Medtronic reports strong second quarter fiscal 2026 financial results, enterprise growth drivers accelerate momentum

Cardiac Ablation Solutions growth of 71% on strength of pulsed field ablation (PFA) portfolio; Raising FY26 revenue and EPS guidance

GALWAY, Ireland, Nov. 18, 2025 /PRNewswire/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced financial results for its second quarter (Q2) of fiscal year 2026 (FY26), which ended October 24, 2025.

Q2 Key Highlights

"We delivered a strong second quarter, with both revenue and EPS beating expectations. Overall, procedure volumes and our end markets are robust, and we're executing well across the business," said Geoff Martha, Medtronic chairman and chief executive officer. "Looking ahead, we are positioned for even greater acceleration of revenue growth in the back half of the year and beyond, driven by several enterprise growth drivers, including our PFA franchise for Afib, Symplicity™ procedure for hypertension, Hugo™ robotic-assisted surgery system, and Altaviva™ therapy for urge urinary incontinence."

Financial Results

Medtronic reported Q2 worldwide revenue of $8.961 billion, an increase of 6.6% as reported and 5.5% on an organic basis. The organic revenue growth comparison excludes:

Q2 revenue by segment included:

Q2 GAAP operating profit and operating margin were $1.686 billion and 18.8%, respectively, an increase of 6% and a decrease of 20 basis points, respectively. As detailed in the financial schedules included at the end of the release, Q2 non-GAAP operating profit and operating margin were $2.162 billion and 24.1%, respectively, an increase of 6% and a decrease of 20 basis points, respectively.

Q2 GAAP net income and diluted earnings per share (EPS) were $1.374 billion and $1.07, respectively, both increases of 8%. As detailed in the financial schedules included at the end of this release, Q2 non-GAAP net income and non-GAAP diluted EPS were $1.746 billion and $1.36, respectively, both increases of 8%.

Guidance

The company today raised its FY26 revenue growth and EPS guidance.

The company raised its FY26 organic revenue growth guidance to approximately 5.5%, an increase from the prior guidance of approximately 5.0%.

The company raised its FY26 diluted non-GAAP EPS guidance to the new range of $5.62 to $5.66 versus the prior $5.60 to $5.66. This includes a potential impact from tariffs of approximately $185 million, unchanged from the prior guidance. Excluding the potential impact from tariffs, this guidance represents FY26 diluted non-GAAP EPS growth of approximately 4.5%.

"In the second quarter, we drove underlying efficiency gains in our gross margin, significantly increased R&D to fuel our future growth, as well as strategically increased investment in sales and marketing for our growth programs in light of the outsized demand and building momentum for key programs," said Thierry Piéton, Medtronic chief financial officer. "Given our outperformance in the first half of the year and confidence we have in our revenue growth acceleration, we are raising today our full year revenue and EPS guidance."

Video Webcast Information

Medtronic will host a video webcast today, November 18, at 8:00 a.m. EST (7:00 a.m. CST) to provide information about its business for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Quarterly Earnings 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 Past Events and Presentations link under the News & Events drop-down at investorrelations.medtronic.com.

Financial Schedules and Earnings Presentation

The second quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Quarterly Earnings link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the second quarter earnings presentation, click here.

About Medtronic

Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE: MDT), visit www.Medtronic.com and follow on LinkedIn.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, changing global trade policies, material acquisition and divestiture transactions, general economic conditions, and other risks and uncertainties described in the company's periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company. In some cases, you can identify these statements by forward-looking words or expressions, such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "looking ahead," "may," "plan," "possible," "potential," "project," "should," "going to," "will," and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this press release, including to reflect future events or circumstances.

NON-GAAP FINANCIAL MEASURES

This press release contains financial measures, including adjusted net income, adjusted diluted EPS, and organic revenue, which are considered "non-GAAP" financial measures under applicable SEC rules and regulations. References to quarterly or annual figures increasing, decreasing or remaining flat are in comparison to fiscal year 2025, and references to sequential changes are in comparison to the prior fiscal quarter. Unless stated otherwise, quarterly and annual rates and ranges are given on an organic basis.

Medtronic management believes that non-GAAP financial measures provide information useful to investors in understanding the company's underlying operational performance and trends and to facilitate comparisons with the performance of other companies in the med tech industry. Non-GAAP net income and diluted EPS exclude the effect of certain charges or gains that contribute to or reduce earnings but that result from transactions or events that management believes may or may not recur with similar materiality or impact to operations in future periods (Non-GAAP Adjustments). Medtronic generally uses non-GAAP financial measures to facilitate management's review of the operational performance of the company and as a basis for strategic planning. Non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies. Management strongly encourages investors to review the company's consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial schedules accompanying this press release.

