Medtronic Touts AI, Robotics and Ablation Growth at Wells Fargo Conference

Medtronic highlighted AI, robotics and ablation as key growth drivers, with AI tools such as GI Genius improving colonoscopy detection and cardiac ablation expected to grow more than 2.5 times the market rate. The company reported first-quarter growth of 13.7%, or approximately 7% excluding an extra week, led by cardiac rhythm management and strength across established franchises. High-growth opportunities include renal denervation, Altaviva urinary incontinence treatment and Hugo surgical robotics. Medtronic said China’s VBP-related disruption is largely behind it and reiterated plans to separate its MiniMed diabetes business. Management plans to provide updated long-term targets and further details on its growth strategy at an Investor Day in December. Medtronic’s Stars Are Aligning for a Price Recovery Medtronic NYSE: MDT executives said the medical device maker is seeing accelerating growth across major franchises and emerging product categories, supported by innovation in artificial intelligence, robotics and new therapies. Speaking at the Wells Fargo Healthcare Conference, Chairman and Chief Executive Officer Geoff Martha said medical technology is benefiting from innovations that can improve outcomes while potentially lowering costs and expanding patient access. He described AI and robotics as “force multipliers” that enable the company to diagnose conditions earlier and personalize treatment at scale. Medtronic Bottoms, Healthy Rebound Ahead Martha said Medtronic’s AI applications are centered on structured physiological, device and procedure data rather than broad large-language-model applications. He pointed to GI Genius, the company’s AI-supported colonoscopy technology, as an example. In the U.S., he said the technology is becoming a standard of care after clinical trials found that 25% to 50% of polyps could be missed even at leading centers. He also cited its use in India, where less-experienced physicians were able to achieve diagnostic results comparable to those in the U.S. Limited ACA Exposure, China Stabilization Addressing concerns around healthcare policy changes, Martha said Medtronic has limited exposure to Affordable Care Act-related programs. He said the company’s procedure mix is largely acute rather than elective, with approximately two-thirds of its payer mix tied to Medicare, 25% to commercial insurance and less than 10% to Medicaid. ACA-related programs account for less than 1% of Medtronic’s global revenue, he said. In China, Chief Financial Officer Thierry Piéton said Medtronic’s revenue exposure has fallen to between 5% and 6% following volume-based procurement, or VBP, changes. However, he said the company believes the impact of VBP is now largely behind it and that China has returned to a more normal operating environment. Martha said Medtronic remains committed to the country, which he characterized as a profitable growth market as the government expands access to higher-end healthcare. First-Quarter Growth and Franchise Performance Piéton said Medtronic reported first-quarter growth of 13.7% including an extra week in the period, or about 7% after adjusting for that extra week. He said the company’s large established franchises are growing faster than in prior periods, while several newer businesses could provide additional expansion. Cardiac rhythm management: Revenue rose 15% including the extra week, or about 9% on an adjusted basis, driven by EV-ICD, conduction system pacing and leadless pacemaker technology, according to Piéton. Spine: Piéton said the Stealth AXiS platform has helped Medtronic offer navigation, visualization and robotic-ass...