Medtronic Reports 9% Increase in Net Sales to $9.017 Billion, Announces Business Separation and Acquisition Plans

Medtronic plc reported a notable increase in financial performance for the three months ending January 23, 2026, with net sales reaching $9.017 billion, a 9% increase from $8.292 billion in the same period last year. For the nine months ending January 23, 2026, net sales totaled $26.557 billion, up from $24.610 billion, marking an 8% increase. The company's net income for the latest quarter was $1.150 billion, down from $1.303 billion year-over-year, while diluted earnings per share remained stable at $0.89 compared to $1.01 in the prior year.

The company experienced significant changes in its cost structure, with total costs and expenses for the latest quarter rising to $7.553 billion from $6.646 billion a year earlier. This increase was driven by higher costs of products sold, which rose to $3.261 billion from $2.779 billion, and increased selling, general, and administrative expenses, which reached $2.956 billion compared to $2.717 billion in the previous year. Research and development expenses also increased to $722 million from $675 million, reflecting Medtronic's commitment to innovation and product development.

Strategically, Medtronic announced its intention to separate its Diabetes business into a new independent publicly traded company, MiniMed Group, Inc., with the separation expected to be completed within 18 months. Additionally, the company plans to acquire CathWorks Ltd., a medical device company focused on coronary artery disease, for up to $585 million, which is anticipated to enhance its Coronary & Peripheral Vascular division. This acquisition is expected to close by the end of fiscal year 2026, subject to regulatory approvals.

Operationally, Medtronic reported a total employee headcount of approximately 100,000 as of January 23, 2026. The company also noted a strong performance in its Cardiovascular and Neuroscience segments, with net sales of $3.457 billion and $2.558 billion, respectively, for the latest quarter. The U.S. market contributed significantly, with net sales of $4.493 billion, while international sales reached $4.524 billion, reflecting a 12% increase year-over-year.

Looking ahead, Medtronic anticipates continued growth driven by product adoption and market expansion, particularly in its Cardiovascular and Diabetes segments. However, the company also faces challenges from macroeconomic factors, including pricing pressures and regulatory changes. The effective tax rate for the latest quarter was reported at 18.1%, up from 15.4% in the previous year, influenced by changes in tax legislation and operational results. Medtronic remains focused on leveraging its strong financial position to navigate these challenges while pursuing strategic growth opportunities.