Medtronic reports third quarter fiscal 2025 financial results
PR Newswire
GALWAY, Ireland, Feb. 18, 2025
Delivering durable revenue growth with strong earnings power; strength in Pulsed Field Ablation, Pacing, Structural Heart, Diabetes, and Neuromodulation
GALWAY, Ireland, Feb. 18, 2025 /PRNewswire/ -- Medtronic plc $(MDT)$ today announced financial results for its third quarter (Q3) of fiscal year 2025 (FY25), which ended January 24, 2025.
Key Highlights
-- Revenue of $8.3 billion increased 2.5% as reported and 4.1% organic
-- GAAP diluted EPS of $1.01 increased 2%; non-GAAP diluted EPS of $1.39
increased 7%
-- Company reiterates full year revenue and EPS guidance
-- Cardiac Ablation Solutions revenue increased low-20s on strength of
pulsed field ablation (PFA) products
-- U.S. Centers for Medicare and Medicaid $(CMS)$ announced coverage for Renal
Denervation for the treatment of Hypertension expected to become final on
or before October 11, 2025
Financial Results
Medtronic reported Q3 worldwide revenue of $8.292 billion, an increase of 2.5% as reported and 4.1% on an organic basis. Organic revenue growth comparison excludes:
-- Other revenue of $32 million in the current year and $53 million in the
prior year; and
-- Foreign currency translation of -$103 million on the remaining segments.
As reported, Q3 GAAP net income and diluted earnings per share (EPS) were $1.294 billion and $1.01, respectively, representing a decrease of 2% and an increase of 2%, respectively. As detailed in the financial schedules included at the end of this release, Q3 non-GAAP net income and non-GAAP diluted EPS were $1.787 billion and $1.39, respectively, representing increases of 3% and 7%, respectively.
"We delivered strong earnings this quarter, with significant improvements in both our gross margin and operating margin on the back of our ninth quarter in a row of mid-single digit organic revenue growth, " said Geoff Martha, Medtronic chairman and chief executive officer. "We are starting to see the results from our long term investments in groundbreaking innovation, such as pulsed field ablation, to drive growth in some of the most attractive markets in MedTech."
Cardiovascular Portfolio
The Cardiovascular Portfolio includes the Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic $(SHA.AU)$, and Coronary & Peripheral Vascular $(CPV.AU)$ divisions. Revenue of $3.037 billion increased 3.7% as reported and 5.0% organic, with mid-single digit increases in CRHF and SH&A, and a low-single digit increase in CPV, all on an organic basis.
-- CRHF results included mid-single digit growth in Cardiac Rhythm
Management, driven by low-double digit growth in Cardiac Pacing Therapies,
including mid-20s growth in Micra$(TM)$ transcatheter pacing systems;
Cardiac Ablation Solutions achieved low-20s growth on rapid adoption of
the PulseSelect(TM) and Affera(TM) Sphere-9(TM) PFA systems
-- SHA results driven by high-single digit Structural Heart growth,
excluding congenital, on the continued strength of the Evolut(TM) FX+
TAVR system, and high-single digit growth in Cardiac Surgery
-- CPV growth driven by high-single digit growth in balloons and mid-single
digit growth in guide catheters and drug-coated balloons
-- Recent U.S. FDA approval for additional pulsed field ablation
manufacturing site in Galway; immediately boosts Affera(TM) supply
-- Expanded U.S. presence in fast-growing carotid market with exclusive
Contego Medical distribution agreement; includes recently FDA approved
carotid stenting system and option to acquire; Contego Medical running
clinical trial on next-generation transcarotid artery revascularization
(TCAR) system
-- Announced CMS opened a National Coverage Analysis $(NCA)$ on Renal
Denervation for the treatment of hypertension, with coverage expected to
become final on or before October 11, 2025
Neuroscience Portfolio
The Neuroscience Portfolio includes the Cranial & Spinal Technologies $(CST)$, Specialty Therapies, and Neuromodulation divisions. Revenue of $2.458 billion increased 4.4% as reported and 5.2% organic, with a low-double digit increase in Neuromodulation, mid-single digit increase in CST, and low-single digit increase in Specialty Therapies, all on an organic basis.
