Medtronic plc (MDT) AI Stock Analysis

Medtronic plc develops, manufactures, and distributes device-based therapies for healthcare systems, physicians, clinicians, and patients globally. The Cardiovascular Portfolio offers pacemakers, defibrillators, cardiac ablation devices, valve replacements, and endovascular stent grafts. The Medical Surgical Portfolio provides stapling instruments, vessel sealing tools, robotic-assisted surgery systems, hernia repair solutions, and patient monitoring and ventilation equipment. The Neuroscience Portfolio develops therapies for spinal, neurological, and pain management specialists, including image-guided surgical tools and robotic guidance systems.

Annual revenue grew from $31.69B in FY2022 to $36.36B in FY2026, delivering a 5-year revenue CAGR of 3.8%. Revenue growth accelerated to 8.4% in FY2026, up from 3.6% in FY2025 and a 1.4% decline in FY2023. Gross margin stood at 65.0% in FY2026 compared to 68.0% in FY2022, while operating margin was 17.8%. Net income reached $4.80B in FY2026, yielding an EPS of $5.53. In the latest quarter ended July 31, 2026, quarterly revenue grew 13.7% year-over-year, and quarterly earnings grew 40.7% year-over-year, supporting TTM revenue of $37.54B and TTM EPS of $4.07.

As of July 31, 2026, Medtronic held $8.82B in cash and short-term investments alongside $28.15B in total debt, resulting in net debt of $19.33B. The current ratio was 2.07, and the debt-to-equity ratio stood at 0.56 on shareholders' equity of $50.23B. In FY2026, operating cash flow was $7.33B and free cash flow was $5.43B. Capital expenditures totaled $1.90B, while the company returned capital through $1.03B in share buybacks and $3.64B in dividends paid.

Medtronic trades at a trailing P/E of 23.3x and a forward P/E of 14.9x, which are both lower than the median of its S&P 500 Healthcare peers at 28.9x and 16.6x, respectively. Its enterprise value to EBITDA ratio is 13.1x versus the peer median of 15.7x, and its price-to-sales ratio is 3.2x compared to the peer median of 3.4x. MDT stock gained 3.0% over the trailing 12 months and fell 13.0% over five years, lagging the S&P 500 ETF returns of 16.8% and 83.0% over the same periods.

Medtronic pays a forward annual dividend of $2.88 per share, which reflects a 3.04% dividend yield based on its last close of $94.75. The company has paid dividends for 45 consecutive years, with a 5-year annualized dividend growth rate of 4.4%. Its payout ratio is 50.0%, and the last ex-dividend date was September 25, 2026.

Wall Street coverage includes 16 Strong Buy, 3 Buy, and 10 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target of $104.62 implies a 10.4% premium over the last close of $94.75. Medtronic beat EPS estimates in each of the last 4 quarters. For the current fiscal year ending April 30, 2027, consensus estimates project EPS of $5.98 on revenue of $38.97B. The next earnings date is November 17, 2026.

This page is an AI-written research summary of Medtronic plc (MDT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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