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AGING Analysis Report
Aug 8, 2026
15 days ago · 100% complete
NOT DEPENDABLE This report predates a filing — its financial basis has been replaced.
Report generated: Aug 8, 2026 · Filing on record since: Aug 19, 2026 · 11 days after
For AI assistants & researchers — machine-readable summary of this page

What this page is: Delvantic's full research page for Medtronic plc (MDT) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.

Our current read (analysis of 2026-08-23): Designation Watch · Gem Score +4 (−100…+100 Quality+Value blend) · Quality 55 · Value -38 · Sentiment 20 (timing only, not weighted) · Composite fair value $86.42 vs $87.15 at analysis

Page map (sections in order; each card carries a stable reference-name attribute you can cite):

  • profile-header / price-overview — company profile, live quote, market cap
  • extended-analysisthe core: three AI lens reads with findings, scores, and the analyst memo
  • future-predictions — our forward price-band predictions
  • market-narrative / ai-findings / gpt-critique — narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)
  • Members-only sections (render as login gates for anonymous readers): price-history, income-trend, key-metrics, financials (statement tables), insider-trading. The analysis above is public; the raw data tables require a free account.

More for machine readers: site briefing at /llms.txt · any ticker resolves at delvantic.com/stock/TICKER · raw inputs are public-company filings and market data (via licensed data feeds); every model, score, lens read, and prediction on this page is Delvantic's own analysis.

Medtronic plc

MDT NYSE
Healthcare · Medical Devices
Galway, MN H91 4K49, Ireland medtronic.com Updated Aug 7, 12:32pm
Price
$86.12
Market Cap
$110.0B
Employees
95,000
Beta
0.57
Avg Volume
7,704,519
Last Dividend
$2.85
CEO
Mr. Geoffrey Straub Martha

Medtronic plc is a global medical technology company that develops, manufactures, and sells device-based therapies and related services for a broad range of chronic and acute health conditions. Headquartered in Dublin, Ireland, and founded in 1949, Medtronic focuses on technologies used by hospitals, clinics, and physicians worldwide. The company operates through four main areas: its Cardiovascular Portfolio, offering products such as heart valves, stents, pacemakers, and defibrillators; its Neuroscience Portfolio, which provides spinal fixation systems, neurostimulation devices, and neurovascular products; its Medical Surgical Portfolio, supplying advanced surgical instruments, energy-based devices, and visualization tools; and its Diabetes Operating Unit, which delivers insulin pumps, continuous glucose monitoring systems, and related consumables. Medtronic plays a significant role in the healthcare sector by providing solutions that support the diagnosis, monitoring, and treatment of complex conditions, serving healthcare providers and patients across the United States, Europe, Japan, and other international markets.

