Equities Analysts Adjust Medtronic's Q4 Earnings Forecasts

Medtronic plc (NYSE:MDT) is making headlines as research analysts from William Blair have recently adjusted their earnings estimates for the company's upcoming Q4 2025 financial results. In a report released to clients on February 18th, analyst M. Andrew from William Blair revised their prediction from previous estimates, now forecasting earnings per share (EPS) at $1.59, down from an earlier estimate of $1.62. This adjustment reflects a broader reevaluation of Medtronic's financial outlook.

For the current full-year earnings, consensus expectations stand at $5.46 per share. William Blair has also provided projections for future quarters, anticipatings earnings of $1.39 per share for Q2 2026 and $1.64 for Q4 2026.

On the same day of their report, Medtronic also announced its recent quarterly earnings data. The company reported an EPS of $1.39 for the quarter, surpassing the consensus estimate of $1.36 by a small margin. Medtronic's revenue for the quarter was reported at $8.29 billion, slightly below the expected $8.33 billion. Additionally, the firm achieved a return on equity of 14.07% and a net margin of 12.83%. This performance has stirred some positive responses from investors and analysts alike, even in light of the revised forecasts.

Market Reactions and Analyst Ratings

Medtronic stocks have been a subject of various analyses, leading to a flurry of opinions from different financial institutions. Royal Bank of Canada reaffirmed an "outperform" rating with a target price set at $105.00. Meanwhile, Barclays raised their price target to $109.00 and also recommended a position in the stock with an "overweight" rating.

Other notable adjustments include Truist Financial lowering their target from $93.00 to $89.00, indicating a "hold" stance, while Robert W. Baird increased their price target from $90.00 to $91.00, settling on a "neutral" rating. Sanford C. Bernstein also raised their target price from $96.00 to $97.00, in line with their "outperform" rating.

The overall consensus surrounding Medtronic's stock is carefully mixed. Analysts have given one sell rating, nine hold ratings, six buy ratings, and one strong buy rating, resulting in a consensus rating of "Hold" with an average target price set at $95.20.

Stock Performance and Institutional Activity

As of Friday, shares of MDT opened at $88.14, indicating a slight increase of 1.3%. Medtronic's stock is currently positioned with a market capitalization of $113.02 billion, a PE ratio of 26.79, and a beta of 0.84. The company reported a 12-month low of $75.96 and a high of $93.08.

Institutional investors have taken an active interest in Medtronic's stock recently. Norges Bank established a new stake in the company worth approximately $1.16 billion in the fourth quarter. Similarly, Raymond James Financial acquired a new position valued at about $852.73 million. UBS Asset Management also increased their holdings in Medtronic significantly during the third quarter, now owning more than 7.34 million shares, following a substantial acquisition.

Insider Transactions and Dividends

In addition to institutional buying, insider activities have been occurring as well. Brett A. Wall, an executive vice president at Medtronic, sold 12,437 shares at an average price of $90.00, totaling approximately $1.12 million. This transaction has reduced his holdings to about 40,979 shares.

On the dividend front, Medtronic recently declared a quarterly dividend of $0.70 per share, which was distributed on January 10th to shareholders recorded on December 27th. The annualized dividend yield is reported at 3.18%, with a payout ratio currently at 85.11%. The continued commitment to dividends reflects the company's cash flow management strategies and effort to provide returns to its shareholders.

Company Overview

Medtronic plc specializes in the development, manufacture, and sale of device-based medical therapies across the globe. Its product portfolio includes a wide range of offerings such as implantable cardiac devices, monitoring systems, and therapeutic devices designed to treat various medical conditions.

Medtronic, Earnings, Forecasts