Medtronic Sets FY2026 Guidance Amid Tariff Concerns

Medtronic plc (MDT) has revealed its FY2026 earnings and revenue guidance, predicting EPS between $5.50 and $5.60. Concerns over US/China tariffs may impact projections. Analysts expect $5.83 EPS. The company's upcoming dividend payment and business separation plans may also influence investor sentiment.

Date: 21-05-2025

AI Rating: 6

Important Highlights for Investors
Medtronic's recent financial guidance provides insights crucial for investors evaluating its performance and stock price potential. The company has set its adjusted earnings per share (EPS) forecast between $5.50 and $5.60, which is slightly below analyst expectations of $5.83. The earnings projection assumes potential impacts from existing and potential US/China tariffs, indicating that geopolitical factors may affect financial results.

Furthermore, Medtronic's revenue growth guidance of 4.8% to 5.1% aligns closely with analyst predictions, which estimate a growth of 4.5%. This signals that while Medtronic demonstrates steady growth, the uncertainty surrounding tariffs can weigh against its performance.

**Dividend Increase**
The board's decision to increase cash dividends to $0.71 per share is a positive sign for shareholder returns and reflects confidence in ongoing cash flow stability. This move may attract income-focused investors.

**Business Separation Plan**
Medtronic's plan to spin off its Diabetes business into a standalone company is a significant strategic move that could unlock value for shareholders. This separation aligns with broader portfolio optimization trends in the industry and may provide distinct growth avenues for both entities post-IPO.

In summary, the stock presents a mixed outlook: while EPS projections are below consensus and tariff concerns loom, the dividend increase and business restructuring could create long-term value.

Stocks: MDT