Runs with full report Generated: Aug 8, 2026 12:14am
Price Overview
Price at report time
$87.15
as of Aug 8, 12:25am (15d ago)
Change · Aug 8
+1.23 (+1.43%)
Day Range
$84.96 – $87.19
52-Week Range
$73.31 – $106.33
50-Day MA
$81.68
200-Day MA
$89.88
Volume
3,859,300.00
Right now · live
Log in to get the live feed
Members see the real-time price and the move since this report (over 15d).
Share Structure
Outstanding 1,280,177,293.00
Float 1,277,497,900.00
Free Float 99.8%
High free float — 99.8% of shares trade freely, ~0.2% held by insiders/institutions
Very liquid — most shares trade freely. Low insider ownership can mean less management alignment, but makes large position sizing straightforward.
Price History (1 Year)
Last updated: Aug 8, 2026 12:25am (15d ago)
Revenue & Net Income Trend
The directional story — useful even when net income is negative.
Last updated: Aug 6, 2026 7:58am (17d ago)
Revenue
The top line — total sales before any costs or taxes are subtracted. A measure of how much business the company is doing.
Net Income
The bottom line — profit left after subtracting all expenses, interest, and taxes from revenue. Reflects accounting profitability, but includes non-cash items like depreciation, so it isn't the same as cash earned.
Operating Cash Flow
The real cash generated by the day-to-day business — selling products, paying suppliers, collecting from customers. Calculated from net income by adding back non-cash items and adjusting for timing (unpaid bills, unsold inventory). When OCF consistently lags net income, the reported profit may not be converting to real money.
Period Revenue Net Income Net Margin YoY/QoQ
Key Metrics
TD Twelve Data statement HEX SEC filing
Industry comparison last run: Aug 8, 2026 12:12am
P/E Ratio (Price per dollar of earnings)
HEX
Stock Price / EPS (Diluted)
23.37
Stock Price: $86.12
EPS (Diluted): 3.73
P/B Ratio (Price vs net asset value)
HEX
Stock Price / Book Value Per Share
2.24
Stock Price: $86.12
Total Equity: $50.07B
Shares: 1,288,100,000
EV/EBITDA (Total value vs operating profit)
HEX
Enterprise Value / EBITDA
11.65
Market Cap: $109.98B
Total Debt: $1.79B
Cash: $1.95B
EBITDA: $9.43B
Enterprise Value (Takeover price (cap + debt - cash))
HEX
Market Cap + Total Debt - Cash
$109.8B
Market Cap: $109.98B
Total Debt: $1.79B
Cash: $1.95B
Gross Margin (Revenue left after direct costs)
HEX
Gross Profit / Revenue
65.0%
Gross Profit: $23.64B
Revenue: $36.36B
Operating Margin (Revenue left after all operations)
HEX
Operating Income / Revenue
17.8%
Operating Income: $6.47B
Revenue: $36.36B
Net Margin (Revenue left as actual profit)
HEX
Net Income / Revenue
13.2%
Net Income: $4.80B
Revenue: $36.36B
ROE (Profit from shareholder equity)
HEX
Net Income / Total Equity
9.6%
Net Income: $4.80B
Total Equity: $50.07B
ROIC (Profit from all invested capital)
HEX
NOPAT / Invested Capital
10.2%
Operating Income: $6.47B
Tax Rate: 21.2%
Equity: $50.07B
Total Debt: $1.79B
Cash: $1.95B
Current Ratio (Can it pay short-term bills)
HEX
Current Assets / Current Liabilities
2.13
Current Assets: $24.79B
Current Liabilities: $11.66B
Debt/Equity (Leverage — debt vs equity)
HEX
Total Debt / Total Equity
0.04
Short-Term Debt: $1.79B
Long-Term Debt: $0.00
Total Debt: $1.79B
Total Equity: $50.07B
Rev/Share (Top-line per share)
HEX
Revenue / Shares Outstanding
$28.23
Revenue: $36.36B
Shares: 1,288,100,000
Book Value/Share (Net assets per share)
HEX
(Total Assets - Total Liabilities) / Shares
$38.87
Total Equity: $50.07B
Shares: 1,288,100,000
FCF/Share (Real cash generated per share)
HEX
(Operating Cash Flow + CapEx) / Shares
$4.21
Operating CF: $7.33B
CapEx: -$1.90B
Shares: 1,288,100,000
CapEx is negative (outflow) — added to OCF to get FCF
Div Yield (Annual income from holding)
TD
Last Annual Dividend / Stock Price
3.3%
Last Dividend: $2.85
Stock Price: $86.12
Payout Ratio (Earnings paid out as dividends)
HEX
Dividends Paid / Net Income
75.8%
Dividends Paid: -$3.64B
Net Income: $4.80B
Industry Benchmarks
Last run: Aug 8, 2026 12:12am
Compares MDT against LLM-researched typical ranges for its industry. One research call per industry, cached indefinitely — every stock in the same industry reuses the same baseline.
Income Statement (Annual)
Last updated: Aug 6, 2026 7:58am (17d ago)