Medtronic calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic revenue growth guidance excludes the impact of foreign currency fluctuations, as well as significant acquisitions, divestitures, or other significant discrete items. Forward-looking diluted non-GAAP EPS guidance also excludes other potential charges or gains that would be recorded as Non-GAAP Adjustments to earnings during the fiscal year. Medtronic does not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of recognition of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.

Contacts:

Erika Winkels

Public Relations

+1-763-526-8478

Ryan Weispfenning

Investor Relations

+1-763-505-4626

MEDTRONIC PLC

WORLD WIDE REVENUE (1)

(Unaudited)

SECOND QUARTER

YEAR-TO-DATE

REPORTED

ORGANIC

REPORTED

ORGANIC

(in millions)

FY26

FY25

Growth

Currency

Impact (4)

FY26 (5)

FY25 (5)

Growth

FY26

FY25

Growth

Currency

Impact (4)

FY26 (6)

FY25 (6)

Growth

Cardiovascular

$ 3,436

$ 3,102

10.8 %

$ 46

$ 3,390

$ 3,102

9.3 %

$ 6,721

$ 6,108

10.0 %

$ 114

$ 6,607

$ 6,108

8.2 %

Cardiac Rhythm & Heart Failure

1,825

1,578

15.7

1,804

1,578

14.3

3,538

3,114

13.6

3,479

3,114

11.7

Structural Heart & Aortic

956

881

8.5

939

881

6.6

1,885

1,736

8.6

1,847

1,736

6.4

Coronary & Peripheral Vascular

655

643

1.9

648

643

0.8

1,298

1,259

3.1

1,281

1,259

1.8

Neuroscience

2,562

2,451

4.5

2,546

2,451

3.9

4,978

4,768

4.4

4,935

4,768

3.5

Cranial & Spinal Technologies

1,299

1,234

5.2

1,293

1,234

4.7

2,509

2,382

5.4

2,492

2,382

4.6

Specialty Therapies

744

737

0.9

739

737

0.3

1,446

1,450

(0.3)

1,432

1,450

(1.2)

Neuromodulation

520

480

8.3

515

480

7.3

1,023

937

9.2

1,011

937

7.9

Medical Surgical

2,171

2,128

2.1

2,139

2,111

1.3

4,255

4,123

3.2

4,183

4,107

1.8

Surgical & Endoscopy

1,679

1,649

1.8

1,651

1,633

1.1

3,291

3,193

3.0

3,231

3,177

1.7

Acute Care & Monitoring

493

478

3.0

488

478

2.0

964

930

3.6

952

930

2.3

Diabetes

757

686

10.3

735

686

7.1

1,478

1,333

10.9

1,433

1,333

7.5

Total Reportable Segments

8,926

8,366

6.7

111

8,811

8,350

5.5

17,432

16,333

6.7

270

17,158

16,317

5.2

Other (2)

(5.8)

—

107

(15)

NM (3)

—

TOTAL

$ 8,961

$ 8,403

6.6 %

$ 111

$ 8,811

$ 8,350

5.5 %

$ 17,539

$ 16,318

7.5 %

$ 273

$ 17,158

$ 16,317

5.2 %

(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 the historical operations and ongoing transition agreements from businesses the Company has exited or divested, and for the year-to-date figures, adjustments to the Company's Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.

(3)

Not meaningful (NM).

(4)

The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.

(5)

The three months ended October 24, 2025 excludes $151 million of revenue adjustments, including $35 million of inorganic revenue for the transition activity noted in (2), $5 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division, and $111 million of favorable currency impact on the remaining segments. The three months ended October 25, 2024 excludes $53 million of revenue adjustments, including $37 million of inorganic revenue related to the transition activity noted in (2) and $16 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division.

(6)

The six months ended October 24, 2025 excludes $382 million of revenue adjustments, including $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (2), $68 million of inorganic revenue for the transition activity noted in (2), $5 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division, and $270 million of favorable currency impact on the remaining segments. The six months ended October 25, 2024 excludes $1 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2), $75 million of inorganic revenue related to the transition activity noted in (2), and $16 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division.

