I. Overview of Medtronic's Q4 and Full-Year FY2025 Performance

(A) Q4 Performance Highlights

• Steady Revenue Growth: Medtronic achieved $8.9 billion in Q4 revenue, a 3.9% increase on a reported basis and 5.4% organic growth.
• Enhanced Profitability: Q4 GAAP diluted earnings per share (EPS) reached $0.82, a year-on-year increase of 67%; non-GAAP diluted EPS was $1.62, up 11%. Operating profit stood at $1.4 billion, a 36% year-on-year increase; non-GAAP operating profit was $2.5 billion, up 8%. The operating profit margin expanded by 380 basis points, and the non-GAAP operating profit margin increased by 90 basis points.
• Diversified Business Growth: Driven by the strong performance of pulsed field ablation (PFA) products, the cardiac ablation solutions business nearly tripled in Q4 revenue, with full-year FY2025 revenue reaching $1 billion. The company also undertook significant business initiatives, such as submitting an application to the U.S. Food and Drug Administration (FDA) for the Hugo™ RAS system for urological indications and launching the largest-ever commercial release of brain-computer interface technology following FDA approval of BrainSense™ adaptive deep brain stimulation (aDBS).

(B) Full-Year FY2025 Performance

• Record Revenue: Global revenue for FY2025 was $33.537 billion, with adjusted revenue at $33.627 billion, a 3.6% increase on a reported basis and 4.9% organic growth.
• Improved Profit Metrics: GAAP diluted EPS was $3.61, up 31% year-on-year; non-GAAP diluted EPS was $5.49, up 6%. Annual operating profit rose 16% to $6 billion; non-GAAP operating profit increased 5% to $8.7 billion, or 9% in constant currency.
• Cash Flow and Shareholder Returns: Operating cash flow reached $7.044 billion, up 4%; free cash flow was $5.185 billion, 持平 with the previous year, with a non-GAAP net income free cash flow conversion rate of 73%. The company returned $6.3 billion to shareholders during the year and increased the Q1 FY2026 dividend to $0.71 per share, marking 48 consecutive years of dividend increases.

II. In-Depth Analysis of Medtronic's Business Segments

(A) Cardiovascular Portfolio

• Composition and Growth: Comprising the Cardiac Rhythm and Heart Failure (CRHF), Structural Heart and Aortic (SHA), and Coronary and Peripheral Vascular (CPV) divisions. FY2025 revenue was $12.481 billion, a 5.5% increase on a reported basis and 6.3% organic growth; Q4 revenue was $3.336 billion, up 6.6% reported and 7.8% organically.
• Highlights by Division:
  • CRHF: Q4 growth of nearly 30% was driven by the rapid adoption of cardiac ablation solutions (CAS), particularly the PulseSelect™ and Affera™ mapping and ablation systems and the Sphere-9™ PFA catheter. The cardiac rhythm management business also grew in the high single digits, with defibrillation solutions and cardiac pacing therapies both showing high single-digit growth. The Micra™ transcatheter pacing system and SelectSecure™ 3830 lead for conduction system pacing grew in the high teens.
  • SHA: Q4 growth was driven by low double-digit growth in structural heart business, primarily from the continued strength of the Evolut™ FX+ TAVR system, and low double-digit growth in cardiac surgery.
  • CPV: Q4 growth was driven by low double-digit growth in catheter sheaths and high single-digit growth in balloons.
• Clinical Achievements and Approvals: Two-year data from the SMART trial showed superior valve performance of the Evolut TAVR™ system in small valve patients, published in the Journal of the American College of Cardiology; five-year positive results from the Evolut low-risk trial were presented as a Late Breaking Clinical Trial at the American College of Cardiology (ACC.25) meeting in March. The company also received FDA approval for the OmniaSecure™ lead, the smallest diameter lumenless defibrillation lead.