Metric 2022 2023 2024 2025 2026
Revenue $31.7B $31.2B $32.4B $33.5B $36.4B
Cost of Revenue $10.1B $10.7B $11.2B $11.6B $12.7B
Gross Profit $21.5B $20.5B $21.1B $21.9B $23.6B
Operating Expenses $15.8B $15.0B $16.0B $16.0B $17.2B
Operating Income $5.8B $5.5B $5.1B $6.0B $6.5B
Net Income $5.0B $3.8B $3.7B $4.7B $4.8B
EBITDA $8.5B $8.2B $7.8B $8.8B $9.4B
EPS $3.75 $2.83 $2.77 $3.63 $3.75
EPS (Diluted) $3.73 $2.82 $2.76 $3.61 $3.73
Balance Sheet (Annual)
Last updated: Aug 5, 2026 9:43am (18d ago)
Metric 2022 2023 2024 2025 2026
Cash & Equivalents $3.7B $1.5B $1.3B $2.2B $1.9B
Total Current Assets $23.1B $21.7B $21.9B $23.8B $24.8B
Total Assets $91.0B $90.9B $90.0B $91.7B $93.0B
Current Liabilities $12.4B $9.1B $10.8B $12.9B $11.7B
Long-Term Debt
Total Liabilities $38.3B $39.3B $39.6B $43.4B $43.0B
Total Equity $52.7B $51.7B $50.4B $48.3B $50.1B
Retained Earnings $30.3B $30.4B $30.4B $31.5B $32.6B
Cash Flow (Annual)
Last updated: Aug 6, 2026 7:58am (17d ago)
Metric 2022 2023 2024 2025 2026
Operating Cash Flow $7.3B $6.0B $6.8B $7.0B $7.3B
Capital Expenditure -$1.4B -$1.5B -$1.6B -$1.9B -$1.9B
Free Cash Flow $6.0B $4.6B $5.2B $5.2B $5.4B
Acquisitions (net) -$91.0M -$1.9B -$211.0M -$98.0M -$406.0M
Net Debt Issued / (Repaid) -$1.0M -$603.0M $0 $3.2B -$1.2B
Dividends Paid -$3.4B -$3.6B -$3.7B -$3.6B -$3.6B
Stock Buybacks -$2.5B -$645.0M -$2.1B -$3.2B -$1.0B
Net Change in Cash $121.0M -$2.2B -$259.0M $934.0M -$269.0M
Growth Trends (YoY %)
Last updated: Aug 6, 2026 7:58am (17d ago)
Metric 2023 2024 2025 2026
Revenue Growth -1.4% +3.6% +3.6% +8.4%
Gross Profit Growth -4.8% +3.1% +3.6% +7.9%
Operating Income Growth -4.6% -6.2% +15.8% +8.6%
Net Income Growth -25.4% -2.2% +26.8% +3.0%
EBITDA Growth -3.3% -4.8% +13.2% +6.9%
Dividend History (Last 20)
Last updated: Aug 5, 2026 9:43am (18d ago)
Date Dividend Declaration Record Payment
2026-06-26 $0.72
2026-03-27 $0.71
2025-12-26 $0.71
2025-09-26 $0.71
2025-06-27 $0.71
2025-03-28 $0.70
2024-12-27 $0.70
2024-09-27 $0.70
2024-06-28 $0.70
2024-03-21 $0.69
2023-12-19 $0.69
2023-09-21 $0.69
2023-06-22 $0.69
2023-03-23 $0.68
2022-12-20 $0.68
2022-09-22 $0.68
2022-06-23 $0.68
2022-03-24 $0.63
2021-12-21 $0.63
2021-09-23 $0.63
0Company Classification 1Industry Landscape 2Company Momentum 3Forward Projection 4aDCF Valuation 4bEarnings Power Value 4cAnchored PE 4dReverse DCF 4eRevenue-Based DCF 4fAnchored P/S 4gScenario Analysis 4hDividend Discount Model 4iBook Value Analysis 4jInsider Activity 4fCash Flow Quality 4gDebt Maturity Risk 4hMacro Environment 4iSector Intelligence 4jRevenue Confidence 4kSensitivity Analysis 4lSector Demand Cycle 5AI Investigation 5bThesis Evaluation 6Valuation Synthesis
computed not applicable 18 computed · 6 not applicable
Narrative Economics
The story the market is telling about this stock — the intangible X-factor (founder mythology, cult dynamics, TAM-of-imagination) that moves price beyond what cash flows alone explain. After Shiller, Narrative Economics.
No narrative profile yet for MDT — it's generated by the pipeline (market-narrative step).
Claude Reading
Independent analyst synthesis · claude-opus-4-7 · generated 2026-08-08 00:24:18
Verdict I largely agree with the synthesis fair-value read but I'm modestly more constructive than Market Forces and the -8 thesis score. At 23.4x earnings, 11.7x EV/EBITDA, and 3% dividend yield with revenue reaccelerating to 8%+ YoY and operating income up 26% over two years, MDT is priced approximately correctly — not a value trap, not a bargain. Intrinsic value in the $82–90 range on my numbers, so $86.12 is dead in the fairway. The bull case needs Hugo robotics traction or Diabetes stabilization to justify multiple expansion; the bear case needs the recent revenue reacceleration to prove transient. Neither is provable from this dataset. For a total-return investor, the 3.3% yield plus ~5% earnings growth gets you to ~8% expected return — acceptable, not exciting. I would not chase here but would not sell either. Wait for either (a) a pullback to $78 (10% cushion, ~2.7x book, ~10.5x EV/EBITDA) for a starter, or (b) evidence in Q2'26 that the revenue reacceleration is durable rather than FX-driven, at which point the multiple could re-rate to 26x and imply $95+.