-- CST driven by high-single digit Neurosurgery growth on continued adoption
of the AiBLE(TM) ecosystem of enabling technology; CST in the U.S. grew
high-single digits, winning share
-- Specialty Therapies results driven by mid-single digit growth in Pelvic
Health on continued adoption of the InterStim X(TM) system; ENT grew
low-single digits on strength in PTeye(TM) capital and disposables;
Neurovascular, excluding China, grew mid-single digit with strength in
flow diversion
-- Neuromodulation above market performance driven by low-double digit Pain
Stim growth, including high-teens U.S. growth, on the continued launch of
the Inceptiv(TM) spinal cord stimulator; Brain Modulation grew mid-teens
globally and mid-twenties in the U.S. on the continued launch of the
Percept(TM) RC deep brain stimulator $(DBS)$ with BrainSense(TM) technology
-- Received CE Mark for BrainSense(TM) Adaptive Deep Brain Stimulation
(aDBS), a real-time closed-loop system
Medical Surgical Portfolio
The Medical Surgical Portfolio includes the Surgical & Endoscopy (SE) and the Acute Care & Monitoring $(ACM)$ divisions. Revenue of $2.072 billion decreased 1.9% as reported and decreased 0.4% organic, with flat organic result in SE and low-single digit organic decline in ACM.
-- SE results were affected by ongoing stapling segment pressures and a
transient change in U.S. distributor buying patterns, partially offset by
high-single digit growth in Emerging Markets and high-single digit growth
in Advanced Energy on continued adoption of LigaSure(TM) vessel sealing
technology
-- ACM performance included high-single digit declines in Nellcor(TM) blood
oxygen management products on a 30% year-over-year market decline in U.S.
respiratory-related hospitalizations in the quarter; this was partially
offset by high-single digit growth in Perioperative Complications
Diabetes
Revenue of $694 million increased 8.4% as reported and 10.4% organic.
-- U.S. revenue grew mid-single digits on the continued adoption of the
MiniMed(TM) 780G automated insulin delivery (AID) system, with an
increase in the MiniMed(TM) 780G installed base and strong CGM attachment
rates
-- International revenue grew low-double digits on increasing CGM attachment
as users upgrade to the Simplera Sync(TM) sensor
Guidance
Medtronic today reiterated its revenue growth and EPS guidance for FY25.
The company continues to expect FY25 organic revenue growth in the range of 4.75% to 5%. The organic revenue growth guidance excludes the impact of foreign currency and revenue reported as Other. Including Other revenue and the impact of foreign currency exchange, if recent foreign currency exchange rates hold, FY25 revenue growth would be in the range of 3.4% to 3.8%.
The company continues to expect FY25 diluted non-GAAP EPS in the range of $5.44 to $5.50. This includes an estimated -5% impact from foreign currency exchange based on recent rates. The company's guidance represents FY25 diluted non-GAAP EPS growth in the range of 4.6% to 5.8%.
"EPS came in above the high end of our guidance range. We were pleased with the operational performance of the business this quarter, turning mid-single digit organic growth into leveraged earnings, highlighted by healthy gross margin improvement," said Gary Corona, Medtronic interim chief financial officer. "Looking ahead, our restored earnings power continues. We will accelerate both top and bottom line growth in Q4, resulting in high-single digit adjusted EPS growth in the back half of our fiscal year."
Video Webcast Information
Medtronic will host a video webcast today, February 18, at 8:00 a.m. EST (7:00 a.m. CST) to provide information about its businesses for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Events icon at investorrelations.medtronic.com, and this earnings release will be archived at news.medtronic.com. Within 24 hours of the webcast, a replay of the webcast and transcript of the company's prepared remarks will be available by clicking on the Events icon at investorrelations.medtronic.com.
Medtronic plans to report its FY25 fourth quarter results on Wednesday, May 21, 2025. For fiscal year 2026, Medtronic plans to report its first, second, third, and fourth quarter results on Tuesday, August 19, 2025, November 18, 2025, February 17, 2026, and Wednesday, May 20, 2026, respectively. Confirmation and additional details will be provided closer to the specific event.
Financial Schedules and Earnings Presentation
The third quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Investor Events link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the third quarter earnings presentation, click here.
