Total Revenue

+4% (from $8,589M to $8,927M)

Revenue increased modestly driven by sustained organic growth across core segments and balanced contributions from U.S. ($4,548M) and International ($4,379M) markets, reflecting a steady improvement compared to the prior period. " "

Net Income

+61% (from $660M to $1,061M)

Net income surged primarily due to higher operating profit and improved cost management, which amplified earnings despite similar revenue trends, building on previous period initiatives that improved margin performance. " "

Operating Profit

+36% (from $1,053M to $1,436M)

Operating profit expanded as enhanced revenue growth combined with better gross margins and disciplined cost control, reflecting ongoing efficiency programs from the previous period. " "

Diluted Earnings Per Share

+67% (from $0.49 to $0.82)

Diluted EPS increased sharply as a result of the significant uplift in net income and operating performance, driven by improved margins and effective pricing strategies that built on prior period operational improvements. " "

Litigation Charges

+386% (from $44M to $214M)

Litigation charges surged due to new or escalated legal challenges imposing higher settlement or penalty costs this period, a stark contrast to the previously lower litigation expense. " "

Restructuring Charges

+31% (from $112M to $147M)

Restructuring charges rose as ongoing employee termination benefits and facility consolidation initiatives intensified, reflecting the continuation of cost-reduction efforts compared to the prior period. " "

Other Operating Expenses

~97% decrease (from $477M to $15M)

Other operating expenses collapsed because of a dramatic reduction in non-recurring items, including changes in currency hedging outcomes and acquisition/divestiture-related adjustments, contrasting sharply with previous period outlays. " "

Geographic Revenue Split

Nearly equal split (U.S.: $4,548M, International: $4,379M)

Balanced geographic performance underscores a diversification of revenue sources, ensuring that growth is not overly reliant on one market, continuing the trend seen in previous periods. " "

Organic Revenue Growth

FY 2026

4.75% to 5% "

Approximately 5% " "

no change

Non-GAAP Diluted EPS

FY 2026

$5.44 to $5.50 "

$5.50 to $5.60 (including tariffs) "

raised

Foreign Exchange Impact

FY 2026

Negative impact of $275M–$325M (and 5‑point EPS impact) "

Neutral to $100M tailwind "

raised

Tariff Impact

FY 2026

no prior guidance

~$200M–$350M "

no prior guidance

Operating Profit Growth

FY 2026

no prior guidance

Approximately 7% " "

no prior guidance

Adjusted Operating Margin

FY 2026

no prior guidance

Expected to grow significantly faster than revenue "

no prior guidance

Tax Rate

FY 2026

no prior guidance

Increase from 16.7% in FY25 to approximately 18% " "

no prior guidance

R&D Investment

FY 2026

no prior guidance

Increase by approximately $200M or 7% " "

no prior guidance

Interest Expense

FY 2026

no prior guidance

Expected increase due to refinancing debt "

no prior guidance

Consistent Organic Growth & EPS Leverage

In Q1 and Q3, Medtronic consistently reported mid–single digit organic revenue growth, steady EPS growth, and margin improvements (e.g. Q1: 5.3% organic growth and EPS increases; Q3: 4.1% revenue growth, margin expansion, and high single-digit EPS growth) " " " "

In Q4 2025, the company emphasized a 5.4% organic revenue growth, 11% EPS growth (16% at constant currency) and improved operating margins reflecting strong operational performance " " "

Consistent performance with reinforcing growth momentum and improving earnings leverage over time.

Diabetes Business Strategy & Transformation

In Q1 and Q3, discussions centered on growth through product launches, partnerships (e.g. with Abbott), and pipeline innovation driving double-digit growth in Diabetes " " " " "

In Q4 2025, Medtronic announced its strategic decision to separate the Diabetes business, outlining a detailed spin‐off and IPO approach to sharpen its focus on high-margin growth drivers " " " " "

Evolving from a focus on organic growth and partnerships to a transformative separation strategy aimed at unlocking strategic and shareholder value.