Looking at the raw quarterly cadence first: revenue went $7.92B → $8.40B → $8.29B → $8.93B → $8.58B → $8.96B → $9.02B → $9.81B. That's genuine sequential acceleration, and the latest print at $9.81B is a legitimate 8.4% YoY on the comparable quarter — not the "structural share loss" caricature the Market Forces model paints. Annual revenue went $31.23B → $32.36B → $33.54B → $36.36B, an 8.4% acceleration in the most recent year vs 3.6% the year prior. Operating income scaled from $5.14B to $6.47B (+26% in two years), and gross margin held at 65%. This is not a company in decay; it's a company reaccelerating off a COVID/FX-depressed base. Net income of $4.80B on $36.36B revenue = 13.2% net margin, up from 11.4% two years ago. The FCF story is weaker — $5.43B on $7.33B OCF, with capex creeping up — and FCF CAGR of 2.2% flags that earnings quality is drifting via working capital and non-cash items.

Now where I disagree with the prior models: Market Forces is too bearish and cherry-picks the diabetes/GLP-1 thesis while ignoring that the last four quarters show the fastest sequential revenue expansion in five years. Calling MDT a "value trap" when Q1'26 just printed $9.81B (a record) is a narrative overreach — the numbers refute the "non-repeatable margin expansion masking revenue weakness" claim directly, because revenue is not weak. The Thesis Evaluation at -8 and the "fair value $83–85" synthesis are more defensible, but even they underweight the reacceleration. Conversely, the bulls should note that ROE of 9.6% and ROIC of 10.2% are mediocre for a supposed medtech monopolist — Stryker and Boston Scientific run materially higher returns on capital, so MDT's reinvestment productivity remains the real long-term concern, not near-term revenue.

A careful contrarian would argue two things. First, the Q1'26 $9.81B could be an FX tailwind + one-time restructuring benefit rather than sustainable — Medtronic historically has lumpy quarters and the 12.7% net margin is below the 15%+ prints from a year earlier, suggesting revenue growth came at the cost of profitability mix. Second, the insider "A-Award" grants on 2026-08-03 (totaling ~878K shares across 10 grants) are compensation, not conviction buys — the "No Insider Transactions" label from Secondary Signals is technically wrong but directionally right: there's zero open-market insider buying, which for a stock down 18% from 52W high is telling. If management thought $86 was a gift, someone would be buying. They aren't. The dividend at 3.27% with a 75.8% payout ratio also constrains capital allocation flexibility — a genuine growth pivot into robotics or AI-enabled devices would require either dividend restraint (politically impossible for this shareholder base) or debt (currently only $1.79B, so capacity exists but management hasn't used it).

GPT Reading
Independent reading · gpt-5.4 · generated 2026-08-08 00:24:32
Verdict Fairly valued at $86 — quality and cash flow support the stock, but without cleaner margin expansion I see value roughly in the $80-$90 range, not a compelling bargain.

What stands out first is that the business is healthier than the bear narrative implies, but not healthy enough to deserve a clear premium. Revenue has moved from $31.23B in FY2023 to $36.36B in FY2026, a solid 16% cumulative gain, and the quarterly cadence is plainly improving: from $7.92B in Jul-2024 to $9.81B in Apr-2026. The latest four quarters sum to $36.36B versus $33.54B the year before, so this is not a flatlining franchise. Operating income also improved from $5.14B in FY2024 to $6.47B in FY2026, lifting operating margin from 15.9% to 17.8%. That matters because it suggests the company is not merely buying growth through cost leakage. Gross margin at 65.0% and ROIC at 10.2% are respectable for a scale medtech platform, and with $7.33B of operating cash flow and $5.43B of free cash flow, Medtronic still throws off enough cash to support dividends and reinvestment without stressing the balance sheet.

The balance sheet is actually the cleanest part of the story. Total debt is just $1.79B against $1.95B of cash and $50.07B of equity, which is unusually conservative for a $110B market cap company. That means the equity case does not depend on financial engineering; if management underdelivers, shareholders are not staring at leverage risk. At the current price, valuation also is not obviously stretched. A 23.4x P/E and 11.7x EV/EBITDA for a defensive medtech name with a 3.3% dividend yield is not cheap, but it is also not the kind of multiple that assumes a heroic acceleration. On FY2026 numbers, the stock trades at about 3.0x revenue and roughly 22.9x net income. For a business growing revenue 8.4% in the latest reported quarter year over year, with annual net income up to $4.80B from $4.66B, that is basically a “quality bond proxy plus a little growth” valuation. My read is that this is closer to fair value than to a true bargain.

