Feb 17 (Reuters) - Medtronic surpassed Wall Street expectations for third-quarter profit on Tuesday, buoyed by strong demand for its heart devices and diabetes monitors. Medtech firms are benefiting
Medtronic's Steady Annual Forecast Overshadows Strong Quarterly Earnings
Medtronic's Financial Performance Overview
By Padmanabhan Ananthan and Puyaan Singh
Quarterly Earnings and Revenue
Feb 17 (Reuters) - Medtronic surpassed Wall Street expectations for third-quarter profit and revenue on Tuesday, driven by strong demand for its heart devices, but its shares fell 2.6% after the company left its forecast for full-year adjusted profit unchanged.
Impact of Tariffs on Profit
Analysts said the reiterated forecast despite the quarterly beat implied lower growth for the fourth quarter.
Competitive Landscape in Patient Monitoring
Finance chief Thierry Pieton told Reuters that although the company expects 6% revenue growth for the fourth quarter, extra tax costs will hurt some of the profit upside.
Medtronic also expects an about $300 million hit from tariffs in fiscal 2027, up from around $185 million in fiscal 2026. It maintained its fiscal 2026 adjusted per share profit forecast at $5.62 to $5.66.
The company also faces fresh attention on its patient monitoring business after life sciences firm Danaher struck a $9.9 billion deal to buy rival Masimo on Tuesday.
Medtronic's acute monitoring segment houses its pulse-oximetry systems and operates a duopoly with Masimo.
Medtronic CEO Geoff Martha told Reuters that while Masimo's integration could create disruptions for Danaher, the deal is unlikely to change long-term competitive dynamics in the patient-monitoring market.
Danaher has no presence in the market and is buying a mature platform, he said.
Sales in Medtronic's cardiovascular segment jumped 13.8% to $3.46 billion during the quarter, powered by strong demand for its pulsed field ablation (PFA) portfolio.
Although Medtronic's worldwide cardiac ablation heart device sales rose 80% in the quarter, including PFA, the growth missed buyside expectations, feeding a narrative that the PFA market has slowed in the last few months, Bernstein analyst Christian Moore said.
Third-quarter revenue was $9.02 billion, beating analysts' average estimate of $8.91 billion, according to data compiled by LSEG.
Medtronic reported quarterly adjusted profit of $1.36 per share, above estimates of $1.33 per share.
(Reporting by Padmanabhan Ananthan and Puyaan Singh in Bengaluru; Editing by Sahal Muhammed)
