Medtronic Stock Drops 8% After Missing Revenue Expectations

The medical device maker reported a slight revenue shortfall but exceeded earnings forecasts and maintained its full-year guidance.

Medtronic reported Q3 revenue of $8.29 billion, falling short of the $8.33 billion expected by analysts, but achieved a 2.5% year-over-year increase.
The company exceeded earnings per share (EPS) estimates, reporting $1.39 compared to the expected $1.36, with a 7% year-over-year growth in adjusted earnings.
Sales in the Medical Surgical division declined 1.9% as U.S. distributor purchasing slowed, particularly in stapling and blood oxygen management products, linked to reduced respiratory-related hospitalizations.
Despite the revenue miss, Medtronic reaffirmed its full-year guidance for 4.75% to 5% organic revenue growth and EPS between $5.44 and $5.50.
The stock has gained over 7% year-to-date, but Tuesday's 8% drop reflects investor concerns over segment-specific challenges and heightened expectations.