MEDTRONIC PLC

U.S. REVENUE (1)(2)

(Unaudited)

SECOND QUARTER

YEAR-TO-DATE

REPORTED

ORGANIC

REPORTED

ORGANIC

(in millions)

FY26

FY25

Growth

FY26

FY25

Growth

FY26

FY25

Growth

FY26

FY25

Growth

Cardiovascular

$ 1,592

$ 1,434

11.0 %

$ 1,592

$ 1,434

11.0 %

$ 3,071

$ 2,836

8.3 %

$ 3,071

$ 2,836

8.3 %

Cardiac Rhythm & Heart Failure

920

768

19.9

920

768

19.9

1,754

1,534

14.4

1,754

1,534

14.4

Structural Heart & Aortic

390

388

0.4

390

388

0.4

761

757

0.6

761

757

0.6

Coronary & Peripheral Vascular

282

278

1.4

282

278

1.4

556

546

1.7

556

546

1.7

Neuroscience

1,730

1,677

3.1

1,730

1,677

3.1

3,354

3,242

3.4

3,354

3,242

3.4

Cranial & Spinal Technologies

966

926

4.4

966

926

4.4

1,857

1,781

4.2

1,857

1,781

4.2

Specialty Therapies

409

418

(2.2)

409

418

(2.2)

801

816

(1.8)

801

816

(1.8)

Neuromodulation

355

333

6.4

355

333

6.4

695

645

7.9

695

645

7.9

Medical Surgical

943

944

(0.1)

943

944

(0.1)

1,827

1,825

0.1

1,827

1,825

0.1

Surgical & Endoscopy

665

675

(1.5)

665

675

(1.5)

1,286

1,304

(1.4)

1,286

1,304

(1.4)

Acute Care & Monitoring

278

269

3.4

278

269

3.4

541

521

3.9

541

521

3.9

Diabetes

230

232

(0.8)

230

232

(0.8)

447

—

447

—

Total Reportable Segments

4,494

4,286

4.8

4,494

4,286

4.8

8,699

8,350

4.2

8,699

8,350

4.2

Other (3)

21.9

—

14.1

—

TOTAL

$ 4,516

$ 4,304

4.9 %

$ 4,494

$ 4,286

4.8 %

$ 8,741

$ 8,387

4.2 %

$ 8,699

$ 8,350

4.2 %

(1)

U.S. includes the United States and U.S. territories.

(2)

(3)

Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested.

MEDTRONIC PLC

INTERNATIONAL REVENUE (1)

(Unaudited)

SECOND QUARTER

YEAR-TO-DATE

REPORTED

ORGANIC

REPORTED

ORGANIC

(in millions)

FY26

FY25

Growth

Currency

Impact (4)

FY26 (5)

FY25 (5)

Growth

FY26

FY25

Growth

Currency

Impact (4)

FY26 (6)

FY25 (6)

Growth

Cardiovascular

$ 1,844

$ 1,668

10.6 %

$ 46

$ 1,799

$ 1,668

7.8 %

$ 3,650

$ 3,272

11.6 %

$ 114

$ 3,536

$ 3,272

8.1 %

Cardiac Rhythm & Heart Failure

905

811

11.7

883

811

9.0

1,784

1,580

12.9

1,725

1,580

9.2

Structural Heart & Aortic

566

492

14.9

549

492

11.5

1,124

980

14.8

1,085

980

10.8

Coronary & Peripheral Vascular

373

365

2.3

366

365

0.3

743

713

4.2

726

713

1.8

Neuroscience

832

774

7.5

817

774

5.5

1,624

1,526

6.4

1,582

1,526

3.6

Cranial & Spinal Technologies

332

308

7.8

326

308

5.9

652

600

8.7

635

600

5.8

Specialty Therapies

335

319

4.9

330

319

3.5

644

634

1.6

631

634

(0.4)

Neuromodulation

165

146

12.7

160

146

9.2

328

292

12.3

316

292

8.1

Medical Surgical

1,228

1,183

3.8

1,196

1,167

2.5

2,427

2,298

5.6

2,356

2,282

3.2

Surgical & Endoscopy

1,014

974

4.1

987

958

3.0

2,004

1,889

6.1

1,945

1,873

3.9

Acute Care & Monitoring

214

209

2.5

210

209

0.3

423

409

3.3

411

409

0.3

Diabetes

527

455

16.0

505

455

11.1

1,031

886

16.4

986

886

11.2

Total Reportable Segments

4,432

4,080

8.6

111

4,317

4,064

6.2

8,733

7,983

9.4

270

8,459

7,966

6.2

Other (2)

(32.4)

—

(51)

NM (3)

—

TOTAL

$ 4,445

$ 4,099

8.4 %

$ 111

$ 4,317

$ 4,064

6.2 %

$ 8,799

$ 7,931

10.9 %

$ 273

$ 8,459

$ 7,966

6.2 %

(1)

(2)

(3)

Not meaningful (NM).

