Medtronic reports first quarter fiscal 2024 financial results

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22 Aug, 2023, 06:45 ET

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Broad strength across businesses and geographies results in mid-single digit revenue growth, driven by execution, innovation, and improved underlying fundamentals

DUBLIN, Aug. 22, 2023 /PRNewswire/ -- Medtronic plc (NYSE:MDT) today announced financial results for its first quarter of fiscal year 2024 (FY24), which ended July 28, 2023.

Key Highlights

Financial ResultsMedtronic reported Q1 worldwide revenue of $7.702 billion, an increase of 4.5% as reported and 6.0% on an organic basis. The company's organic revenue results reflect broad strength across businesses and geographies, driven by execution, innovation, and improved underlying fundamentals. The organic revenue growth comparison excludes:

As reported, Q1 GAAP net income and diluted EPS were $791 million and $0.59, respectively, representing decreases of 15% and 16%, respectively. As detailed in the financial schedules included at the end of this release, Q1 non-GAAP net income and non-GAAP diluted EPS were $1.596 billion and $1.20, respectively, both representing increases of 6%. Included in non-GAAP diluted EPS was an 8 cent unfavorable impact from foreign currency translation, a 2 cent improvement from what was projected from May rates.

"We are pleased with the strong start to our fiscal year. We executed and delivered another quarter of mid-single digit revenue growth. Our solid results were broad-based, with each of our four segments delivering 6% organic revenue growth," said Geoff Martha, Medtronic chairman and chief executive officer. "We also continue to make great strides on our comprehensive transformation designed to ensure durable growth and create value for shareholders."

Cardiovascular PortfolioThe Cardiovascular Portfolio includes the Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV) divisions. Revenue of $2.850 billion increased 5.5% as reported and 6.2% organic, with a low-double digit increase in SHA, mid-single digit increase in CRHF, and low-single digit increase in CPV, all on an organic basis.

Neuroscience PortfolioThe Neuroscience Portfolio includes the Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions. Revenue of $2.219 billion increased 4.9% as reported and 5.6% organic, with mid-single digit organic increases in CST, Specialty Therapies, and Neuromodulation.

Medical Surgical PortfolioThe Medical Surgical Portfolio includes the Surgical & Endoscopy (SE) and the Patient Monitoring & Respiratory Interventions (PMRI) divisions. Endoscopy was formerly called the Gastrointestinal business. Revenue of $2.039 billion increased 5.5% as reported and 6.1% organic, with a high-single digit organic increase in SE and mid-single digit organic increase in PMRI.

DiabetesDiabetes revenue of $578 million increased 6.8% as reported and 6.3% organic.

GuidanceThe company today raised its FY24 revenue growth and EPS guidance.

The company increased its FY24 organic revenue growth guidance to 4.5% versus the prior range of 4.0% to 4.5%. The organic revenue growth guidance excludes the impact of foreign currency and revenue related to certain businesses reported as Other. If foreign currency exchange rates as of the beginning of August hold, FY24 revenue growth on a reported basis would be approximately 2.75%.

The company increased its FY24 diluted non-GAAP EPS guidance from the prior range of $5.00 to $5.10 to the new range of $5.08 to $5.16, a 7 cent increase at the midpoint, inline with the company's operational EPS outperformance in the first quarter.

"Our revenue outperformance and focus on expense management drove operating margin expansion and mid-single digit adjusted earnings growth this quarter," said Karen Parkhill, Medtronic EVP & chief financial officer. "Given our first quarter performance, including a 7 cent operational beat on the bottom line, and improved fundamentals, we're raising our full year organic revenue growth and EPS guidance."

Video Webcast InformationMedtronic will host a video webcast today, August 22, at 8:00 a.m. EDT (7:00 a.m. CDT) to provide information about its businesses for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Events icon at investorrelations.medtronic.com, and this earnings release will be archived at news.medtronic.com. Within 24 hours of the webcast, a replay of the webcast and transcript of the company's prepared remarks will be available by clicking on the Events icon at investorrelations.medtronic.com.

Medtronic plans to report its FY24 second, third, and fourth quarter results on Tuesday, November 21, 2023; February 20, 2024; and Thursday, May 23, 2024, respectively. Confirmation and additional details will be provided closer to the specific event.

Financial SchedulesThe first quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Investor Events link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the first quarter earnings presentation, click here.

