Medtronic (MDT) cuts FY26 EPS outlook as MiniMed Flex funding and IPO dilute earnings

Rhea-AI Filing Summary

Medtronic plc reported that its subsidiary MiniMed Group received earlier-than-expected U.S. FDA clearance for the MiniMed Flex, a next-generation, smartphone-controlled insulin pump. The product’s research and development was partly funded by Blackstone Life Sciences under a deal that entitles Blackstone to mid-to-high single digit royalties or specified minimum payments for two years after U.S. approval and launch.

MiniMed expects to record a one-time charge of $157 million in Medtronic’s fourth quarter of fiscal 2026 for future payments to Blackstone, with an estimated $0.08 per share impact based on Medtronic’s 90% MiniMed ownership. Separately, the recent IPO of 10% of MiniMed is expected to dilute Medtronic shareholders by about $0.04 per share in that quarter.

As a result, Medtronic now guides full-year fiscal 2026 non-GAAP EPS to $5.50–$5.54, reduced from the prior $5.62–$5.66 range. Guidance for fiscal 2027 remains unchanged at high single-digit EPS growth and is based on the earlier, higher EPS baseline before these MiniMed-related items.

Insights

Medical technology equity analyst

Earlier MiniMed Flex approval drives near-term EPS cut but preserves growth outlook.

The filing combines an operational win with a modest financial headwind. Early FDA clearance of MiniMed Flex accelerates commercialization of a key insulin pump, but Blackstone’s funding structure triggers a $157 million one-time charge and royalty-like obligations over the first two years of launch.

Combined with IPO-related dilution of about $0.04 per share in Q4 of fiscal 2026, Medtronic now expects non-GAAP EPS of $5.50–$5.54, down from $5.62–$5.66. The company, however, reiterates high single-digit EPS growth for fiscal 2027, anchored to the prior, higher baseline, suggesting management views these items as timing-related rather than structural.

The net effect is a trade-off: accelerated entry of a next-generation diabetes device versus a short-term earnings adjustment. The longer-term financial impact will depend on MiniMed Flex uptake and the scale of net sales during the royalty and minimum-payment period.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________ 

FORM 8-K

 _____________________________ 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 24, 2026

 _____________________________ 

Medtronic plc

(Exact name of Registrant as Specified in its Charter)

  _____________________________ 

 

Ireland

1-36820

98-1183488

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

Building Two

Parkmore Business Park West

Galway, Ireland

(Address of principal executive offices) (Zip Code)

+353 1 438-1700

(Registrant’s telephone number, including area code)

Not Applicable

Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol			Name of each exchange on which registered
Ordinary shares, par value $0.0001 per share			MDT			New York Stock Exchange
1.125% Senior Notes due 2027			MDT/27			New York Stock Exchange
0.375% Senior Notes due 2028			MDT/28			New York Stock Exchange
3.000% Senior Notes due 2028			MDT/28A			New York Stock Exchange
3.650% Senior Notes due 2029			MDT/29			New York Stock Exchange
2.950% Senior Notes due 2030			MDT/30			New York Stock Exchange
1.625% Senior Notes due 2031			MDT/31			New York Stock Exchange
1.000% Senior Notes due 2031			MDT/31A			New York Stock Exchange
3.125% Senior Notes due 2031			MDT/31B			New York Stock Exchange
0.750% Senior Notes due 2032			MDT/32			New York Stock Exchange
3.375% Senior Notes due 2034			MDT/34			New York Stock Exchange
3.875% Senior Notes due 2036			MDT/36			New York Stock Exchange
2.250% Senior Notes due 2039			MDT/39A			New York Stock Exchange
1.500% Senior Notes due 2039			MDT/39B			New York Stock Exchange
1.375% Senior Notes due 2040			MDT/40A			New York Stock Exchange
4.150% Senior Notes due 2043			MDT/43A			New York Stock Exchange
4.200% Senior Notes due 2045			MDT/45			New York Stock Exchange
1.750% Senior Notes due 2049			MDT/49			New York Stock Exchange
1.625% Senior Notes due 2050			MDT/50			New York Stock Exchange
4.150% Senior Notes due 2053			MDT/53			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01. Regulation FD Disclosure

On March 18, 2026, MiniMed Group, Inc. (MiniMed), a consolidated subsidiary of Medtronic plc (Company) announced that the U.S. Food and Drug Administration (FDA) has cleared the MiniMed Flex™, a next-generation discreet, smartphone-controlled insulin pump. The clearance of the MiniMed Flex by the FDA was several months earlier than anticipated, and will facilitate the earlier commercialization of this key MiniMed product.

