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Medtronic plc (MDT) is a top global healthcare firm. It develops new medical devices and treatments to improve the health of people with long-term illnesses. Based in Galway, Ireland, it works in heart care, diabetes, brain treatments, and more, helping millions with its helpful tech. The company has a market capitalization of $124.03 billion, which classifies it as a “large-cap” stock.
Medtronic’s shares reached a 52-week high of $106.33 on Nov. 26, but are down 9.1% from that level. Earnings pressure stemming from margin contraction has led to a drop in the stock’s trajectory. Over the past three months, Medtronic’s stock has declined 8.3%. On the other hand, the broader S&P 500 Index ($SPX) has gained 2.7% over the same period.
Over a more extended period, this underperformance persists. Over the past 52 weeks, the stock has been up 6.8%, while the S&P 500 Index has increased 16.6%. This year, the stock has gained marginally, underperforming the broader index’s 1.5% gains. Medtronic’s shares have been trading above their 200-day moving average since last year but below their 50-day moving average since mid-February.
After announcing the spinout of its diabetes business less than a year ago, Medtronic is planning the IPO of that business. The company is now seeking to raise $784 million in an IPO for the MiniMed segment. The move comes as Medtronic tries to simplify its business portfolio. Those efforts also featured forming the kidney care-focused Mozarc Medical joint venture in 2023, followed by exiting the ventilator business the next year.
On Feb. 17, Medtronic announced better-than-expected third-quarter results for fiscal 2026 (quarter ended Jan. 23). The company’s revenue increased 8.7% year-over-year (YOY) to $9.02 billion, with organic revenue increasing by 6% YOY. However, its non-GAAP EPS dropped from $1.39 to $1.36. Medtronic’s stock dropped 3.1% intraday on Feb. 17. Nevertheless, Wall Street analysts expect its EPS to increase 3.1% annually to $1.67 for the current quarter.
We compare Medtronic’s performance with that of another popular medical device stock, Abbott Laboratories (ABT), which has declined 15.5% over the past 52 weeks and 8.4% YTD. Therefore, Medtronic has been the clear outperformer over these periods.
Wall Street analysts are moderately bullish on Medtronic’s stock. The stock has a consensus rating of “Moderate Buy” from the 29 analysts covering it. The mean price target of $111.42 implies a 15.3% upside from current levels. The Street-high price target of $125 indicates a 29.3% upside.
