MDT changes
Pick any two versions below to diff them.
- Price
- $94.75 → $101.61(+7.2%)
- Discount category
- Below intrinsic value → Close to intrinsic value
- Next earnings
- Dec 1, 2026 → Nov 24, 2026
- Next earnings is estimate
- Yes → No
- Thesis
- The market prices Medtronic as a large company that grows slowly, and investors doubt that its new products can keep growth high for a long time. In Q1 fiscal 2027, organic revenue grew 13.7%, but an extra fiscal week added about $570 million, so the underlying growth was lower. The separation of MiniMed also adds restructuring charges of $300 million to $500 million. For the gap to close, three things must be true. Medtronic must reach its raised fiscal 2027 guidance of 7.25% to 7.75% organic revenue growth and non-GAAP EPS of $5.94 to $6.00. Cardiac ablation, which grew 88% in Q1, and other new platforms must keep strong growth without the extra week. The separation of MiniMed must leave few stranded costs with Medtronic. The Q2 fiscal 2027 removed: report, expected in late added: report on November removed: or early December added: 24, 2026, and the Q3 report in February 2027 give the next evidence. If these checks pass, the gap can close over the next two to four quarters. The main reason it may not close is that growth falls back to the old low rate after the extra week and the first strong year of cardiac ablation.
- Checkpoints
- removed: Dec 1, 2026 (estimate): added: Nov 24, 2026: Q2 fiscal 2027 earnings: growth without the extra week. Pending. Watch: Organic growth near the 7.25% to 7.75% guidance and the EPS guidance kept or raised pass; a cut to the guidance fails. Feb 2027 (estimate): Q3 fiscal 2027 earnings: cardiac ablation. Pending. Watch: Continued strong growth in cardiac ablation and stable margins after the MiniMed separation pass; slower ablation growth or higher stranded costs fail.
- Recent events
- added: Nov 4, 2026: Medtronic said that it will report Q2 fiscal 2027 results on November 24, 2026, with a webcast at 6:30 a.m. Central time. The quarter ended on October 30, 2026. Oct 15, 2026: The MiniMed exchange offer settled, and Medtronic said that the separation of MiniMed is complete. On October 14, 2026, Medtronic also named Michael Marinaro, who leads the Medical Surgical portfolio in the Americas and global commercial operations, as President of Medtronic. He also oversees Greater China and reports to CEO Geoff Martha. Oct 14, 2026: Medtronic announced the final results of the MiniMed exchange offer. Holders tendered about 297.5 million Medtronic shares, so the offer was oversubscribed. Medtronic exchanged all of its remaining 252.8 million MiniMed shares for 55.0 million Medtronic shares, and it no longer owns MiniMed shares. Sep 14, 2026: Medtronic started an offer to exchange shares of MiniMed Group for outstanding Medtronic shares, to complete the separation of its diabetes business. Sep 1, 2026: Medtronic reported Q1 fiscal 2027 results. Revenue was $9.76 billion, up 13.7% organic, with about $570 million from an extra fiscal week. Cardiovascular grew 18.9%, and cardiac ablation grew 88%. Non-GAAP EPS was $1.45. Medtronic raised its fiscal 2027 guidance to organic revenue growth of 7.25% to 7.75% and non-GAAP EPS of $5.94 to $6.00. Jul 16, 2026: Medtronic completed the acquisition of SPR Therapeutics. It had completed the acquisition of Scientia Vascular on June 12, 2026. Mar 9, 2026: MiniMed Group, Medtronic's diabetes business, completed its initial public offering. Medtronic kept a controlling stake until the exchange offer in October 2026.