MEDTRONIC PLC

WORLD WIDE REVENUE(1)

(Unaudited)

FIRST QUARTER

REPORTED

ORGANIC

(in millions)

FY24

FY23

Growth

Currency Impact(2)

Adjusted FY24

Adjusted FY23

Growth

Cardiovascular

$ 2,850

$ 2,701

5.5 %

$ (19)

$ 2,869

$ 2,701

6.2 %

Cardiac Rhythm & Heart Failure

1,446

1,381

4.7

(7)

1,453

1,381

5.2

Structural Heart & Aortic

814

741

9.9

(5)

819

741

10.5

Coronary & Peripheral Vascular

589

579

1.7

(8)

597

579

3.1

Neuroscience

2,219

2,115

4.9

(15)

2,234

2,115

5.6

Cranial & Spinal Technologies

1,103

1,043

5.8

(7)

1,110

1,043

6.4

Specialty Therapies

695

667

4.2

(8)

703

667

5.4

Neuromodulation

420

405

3.7

—

420

405

3.7

Medical Surgical

2,039

1,933

5.5

(12)

2,051

1,933

6.1

Surgical & Endoscopy

1,546

1,455

6.3

(7)

1,553

1,455

6.7

Patient Monitoring & Respiratory Interventions

493

479

2.9

(4)

497

479

3.8

Diabetes

578

541

6.8

575

541

6.3

Other(3)

(80.2)

(3)

—

TOTAL

$ 7,702

$ 7,371

4.5 %

$ (47)

$ 7,729

$ 7,290

6.0 %

(1)

The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum.

(2)

The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.

(3)

Includes inorganic revenue from the divested Renal Care Solutions business and Transition Manufacturing Agreements from previously divested businesses.

MEDTRONIC PLC

U.S.(1)(2) REVENUE

(Unaudited)

FIRST QUARTER

REPORTED

ORGANIC

(in millions)

FY24

FY23

Growth

Adjusted FY24

Adjusted FY23

Growth

Cardiovascular

$ 1,350

$ 1,286

5.0 %

$ 1,350

$ 1,286

5.0 %

Cardiac Rhythm & Heart Failure

720

704

2.3

720

704

2.3

Structural Heart & Aortic

357

312

14.4

357

312

14.4

Coronary & Peripheral Vascular

273

269

1.5

273

269

1.5

Neuroscience

1,497

1,419

5.5

1,497

1,419

5.5

Cranial & Spinal Technologies

821

762

7.7

821

762

7.7

Specialty Therapies

392

380

3.2

392

380

3.2

Neuromodulation

284

276

2.9

284

276

2.9

Medical Surgical

881

831

6.0

881

831

6.0

Surgical & Endoscopy

619

581

6.5

619

581

6.5

Patient Monitoring & Respiratory Interventions

262

249

5.2

262

249

5.2

Diabetes

188

206

(8.7)

188

206

(8.7)

Other(3)

(68.0)

—

TOTAL

$ 3,924

$ 3,766

4.2 %

$ 3,917

$ 3,741

4.7 %

(1)

U.S. includes the United States and U.S. territories.

(2)

The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum.

(3)

Includes inorganic revenue from the divested Renal Care Solutions business and Transition Manufacturing Agreements from previously divested businesses.

MEDTRONIC PLC

WORLD WIDE REVENUE: GEOGRAPHIC (1)(2)

(Unaudited)

FIRST QUARTER

REPORTED

ORGANIC

(in millions)

FY24

FY23

Growth

Currency Impact(3)

AdjustedFY24

AdjustedFY23

Growth

U.S.

$ 1,350

$ 1,286

5.0 %

$ —

$ 1,350

$ 1,286

5.0 %

Non-U.S. Developed

956

892

7.2

954

892

7.0

Emerging Markets

544

523

4.0

(21)

565

523

8.0

Cardiovascular

2,850

2,701

5.5

(19)

2,869

2,701

6.2

U.S.

1,497

1,419

5.5

—

1,497

1,419

5.5

Non-U.S. Developed

416

407

2.2

(4)

420

407

3.2

Emerging Markets

306

290

5.5

(11)

317

290

9.3

Neuroscience

2,219

2,115

4.9

(15)

2,234

2,115

5.6

U.S.

881

831

6.0

—

881

831

6.0

Non-U.S. Developed

772

735

5.0

(6)

778

735

5.9

Emerging Markets

386

368

4.9

(6)

392

368

6.5

Medical Surgical

2,039

1,933

5.5

(12)

2,051

1,933

6.1

U.S.

188

206

(8.7)

—

188

206

(8.7)

Non-U.S. Developed

315

264

19.3

311

264

17.8

Emerging Markets

4.2

(2)

6.9

Diabetes

578

541

6.8

575

541

6.3

U.S.

