Medtronic reports third quarter fiscal 2023 financial results

Delivers top and bottom line ahead of expectations, with strength in Cardiovascular and Neuroscience portfolios

DUBLIN, Feb. 21, 2023 -PRNewswire- Medtronic plc (NYSE:MDT) today announced financial results for its third quarter of fiscal year 2023, which ended January 27, 2023.

Key Highlights

  • Revenue of $7.7 billion was flat as reported and increased 4.1% organic, ahead of expectations
  • GAAP diluted EPS of $0.92 decreased 16%; non-GAAP diluted EPS of $1.30 decreased 4%, ahead of expectations
  • Company increases FY23 organic revenue growth and EPS outlook

Medtronic reported third quarter worldwide revenue of $7.727 billion, a flat result as reported and an increase of 4.1% on an organic basis. The organic comparison excludes a $379 million negative impact from foreign currency translation and a $26 million contribution from the company’s fiscal first quarter acquisition of Intersect ENT, which is reported in the Specialty Therapies division in the Neuroscience Portfolio. Unless otherwise stated, all revenue growth rates in this press release are on an organic basis, which excludes the impact of foreign currency translation and revenue from the Intersect ENT acquisition.

The company’s third quarter organic revenue results reflect strong performances in the Cardiovascular and Neuroscience portfolios, in Diabetes markets outside the U.S., as well as improved product availability across certain businesses. This was partially offset by unfavorable impacts from ventilator sales, given the increased COVID-19 related demand in the prior year, and sales in China, given volume-based procurement (VBP) tenders and the impact of COVID-19 resurgence on procedure volumes.

As reported, third quarter GAAP net income and diluted earnings per share (EPS) were $1.222 billion and $0.92, respectively, decreases of 17% and 16%, respectively. As detailed in the financial schedules included at the end of this release, third quarter non-GAAP net income and non-GAAP diluted EPS were $1.727 billion and $1.30, respectively, decreases of 6% and 4%, respectively. The company’s earnings decline reflects the continued unfavorable macroeconomic impact of foreign currency translation and inflation.

Third quarter U.S. revenue of $4.062 billion represented approximately 52% of company revenue and increased 3% as reported and 2% organic. Non-U.S. developed market revenue of $2.294 billion represented 30% of company revenue and decreased 6% as reported and increased 6% organic. Emerging Markets revenue of $1.371 billion represented 18% of company revenue and decreased 1% as reported and increased 5% organic.

“We returned to mid-single digit organic growth as we continue to execute our strategy with urgency. Our Cardiovascular and Neuroscience portfolios had strong, high-single digit organic growth as we launched new products and demonstrated continued strength in our established, market-leading Cardiac Rhythm Management and Spine franchises,” said Geoff Martha, Medtronic chairman and chief executive officer. “I’m very encouraged by the rebound in our revenue growth, despite procedure volumes remaining a little softer in a few markets and volume-based procurement in China. We are confident in delivering durable revenue growth over the coming quarters as recent revenue headwinds continue to dissipate, and we drive execution across our businesses.” 

Cardiovascular Portfolio
The Cardiovascular Portfolio includes the Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV) divisions. Cardiovascular revenue of $2.772 billion increased 1% as reported and 7% organic, with high-single digit increases in CRHF and SHA and a low-single digit increase in CPV, all on an organic basis.

  • Cardiac Rhythm & Heart Failure revenue of $1.431 billion increased 2% as reported and increased 7% organic. Cardiac Rhythm Management revenue increased high-single digits, with high-single digit growth in both Defibrillation Solutions and Cardiac Pacing Therapies, including mid-teens growth in leadless pacemakers from continued global adoption of Micra™ transcatheter pacing systems. Cardiac Ablation Solutions revenue increased low-single digits, including low-double digit growth in the U.S. on the continued adoption of its Arctic Front™ cryoablation catheters. Cardiovascular Diagnostics revenue increased low-double digits, given increased supply and strong market adoption of the LINQ II™ insertable cardiac monitor.
  • Structural Heart & Aortic revenue of $760 million increased 3% as reported and 9% organic. Structural Heart increased high-single digits, with low-double digit growth in transcatheter aortic valves (TAVR) as the company continues to build on its strong durability data and the U.S. launch of the Evolut™ FX TAVR system. Aortic also increased low-double digits with high-teens growth in abdominal aortic stent graft systems on improved product availability. Cardiac Surgery increased mid-single digits, driven by growth in surgical valves and perfusion systems.
  • Coronary & Peripheral Vascular revenue of $581 million decreased 4% as reported and increased 1% organic. Coronary increased low-single digits with strength in coronary balloons and U.S. drug-eluting stent share gains from the continued launch of the Onyx Frontier™ drug-eluting stent. Peripheral Vascular Health also increased low-single digits, with low-double digit growth in drug-coated balloons and high-single digit growth in vascular embolization and superficial venous products.

Medical Surgical Portfolio
The Medical Surgical Portfolio includes the Surgical Innovations (SI) and the Respiratory, Gastrointestinal & Renal (RGR) divisions. Medical Surgical revenue of $2.137 billion decreased 7% as reported and 2% organic, with low-single digit declines in both SI and RGR. Excluding the unfavorable impact of ventilator sales, given the increased COVID-19 related demand in the prior year, and sales in China, given the unfavorable impact of provincial VBP tenders, Medical Surgical revenue increased 3% organic.

