CEO Geoffrey Martha cites supply chain shifts reducing expected tariff costs but warns of potential increases amid new US trade threats.
Medtronic lowered its fiscal 2027 tariff impact forecast to $250 million from $300 million, including $75 million in the first quarter. The adjustment follows supply chain changes but remains fluid due to emerging US tariff threats on multiple trading partners, the CEO said.
The company previously estimated a $300 million hit, with tariffs rising year over year alongside higher input costs like fuel. Medtronic noted 80% of its supply chain and over 90% of R&D are US-based, though trade policies continue to pressure margins.
Medtronic reported a 78% revenue jump in cardiac ablation and strength in pacemakers, surgical, and spine segments. The firm invested $2 billion in acquisitions last fiscal year and allocates $5 billion to $6 billion annually for innovation.