Medtronic (MDT) closed out fiscal year 2025 with a strong performance, posting results that reflect accelerating growth, solid execution across its key franchises, and meaningful strategic progress. For the fourth quarter ended April 25, revenue reached $8.927 billion, up 3.9% as reported and 5.4% organically, while non-GAAP operating profit climbed 8% to $2.486 billion, pushing the operating margin to 27.8%—a 90 basis-point improvement. Non-GAAP EPS rose 11% to $1.62, or 16% at constant currency, while GAAP EPS jumped 67% to $0.82. Full-year revenue rose 3.6% to $33.537 billion (4.9% organic), with non-GAAP EPS up 6% to $5.49 and free cash flow of $5.185 billion, reflecting a 73% conversion rate. Medtronic returned $6.3 billion to shareholders, marking its 48th consecutive annual dividend increase.

The Cardiovascular portfolio led growth, delivering $12.481 billion in FY25 revenue, up 6.3% organically, driven by broad strength across segments. Notably, Cardiac Ablation Solutions surged nearly 30% in Q4, with annual revenue hitting $1.0 billion, propelled by strong uptake of its Pulse Field Ablation systems. Cardiac Rhythm Management saw robust demand for its Aurora EV-ICD and Micra leadless pacemaker, while Structural Heart advanced 10% in Q4 on the back of Evolut platform momentum. The Neuroscience segment also posted solid gains, with FY25 revenue of $9.846 billion, up 5.2% organically, supported by growth in Cranial & Spinal Technologies and Neuromodulation, where the new Inceptiv closed-loop stimulator and BrainSense DBS showed strong adoption.

While the Medical Surgical portfolio was flat on a reported basis (+0.8% organic), highlights included momentum in Advanced Energy and procedural growth for the Hugo robotic platform, which is advancing toward FDA approval for urology. The Diabetes business, slated for a planned separation, delivered its sixth straight quarter of double-digit growth, with FY25 revenue up 10.7% to $2.755 billion, fueled by continued MiniMed 780G adoption and international rollout of the Simplera Sync sensor.

Geographically, Q4 saw 5% growth in the US—its strongest in nearly four years—alongside high single-digit growth in Japan and broad strength across emerging markets.

Management emphasized the durability of Medtronic’s growth, with 10 straight quarters of mid-single-digit organic growth and growing leverage to earnings through cost discipline and operational efficiency. FY26 will see R&D investment grow faster than revenue for the first time in four years, targeting innovation in Cardiac Ablation, Surgical Robotics, and Renal Denervation. The upcoming Diabetes spin-off, expected within 18 months, is projected to boost Medtronic’s gross and operating margins by 50 and 100 basis points, respectively, and be immediately accretive to EPS.

Looking ahead, Medtronic guided to ~5% organic revenue growth and non-GAAP EPS of $5.50–$5.60 for FY26, with tariff headwinds expected but manageable. Longer-term, the company anticipates a return to high single-digit EPS growth post-separation, underpinned by a robust innovation pipeline, ongoing margin expansion, and disciplined capital deployment.