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Galway, Ireland-based Medtronic plc (MDT) develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients. Valued at $116.6 billion by market cap, the company's principal products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, heart failure management, heart valve replacement, malignant and non-malignant pain, and movement disorders.
Shares of this medical devices giant have underperformed the broader market over the past year. MDT has gained 5.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.6%. However, in 2025, MDT stock is up 14.8%, surpassing the SPX’s 3.1% rise on a YTD basis.
Narrowing the focus, MDT’s underperformance is also apparent compared to the iShares U.S. Medical Devices ETF (IHI). The exchange-traded fund has gained about 15.6% over the past year. However, MDT’s gains on a YTD basis outshine the ETF’s 11.6% returns over the same time frame.
MDT's stock has been declining due to flat sales in their cardiac ablation unit and supply chain issues. The company, which relies on China for 7% of their revenues, could face further challenges if trade tensions between the U.S. and China continue. Additionally, rising geopolitical pressure in the Red Sea region has led to increased freight costs and shipping delays for MDT.
On Nov. 19, MDT shares closed down by 3% after reporting its Q2 results. Its adjusted EPS of $1.26 topped Wall Street expectations of $1.24. The company’s revenue was $8.4 billion, beating Wall Street forecasts of $8.3 billion. MDT expects full-year adjusted EPS to be between $5.44 and $5.50.
For the current fiscal year, ending in April, analysts expect MDT’s EPS to grow 4.8% to $5.45 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 28 analysts covering MDT stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” 15 “Holds,” and two “Strong Sells.”
This configuration is less bullish than three months ago, with two analysts suggesting a “Moderate Buy.”
On Jan. 31, Piper Sandler Companies (PIPR) analyst Matthew O’Brien maintained a “Hold” rating on MDT with a price target of $90.
The mean price target of $93.83 represents a 2.3% premium to MDT’s current price levels. The Street-high price target of $109 suggests an upside potential of 18.9%.