The research and development of the MiniMed Flex was funded in part by affiliates of Blackstone Life Sciences Advisors L.L.C. (Blackstone). Under the research and development agreement between MiniMed and Blackstone, in exchange for funding the development of the MiniMed Flex, during the first two years following regulatory approval in the U.S. and commercial launch of the MiniMed Flex, Blackstone will earn the greater of: (i) mid-to-high single digit royalty percentage of applicable net sales, and (ii) specified minimum payments. MiniMed is expected to recognize a one-time charge of $157 million in the fourth quarter of fiscal year 2026 related to the series of future payments due to Blackstone, which is expected to result in an $0.08 per share impact to Medtronic’s consolidated results for the fourth quarter of fiscal year 2026, based on Medtronic’s 90% ownership interest in MiniMed. These arrangements are not expected to have an impact on Medtronic’s results for fiscal year 2027.

In addition, as previously disclosed during the Company’s Q3 earnings call, the timing of the March 9, 2026 closing of the initial public offering (IPO) of 10% of MiniMed is expected to result in dilution of approximately $0.02 per share to Medtronic shareholders for each month of the quarter following the IPO. This will result in an aggregate dilutive impact of $0.04 per share during the fourth quarter of fiscal year 2026, which ends on April 24, 2026.

As a result of the foregoing factors related to MiniMed that are expected to have an impact in the fourth quarter of fiscal year 2026, on March 24, 2026, Medtronic announced that it now expects non-GAAP earnings per share (EPS) for fiscal year 2026 to be in the range of $5.50 to $5.54, a revision from the Q3 earnings call EPS guidance of $5.62 to $5.66. The Company’s guidance for fiscal year 2027 of high single-digit EPS growth remains unchanged, and is based upon the prior guidance from the Q3 earnings call, prior to the MiniMed-related updates announced here.

Forward-Looking Statements Disclaimer

This filing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to Medtronic’s anticipated financial results for the fourth quarter of fiscal year 2026 and for fiscal year 2027. These risks and uncertainties are described in the Company’s periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K. In some cases, you can identify these statements by forward-looking words or expressions, such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "looking ahead," "may," "plan," "possible," "potential," "project," "should," "going to," "will," and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this filing, including to reflect future events or circumstances.

Non-GAAP financial measures

This presentation contains financial measures and guidance which are considered “non-GAAP” financial measures under applicable SEC rules and regulations. Medtronic management believes that non-GAAP financial measures provide information useful to investors in understanding the company’s underlying operational performance and trends and to facilitate comparisons with the performance of other companies in the med tech industry. Non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies. Management strongly encourages investors to review the company’s consolidated financial statements and publicly filed reports in their entirety.

Medtronic calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. Forward-looking diluted non-GAAP EPS guidance excludes potential charges or gains that would be recorded as non-GAAP adjustments to earnings during the fiscal year. Medtronic does not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of recognition of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Medtronic plc

Date: March 24, 2026

By

/s/ Thierry Piéton

Thierry Piéton

Executive Vice President, Chief Financial Officer

EXHIBIT INDEX

Exhibit Number						Description
104						Cover Page Interactive Data File (embedded with the Inline XBRL document).

FAQ

What did Medtronic (MDT) announce about the MiniMed Flex insulin pump?

Medtronic announced that its subsidiary MiniMed received earlier-than-expected U.S. FDA clearance for the MiniMed Flex, a discreet, smartphone-controlled insulin pump. This clearance accelerates commercialization of a key diabetes product within Medtronic’s portfolio.

How does the Blackstone agreement affect Medtronic (MDT) financially?

Under the MiniMed-Blackstone agreement, Blackstone earns the greater of a mid-to-high single digit royalty on applicable MiniMed Flex net sales or specified minimum payments for two years. MiniMed will record a one-time $157 million charge in Q4 fiscal 2026 for these obligations.

How is Medtronic’s (MDT) fiscal 2026 EPS guidance changing?

Medtronic now expects fiscal 2026 non-GAAP EPS of $5.50–$5.54, down from prior guidance of $5.62–$5.66. The revision reflects the Blackstone-related MiniMed Flex charge and IPO-related dilution in the fourth quarter.

What EPS impact does the MiniMed Flex charge have on Medtronic (MDT)?

MiniMed is expected to recognize a one-time $157 million charge in Q4 fiscal 2026 tied to future payments to Blackstone. This is estimated to reduce Medtronic’s consolidated results by about $0.08 per share, based on its 90% MiniMed ownership stake.

How does the MiniMed IPO dilute Medtronic (MDT) earnings?

The IPO of 10% of MiniMed, which closed on March 9, 2026, is expected to dilute Medtronic shareholders by approximately $0.02 per share for each post-IPO month of the quarter. This totals about $0.04 per share dilution in fiscal 2026’s fourth quarter.

Did Medtronic (MDT) change its fiscal 2027 earnings outlook?

Medtronic reaffirmed its fiscal 2027 outlook for high single-digit non-GAAP EPS growth. This guidance is based on the prior EPS baseline from the Q3 earnings call, before incorporating the MiniMed-related charge and IPO dilution disclosed in the current update.

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