Medtronic: The Next Big Thing in Medical Tech

In the ever-evolving world of medical technology, one company stands out as a beacon of innovation and growth: Medtronic. With a renewed commitment to innovation over the past five years, Medtronic has positioned itself at the forefront of some of the most exciting markets in medtech. From cardiac ablation to renal denervation, the company's groundbreaking technologies are not only driving growth but also setting new standards in patient care. Let's dive into why buying Medtronic today could set you up for life.

The Innovation Tailwind

Medtronic's CEO, Geoff Martha, recently highlighted the company's innovation-driven growth at the 2025 JP Morgan Healthcare Conference. "Innovation has created a tailwind for the company that we haven’t had in a long time," he said. This renewed focus on innovation has led to significant advancements in areas like cardiac ablation and renal denervation, which are poised to be major growth drivers for the company in the coming years.

Cardiac Ablation: A $9 Billion Opportunity

One of the most exciting areas of growth for Medtronic is cardiac ablation. The company's PulseSelect and Affera Sphere-9 systems are FDA-approved for minimally invasive pulmonary vein isolation to treat atrial fibrillation (AFib). These systems are not only competitive but also the safest catheters available, with strong safety data supporting their use. Geoff Martha emphasized the importance of safety in this space, stating, "Safety here really matters."

The cardiac ablation market is a $9 billion segment growing in the mid-teens, with a strong growth runway ahead. Medtronic's commitment to innovation in this area is evident in its expansion of manufacturing capabilities. The company recently secured FDA approval for a new Affera manufacturing facility in Galway, Ireland, which will help meet the overwhelming customer response and physician demand for the Affera system.

Renal Denervation: The Next Big Thing

Another area of significant growth for Medtronic is renal denervation for treating hypertension. The Symplicity Spyral renal denervation (RDN) system uses nitinol to self-expand inside the renal arteries, ablating nerves in the vessel wall to treat hypertension. Geoff Martha described this system as "the biggest thing we ever do," citing the massive opportunity of more than 1 billion hypertension patients globally. The procedure is safe, one-time, and very tolerable, addressing a critical healthcare need and positioning Medtronic as a leader in this emerging field.

The U.S. Centers for Medicare and Medicaid (CMS) announced coverage for Renal Denervation for the treatment of Hypertension expected to become final on or before October 11, 2025. This regulatory support further validates the growth potential of this therapy and aligns with Medtronic's future projections of expanding into high-growth markets.

Financial Performance: A Testament to Innovation

Medtronic's financial performance reflects the success of its innovation strategy. In the third quarter of fiscal year 2025, the company reported revenue of $8.292 billion, an increase of 2.5% as reported and 4.1% on an organic basis. The Cardiac Ablation Solutions revenue increased in the low-20s on the strength of pulsed field ablation (PFA) products, demonstrating the direct impact of innovation on financial growth. Additionally, the company's strong earnings power and durable revenue growth are driven by its investments in groundbreaking innovation, such as pulsed field ablation.



Conclusion: A Buy for the Long Term

In conclusion, Medtronic's commitment to innovation in areas like cardiac ablation and renal denervation positions it for long-term growth and competitive advantage in the medical technology sector. The company's focus on safety, addressing critical healthcare needs, investing in manufacturing capabilities, and achieving strong financial performance make it a compelling buy for investors looking to set themselves up for life. With a renewed commitment to innovation and a strong pipeline of groundbreaking technologies, Medtronic is poised to continue its growth trajectory and deliver significant returns for shareholders in the years to come.