In December 2025, Medtronic announced the sale of its Advanced Energy Solutions unit to a private equity consortium for $2.1 billion, a move designed to shed a low-margin business that contributed just 4% of total revenue but eroded consolidated operating margins by 120 basis points in fiscal 2025. Management expects the divestiture to improve adjusted operating margin by approximately 200 basis points in fiscal 2026, freeing up capital for higher-return segments and driving a targeted increase in overall corporate operating margin from 25.3% to over 27% by year end.

Last year, Medtronic launched its Guardian Ultra continuous glucose monitoring (CGM) system in the U.S. and European markets, marking the company’s first direct foray into the $12 billion global CGM industry. Initial uptake has been strong, with over 45,000 units shipped in Q4 2025 and a 28% sequential rise in average selling price, reflecting robust demand from both type 1 and type 2 diabetes patients. Analysts forecast the CGM business will generate $300 million in revenue in fiscal 2026 and compound annual growth of 25% through 2029, as reimbursement rates improve and device accuracy inches closer to the 10% mean absolute relative difference achieved in recent clinical trials.

Following the divestiture proceeds, Medtronic has authorized a $2 billion share repurchase program and announced a 4% increase in its quarterly dividend, lifting the annual payout to $1.72 per share. With net debt-to-EBITDA projected to fall from 2.6x to 2.1x by the end of calendar 2026, the company is positioned to maintain investment-grade leverage while funding a pipeline of planned product launches—expected to contribute 5–7% revenue growth annually—and sustaining its commitment to returning 60–70% of free cash flow to shareholders.