(4)

The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.

(5)

The three months ended October 24, 2025 excludes $128 million of revenue adjustments, including $13 million of inorganic revenue for the transition activity noted in (2), $5 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division, and $111 million of favorable currency impact on the remaining segments. The three months ended October 25, 2024 excludes $35 million of revenue adjustments, including $19 million of inorganic revenue related to the transition activity noted in (2) and $16 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division.

(6)

The six months ended October 24, 2025 excludes $340 million of revenue adjustments, including $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (2), $27 million of inorganic revenue for the transition activity noted in (2), $5 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division, and $270 million of favorable currency impact on the remaining segments. The six months ended October 25, 2024 excludes $35 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2), $38 million of inorganic revenue related to the transition activity noted in (2), and $16 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division.

MEDTRONIC PLC

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three months ended

Six months ended

(in millions, except per share data)

October 24, 2025

October 25, 2024

October 24, 2025

October 25, 2024

Net sales

$ 8,961

$ 8,403

$ 17,539

$ 16,318

Costs and expenses:

Cost of products sold, excluding amortization of intangible assets

3,061

2,946

6,062

5,707

Research and development expense

754

697

1,480

1,373

Selling, general, and administrative expense

2,965

2,757

5,772

5,412

Amortization of intangible assets

463

413

922

827

Restructuring charges, net

Certain litigation charges, net

—

Other operating expense (income), net

(34)

(33)

Operating profit

1,686

1,595

3,130

2,873

Other non-operating income, net

(92)

(173)

(125)

(330)

Interest expense, net

181

209

357

376

Income before income taxes

1,597

1,559

2,898

2,827

Income tax provision

215

281

470

500

Net income

1,381

1,278

2,428

2,327

Net income attributable to noncontrolling interests

(7)

(9)

(14)

(15)

Net income attributable to Medtronic

$ 1,374

$ 1,270

$ 2,414

$ 2,312

Basic earnings per share

$ 1.07

$ 0.99

$ 1.88

$ 1.79

Diluted earnings per share

$ 1.07

$ 0.99

$ 1.87

$ 1.79

Basic weighted average shares outstanding

1,282.0

1,282.4

1,281.8

1,288.6

Diluted weighted average shares outstanding

1,288.0

1,286.9

1,287.5

1,292.5

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 October 24, 2025

(in millions, except per share data)

Net

Sales

Cost of

Products

Sold

Gross

Margin

Percent

Operating

Profit

Operating

Profit

Percent

Income

Before

Income

Taxes

Net Income

attributable

Medtronic

Diluted

EPS

Effective

Tax Rate

GAAP

$ 8,961

$ 3,061

65.8 %

$ 1,686

18.8 %

$ 1,597

$ 1,374

$ 1.07

13.5 %

Non-GAAP Adjustments:

Amortization of intangible assets (2)

—

463

5.2

463

376

0.29

18.8

Restructuring and associated costs (3)

—

0.1

0.01

23.1

Acquisition and divestiture-related items (4)

—

(9)

0.1

—

(8)

(0.01)

—

(Gain)/loss on minority investments (5)

—

0.02

—

Certain tax adjustments, net (6)

—

(29)

(0.02)

—

Non-GAAP

$ 8,961

$ 3,052

65.9 %

$ 2,162

24.1 %

$ 2,097

$ 1,746

$ 1.36

16.4 %

Currency impact

(111)

(1.0)

(93)

(0.7)

(0.06)

Currency Adjusted

$ 8,850

$ 3,102

64.9 %

$ 2,070

23.4 %

$ 1.30

Three months ended October 25, 2024

(in millions, except per share data)

Net

Sales

Cost of

Products

Sold

Gross

Margin

Percent

Operating

Profit

Operating

Profit

Percent

Income

Before

Income

Taxes

Net Income

attributable

Medtronic

Diluted

EPS

Effective

Tax Rate

GAAP

$ 8,403

$ 2,946

64.9 %

$ 1,595

19.0 %

$ 1,559

$ 1,270

$ 0.99

18.0 %

Non-GAAP Adjustments:

Amortization of intangible assets

—

413

4.9

413

338

0.26

18.2

Restructuring and associated costs (3)

—

(11)

0.1

0.5

0.03

19.6

Acquisition and divestiture-related items (4)

—

(5)

0.1

(25)

(0.3)

(25)

(30)

(0.02)

(20.0)

(Gain)/loss on minority investments (5)

—

(10)

(21)

(0.02)

(100.0)

Medical device regulations (7)

—

(9)

0.1

0.01

16.7

Certain tax adjustments, net

—

0.01

—

Non-GAAP

$ 8,403

$ 2,921

65.2 %

$ 2,041

24.3 %

$ 1,995

$ 1,620

$ 1.26

18.3 %

See description of non-GAAP financial measures contained in the press release dated November 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)

The Company recognized $46 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio.

