Medtronic (MDT) Stock Forecast & Price Target

Medtronic has demonstrated robust organic growth across several key segments, with Cranial & Spinal Technologies expanding by 4.7% year-over-year and Neuromodulation by 7.3%, indicating strong demand for innovative medical devices. The company's Diabetes revenue reached $757 million, up 7.1% year-over-year, largely driven by international growth in insulin pumps and continuous glucose monitoring systems, surpassing market expectations. Notably, the Cardiovascular segment showed exceptional performance, with Cardiac Ablation revenue increasing approximately 71% this quarter, suggesting a positive trajectory for future earnings and market share gains.

The negative outlook on Medtronic's stock primarily stems from several fundamental concerns, including lower operating margin guidance (25.1%) and recent downward adjustments in growth expectations across key product lines. The company's financial stability is further jeopardized by potential slower uptake of new products, heightened competition, and risks associated with supply chain disruptions, which could constrain revenue growth in core markets like cardiology and neurology. Additionally, ongoing delays in product launches and the inability to execute targeted revenue and margin goals contribute to increased uncertainty regarding future performance and shareholder returns.