Jim Cramer Analyzes Medtronic Amid Strong Growth and Upcoming Diabetes Division Spin-Off
On the September 8 episode of Mad Money, Jim Cramer described Medtronic (MDT) as a 'quandary' due to its strong performance amid uncertainty surrounding its diabetes division. The medical device company reported robust first-quarter fiscal 2027 results with $9.8 billion in revenue and an organic growth rate of 13.7%. It also raised full-year guidance for both revenue and earnings per share (EPS). Medtronic plans to spin off its diabetes business by year-end, a move Cramer views as timely given the rise of GLP-1 drugs. Despite strong top-line performance, challenges remain including modest operating margin expansion and competition in surgical robotics. The company also benefited from an extra fiscal week that contributed $570 million to Q1 growth. Medtronic has made strategic investments such as a $700 million deal for Cornerstone Robotics' Sentire system outside the U.S., signaling continued innovation. Hedge fund ownership of MDT increased in Q2, with First Eagle Investment Management becoming its largest shareholder after boosting holdings by 38%. Short interest remains low at around 1.1% to 1.12%, suggesting limited bearish sentiment.
Tickers: $MDT
Topics: divestiture healthcare investment analysis medical devices