Medtronic Earnings: Recently Approved New Products Should Support Growth Into Fiscal 2025

Medtronic posted strong fiscal 2024 second-quarter results that put it on track to meet our full-year expectations, and we’re leaving our $112 fair value estimate unchanged. We think this quarter demonstrated more progress on the firm's larger objective of matching market growth. Organic revenue growth of 5% was fueled by strength in stent grafts for abdominal aortic aneurysm, the digital Aible system for spine procedures, and GI Genius, which incorporates artificial intelligence to better detect polyps during colonoscopy. Importantly, Medtronic recently obtained regulatory approval on several emerging technologies that we see as key growth drivers. These innovative new products reinforce the intangible assets that support Medtronic’s wide economic moat.