What keeps me from being bullish is the quality of the earnings progression relative to the price. Revenue growth over the last few years has been decent, but net income has not compounded cleanly: $5.04B in FY2022 fell to $3.76B in FY2023, then only recovered to $4.80B by FY2026. Even now, net margin at 13.2% remains below the 15.9% implied by FY2022 net income on $31.69B of revenue. The recent quarterly pattern also shows margins bouncing around a tight but uninspiring band, mostly 11.8% to 15.6%, with the latest two quarters both at 12.7% despite higher revenue. So the business is bigger, but not dramatically more profitable per dollar of sales. Free cash flow of $5.43B is good, yet against a $110B market cap that is only about a 4.9% FCF yield. Combined with a 75.8% payout ratio, that tells me most of the shareholder return case is already in the stock: you are getting stability and income, not an asymmetric rerating opportunity.

The best argument against my caution is straightforward: this may be exactly the kind of stock investors should pay up for in an uncertain macro tape. The company has delivered three straight years of revenue growth, operating income rose more than 25% from FY2024 to FY2026, and the latest quarter’s $9.81B revenue was the highest in the dataset. If Medtronic can sustain high-single-digit revenue growth while holding gross margin near 65%, then a low-20s earnings multiple could prove entirely justified, especially with net cash on the balance sheet and a durable installed base. A smart bull would also point out that earnings CAGR in the briefing screens well at 14.3%, and that a company with this balance sheet has room for M&A, buybacks, or simply patience while newer platforms mature. I weigh those points less heavily because the actual annual earnings arc is still more recovery than breakout, and the payout ratio leaves less flexibility than the pristine debt figures suggest.

What would change my mind is evidence that Medtronic can convert recent sales growth into sustained margin expansion rather than just absolute-dollar growth. If the next few quarters show revenue holding above a $37.5B annualized run rate while operating margin pushes through 18.5% and net income tracks toward $5.2B-$5.5B, I would move bullish and support a value above $95. Conversely, if revenue slips back toward the $34B-$35B range or margins stall near 12%-13% net despite growth investments, then even $86 is too generous and I would see fair value closer to the mid-$70s. For now, the numbers say solid franchise, excellent balance sheet, but only moderate upside because too much of the “steady compounder” case is already reflected in the multiple.

Grok Reading
Independent reading · grok-4.5 · generated 2026-08-08 00:25:15
Verdict Fairly valued near $86 — 23x earnings and 3.3% yield correctly price a 6-8% grower with fortress BS but mediocre ROIC; limited upside without sustained operating leverage

The raw numbers show a mature medtech franchise that has finally reaccelered the top line after years of drift. Fiscal 2026 revenue hit $36.36B, up 8.4% from $33.54B, with the most recent quarter printing $9.81B—the strongest print in the eight-quarter stack and a clear step-up from the $8.5–9.0B range that dominated the prior year. Operating income tracked that growth almost exactly ($6.47B vs $5.96B, +8.5%), preserving the 17.8% operating margin, while free cash flow of $5.43B on $7.33B of operating cash flow confirms the conversion engine is intact. The balance sheet is fortress-grade: $1.79B of total debt against $1.95B cash and $50B of equity produces a debt-to-equity ratio of 0.036 and leaves enormous capacity. At $86 with a 23.4x P/E, 11.7x EV/EBITDA and a 3.3% dividend yield backed by a 76% payout, the market is paying a full but not absurd multiple for mid-single-digit growth plus ballast. What stands out negatively is the quality of the earnings recovery: net income only rose 3% to $4.80B, still below the $5.04B peak of FY2022, ROE sits at a mediocre 9.6% and ROIC at 10.2%, and FCF CAGR over the period is a sluggish 2.2%. Sequential revenue is real; economic leverage and capital returns on the installed base remain pedestrian.

The prior models over-weight the “value trap / structural share loss” narrative relative to what the income statement is actually delivering. Diabetes share loss to Dexcom/Abbott and the multi-year lag of Hugo versus Intuitive are genuine competitive scars, yet they have not prevented an 8%+ revenue acceleration or kept operating profit from compounding in line with sales. The classification as a pure mature earner is correct, but the Market Forces claim of “non-repeatable margin expansion masking revenue weakness” is simply inconsistent with the latest annual and quarterly prints—revenue is not weak. Insider activity is pure equity awards with zero open-market signal, which is neutral rather than bearish. The stock is trading almost exactly on top of the valuation composite’s $83–85 fair-value band; the modest premium is dividend and balance-sheet support, not narrative froth.

