Shares of Medtronic PLC (MDT) plummeted 7.32% in intraday trading on Tuesday, following the release of the medical device company's fiscal third-quarter 2025 earnings results. Despite beating earnings expectations, the stock tumbled as the company's revenue fell short of analysts' estimates, compounded by weakness in its Medical Surgical portfolio.

For the quarter ended January 31, 2025, Medtronic reported revenue of $8.29 billion, a 2.5% increase from the prior year but slightly below the consensus estimate of $8.32 billion. The company's GAAP diluted earnings per share (EPS) came in at $1.01, while its adjusted diluted EPS of $1.39 surpassed the forecasted $1.36.

The Medical Surgical Portfolio faced a 1.9% revenue decline, attributed to pressures in the stapling segment and changes in distributor buying patterns in the United States. However, Medtronic witnessed growth in other segments, with the Cardiovascular Portfolio increasing 3.7%, the Neuroscience Portfolio rising 4.4%, and the Diabetes segment surging 8.4%, driven by the adoption of the MiniMed™ 780G system.

Despite the mixed results, Medtronic reaffirmed its full-year guidance, projecting organic revenue growth between 4.75% and 5%, and non-GAAP diluted EPS growth ranging from 4.6% to 5.8%. The company's CEO, Geoff Martha, expressed confidence in Medtronic's ability to deliver strong earnings, highlighting significant improvements in gross margin and operating margin.