MEDTRONIC PLC
WORLD WIDE REVENUE(1)
(Unaudited)
THIRD QUARTER YEAR-TO-DATE
----------------------------------------------------------------------------
REPORTED ORGANIC REPORTED ORGANIC
------------------------------ ------------------------------
Currency Adjusted Adjusted Currency Adjusted Adjusted
(in millions) FY25 FY24 Growth Impact(3) FY25(4) FY24(4) Growth FY25 FY24 Growth Impact(3) FY25(5) FY24(5) Growth
---------- ---------- ------ ------------ ---------- ---------- ------ ---------- ---------- ------ ------------ ---------- ---------- ------
Cardiovascular $ 3,037 $ 2,929 3.7 % $ (38) $ 3,075 $ 2,929 5.0 % $ 9,145 $ 8,702 5.1 % $ (62) $ 9,207 $ 8,702 5.8 %
Cardiac Rhythm &
Heart Failure 1,545 1,470 5.1 (18) 1,563 1,470 6.3 4,659 4,408 5.7 (26) 4,684 4,408 6.3
Structural Heart
& Aortic 874 843 3.7 (13) 887 843 5.2 2,610 2,475 5.4 (21) 2,631 2,475 6.3
Coronary &
Peripheral
Vascular 618 616 0.3 (8) 626 616 1.6 1,876 1,818 3.2 (15) 1,891 1,818 4.0
Neuroscience 2,458 2,355 4.4 (21) 2,478 2,355 5.2 7,226 6,861 5.3 (29) 7,255 6,861 5.7
Cranial & Spinal
Technologies 1,250 1,204 3.8 (9) 1,259 1,204 4.6 3,632 3,465 4.8 (15) 3,646 3,465 5.2
Specialty
Therapies 732 726 0.8 (8) 740 726 1.9 2,181 2,126 2.6 (10) 2,191 2,126 3.1
Neuromodulation 476 425 12.0 (4) 480 425 12.9 1,413 1,270 11.2 (5) 1,417 1,270 11.6
Medical Surgical 2,072 2,112 (1.9) (32) 2,104 2,112 (0.4) 6,196 6,219 (0.4) (50) 6,246 6,219 0.4
Surgical &
Endoscopy 1,596 1,616 (1.2) (26) 1,622 1,616 0.4 4,790 4,803 (0.3) (40) 4,829 4,803 0.5
Acute Care &
Monitoring 476 495 (3.9) (5) 481 495 (2.8) 1,406 1,416 (0.7) (10) 1,417 1,416 --
Diabetes 694 640 8.4 (12) 706 640 10.4 2,027 1,829 10.8 (8) 2,035 1,829 11.3
---------- ---------- ------------ ---------- ---------- ---------- ---------- ------------ ---------- ----------
Total Reportable
Segments 8,260 8,035 2.8 (103) 8,363 8,035 4.1 24,593 23,610 4.2 (149) 24,742 23,610 4.8
Other(2) 32 53 (41.1) (1) -- -- -- 17 164 (89.9) (3) -- -- --
---------- ---------- ------------ ---------- ---------- ---------- ---------- ------------ ---------- ----------
TOTAL $ 8,292 $ 8,089 2.5 % $ (104) $ 8,363 $ 8,035 4.1 % $ 24,610 $ 23,775 3.5 % $ (152) $ 24,742 $ 23,610 4.8 %
========== ========== ============ ========== ========== ========== ========== ============ ========== ==========
(1) The data in this schedule has been intentionally rounded to the nearest
million and, therefore, may not sum. Percentages have been calculated
using actual, non-rounded figures and, therefore, may not recalculate
precisely.
(2) Includes historical operations and ongoing transition agreements from
businesses the Company has exited or divested, and specifically for the
three months ended July 26, 2024, impacting year-to-date figures, $90
million of incremental Italian payback accruals resulting from the two
July 22, 2024 rulings by the Constitutional Court of Italy relating to
certain prior years since 2015.
(3) The currency impact to revenue measures the change in revenue between
current and prior year periods using constant exchange rates.
(4) The three months ended January 24, 2025 excludes $71 million of revenue
adjustments related to $32 million of inorganic revenue for the
transition activity noted in (2) and $103 million of unfavorable currency
impact on the remaining segments. The three months ended January 26, 2024
excludes $53 million of inorganic revenue related to the transition
activity noted in (2).
(5) The nine months ended January 24, 2025 excludes $132 million of revenue
adjustments related to $90 million of incremental Italian payback
accruals further described in note (2), $106 million of inorganic revenue
related to the transition activity noted in (2), and $149 million of
unfavorable currency impact on the remaining segments. The nine months
ended January 26, 2024 excludes $164 million of inorganic revenue related
to the transition activity noted in (2).