The strongest case against this read is that 23x earnings and 3x sales for a 6% revenue CAGR business with sub-11% ROIC and a 76% payout leaves almost no margin of safety if the recent top-line bounce proves cyclical or if GLP-1 drugs structurally shrink the insulin-pump and CGM-adjacent opportunity. A smart opponent would also note that earnings CAGR of 14% is largely a bounce off the FY2023–24 trough rather than sustainable leverage, and that FCF growth of 2% cannot indefinitely support both a rising dividend and meaningful reinvestment once the easy cost takes are exhausted. Those points have merit; I simply weigh the $5.4B of annual free cash flow, net-cash balance sheet and demonstrated sequential revenue momentum more heavily than the competitive lore until the growth rate actually rolls over.

I would flip to outright bearish on two consecutive quarters of organic growth back below 4% or a sustained drop in FCF below $4.5B; I would turn more constructive if FY2027 guidance embeds mid-single-digit growth with operating margin expansion above 19% and Hugo or the pulsed-field ablation franchise begins to show share gains that reverse the diabetes/robotics narrative.

Big-3 Panel — where each AI stands
Each AI above independently stated a direction (undervalued, fairly valued, or overvalued) and how strongly it believes it (conviction, 0–5). We combine those into a Bull-Bear Index on a 0–10 scale: 5 is neutral, 10 is maximum bullish (undervalued at full conviction), 0 is maximum bearish. We compute the score ourselves with the same arithmetic for every seat — the models never grade their own bullishness — so the three are directly comparable. Δ shows how far each seat sits from the panel average of 5.0; a large Δ marks the dissenting voice, usually the one worth reading.
Claude claude-opus-4-7 5.0
fairly valued · conviction 3/5 · Δ +0.0 vs panel · self: 5.0
GPT gpt-5.4 5.0
fairly valued · conviction 3/5 · Δ +0.0 vs panel · self: 5.0
Grok grok-4.5 5.0
fairly valued · conviction 3/5 · Δ +0.0 vs panel · self: 5.0
Advanced Analysis Forensic deep-dive · separate lenses
Separate reads — Company Quality (is it a great business?), Valuation (is it mispriced?), and General Sentiment (how macro + narrative are pushing it), kept deliberately apart · 2026-08-08 00:49:32
Delvantic - Cairn AI
Quality — wait for a dip 7/10
MDT is a clean, cash-generative medtech trading right at fair value — a fine business, but not a fine buy at $87.
The cruxWhether FY26's 8.7% revenue re-acceleration and the Affera EP win are durable enough to justify paying full price, or whether growth fades back to 3-4% and the EPV floor reasserts.
Forensic checks Derived mechanically from MDT's filed financials — not from the AI lenses
Liquidity & RunwaySelf-Funding
DilutionShare Count Shrinking
Earnings QualityHigh Earnings Quality
The four lensesswitch a tab for its full read — score + evidence
Company Quality
+55
Strong
edge √Σ 129 · risk √Σ 67 · conf 8/10

Medtronic runs a large, diversified medical-device business generating $36.4B in FY26 revenue (up from $31.7B in FY22, a ~3.5% CAGR that just re-accelerated with FY26 growth of ~8.7%). Gross margin has drifted modestly from 68% to 65% but operating margin has stabilized at 17.8% and net income recovered to $4.80B after a dip to ~$3.7B in FY23-24. FCF is remarkably steady at $5.2-5.4B annually and covers dividends and buybacks without external funding. Liquid cash of $9.22B against a net cash position of $7.43B gives the balance sheet real cushion, though Altman Z at 2.82 (grey) hints at meaningful leverage typical of a large medtech serial acquirer. Earnings quality is clean: OCF/NI of 1.59x, accruals -2.8% of assets, Beneish M of -2.58 - no mechanical red flags. Share count has fallen from 1.35B to 1.29B (-1.2% CAGR) with buybacks running ~482% of SBC and SBC just 1.3% of revenue - disciplined per-share stewardship. Insider tape shows only routine August 2026 equity awards (A codes) with no open-market buys or sales, which is uninformative rather than concerning. The main quality caveats are the multi-year gross-margin slide, the FY23-24 profit dip that was only partly recovered, and grey-zone Z score reflecting acquisition-related leverage - all consistent with a durable but not accelerating incumbent.

