Medtronic Bolsters Board and Forms Strategic Committees in Partnership with Elliott Investment Management

Medtronic, a leading medical device company, has announced significant changes to its board structure and operational focus, in collaboration with activist investor Elliott Investment Management. These developments come as the company reports strong first-quarter results for fiscal year 2026 and raises its earnings guidance.

Board Expansion and New Committees

Medtronic has appointed two new independent directors to its board, John Groetelaars and Bill Jellison, effective immediately. CEO Geoff Martha emphasized that these additions bring "deep medtech experience" to the board, addressing a recent gap in sector-specific expertise.

In addition to the board appointments, Medtronic has formed two special committees:

1. The Growth Committee: Focused on mergers and acquisitions, research and development, and potential divestitures.
2. The Operating Committee: Tasked with improving operational performance, expanding margins, and driving sustained earnings acceleration.

Both Groetelaars and Jellison will serve on one or both of these committees, with Martha chairing both. These initiatives are part of Medtronic's strategy to become "simplified and more profitable," as stated by Martha.

Financial Performance and Outlook

Medtronic reported strong financial results for the first quarter of fiscal year 2026:

• Total revenue: $8.58 billion, representing 8.4% year-over-year growth
• Cardiovascular revenue: $3.29 billion, up 9.3% year-over-year
• Diabetes revenue: $721 million, showing 11.5% growth year-over-year

Based on these results and a revised tariff forecast, Medtronic has raised its non-GAAP earnings per share guidance to $5.60-$5.66, up from the previous range of $5.50-$5.60. The company now expects a reduced tariff impact of approximately $185 million for fiscal year 2026, down from the earlier projection of $200-$350 million.

Strategic Focus and Investor Perspectives

Marc Steinberg, a partner at Elliott Investment Management, expressed confidence in Medtronic's potential for value creation. He cited the company's recent innovations in attractive markets as positioning it for "an inflection in organic growth." Steinberg also highlighted Medtronic's renewed focus on portfolio simplification and improved operational execution as key factors for sustainable earnings growth acceleration.

J.P. Morgan analysts view the board appointments positively, interpreting them as a sign of management's commitment to enhancing shareholder value. Medtronic plans to hold an investor day in mid-2026 to discuss the work of the newly formed committees and provide further insights into its strategic direction.

As Medtronic continues to evolve its business strategy, including the planned spin-off of its diabetes segment, these latest developments signal a proactive approach to addressing investor concerns and capitalizing on growth opportunities in the medical technology sector.