Medtronic Expands Board and Strategy Amid Activist Investor Stake

Medtronic, the global medical technology giant, has announced significant changes to its board structure and strategic focus following the acquisition of a substantial stake by activist investor Elliott Investment Management. The move comes as the company seeks to enhance its growth trajectory and operational efficiency in an increasingly competitive medtech landscape.

Board Expansion and New Committees

Medtronic has agreed to expand its board of directors, adding two new independent members with extensive experience in the medical technology sector. John Groetelaars, former CEO of Hillrom and Dentsply Sirona, and Bill Jellison, previously CFO at Stryker and board member at Masimo, have joined the board effective immediately.

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

1. A growth committee, tasked with evaluating potential acquisitions, R&D investments, and divestitures.
2. An operations committee, focused on identifying efficiencies and simplifying the company's global manufacturing and supply chain.

Both committees will be chaired by Medtronic's CEO, Geoff Martha, underscoring the company's commitment to driving strategic change from the top.

Financial Performance and Future Outlook

Medtronic reported strong financial results for the second quarter of 2025, with revenue reaching $8.58 billion, an 8.4% increase compared to the same period in 2024. The company's performance was bolstered by growth across its portfolio:

• Cardiovascular: $3.28 billion (9.3% growth)
• Neuroscience: $2.42 billion (4.3% growth)
• Medical surgical hardware: $2.08 billion (4.4% growth)
• Diabetes: $721 million (11.5% growth)

In light of these results, Medtronic has raised its earnings-per-share growth forecast for fiscal year 2026 to approximately 4.5%, up from the previous projection of 4%. The company now expects EPS to range between $5.60 and $5.66.

Strategic Realignment and Future Plans

Medtronic is in the process of reshaping its business portfolio, with plans to spin off its $2.8 billion diabetes unit under the name MiniMed. This move is part of a broader strategy to create a more focused and profitable company.

CEO Geoff Martha emphasized the company's strong momentum, stating, "We are at an exciting inflection point and in a period of strong momentum, with multiple growth drivers already delivering and additional breakthrough therapies set to launch in the months ahead."

Medtronic plans to host an investor day in mid-2026 to outline its strategic priorities and detail the work of the two new board committees. The company remains committed to delivering sustained, superior returns for investors over the long term, leveraging its innovation pipeline and operational improvements.