MEDTRONIC PLC
U.S. REVENUE(1)(2)
(Unaudited)
THIRD QUARTER YEAR-TO-DATE
--------------------------------------------------------------
REPORTED ORGANIC REPORTED ORGANIC
------------------------------ ------------------------------
Adjusted Adjusted Adjusted Adjusted
(in millions) FY25 FY24 Growth FY25 FY24 Growth FY25 FY24 Growth FY25 FY24 Growth
---------- ---------- ------ ---------- ---------- ------ ---------- ---------- ------ ---------- ---------- ------
Cardiovascular $ 1,405 $ 1,373 2.4 % $ 1,405 $ 1,373 2.4 % $ 4,242 $ 4,149 2.2 % $ 4,242 $ 4,149 2.2 %
Cardiac Rhythm &
Heart Failure 775 745 4.1 775 745 4.1 2,309 2,247 2.8 2,309 2,247 2.8
Structural Heart
& Aortic 372 363 2.6 372 363 2.6 1,129 1,087 3.9 1,129 1,087 3.9
Coronary &
Peripheral
Vascular 258 265 (2.8) 258 265 (2.8) 804 816 (1.4) 804 816 (1.4)
Neuroscience 1,689 1,556 8.5 1,689 1,556 8.5 4,931 4,614 6.9 4,931 4,614 6.9
Cranial & Spinal
Technologies 943 875 7.8 943 875 7.8 2,724 2,560 6.4 2,724 2,560 6.4
Specialty
Therapies 419 407 3.0 419 407 3.0 1,235 1,202 2.7 1,235 1,202 2.7
Neuromodulation 327 275 19.0 327 275 19.0 972 852 14.1 972 852 14.1
Medical Surgical 893 947 (5.8) 893 947 (5.8) 2,718 2,763 (1.6) 2,718 2,763 (1.6)
Surgical &
Endoscopy 623 663 (6.1) 623 663 (6.1) 1,928 1,971 (2.2) 1,928 1,971 (2.2)
Acute Care &
Monitoring 269 284 (5.1) 269 284 (5.1) 790 792 (0.2) 790 792 (0.2)
Diabetes 236 224 5.6 236 224 5.6 683 629 8.7 683 629 8.7
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Reportable
Segments 4,223 4,100 3.0 4,223 4,100 3.0 12,573 12,154 3.4 12,573 12,154 3.4
Other(3) 15 20 (26.4) -- -- -- 51 65 (21.3) -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL $ 4,237 $ 4,120 2.8 % $ 4,223 $ 4,100 3.0 % $ 12,624 $ 12,219 3.3 % $ 12,573 $ 12,154 3.4 %
========== ========== ========== ========== ========== ========== ========== ==========
(1) U.S. includes the United States and U.S. territories.
(2) The data in this schedule has been intentionally rounded to the nearest
million and, therefore, may not sum. Percentages have been calculated
using actual, non-rounded figures and, therefore, may not recalculate
precisely.
(3) Includes historical operations and ongoing transition agreements from
businesses the Company has exited or divested.
MEDTRONIC PLC
INTERNATIONAL REVENUE(1)
(Unaudited)
THIRD QUARTER YEAR-TO-DATE
REPORTED ORGANIC REPORTED ORGANIC
------------------------------ ------------------------------ ------------------------------- ------------------------------
Currency Adjusted Adjusted Currency Adjusted Adjusted
(in millions) FY25 FY24 Growth Impact(3) FY25(4) FY24(4) Growth FY25 FY24 Growth Impact(3) FY25(5) FY24(5) Growth
---------- ---------- ------ ------------ ---------- ---------- ------ ---------- ---------- ------- ------------ ---------- ---------- ------
Cardiovascular $ 1,632 $ 1,556 4.9 % $ (38) $ 1,670 $ 1,556 7.3 % $ 4,904 $ 4,552 7.7 % $ (62) $ 4,966 $ 4,552 9.1 %
Cardiac Rhythm &
Heart Failure 770 726 6.1 (18) 788 726 8.6 2,350 2,161 8.7 (26) 2,376 2,161 9.9
Structural Heart