(B) Neuroscience Portfolio

• Composition and Growth Trends: Including Cranial and Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions. FY2025 revenue was $9.846 billion, a 4.7% increase on a reported basis and 5.2% organic growth; Q4 revenue was $2.62 billion, up 2.9% reported and 3.7% organically.
• Performance by Division:
  • CST: Q4 growth was driven by high single-digit growth in the U.S. market, supported by strong capital sales and follow-on implant sales of the AiBLE™ spinal surgery ecosystem.
  • Specialty Therapies: In Q4, ENT business grew low single digits, driven by strong navigation capital and head and neck consumable sales; pelvic health was flat; neurovascular declined mid-single digits due to China's volume-based procurement and the recall of the Pipeline™ Vantage flow catheter, though the Pipeline™ Shield, the gold standard for flow diversion products, remained available globally.
  • Neuromodulation: Outperformed the market in Q4, driven by low double-digit growth in pain stimulation, including mid-teens growth in the U.S. market from the continued launch of the Inceptiv™ spinal cord stimulator; global brain modulation grew mid-single digits, supported by the ongoing launch of the Percept™ RC deep brain stimulator (DBS) and BrainSense™ technology.
• Product Approvals and Technological Breakthroughs: Received FDA approval and launched BrainSense™ adaptive deep brain stimulation (aDBS), the largest commercial launch of brain-computer interface technology to date.

(C) Medical Surgical Portfolio

• Composition and Growth Overview: Including Surgical and Endoscopy (SE) and Acute Care and Monitoring (ACM) divisions. FY2025 revenue was $8.407 billion, a 0.1% decline on a reported basis but 0.8% organic growth; Q4 revenue was $2.212 billion, up 0.6% reported and 2.0% organically.
• Performance by Division:
  • SE: Q4 growth was driven by mid-single-digit growth in advanced energy, supported by continued adoption of LigaSure™ vessel sealing technology and mid-single-digit growth in emerging markets, partially offset by competitive pressures in the U.S. weight loss market and advanced stapling.
  • ACM: Q4 performance improved, with mid-teens growth in respiratory distress and high single-digit growth in perioperative complications.
• Clinical Research and Submissions: Results from the Expand URO Investigational Device Exemption (IDE) clinical study of the Hugo™ robotic-assisted surgery (RAS) system were presented at the American Urological Association (AUA) meeting last month; an application was submitted to the FDA for the Hugo™ RAS system for urological indications in Q1 2025.

(D) Diabetes Business

• Strong Growth Momentum: FY2025 revenue was $2.755 billion, a 10.7% increase on a reported basis and 11.5% organic growth; Q4 revenue was $728 million, up 10.4% reported and 12.0% organically, marking the sixth consecutive quarter of double-digit organic growth.
• Regional Market Performance: U.S. market Q4 revenue grew high single digits, driven by continued adoption of the MiniMed™ 780G automated insulin delivery (AID) system, increased installation base of the MiniMed™ 780G, and higher continuous glucose monitoring (CGM) connectivity rates. International market Q4 revenue grew mid-teens, driven by low 20s growth in insulin pumps and improved CGM connectivity as users upgraded to the Simplera Sync™ sensor.
• Product Approvals and Submissions: Received FDA approval for the Simplera Sync™ CGM to be used with the MiniMed™ 780G system and submitted a 510(k) application to integrate interoperable insulin pumps and algorithms with an exclusive CGM based on Abbott's state-of-the-art CGM platform.

III. Medtronic's Strategic Initiatives and Layout

(A) Business Separation and Strategic Adjustment

(B) Leadership Changes and Strengthening Business Leadership

(C) Sustained Innovation and R&D Investment

(D) Product Approvals and Market Expansion

IV. Implications for Domestic Chinese Medical Device Enterprises

(A) Focus on Core Businesses and Sustained Innovation

(B) Strengthen Brand Building and Market Promotion

(C) Optimize Business Portfolio and Strategic Management

(D) Improve Operational Efficiency and Quality Management Systems

(E) Enhance Global Vision and Collaboration