Innovative Pipeline & New Product Development

Q1 discussions highlighted new product cycles across multiple areas (diabetes, PFA, TAVR, neuromodulation) while Q3 covered advancements in CAS, Structural Heart, and PFA, demonstrating broad-based innovation " " " " "

Q4 2025 reinforced heavy investments in R&D with product innovation in CAS (Sphere-9, Sphere360), surgical robotics, and diabetes, underlining a focus on scaling next-generation technologies " " "

A consistently strong commitment to innovation with an expanding and deepening product portfolio that builds on earlier successes.

Cardiac Ablation Solutions & Pulse Field Ablation Technologies

In Q1 and Q3, Medtronic emphasized rapid adoption of its PFA technologies (notably PulseSelect and Sphere-9 innovations) with early signs of market acceleration (e.g. 22% growth in Q3; over 6% CAS growth in Q1) " " " "

In Q4 2025, CAS growth accelerated to nearly 30% with expanded product offerings and a clear roadmap to doubling revenue, highlighting products like Sphere-9 and Sphere360 that provide integrated mapping and ablation capabilities " " "

An accelerating momentum with deepening technology differentiation and robust revenue expansion in a fast-growing market.

Operational Leverage & Margin Pressure Dynamics

Q1 discussions noted FX impacts affecting margins alongside efforts in pricing and cost-out initiatives while Q3 focused on solid operating margin expansion and disciplined SG&A management " " " "

Q4 2025 reported further improvements with a 27.8% operating margin (up 90–200 bps constant currency) and effective mitigation of inflationary pressures and tariffs, despite external cost pressures " "

Steady progress in margin expansion and operational leverage despite ongoing currency and external cost challenges.

Tariff Environment & External Cost Pressures

There was no explicit discussion in Q1 and Q3 regarding tariffs or external cost pressures [–]

Q4 2025 provided detailed commentary on the impact of U.S.-China tariffs with an estimated net impact of $200–350 million on COGS and described mitigation strategies using pricing discipline and COGS efficiency programs "

A new emphasis in Q4 that spotlights the external cost environment, introducing targeted mitigation measures.

Robotic Surgical Systems & U.S. Surgical Performance

Q1 introduced progress on Hugo’s clinical milestones and regulatory submissions, while Q3 detailed enhanced FDA submissions, expanded indications, and noted distributor inventory adjustments impacting U.S. surgical performance " "

Q4 2025 showcased significant milestones for the Hugo platform (e.g. FDA filing for urologic indications, data presentations, global expansion to 30 countries) and noted modest U.S. surgical growth (2%), driven by advancements in product instrumentation (e.g. LigaSure cases) "

Continued progression toward regulatory approvals and global rollout, with a growing robotics platform amid modest U.S. surgical performance improvements.

Global Regulatory Challenges & Reimbursement Delays

Q1 briefly mentioned reimbursement progress for specific products (e.g. renal denervation NTAP), while Q3 discussed country-by-country reimbursement dynamics and challenges in markets like Japan, Europe, and China " " "

Q4 2025 highlighted detailed strategies around CMS reimbursement milestones (e.g. for Symplicity blood pressure procedure) and addressed regulatory filings in areas like surgical robotics and diabetes " " "

Increased attention in later periods with more detailed navigation of complex regulatory pathways and reimbursement challenges globally.

Increased R&D Investment & Strategic M&A Initiatives

Q1 highlighted organic increases in R&D investment and prioritization of new product cycles, while Q3 discussed significant pipeline investments and the acceleration of tuck-in acquisitions to support organic growth " " " "

In Q4 2025, CFO Thierry Pieton and CEO Geoff Martha emphasized growing R&D faster than revenue and an increased focus on strategic tuck-in acquisitions to further strengthen market positions " "

A consistent strategic focus with a marked intensification in Q4, underscoring a commitment to long-term innovation and portfolio management.

Emerging High-Growth Markets: Neuromodulation, Structural Heart, & Renal Denervation

Q1 reported double-digit (or high-single digit) growth in neuromodulation, high single-digit gains in Structural Heart, and early-stage reimbursement progress for Renal Denervation " " "

Q4 2025 reiterated robust growth with Neuromodulation achieving 10% growth, Structural Heart at 10%, and Renal Denervation amid proactive CMS reimbursement preparations, alongside detailed market development initiatives " "

Consistent strong performance with expanding market potential and increasing emphasis on regulatory/reimbursement setups to unlock further growth.