& Aortic 502 480 4.6 (13) 515 480 7.2 1,482 1,389 6.7 (21) 1,503 1,389 8.2
Coronary &
Peripheral
Vascular 360 350 2.6 (8) 368 350 4.9 1,072 1,002 7.0 (15) 1,087 1,002 8.5
Neuroscience 769 799 (3.7) (21) 790 799 (1.1) 2,295 2,248 2.1 (29) 2,324 2,248 3.4
Cranial & Spinal
Technologies 307 329 (6.7) (9) 316 329 (3.9) 907 905 0.3 (15) 922 905 1.9
Specialty
Therapies 313 319 (2.0) (8) 321 319 0.4 947 924 2.4 (10) 957 924 3.5
Neuromodulation 149 150 (0.7) (4) 153 150 1.8 441 419 5.4 (5) 446 419 6.5
Medical Surgical 1,180 1,164 1.3 (32) 1,211 1,164 4.0 3,478 3,456 0.6 (50) 3,528 3,456 2.1
Surgical &
Endoscopy 973 953 2.1 (26) 999 953 4.9 2,862 2,832 1.1 (40) 2,902 2,832 2.5
Acute Care &
Monitoring 206 211 (2.3) (5) 212 211 0.2 616 624 (1.4) (10) 626 624 0.3
Diabetes 457 416 9.9 (12) 470 416 12.9 1,344 1,200 12.0 (8) 1,351 1,200 12.6
---------- ---------- ------------ ---------- ---------- ---------- ---------- ------------ ---------- ----------
Total Reportable
Segments 4,038 3,935 2.6 (103) 4,141 3,935 5.2 12,020 11,456 4.9 (149) 12,169 11,456 6.2
Other(2) 17 34 (49.8) (1) -- -- -- (35) 99 (134.8) (3) -- -- --
---------- ---------- ------------ ---------- ---------- ---------- ---------- ------------ ---------- ----------
TOTAL $ 4,055 $ 3,968 2.2 % $ (104) $ 4,141 $ 3,935 5.2 % $ 11,986 $ 11,555 3.7 % $ (152) $ 12,169 $ 11,456 6.2 %
========== ========== ============ ========== ========== ========== ========== ============ ========== ==========
(1) The data in this schedule has been intentionally rounded to the nearest
million and, therefore, may not sum. Percentages have been calculated
using actual, non-rounded figures and, therefore, may not recalculate
precisely.
(2) Includes historical operations and ongoing transition agreements from
businesses the Company has exited or divested, and specifically for the
three months ended July 26, 2024, impacting year-to-date figures, $90
million of incremental Italian payback accruals resulting from the two
July 22, 2024 rulings by the Constitutional Court of Italy relating to
certain prior years since 2015.
(3) The currency impact to revenue measures the change in revenue between
current and prior year periods using constant exchange rates.
(4) The three months ended January 24, 2025 excludes $86 million of revenue
adjustments related to $17 million of inorganic revenue for the
transition activity noted in (2), and $103 million of unfavorable
currency impact on the remaining segments. The three months ended January
26, 2024 excludes $34 million of inorganic revenue related to the
transition activity noted in (2).
(5) The nine months ended January 24, 2025 excludes $183 million of revenue
adjustments related to $90 million of incremental Italian payback
accruals further described in note (2), $55 million of inorganic revenue
related to the transition activity noted in (2), and $149 million of
unfavorable currency impact on the remaining segments. The nine months
ended January 26, 2024 excludes $99 million of inorganic revenue related
to the transition activity noted in (2).
