical Surgical portfolio had revenue of $2.13 billion, representing 1.2% growth as reported and 0.7% growth organic. Acute Care & Monitoring posted a low-single digit increase and Surgical & Endoscopy proceeds were flat.

Diabetes revenue of $686 million rose 12.4% as reported and 11% organic.

As a result, Medtronic raised its fiscal year 2025 revenue growth and EPS guidance. Organic revenue growth guidance is now 4.75-5% instead of the prior range of 4.5-5%, representing a 3.4-3.9% range of growth. Diluted non-GAAP EPS guidance was changed to the $5.44-$5.50 range versus the prior $5.42-$5.50 range, reflecting 4.6-5.8% growth.

“Our momentum is building as we keep executing on our commitments, delivering yet another consecutive quarter of strong results that came in ahead of expectations,” said Geoff Martha, Medtronic’s chairman and CEO. “Innovation matters, and innovation is really driving our growth today. As we look ahead, we’re confident that this diversified growth will keep going, especially given the strength of our pipeline in high-impact markets that will allow us to benefit even more patients around the world.”