(3)

The charges primarily relate to employee termination benefits and facility related and contract termination costs.

(4)

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. Exit of business-related charges primarily relate to the impending separation of the Diabetes business and costs associated with the Company's June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.

(5)

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.

(6)

Primarily includes a tax benefit recognized due to a change in interest accrued on uncertain tax positions, partially offset by amortization of previously established deferred tax assets arising from intercompany intellectual property transactions.

(7)

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.

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS (1)

(Unaudited)

Six months ended October 24, 2025

(in millions, except per share data)

Net

Sales

Cost of

Products

Sold

Gross

Margin

Percent

Operating

Profit

Operating

Profit

Percent

Income

Before

Income

Taxes

Net Income

attributable

to Medtronic

Diluted

EPS

Effective

Tax Rate

GAAP

$ 17,539

$ 6,062

65.4 %

$ 3,130

17.8 %

$ 2,898

$ 2,414

$ 1.87

16.2 %

Non-GAAP Adjustments:

Amortization of intangible assets (2)

—

922

5.4

922

750

0.58

18.7

Restructuring and associated costs (3)

—

(16)

0.1

0.5

0.05

24.1

Acquisition and divestiture-related items (4)

—

(16)

0.1

0.3

0.03

31.0

Certain litigation charges, net

—

0.2

0.02

22.2

(Gain)/loss on minority investments (5)

—

137

130

0.10

5.1

Other (6)

(39)

—

(0.2)

(39)

(0.2)

(39)

(30)

(0.02)

20.5

Certain tax adjustments, net (7)

—

(13)

(0.01)

—

Non-GAAP

$ 17,501

$ 6,031

65.5 %

$ 4,179

23.9 %

$ 4,084

$ 3,372

$ 2.62

17.1 %

Currency impact

(270)

(0.5)

(103)

(0.2)

(0.06)

Currency Adjusted

$ 17,230

$ 6,035

65.0 %

$ 4,076

23.7 %

$ 2.56

Six months ended October 25, 2024

(in millions, except per share data)

Net

Sales

Cost of

Products

Sold

Gross

Margin

Percent

Operating

Profit

Operating

Profit

Percent

Income

Before

Income

Taxes

Net Income

attributable

to Medtronic

Diluted

EPS

Effective

Tax Rate

GAAP

$ 16,318

$ 5,707

65.0 %

$ 2,873

17.6 %

$ 2,827

$ 2,312

$ 1.79

17.7 %

Non-GAAP Adjustments:

Amortization of intangible assets

—

827

4.9

827

678

0.52

18.0

Restructuring and associated costs (3)

—

(20)

0.1

108

0.6

108

0.07

19.4

Acquisition and divestiture-related items (4)

—

(16)

0.1

(13)

(0.1)

(13)

(19)

(0.01)

(46.2)

Certain litigation charges, net

—

0.5

0.05

16.0

(Gain)/loss on minority investments (5)

—

(27)

(38)

(0.03)

(37.0)

Medical device regulations (8)

—

(20)

0.1

0.2

0.02

18.5

Other (6)

—

0.4

0.5

0.05

22.2

Certain tax adjustments, net (7)

—

0.03

—

Non-GAAP

$ 16,408

$ 5,651

65.6 %

$ 3,993

24.3 %

$ 3,921

$ 3,213

$ 2.49

17.7 %

See description of non-GAAP financial measures contained in the press release dated November 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)

The Company recognized $91 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio.

(3)

The charges primarily relate to employee termination benefits and facility related and contract termination costs.

(4)

(5)

(6)

Reflects adjustments to the Company's Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.

(7)

The net benefit for the six months ended October 24, 2025 primarily includes a tax benefit recognized due to a change in interest accrued on uncertain tax positions, partially offset by amortization of previously established deferred tax assets arising from intercompany intellectual property transactions. The charges for the six months ended October 25, 2024 primarily includes amortization of previously established deferred tax assets arising from intercompany intellectual property transactions.