MEDTRONIC PLC
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended Nine months ended
------------------------------------
(in millions,
except per share January 24, January 26, January 24, January 26,
data) 2025 2024 2025 2024
----------------- ----------------- ----------------- -----------------
Net sales $ 8,292 $ 8,089 $ 24,610 $ 23,775
Costs and
expenses:
Cost of
products sold,
excluding
amortization
of intangible
assets 2,779 2,782 8,485 8,172
Research and
development
expense 675 695 2,048 2,060
Selling,
general, and
administrative
expense 2,717 2,673 8,129 7,971
Amortization of
intangible
assets 416 419 1,243 1,274
Restructuring
charges, net 43 20 120 114
Certain
litigation
charges, net 22 -- 104 105
Other operating
(income)
expense, net (5) 17 (38) (13)
----------------- ----------------- ----------------- -----------------
Operating profit 1,646 1,483 4,519 4,091
Other
non-operating
income, net (72) (177) (403) (407)
Interest
expense, net 179 188 555 517
----------------- ----------------- ----------------- -----------------
Income before
income taxes 1,540 1,472 4,367 3,982
Income tax
provision 237 135 737 936
----------------- ----------------- ----------------- -----------------
Net income 1,303 1,337 3,630 3,045
Net income
attributable to
noncontrolling
interests (9) (15) (24) (23)
----------------- ----------------- ----------------- -----------------
Net income
attributable to
Medtronic $ 1,294 $ 1,322 $ 3,606 $ 3,022
================= ================= ================= =================
Basic earnings
per share $ 1.01 $ 0.99 $ 2.80 $ 2.27
================= ================= ================= =================
Diluted earnings
per share $ 1.01 $ 0.99 $ 2.79 $ 2.27
================= ================= ================= =================
Basic weighted
average shares
outstanding 1,282.4 1,329.7 1,286.7 1,330.1
Diluted weighted
average shares
outstanding 1,286.2 1,331.7 1,290.6 1,332.4
The data in the schedule above has been intentionally rounded to the nearest
million.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended January 24, 2025
Income Net Income
Cost of Gross Operating Before attributable
(in millions, except Net Products Margin Operating Profit Income to Diluted Effective
per share data) Sales Sold Percent Profit Percent Taxes Medtronic EPS Tax Rate
------- -------- ------- ---------- --------- --------- ------------ --------- ---------
GAAP $ 8,292 $ 2,779 66.5 % $ 1,646 19.9 % $ 1,540 $ 1,294 $ 1.01 15.4 %
Non-GAAP Adjustments:
Amortization of
intangible assets -- -- -- 416 5.0 416 339 0.26 18.5
Restructuring and
associated
costs(2) -- (4) -- 46 0.6 46 37 0.03 19.6
Acquisition and
divestiture-related
items(3) -- (1) -- 28 0.3 28 23 0.02 17.9
Certain litigation
charges, net -- -- -- 22 0.3 22 18 0.01 22.7
(Gain)/loss on
minority
investments(4) -- -- -- -- -- 68 52 0.04 22.1
Medical device
regulations(5) -- (8) 0.1 11 0.1 11 9 0.01 18.2
Certain tax
adjustments, net -- -- -- -- -- -- 15 0.01 --
------- -------- ------- ---------- --------- --------- ------------ ---------
Non-GAAP $ 8,292 $ 2,766 66.6 % $ 2,169 26.2 % $ 2,130 $ 1,787 $ 1.39 15.7 %
========= ============
Currency impact 104 61 (0.3) (4) (0.4) (0.01)
------- -------- ------- ---------- --------- ---------
Currency Adjusted $ 8,396 $ 2,827 66.3 % $ 2,165 25.8 % $ 1.38
======= ======== ======= ========== ========= =========
Three months ended January 26, 2024
Income Net Income
Cost of Gross Operating Before attributable
(in millions, except Net Products Margin Operating Profit Income to Diluted Effective
per share data) Sales Sold Percent Profit Percent Taxes Medtronic EPS Tax Rate
------- -------- ------- ---------- --------- --------- ------------ --------- ---------
GAAP $ 8,089 $ 2,782 65.6 % $ 1,483 18.3 % $ 1,472 $ 1,322 $ 0.99 9.2 %
Non-GAAP Adjustments:
Amortization of
intangible assets -- -- -- 419 5.2 419 354 0.27 15.5
Restructuring and
associated
costs(2) -- (12) 0.1 55 0.7 55 46 0.03 16.4
Acquisition and
divestiture-related
items(3) -- (12) 0.1 58 0.7 58 52 0.04 10.3
(Gain)/loss on
minority
investments(4) -- -- -- -- -- 24 24 0.02 --
Medical device
regulations(5) -- (18) 0.2 26 0.3 26 21 0.02 19.2
Certain tax
adjustments,
net(6) -- -- -- -- -- -- (92) (0.07) --
------- -------- ------- ---------- --------- --------- ------------ ---------
Non-GAAP $ 8,089 $ 2,740 66.1 % $ 2,042 25.2 % $ 2,055 $ 1,728 $ 1.30 15.2 %
======= ======== ======= ========== ========= ========= ============ =========
See description of non-GAAP financial measures contained in the press release
dated February 18, 2025.
(1) The data in this schedule has been intentionally rounded to the nearest
million or $0.01 for EPS figures, and, therefore, may not sum.
(2) Associated costs primarily include salaries and wages for employees
supporting the restructuring activities, consulting expenses, and asset
write-offs.
(3) The charges primarily include business combination costs, changes in fair
value of contingent consideration, and exit of business-related charges.
