Daily Newsletter

22 November 2023

Daily Newsletter

22 November 2023

Medtronic posts 5.3% increase in Q2 FY2024 global revenue

Medtronic’s GAAP net income stood at $909m and diluted earnings per share was $0.68.

Archana Rani November 22 2023

Medtronic has reported $7.98bn in global revenue for the second quarter (Q2) of the fiscal year 2024 (FY2024), an increase of 5.3% against $7.58bn.

For the quarter, which ended on 27 October, the company’s GAAP net income was $909m and diluted earnings per share (EPS) stood at $0.68, both representing a 113% increase compared to the same quarter of the previous year.

Non-GAAP net income stood at $1.66bn, a decrease of 3% and non-GAAP diluted EPS of $1.25 decreased by 4%.

Medtronic chairman and CEO Geoff Martha said: “We're delivering a track record of durable, mid-single-digit revenue growth. The underlying fundamentals are strong and our solid results were broad-based across our businesses and geographies.

“We're bringing game-changing innovation to market with numerous recent regulatory approvals and major product launches, which give us confidence in our ability to continue delivering dependable growth.”

For the Q2 period, the company’s US revenue was $4.17bn. This marks an increase of 2.6% on a year-on-year reported basis and 3% on a year-on-year organic basis.

Non-US developed market revenues stood at $2.36bn, an increase of 9.8% on a reported basis and 6.4% on an organic basis.

Medtronic’s cardiovascular portfolio revenue increased by 5.9%, as reported and by 4.8% on an organic basis to $2.92bn.

The Medical Surgical portfolio revenue for the reported quarter stood at $2.14bn, representing an increase of 7% as reported and 5.6% on an organic basis.

In the Neuroscience portfolio, the company’s revenue was $2.28bn, a 4.7% increase as reported and a 4.2% increase on an organic basis.

Revenue from the diabetes portfolio increased by 9.7% as reported and by 6.7% on an organic basis to $610m.

Medtronic EVP and chief financial officer Karen Parkhill said: “Overall, it was another good quarter as we delivered revenue, margins and earnings ahead of expectations. Combining our second-quarter outperformance with our updated tax and foreign currency estimates, we're raising our full-year organic revenue growth and EPS guidance.

“Based on the changes we've made to our operating model, incentives and capital allocation, among other drivers, we've positioned the company to deliver consistent mid-single digit growth on the top line.”

Can Generative AI transform the medical devices industry?

The healthcare, pharma, and medical devices industries are often risk-averse compared to other sectors when adopting new technologies. However, mainly due to COVID-19, these sectors have witnessed an acceleration in digital transformation, which has improved efficiencies and enhanced patient outcomes. AI can revolutionize the drug discovery process and significantly reduce the time and cost to get a drug to market, particularly in areas of unmet need. There is also huge potential for AI in medical diagnostics. However, using healthcare data for AI development raises data privacy concerns.

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