Stock Spotlight: Medtronic Plc (NYSE:MDT)

About Medtronic Plc

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients in the United States, Ireland, and internationally. The Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, and transcatheter pulmonary valves, and percutaneous coronary intervention products, percutaneous angioplasty balloons, and other products. The Neuroscience Portfolio segment offers medical devices and implants, biologic solutions, spinal cord stimulation and brain modulation systems, implantable drug infusion systems, and interventional products, as well as nerve ablation system under the Accurian name. The segment offers its products for spinal surgeons, neurosurgeons, neurologists, pain management specialists, anesthesiologists, orthopedic surgeons, urologists, urogynecologists, and interventional radiologists, as well as ear, nose, and throat specialists, and energy surgical instruments. The Medical Surgical Portfolio segment offers surgical stapling devices, vessel sealing instruments, wound closure and electrosurgery products, AI-powered surgical video and analytics platform, robotic-assisted surgery products, hernia mechanical devices, mesh implants, gynecology products, gastrointestinal and hepatologic diagnostics and therapies, and therapies to treat diseases and conditions, and patient monitoring and airway management products. The Diabetes Operating Unit segment provides insulin pumps and consumables, continuous glucose monitoring systems and sensors, and InPen, a smart insulin pen. Medtronic plc was founded in 1949 and is headquartered in Galway, Ireland.

Key Stats

Source: Yahoo Finance. Data as of 15/08/25.

Growth Potential

• Strong pricing power with the company driving pricing discipline, especially on the back of new product introductions, to cover FX.
• Significant balance sheet liquidity increasing flexibility to undertake strategic M&A (focus on tuck-in M&A to support strong market positions) and invest in the business).
• Continued shareholder returns with dividend increased for the 48th consecutive year and the separation of the diabetes business expected to reduce the cash burden on the dividend liability due to retired shares.
• Market leadership position in the medical equipment and supplies industry.
• Global footprint with continuing strong growth in EM.
• Successful track record of developing breakthrough technologies. The Micra AV transcatheter pacing system is expected to be a blockbuster.
  

Key Risks

• Aggressive competition by other established players putting pressure on margins.
• Strict government regulations and scrutiny.
• IP theft by countries like China.
• Challenging political environments with U.S.-China trade war and Brexit.
• Downturn in the U.S. economy given the fact that the company still derives 51% of its revenue from the local market.
• Currency headwinds.