The Motley Fool·1d ago
Jim Cramer Called Medtronic a "Quandary." Here's Why He's Exactly Right.Over time, Medtronic's business got bloated, and growth slowed. The medical device giant overhauled its business and is starting to see stronger results.
Medtronic's revenue growth has accelerated to 13.7% year-over-year in Q1 FY2027, suggesting its portfolio optimization strategy is gaining traction. However, this growth is accompanied by significant margin volatility and erratic cash conversion, with operatin...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth accelerated to 13.7% year-over-year in Q1 FY2027, but operating margin remains constrained at 18.1% due to elevated SG&A spending of $3.2B (33% of revenue), suggesting growth investments are currently offsetting scale benefits.
Medtronic is a global leader in medical technology, services, and solutions, collaborating to address healthcare challenges.
Medtronic's strong competitive positioning and wide moat support its long-term business resilience and growth.
The company's innovation pipeline, including products like the Stealth AXiS surgical system, drives future growth opportunities.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Sep 1, 2026 | $1.45+4.3% vs $1.39 | $9.8B+2.2% vs $9.5B |
Q3 2026 Jun 3, 2026 | $1.55+0.6% vs $1.54 | $9.8B+1.9% vs $9.6B |
Q1 2026 Feb 17, 2026 | $1.36+1.5% vs $1.34 | $9.0B+1.2% vs $8.9B |
Q4 2025 Nov 18, 2025 | $1.36+3.8% vs $1.31 | $9.0B+1.1% vs $8.9B |
Over time, Medtronic's business got bloated, and growth slowed. The medical device giant overhauled its business and is starting to see stronger results.
Medtronic has trounced the S&P 500 index in recent months. The company's strong showing in Q1 2027 prompted it to raise its non-GAAP EPS guidance for FY 2027. Medtronic's interest coverage ratio and net debt to EBITDA ratio are both healthy.
Medtronic PLC (NYSE: MDT - Get Free Report) EVP Harry Kiil sold 1,483 shares of the firm's stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $93.65, for a total value of $138,882.95. Following the sale, the executive vice president directly owned 42,186 shares of the
They have a knack for increasing their dividends even when facing challenges.
Benchmark MDT against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Medtronic plc (MDT)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $90.77 | $116.54B | 24.34 | 8.43% | 13.2% | 9.76% | 3.11% | |
| $103.73 | $180.68B | 27.88 | 5.67% | 13.91% | 12.09% | — | |
| $44.92 | $66.77B | 23.15 | 19.87% | 17.47% | 14.76% | — | |
| $88.78 | $51.12B | 48.51 | 11.55% | 15.43% | 9.66% | — | |
| $275.07 | $105.45B | 32.75 | 11.16% | 14.43% | 16.36% | — | |
| $93.98 | $18.18B | 26.47 | 7.2% | 9.48% | 6.36% | — |
Medtronic plc (MDT) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Medtronic plc (MDT) SEC filings — annual & quarterly reports (10-K, 10-Q)
Sep 1, 2026·SEC
Jun 3, 2026·SEC
May 18, 2026·SEC
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Medtronic plc (MDT) stock FAQ — growth, dividends, profitability & financials explained
Medtronic plc (MDT) reported $37.54B in revenue for fiscal year 2026. This represents a 1440% increase from $2.44B in 1997.
Medtronic plc (MDT) grew revenue by 8.4% over the past year. This is steady growth.
Yes, Medtronic plc (MDT) is profitable, generating $5.23B in net income for fiscal year 2026 (13.2% net margin).
Yes, Medtronic plc (MDT) pays a dividend with a yield of 3.11%. This makes it attractive for income-focused investors.
Medtronic plc (MDT) has a return on equity (ROE) of 9.8%. This is below average, suggesting room for improvement.
Medtronic plc (MDT) generated $6.13B in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