(68.0)

—

Non-U.S. Developed

(84.4)

(2)

—

Emerging Markets

(87.5)

(1)

—

Other(4)

(80.2)

(3)

—

U.S.

3,924

3,766

4.2

—

3,917

3,741

4.7

Non-U.S. Developed

2,463

2,328

5.8

(6)

2,463

2,297

7.2

Emerging Markets

1,314

1,276

3.0

(41)

1,350

1,253

7.7

TOTAL

$ 7,702

$ 7,371

4.5 %

$ (47)

$ 7,729

$ 7,290

6.0 %

(1)

U.S. includes the United States and U.S. territories. Non-U.S. developed markets include Japan, Australia, New Zealand, Korea, Canada, and the countries within Western Europe. Emerging Markets include the countries of the Middle East, Africa, Latin America, Eastern Europe, and the countries of Asia that are not included in the non-U.S. developed markets, as previously defined.

(2)

The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum.

(3)

The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.

(4)

Includes inorganic revenue from the divested Renal Care Solutions business and Transition Manufacturing Agreements from previously divested businesses.

MEDTRONIC PLC

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three months ended

(in millions, except per share data)

July 28, 2023

July 29, 2022

Net sales

$ 7,702

$ 7,371

Costs and expenses:

Cost of products sold, excluding amortization of intangible assets

2,628

2,516

Research and development expense

668

692

Selling, general, and administrative expense

2,613

2,567

Amortization of intangible assets

429

423

Restructuring charges, net

Certain litigation charges

—

Other operating expense, net

Operating profit

1,268

1,125

Other non-operating income, net

(76)

(83)

Interest expense, net

148

164

Income before income taxes

1,196

1,044

Income tax provision

400

112

Net income

797

931

Net income attributable to noncontrolling interests

(6)

(2)

Net income attributable to Medtronic

$ 791

$ 929

Basic earnings per share

$ 0.59

$ 0.70

Diluted earnings per share

$ 0.59

$ 0.70

Basic weighted average shares outstanding

1,330.5

1,329.4

Diluted weighted average shares outstanding

1,333.8

1,334.5

The data in the schedule above has been intentionally rounded to the nearest million, and therefore, the quarterly amounts may not sum to the fiscal year-to-date amounts.

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS(1)

(Unaudited)

Three months ended July 28, 2023

(in millions, except per share data)

Net Sales

Cost of Products Sold

Gross Margin Percent

Operating Profit

Operating Profit Percent

Income Before Income Taxes

Net Income attributable to Medtronic

Diluted EPS

Effective Tax Rate

GAAP

$ 7,702

$ 2,628

65.9 %

$ 1,268

16.5 %

$ 1,196

$ 791

$ 0.59

33.4 %

Non-GAAP Adjustments:

Amortization of intangible assets

—

429

5.6

429

364

0.27

15.2

Restructuring and associated costs (2)

—

(16)

0.2

1.2

0.06

16.5

Acquisition and divestiture-related items (3)

—

(6)

0.1

0.6

0.03

6.0

Certain litigation charges

—

0.5

0.02

22.5

(Gain)/loss on minority investments (4)

—

0.05

—

Medical device regulations (5)

—

(21)

0.3

0.4

0.02

22.6

Certain tax adjustments, net (6)

—

198

0.15

—

Non-GAAP

$ 7,702

$ 2,586

66.4 %

$ 1,909

24.8 %

$ 1,902

$ 1,596

$ 1.20

15.8 %

Currency impact

(1)

0.2

122

1.4

0.08

Currency Adjusted

$ 7,749

$ 2,585

66.6 %

$ 2,031

26.2 %

$ 1.28

Three months ended July 29, 2022

(in millions, except per share data)

Net Sales

Cost of Products Sold

Gross Margin Percent

Operating Profit

Operating Profit Percent

Income BeforeIncomeTaxes

Net Incomeattributable to Medtronic

Diluted EPS

Effective Tax Rate

GAAP

$ 7,371

$ 2,516

65.9 %

$ 1,125

15.3 %

$ 1,044

$ 929

$ 0.70

10.7 %

Non-GAAP Adjustments:

Amortization of intangible assets

—

423

5.7

423

359

0.27

15.4

Restructuring and associated costs (2)

—

(20)

0.3

1.0

0.04

21.1

Acquisition and divestiture-related items (3)

—

(11)

0.1

109

1.5

109

102

0.08

6.4

(Gain)/loss on minority investments (4)

—

(4)

—

Medical device regulations (5)

—

(18)

0.2

0.4

0.02

18.8

Debt redemption premium and other charges (7)

—

0.03

20.8

Certain tax adjustments, net (8)

—

(13)

(0.01)

—

Non-GAAP

$ 7,371

$ 2,467

66.5 %

$ 1,765

23.9 %

$ 1,734

$ 1,502

$ 1.13

13.3 %

See description of non-GAAP financial measures contained in the press release dated August 22, 2023.