(8)

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS (1)

(Unaudited)

Three months ended October 24, 2025

(in millions)

Net Sales

SG&A

Expense

SG&A

Expense as

a % of Net

Sales

R&D

Expense

R&D

Expense

as a % of

Net Sales

Other

Operating

(Income)

Expense,

net

Other

Operating

(Inc.)/Exp.,

net as a % of

Net Sales

Other Non-

Operating

Income, net

GAAP

$ 8,961

$ 2,965

33.1 %

$ 754

8.4 %

$ 22

0.2 %

$ (92)

Non-GAAP Adjustments:

Restructuring and associated costs (2)

—

(3)

—

Acquisition and divestiture-related items (3)

—

(35)

(0.4)

—

0.5

—

(Gain)/loss on minority investments (4)

—

(24)

Non-GAAP

$ 8,961

$ 2,927

32.7 %

$ 755

8.4 %

$ 64

0.7 %

$ (116)

Six months ended October 24, 2025

(in millions)

Net Sales

SG&A

Expense

SG&A

Expense as

a % of Net

Sales

R&D

Expense

R&D

Expense

as a % of

Net Sales

Other

Operating

(Income)

Expense,

net

Other

Operating

(Inc.)/Exp.,

net as a % of

Net Sales

Other Non-

Operating

Income, net

GAAP

$ 17,539

$ 5,772

32.9 %

$ 1,480

8.4 %

$ 92

0.5 %

$ (125)

Non-GAAP Adjustments:

Restructuring and associated costs (2)

—

(8)

—

Acquisition and divestiture-related items (3)

—

(61)

(0.3)

—

0.1

—

Other (5)

(39)

—

(Gain)/loss on minority investments (4)

—

(137)

Non-GAAP

$ 17,501

$ 5,702

32.6 %

$ 1,480

8.5 %

$ 108

0.6 %

$ (262)

See description of non-GAAP financial measures contained in the press release dated November 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 relate to employee termination benefits and facility related and contract termination costs.

(3)

The charges primarily include business combination costs, changes in fair value of contingent consideration, exit of business-related charges, and a gain related to a certain business sale. Exit of business-related charges primarily relate to the impending separation of the Diabetes business and costs associated with the Company's June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.

(4)

(5)

Reflects adjustments to the Company's Italian payback accruals resulting from the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS (1)

(Unaudited)

Six months ended

(in millions)

October 24, 2025

October 25, 2024

Net cash provided by operating activities

$ 2,013

$ 1,944

Additions to property, plant, and equipment

(972)

(924)

Free Cash Flow (2)

$ 1,041

$ 1,020

See description of non-GAAP financial measures contained in the press release dated November 18, 2025.

(1)

The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.

(2)

Free cash flow represents operating cash flows less property, plant, and equipment additions.

MEDTRONIC PLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Six months ended

(in millions)

October 24, 2025

October 25, 2024

Operating Activities:

Net income

$ 2,428

$ 2,327

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

1,493

1,337

Provision for credit losses

Deferred income taxes

160

Stock-based compensation

268

242

Other, net

167

(98)

Change in operating assets and liabilities, net of acquisitions and divestitures:

Accounts receivable, net

(181)

Inventories

(672)

(278)

Accounts payable and accrued liabilities

(780)

(707)

Other operating assets and liabilities

(1,191)

(800)

Net cash provided by operating activities

2,013

1,944

Investing Activities:

Additions to property, plant, and equipment

(972)

(924)

Purchases of investments

(4,201)

(4,019)

Sales and maturities of investments

3,958

4,338

Other investing activities, net

Net cash used in investing activities

(1,201)

(604)

Financing Activities:

Change in current debt obligations, net

1,402

(67)

Issuance of long-term debt

1,747

3,209

Payments on long-term debt

(2,930)

—

Dividends to shareholders

(1,820)

(1,795)

Issuance of ordinary shares

255

232

Repurchase of ordinary shares

(495)

(2,780)

Other financing activities, net

(64)

Net cash used in financing activities

(1,776)

(1,265)

Effect of exchange rate changes on cash and cash equivalents

Net change in cash and cash equivalents

(936)

110

Cash and cash equivalents at beginning of period

2,218

1,284

Cash and cash equivalents at end of period

$ 1,282

$ 1,394

Supplemental Cash Flow Information

Cash paid for:

Income taxes

$ 1,394

$ 1,335

Interest

542

513

The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.

SOURCE Medtronic plc