(4) We exclude unrealized and realized gains and losses on our minority
investments as we do not believe that these components of income or
expense have a direct correlation to our ongoing or future business
operations.
(5) The charges represent incremental costs of complying with the new
European Union (E.U.) medical device regulations for previously
registered products and primarily include charges for contractors
supporting the project and other direct third-party expenses. We consider
these costs to be duplicative of previously incurred costs and/or
one-time costs, which are limited to a specific time period.
(6) The net tax benefit primarily relates to a change in a Swiss Cantonal tax
rate associated with previously established deferred tax assets from
intercompany intellectual property transactions and the step up in tax
basis for Swiss Cantonal purposes.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Nine months ended January 24, 2025
Income
Cost of Gross Operating Before Net Income
(in millions, except Net Products Margin Operating Profit Income attributable Diluted Effective
per share data) Sales Sold Percent Profit Percent Taxes to Medtronic EPS Tax Rate
-------- -------- ------- ---------- --------- --------- -------------- --------- ---------
GAAP $ 24,610 $ 8,485 65.5 % $ 4,519 18.4 % $ 4,367 $ 3,606 $ 2.79 16.9 %
Non-GAAP Adjustments:
Amortization of
intangible assets -- -- -- 1,243 4.9 1,243 1,017 0.79 18.3
Restructuring and
associated
costs(2) -- (24) 0.1 154 0.6 154 124 0.10 19.5
Acquisition and
divestiture-related
items(3) -- (17) -- 15 0.1 15 3 -- 73.3
Certain litigation
charges, net -- -- -- 104 0.4 104 86 0.07 17.3
(Gain)/loss on
minority
investments(4) -- -- -- -- -- 41 14 0.01 61.0
Medical device
regulations(5) -- (27) 0.1 38 0.2 38 30 0.02 21.1
Other(6) 90 -- 0.2 90 0.4 90 70 0.05 22.2
Certain tax
adjustments,
net(7) -- -- -- -- -- -- 49 0.04 --
-------- -------- ------- ---------- --------- --------- -------------- ---------
Non-GAAP $ 24,700 $ 8,417 65.9 % $ 6,162 24.9 % $ 6,051 $ 4,999 $ 3.87 17.0 %
========= ==============
Currency impact 150 (72) 0.5 241 0.9 0.15
-------- -------- ------- ---------- --------- ---------
Currency Adjusted $ 24,850 $ 8,345 66.4 % $ 6,403 25.8 % $ 4.02
======== ======== ======= ========== ========= =========
Nine months ended January 26, 2024
Income
Cost of Gross Operating Before Net Income
(in millions, except Net Products Margin Operating Profit Income attributable Diluted Effective
per share data) Sales Sold Percent Profit Percent Taxes to Medtronic EPS Tax Rate
-------- -------- ------- ---------- --------- --------- -------------- --------- ---------
GAAP $ 23,775 $ 8,172 65.6 % $ 4,091 17.2 % $ 3,982 $ 3,022 $ 2.27 23.5 %
Non-GAAP Adjustments:
Amortization of
intangible assets -- -- -- 1,274 5.4 1,274 1,078 0.81 15.4
Restructuring and
associated
costs(2) -- (43) 0.2 237 1.0 237 198 0.15 16.5
Acquisition and
divestiture-related
items(3) -- (24) 0.1 165 0.7 165 149 0.11 9.7
Certain litigation
charges, net -- -- -- 105 0.4 105 81 0.06 22.9
(Gain)/loss on
minority
investments(4) -- -- -- -- -- 113 109 0.08 4.4
Medical device
regulations(5) -- (60) 0.3 88 0.4 88 70 0.05 20.5
Certain tax
adjustments,
net(8) -- -- -- -- -- -- 282 0.21 --
-------- -------- ------- ---------- --------- --------- -------------- ---------
Non-GAAP $ 23,775 $ 8,046 66.2 % $ 5,961 25.1 % $ 5,965 $ 4,988 $ 3.74 16.0 %
======== ======== ======= ========== ========= ========= ============== =========
See description of non-GAAP financial measures contained in the press release
dated February 18, 2025.
(1) The data in this schedule has been intentionally rounded to the nearest
million or $0.01 for EPS figures, and, therefore, may not sum.
(2) Associated costs primarily include salaries and wages for employees
supporting the restructuring activities, consulting expenses, and asset
write-offs.
