Medtronic expects US tariffs and reciprocal tariffs to cost it $200-350 million in its new fiscal year. The company’s Diabetes business will become a separate entity, led by Que Dallara as CEO. This move aims to boost margins and EPS despite the tariff impact.
Medtronic earned $1.061 billion, or 82ยข per share, in the quarter ended April 25, 2025. Adjusted for one-time items, EPS was $1.62, exceeding expectations of $1.58.
The company’s growth drivers are building momentum, with Pulsed-field ablation products revenue growing 30% and Diabetes segment up 10.7%. Medtronic expects organic revenue growth of 5% in the new fiscal year, slightly ahead of analyst expectations.
CEO Geoff Martha stated that the company is “now at an inflection point” as it accelerates towards higher, more profitable growth. The tariff impact has been partially offset by the strong fundamentals of the business, which are expected to continue improving.
Source: https://www.massdevice.com/medtronic-expects-up-to-350m-tariff-impact-will-spin-off-diabetes