  • Surgical Innovations revenue of $1.425 billion decreased 6% as reported and 1% organic. SI revenue increased 5% organic excluding the unfavorable impact of sales in China. The company won back share sequentially, as it recovered from supply challenges faced in prior quarters. Advanced Surgical Instruments decreased low-single digits, with Advanced Stapling low-double digit declines resulting from China VBP tenders offsetting mid-single digit growth in Advanced Energy. In Surgical Robotics, the company increased sales in markets outside the U.S. and announced first patient enrollment in its Expand URO U.S. clinical trial for the Hugo™ robotic-assisted surgery system.
  • Respiratory, Gastrointestinal & Renal revenue of $712 million decreased 8% as reported and 3% organic. RGR revenue was flat organic excluding the impact of ventilator sales. Respiratory Interventions decreased low-double digits, with sales of ventilators declining high-twenties as demand continued to be well below pre-pandemic levels as expected. Patient Monitoring increased low-single digits, with low-single digit growth in Nellcor™ pulse oximetry and mid-single digit growth in Perioperative Complications. In October 2022, the company announced its intention to separate the combined Respiratory Interventions and Patient Monitoring businesses, which it continues to expect to be completed in the second half of its fiscal year 2024. Gastrointestinal revenue increased high-single digits on strength in sales of GI Genius™ intelligent endoscopy module. Renal Care Solutions decreased high-single digits given product availability challenges. In May 2022, Medtronic announced its intention to contribute its Renal Care Solutions business into a new, independent kidney care-focused medical device company together with DaVita, which it expects to close in the fourth fiscal quarter.

Neuroscience Portfolio
The Neuroscience Portfolio includes the Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions. Neuroscience revenue of $2.248 billion increased 5% as reported and 7% organic, with a low-double digit organic increase in Specialty Therapies and mid-single digit organic increases in Neuromodulation and CST.

  • Cranial & Spinal Technologies revenue of $1.128 billion increased 2% as reported and 5% organic, as the company continues to benefit from its Aible™ spine technology ecosystem. Spine & Biologics increased low-single digits, with mid-single digit growth in Core Spine offsetting high-single digit declines in Biologics. Neurosurgery increased high-single digits, with double digit growth in robotics, navigation, imaging, and powered surgical instruments.
  • Specialty Therapies revenue of $699 million increased 10% as reported and 11% organic. Neurovascular increased high-single digits, with double digit growth in aspiration, flow diversion, and liquid embolic products, and high-single digit growth in mechanical thrombectomy. Pelvic Health increased mid-single digits on the continued adoption of its InterStim™ sacral neuromodulation systems. ENT increased low-twenties on an organic basis driven by strength in NIM Vital™ nerve monitoring systems and improved product availability.
  • Neuromodulation revenue of $420 million increased 3% as reported and 6% organic. Pain Therapies increased low-double digits, with low-double digit growth in both Pain Stim and Targeted Drug Delivery, and low-single digit growth in Interventional. Brain Modulation decreased low-single digits on continued declines of replacement devices.

Diabetes revenue of $570 million decreased 2% as reported and increased 3% organic. U.S. revenue declined mid-teens, given the absence of new product approvals. This was more than offset by high-teens growth in non-U.S. developed markets and low-twenties growth in emerging markets. Sales outside the U.S. included high-teens growth of insulin pumps and mid-thirties growth of continuous glucose monitoring (CGM) products on strong sales of the MiniMed™ 780G system and the associated increase in CGM attachment rates on the strength of the Guardian™ 4 sensor.

The company today issued fourth quarter revenue growth guidance and tightened its full year EPS guidance for fiscal 2023.

The company expects fourth quarter organic revenue growth of 4.5% to 5.0%, which brackets current Street consensus and raises the company’s full fiscal year organic growth outlook. If foreign currency exchange rates as of the beginning of February hold, fourth quarter revenue would be unfavorably affected by approximately $165 million to $215 million.

The company increased the lower end of its fiscal year 2023 diluted non-GAAP EPS guidance from the prior range of $5.25 to $5.30 to the new range of $5.28 to $5.30, which includes an estimated 21 cent unfavorable impact from foreign currency at rates as of the beginning of February.

“Given our third quarter performance, we are raising our full year outlook and expect our momentum to continue in the fourth quarter,” said Karen Parkhill, Medtronic chief financial officer. “As we look ahead, we are focused on delivering durable topline growth and significant expense reductions as we navigate through macro headwinds from foreign currency and inflation. And, we are committed to continued investment in our growth drivers to ensure long-term value creation.”

Webcast Information
Medtronic will host a webcast today, February 21, at 8:00 a.m. EST (7:00 a.m. CST) to provide information about its businesses for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Events icon at, and this earnings release will be archived at Within 24 hours of the webcast, a replay of the webcast and transcript of the company’s prepared remarks will be available by clicking on the Events icon at

Medtronic plans to report its fourth quarter and full fiscal year 2023 results on Thursday, May 25, 2023. For fiscal year 2024, Medtronic plans to report its first, second, third, and fourth quarter results on Tuesday, August 22, 2023, November 21, 2023, February 20, 2024, and Thursday, May 23, 2024, respectively. Confirmation and additional details will be provided closer to the specific event.


Josh Sandberg

Josh Sandberg is the President and CEO of Ortho Spine Partners and sits on several company and industry related Boards. He also is the Creator and Editor of OrthoSpineNews.

Related Articles

Back to top button