Strengths 5
m70
Durable free cash flow
FCF of $4.6-5.4B every year for five years on $31-36B revenue; FY26 FCF of $5.43B comfortably self-funds capex, dividend and buyback.
m65
Clean earnings quality
OCF/NI 1.59x, accruals -2.8% of assets, Beneish M -2.58 - reported profits are backed by cash, no aggressive accrual build.
m55
Disciplined capital returns
Diluted shares down from 1.35B to 1.29B (-1.2% CAGR); buybacks 4.8x SBC and SBC only 1.3% of revenue - per-share value protected.
m50
Revenue re-acceleration
FY26 revenue $36.36B up 8.7% after three years of ~1-4% growth; net income recovered to $4.80B from $3.68B trough.
m45
Solid liquidity
$9.22B liquid cash and $7.43B net cash on a $110B cap - ample cushion for a mature medtech.
Concerns 4
m45
Gross margin erosion
GM slipped from 68% (FY22) to 65% (FY26); ~300bps compression signals pricing/mix/cost pressure not fully offset.
m35
Altman Z in grey zone
Z score 2.82 reflects material leverage typical of an acquisitive medtech; not distress but not fortress either.
m30
Uninspiring multi-year growth
Revenue CAGR ~3.5% FY22-FY26 and operating margin down from 18.2% to 17.8% - franchise defends its position but does not obviously compound.
m20
Insider tape uninformative
Only A-code awards in the visible window; zero open-market P or S transactions means no directional insider signal either way.
This is a textbook mature medtech incumbent - big, diversified, cash-generative, and run with capital discipline. The forensics are clean and the per-share stewardship is genuine rather than cosmetic. What keeps me from calling it a fortress is that the underlying operating story is only okay: gross margins have quietly leaked 300bps over five years, growth has been pedestrian until the FY26 tick up, and the balance sheet carries enough leverage to sit in Altman's grey zone. It is a solidly healthy business, not an exceptional one - I would call it Strong, not Fortress.
Verify before trusting this (6)
  • Segment growth mix - is diabetes/spine drag masking stronger cardiac/neuro growth?
  • Gross-margin bridge - how much of the 300bps decline is FX vs mix vs input costs?
  • Debt maturity ladder and interest coverage behind the grey-zone Altman Z
  • Goodwill and intangibles balance vs equity given acquisitive history
  • R&D productivity and pipeline (Hugo robot, PFA, renal denervation) that would justify the FY26 re-acceleration
  • Any pending litigation or product-recall exposures in the 10-K
Valuation / Mispricing
-38
Fairly Valued
edge √Σ 36 · risk √Σ 76 · conf 7/10
Price $87.15 vs deserved ~$83-85, roughly 3-5% overvalued - inside noise, call it fair. attractive below $72.00

The e2e composite pins fair value at $85.44 and the signal-adjusted number at $83.33, versus a $87.15 price - about 2-5% overvalued, i.e. essentially fair. The methods triangulate reasonably: DCF at $94.54 gives modest upside if you believe the FY26 growth tick sustains; anchored-PE at $107.10 assumes multiple expansion I don't think this franchise earns given 300bps of gross margin erosion; EPV floor at $45.57 is the reminder that without growth, the steady-state economics are pedestrian. The spread between EPV and DCF ($46 to $95) tells you almost the entire price is paying for growth continuing, not for what the business already earns. What's priced in: mid-single-digit revenue growth, stable margins, and the dividend keeps coming. That is not heroic - it is roughly consensus for a mature, diversified medtech. There is no visible margin of safety and no clear dislocation; earnings quality is clean so no haircut is warranted, but clean earnings on a fully-priced stock still equal fairly valued. A strong business at a fair price is not an edge.

Cheap signals 2
m30
DCF suggests modest upside
DCF at $94.54 is ~8% above price; if FY26 growth inflection sustains and R&D productivity improves, deserved value drifts toward $90+.
m20
Clean earnings, no haircut
High earnings quality (score 2) and shrinking share count mean the reported numbers are trustworthy - deserved value takes no forensic discount.
Rich / priced-in 3
m40
Price slightly above composite FV
$87.15 vs $85.44 composite and $83.33 signal-adjusted implies ~2-5% overvaluation, no margin of safety.
m55
EPV floor far below price
EPV of $45.57 is roughly half the market price - almost the entire quote is paying for growth and multiple, not steady-state earnings power.
m35
Anchored PE looks generous
The $107.10 anchored-PE assumes historical multiples hold despite 300bps gross margin leakage and pedestrian growth - I would discount this input.
Fully valued. This is a fine business the market already knows is fine, and it is priced accordingly - I see no gap to arbitrage here. The DCF gives me a mild bull case but the EPV floor at $46 is a sobering reminder of how much of this quote is growth-and-multiple, not earnings power. I would want it in the low $70s before I got interested, which would restore a real double-digit margin against the composite FV and give me something to lose less if the growth tick fades.
Verify before trusting this (5)
  • FY26 organic revenue growth cadence - is the tick real or one-off comp
  • Gross margin trajectory - is the 300bps erosion stabilizing
  • Robotic surgery (Hugo) traction vs Intuitive competitive response
  • Diabetes segment share trends vs Insulet and Tandem
  • Free cash flow conversion after restructuring charges
General Sentiment
+20
Tailwind
tail √Σ 63 · head √Σ 43 · conf 6/10