(3) The charges primarily include business combination costs, changes in fair
value of contingent consideration, and exit of business-related charges.
The nine months ended January 24, 2025, also include gains related to
certain business or asset sales.
(4) We exclude unrealized and realized gains and losses on our minority
investments as we do not believe that these components of income or
expense have a direct correlation to our ongoing or future business
operations.
(5) The charges represent incremental costs of complying with the new
European Union (E.U.) medical device regulations for previously
registered products and primarily include charges for contractors
supporting the project and other direct third-party expenses. We consider
these costs to be duplicative of previously incurred costs and/or
one-time costs, which are limited to a specific time period.
(6) Reflects the recognition of incremental Italian payback accruals
resulting from the two July 22, 2024 rulings by the Constitutional Court
of Italy relating to certain prior years since 2015.
(7) Primarily relates to amortization of previously established deferred tax
assets from intercompany intellectual property transactions.
(8) The net charge primarily relates to an income tax reserve adjustment
associated with the June 2023, Israeli Central-Lod District Court
decision and the establishment of a valuation allowance against certain
net operating losses which were partially offset by a benefit from the
change in a Swiss Cantonal tax rate associated with previously
established deferred tax assets from intercompany intellectual property
transactions and the step up in tax basis for Swiss Cantonal purposes.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended January 24, 2025
-------------------------------------------------------------------------------------------------
Other
Operating
SG&A R&D Other (Inc.)/Ex
Expense Expense Operating p., net
as a % as a % (Income) as a % of Other Non-
SG&A of Net R&D of Net Expense, Net Operating
(in millions) Net Sales Expense Sales Expense Sales net Sales Income, net
----------- ---------- ------- ---------- ------- -------------- --------- ---------------
GAAP $ 8,292 $ 2,717 32.8 % $ 675 8.1 % $ (5) (0.1) % $ (72)
Non-GAAP Adjustments:
Acquisition and
divestiture-related
items(2) -- (13) (0.2) -- -- (13) (0.2) --
Medical device
regulations(3) -- -- -- (3) -- -- -- --
(Gain)/loss on
minority
investments(4) -- -- -- -- -- -- -- (68)
----------- ---------- ------- ---------- ------- -------------- --------- ---------------
Non-GAAP $ 8,292 $ 2,704 32.6 % $ 672 8.1 % $ (18) (0.2) % $ (140)
Nine months ended January 24, 2025
-------------------------------------------------------------------------------------------------
Other
Operating
SG&A R&D Other (Inc.)/Ex
Expense Expense Operating p., net
as a % as a % (Income) as a % of Other Non-
SG&A of Net R&D of Net Expense, Net Operating
(in millions) Net Sales Expense Sales Expense Sales net Sales Income, net
----------- ---------- ------- ---------- ------- -------------- --------- ---------------
GAAP $ 24,610 $ 8,129 33.0 % $ 2,048 8.3 % $ (38) (0.2) % $ (403)
Non-GAAP Adjustments:
Restructuring and
associated
costs(5) -- (10) (0.1) -- -- -- -- --
Acquisition and
divestiture-related
items(2) -- (40) (0.3) -- -- 42 0.2 --
Medical device
regulations(3) -- -- -- (10) -- -- -- --
Other(6) 90 -- -- -- -- -- -- --
(Gain)/loss on
minority
investments(4) -- -- -- -- -- -- -- (41)
----------- ---------- ------- ---------- ------- -------------- --------- ---------------
Non-GAAP $ 24,700 $ 8,078 32.7 % $ 2,038 8.3 % $ 4 -- % $ (443)
=========== ========== ======= ========== ======= ============== ========= ===============
See description of non-GAAP financial measures contained in the press release
dated February 18, 2025.
(1) The data in this schedule has been intentionally rounded to the nearest
million, and, therefore, may not sum.
(2) The charges primarily include business combination costs, changes in fair
value of contingent consideration, exit of business-related charges, and
gains related to certain business or asset sales. The nine months ended
January 24, 2025, also include gains related to certain business or asset
sales.
(3) The charges represent incremental costs of complying with the new
European Union medical device regulations for previously registered
products and primarily include charges for contractors supporting the
project and other direct third-party expenses. We consider these costs to
be duplicative of previously incurred costs and/or one-time costs, which
(MORE TO FOLLOW) Dow Jones Newswires
February 18, 2025 06:45 ET (11:45 GMT)
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。