Medtronic (MDT) Down 11.5% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Medtronic (MDT). Shares have lost about 11.5% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Medtronic due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Medtronic PLC before we dive into how investors and analysts have reacted as of late.Medtronic's Q3 Earnings & Revenues Top EstimatesMedtronic plc reported third-quarter fiscal 2026 adjusted earnings per share of $1.36, which fell 2.2% from the year-ago quarter’s figure. The figure beat the Zacks Consensus Estimate by 2.07%.Without certain one-time adjustments — including amortization of intangible assets, restructuring and acquisition-related costs — GAAP earnings per share was 89 cents compared with $1.01 in the year-ago period. MDT’s Q3 RevenuesWorldwide revenues in the reported quarter totaled $9.02 billion, up 8.7% year over year on a reported basis and 6% organically. The top line surpassed the Zacks Consensus Estimate by 1.35%.Segmental Analysis of MDT’s Q3 RevenuesThe company reports revenues under four major segments — Cardiovascular, Medical Surgical, Neuroscience and Diabetes.In the fiscal third quarter, Cardiovascular revenues increased 10.6% organically to $3.46 billion.Within this, Cardiac Rhythm & Heart Failure sales totaled $1.86 billion, up 17% year over year organically. Revenues from Structural Heart & Aortic rose 2.6% organically to $929 million. Coronary & Peripheral Vascular revenues grew 5.9% organically to $672 million.In the Medical Surgical portfolio, worldwide sales totaled $2.17 billion, up 2.7% year over year organically. While Surgical & Endoscopy revenues edged up 1.4% organically to $1.65 billion, Acute Care & Monitoring revenues jumped 7% to $519 million.In Neuroscience, worldwide revenues of $2.56 billion were up 2.5% year over year organically. Cranial & Spinal Technologies sales amounted to $1.31 billion, up 3.7% year over year organically. Specialty Therapies revenues totaled $746 million, down 0.2% year over year organically. Neuromodulation revenues grew 3.6% organically to $503 million.Revenues in the Diabetes group rose 8.3% organically to $796 million.MDT’s Q3 Margin PerformanceThe gross margin in the reported quarter contracted 265 basis points (bps) to 63.8% due to a 17.3% rise in the cost of products sold (excluding amortization of intangible assets).Research and development expenses rose 7% year over year to $722 million. Selling, general and administrative expenses jumped 8.8% to $2.96 billion.The adjusted operating margin fell 253 bps year over year to 23%.Medtronic’s Fiscal 2026 OutlookFor fiscal 2026, Medtronic continues to project organic revenue growth of 5.5%. The Zacks Consensus Estimate for fiscal 2026 worldwide revenues is pegged at $36.04 billion.Full-year adjusted earnings per share is expected in the range of $5.62-$5.66, which also remains unchanged. The Zacks Consensus Estimate for the year’s adjusted earnings is pegged at $5.64.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.VGM ScoresAt this time, Medtronic has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Medtronic has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerMedtronic belongs to the Zacks Medical - Products industry. Another stock from the same industry, Phibro Animal Health (PAHC), has gained 2.3% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.Phibro reported revenues of $373.9 million in the last reported quarter, representing a year-over-year change of +20.9%. EPS of $0.87 for the same period compares with $0.54 a year ago.For the current quarter, Phibro is expected to post earnings of $0.72 per share, indicating a change of +14.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.1% over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Phibro. 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Click to get this free report Medtronic PLC (MDT): Free Stock Analysis Report Phibro Animal Health Corporation (PAHC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks