Medtronic (MDT, Financial) just dropped its Q2 FY25 numbers, and it's a mixed bag. Revenue climbed 5.3% to $8.4 billion, nudging past analyst expectations. Diabetes stole the spotlight with a 12.4% revenue surge, powered by the MiniMed™ 780G system. But cardiac ablation hit a snag, with flat sales tied to supplier issues dragging the momentum. The market wasn't thrilled—Medtronic's stock slipped nearly 2.6% to $85.3 per share.
The company isn't backing down, though. Medtronic boosted its full-year guidance, expecting organic revenue growth of up to 5% and EPS landing between $5.44 and $5.50. Innovations like the PulseSelect™ pulsed field ablation system and Evolut™ FX+ TAVR system, along with a strategic insulin pump partnership with Abbott, are setting the stage for future gains. CEO Geoff Martha pointed to their high-impact pipeline as a driver for diversified growth, calling the momentum “ahead of expectations.”
So, what's the play here? Medtronic's pipeline screams long-term potential, but short-term headwinds—like those ablation setbacks—are real. If the company can resolve its supply chain issues, the stock could make a comeback. But for now, this is one for the watchlist, not the "all-in" portfolio.