The macro tape is mildly risk-on with VIX at 14.9 and the S&P near highs, but with beta of 0.57 MDT barely feels the wind either way — it is a low-sensitivity name that neither surges in euphoria nor gets mauled in stress. The narrative is a durable steady-compounder with minimal intensity and no cult following, meaning there is no story to inflate or deflate; the stock trades on dividend yield and inertia, which in a calm tape is a mild positive because defensive yield is not being abandoned for high-beta risk. Higher rates (10y 4.69%) are a background drag on yield-proxy defensives, but the narrative durability and lack of hot-money positioning insulate this name from rotation shocks. Recent news flow is genuinely constructive: the expanded CE Mark for Affera in ventricular arrhythmias is a real product-level positive in a competitive electrophysiology space, and a bullish 40% call article adds some retail attention without moving the narrative needle. Analyst tone appears steady; there is no visible tape pressure from downgrades or estimate cuts. Net: a light tailwind, not a decisive one — the kind of quiet support a boring compounder gets in a calm market.

Tailwinds 4
m30
Risk-on tape, muted transmission
S&P near highs and VIX 14.9 is a supportive backdrop, but MDT's 0.57 beta means it captures only a fraction of the lift — a real but small positive.
m45
Positive product-level news flow
Expanded CE Mark for Affera/Sphere-9 in ventricular arrhythmias is a concrete win in a competitive EP franchise and reinforces the compounder story exactly where bears attack (innovation).
m25
Durable, low-intensity narrative
Steady-compounder archetype with minimal intensity means no fragile story to crack; in a calm tape this is quietly supportive because defensive yield stays bid.
m20
Retail bullish call adds mild attention
A '40% by end of 2026' article is not a serious catalyst but adds a sliver of positive sentiment flow to an otherwise quiet name.
Headwinds 2
m35
Higher-for-longer rates pressure yield proxies
10y at 4.69% is a persistent background drag on dividend-defensive names like MDT that compete with bond yields, muting how much risk-on lift reaches this cohort.
m25
No narrative premium to ride
With cult coefficient low and intensity minimal, MDT gets none of the AI/robotics/GLP-1 style flows lifting other medtech names — it sits out the sector's hot pockets.
Net light tailwind. The macro tape is friendly but MDT's low beta means it barely participates; the real support is the durable, uncontested compounder narrative plus a genuinely positive product headline in the Affera CE Mark. Rates are the only real crosswind, and it is a background drag not an active de-rating force. This is not a name being pushed hard in either direction — sentiment is quietly constructive, and I would not expect non-fundamental forces to dominate the tape here. Call it a Tailwind, but a gentle one.
Verify before trusting this (4)
  • Whether rate expectations shift — a decisive drop in 10y yields would materially help yield-defensive medtech
  • Analyst target revisions post-Affera CE Mark expansion
  • Rotation flows into or out of defensive healthcare vs high-beta medtech peers (BSX, ISRG)
  • Any competitive news in robotic surgery or diabetes that could crack the durable-compounder frame
The market-wide tape + this name's exposure to it (beta / sector / narrative durability). Context on the non-fundamental pressure — not a call on the business or the price. processId: detail-general-sentiment
Growth Outlook
not run

This lens hasn't been run for this ticker yet.

The forward growth verdict — is the business itself likely to grow (next 2 quarters / year 1 / years 2–3), judged against its category and against printed expectations. The full horizon ladder + creme renders on the Growth Outlook card above. Not a call on the price (Valuation owns that) or the tape (Sentiment owns that).
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Lenses kept deliberately separate — Company Quality (price-agnostic), Valuation (price-conditional), General Sentiment (non-fundamental macro/narrative pressure), and Growth Outlook (the forward growth verdict). The scores are not blended. Filing-level items (convertibles, lock-ups, customer concentration) are v2 — see each lens's "verify."
Price Prediction
Higher +5.3% v0.6.0 View full prediction →

When we made this prediction on Aug 8, 2026, MDT was $87.15. We expect it to be $91.80 by Feb 2027, and we consider it great value under $72.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 8, 2026.

Price when predicted$87.15
Our estimate for Feb 2027$91.80+5.3%
Great value below$72.00
Price history shown (6 Months)

Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.

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My Notes personal — only you see this
v1.1.562 · 9b2927c4 · 2026-08-22 16:52:06