Medtronic Delivers Strong Q4 Earnings; Plans to Spin off Diabetes Business

Medtronic’s recent financial report paints a picture of robust performance in the fourth quarter and fiscal year 2025, exceeding market expectations. The company’s success is driven by growth in key segments like Cardiovascular and Neuroscience, with revenue increases attributed to strong sales within Cardiac Rhythm & Heart Failure and Structural Heart & Aortic divisions. This impressive performance translated into a significant profit boost, with operating profit jumping 36% and operating margin improving by 380 basis points. 2026 outlook is equally optimistic, with Medtronic projecting organic revenue growth of around 5%, alongside a anticipated 4% increase in non-GAAP EPS. To further streamline operations, the company plans to spin off its Diabetes business into a standalone public company. This strategic move is expected to improve focus on core areas and enhance profitability. Thierry Piéton, Chief Financial Officer at Medtronic, expressed confidence in the company’s future, citing key growth drivers and continued value creation for shareholders. Further bolstering their commitment to shareholder value, Medtronic increased its quarterly dividend to $0.71 per share, marking 48 consecutive years of dividend increases.