(1)

The data in this schedule has been intentionally rounded to the nearest million or $0.01 for EPS figures, and, therefore, may not sum.

(2)

Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses.

(3)

The charges primarily include business combination costs, changes in fair value of contingent consideration, and charges related to the impending separation of the Patient Monitoring and Respiratory Interventions businesses within our Medical Surgical Portfolio. The prior year included non-cash pre-tax impairments, primarily related to goodwill, as a result of the April 1, 2023 sale of half of the Company's Renal Care Solutions (RCS) business.

(4)

We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.

(5)

The charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs, which are limited to a specific time period.

(6)

The charge relates to an income tax reserve adjustment associated with the June 1, 2023 Israeli Central-Lod District Court decision in Medtronic Ventor Technologies Ltd v. Kfar Saba Assessing Office and amortization of previously established deferred tax assets from intercompany intellectual property transactions.

(7)

The charges relate to the early redemption of approximately $2.3 billion of debt and were recorded within interest expense, net within the consolidated statements of income.

(8)

The net benefit is due to a valuation allowance release associated with certain carryover attributes as a result of the RCS transaction listed above in (3) partially offset by the amortization of previously established deferred tax assets from intercompany intellectual property transactions.

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS(1)

(Unaudited)

Three months ended July 28, 2023

(in millions)

Net Sales

SG&A Expense

SG&AExpense as a % of Net Sales

R&D Expense

R&D Expense as a % of Net Sales

Other Operating (Income) Expense, net

Other Operating (Inc.)/Exp., net as a % of Net Sales

Other Non-Operating Income, net

GAAP

$ 7,702

$ 2,613

33.9 %

$ 668

8.7 %

$ 1

— %

$ (76)

Non-GAAP Adjustments:

Restructuring and associated costs (2)

—

(21)

(0.3)

—

Acquisition and divestiture-related items (3)

—

(16)

(0.2)

—

(27)

(0.4)

—

Medical device regulations (4)

—

(10)

(0.1)

—

(Gain)/loss on minority investments (5)

—

(64)

Non-GAAP

$ 7,702

$ 2,575

33.4 %

$ 658

8.5 %

$ (26)

(0.3) %

$ (141)

Currency impact

(0.1)

—

(82)

(1.1)

Currency Adjusted

$ 7,749

$ 2,580

33.3 %

$ 660

8.5 %

$ (108)

(1.4) %

$ (139)

See description of non-GAAP financial measures contained in the press release dated August 22, 2023.

(1)

The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.

(2)

Associated costs include costs incurred as a direct result of the restructuring program, such as salaries for employees supporting the program and consulting expenses.

(3)

(4)

The charges represent estimated incremental costs of complying with the new European Union medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs, which are limited to a specific time period.

(5)

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS(1)

(Unaudited)

Three months ended

(in millions)

July 28, 2023

July 29, 2022

Net cash provided by operating activities

$ 875

$ 1,083

Additions to property, plant, and equipment

(354)

(426)

Free Cash Flow(2)

$ 521

$ 657

See description of non-GAAP financial measures contained in the press release dated August 22, 2023.

(1)

The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.

(2)

Free cash flow represents operating cash flows less property, plant, and equipment additions.

MEDTRONIC PLC

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in millions)

July 28, 2023

April 28, 2023

ASSETS

Current assets:

Cash and cash equivalents

$ 1,339

$ 1,543

Investments

6,537

6,416

Accounts receivable, less allowances and credit losses of $190 and $176, respectively

5,806

5,998

Inventories, net

5,668

5,293

Other current assets

2,518

2,425

Total current assets

21,869

21,675

Property, plant, and equipment, net

5,665

5,569

Goodwill

41,436

41,425

Other intangible assets, net

14,434

14,844

Tax assets

3,461

3,477

Other assets

3,912

3,959

Total assets

$ 90,776

$ 90,948

LIABILITIES AND EQUITY

Current liabilities:

Current debt obligations

$ 519

$ 20

Accounts payable

2,239

2,662

Accrued compensation

1,695

1,949

Accrued income taxes

1,013

840

Other accrued expenses

3,581

Total current liabilities

9,047

9,051

Long-term debt

24,463

24,344

Accrued compensation and retirement benefits

1,092

1,093

Accrued income taxes

2,407

2,360

Deferred tax liabilities

687

708

Other liabilities

1,715

1,727

Total liabilities

39,410

39,283

Commitments and contingencies

Shareholders' equity:

Ordinary shares— par value $0.0001, 2.6 billion shares authorized, 1,330,498,304 and 1,330,809,036 shares issued and outstanding, respectively

—

Additional paid-in capital

24,587

24,590

Retained earnings

30,265

30,392

Accumulated other comprehensive loss

(3,674)

(3,499)

Total shareholders' equity

51,178

51,483

Noncontrolling interests

188

182

Total equity

51,366

51,665

Total liabilities and equity

$ 90,776

$ 90,948

The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.

MEDTRONIC PLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three months ended

(in millions)

July 28, 2023

July 29, 2022

Operating Activities:

Net income

$ 797

$ 931

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

672

668

Provision for credit losses

Deferred income taxes

—

(18)

Stock-based compensation

Loss on debt extinguishment

—

Other, net

135

121

Change in operating assets and liabilities, net of acquisitions and divestitures:

Accounts receivable, net

164

Inventories, net

(410)

(380)

Accounts payable and accrued liabilities

(673)

(147)

Other operating assets and liabilities

(311)

Net cash provided by operating activities

875

1,083

Investing Activities:

Acquisitions, net of cash acquired

—

(1,191)

Additions to property, plant, and equipment

(354)

(426)

Purchases of investments

(1,916)

(1,884)

Sales and maturities of investments

1,748

1,886

Other investing activities, net

(17)

Net cash used in investing activities

(539)

(1,585)

Financing Activities:

Change in current debt obligations, net

500

—

Proceeds from short-term borrowings (maturities greater than 90 days)

—

2,284

Payments on long-term debt

—

(2,311)

Dividends to shareholders

(918)

(903)

Issuance of ordinary shares

Repurchase of ordinary shares

(152)

(336)

Other financing activities

(8)

273

Net cash used in financing activities

(501)

(950)

Effect of exchange rate changes on cash and cash equivalents

(39)

(122)

Net change in cash and cash equivalents

(204)

(1,574)

Cash and cash equivalents at beginning of period

1,543

3,714

Cash and cash equivalents at end of period

$ 1,339

$ 2,140

Supplemental Cash Flow Information

Cash paid for:

Income taxes

$ 117

$ 260

Interest

The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.

About MedtronicBold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Dublin, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE:MDT), visit www.Medtronic.com and follow @Medtronic on Twitter and LinkedIn.

FORWARD LOOKING STATEMENTSThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation and general economic conditions and other risks and uncertainties described in the company's periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company, as filed with the U.S. Securities and Exchange Commission. In some cases, you can identify these statements by forward-looking words or expressions, such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "looking ahead," "may," "plan," "possible," "potential," "project," "should," "going to," "will," and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this press release, including to reflect future events or circumstances.

NON-GAAP FINANCIAL MEASURESThis press release contains financial measures, including adjusted net income, adjusted diluted EPS, and organic revenue, which are considered "non-GAAP" financial measures under applicable SEC rules and regulations. References to quarterly or annual figures increasing, decreasing or remaining flat are in comparison to fiscal year 2023.

Medtronic management believes that non-GAAP financial measures provide information useful to investors in understanding the company's underlying operational performance and trends and to facilitate comparisons with the performance of other companies in the med tech industry. Non-GAAP net income and diluted EPS exclude the effect of certain charges or gains that contribute to or reduce earnings but that result from transactions or events that management believes may or may not recur with similar materiality or impact to operations in future periods (Non-GAAP Adjustments). Medtronic generally uses non-GAAP financial measures to facilitate management's review of the operational performance of the company and as a basis for strategic planning. Non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies. Management strongly encourages investors to review the company's consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial schedules accompanying this press release.

Medtronic calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic revenue growth guidance excludes the impact of foreign currency fluctuations, as well as significant acquisitions or divestitures. Forward-looking diluted non-GAAP EPS guidance also excludes other potential charges or gains that would be recorded as Non-GAAP Adjustments to earnings during the fiscal year. Medtronic does not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of recognition of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.

Contacts:

Erika Winkels

Ryan Weispfenning

Public Relations

Investor Relations

+1-763-526-8478

+1-763-505-4626

SOURCE Medtronic plc

Medtronic plc

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Medtronic reports first quarter fiscal 2024 financial results