CLAIM #40787 · Medtronic PLC (MDT) · 2026Q2 earnings call · Nov 18, 2025 · due Apr 30, 2027
“Then we'll have a carryover of tariffs going into '27. And we expect foreign exchange, which is the last item there, to be a slight tailwind going into '27.”
Thierry Pieton · CFO
How to check this claim
Look at: Foreign exchange impact on revenue or operating profit, as disclosed in company guidance/results for fiscal 2027
It came true if: FX impact reported as a positive (tailwind) contribution to revenue or margin/EPS for FY2027
Where: Company FY2027 guidance and quarterly earnings commentary (10-K/10-Q or earnings call FX impact disclosure)
In context
“onna be, pretty significant headwind as CAS and diabetes continue to accelerate. And in the second half of, of twenty-seven, diabetes will be deconsolidated, and then on the CAS side, we'll start seeing the shift between the capital equipment and the catheters, which will make that an accretive business as opposed to being dilutive. So what's what you're gonna see there is the 70 to 80 basis points of gross margin improvement operationally start to show up more as the mix becomes a gradually smaller and a positive effect over time. And then outside of that, we've got some external factors, so we have to contend with the tariffs. So for the second half, we've got, you know, about 90% of that $185 million of tariffs that's gonna show up. In the income statement. The bigger portion is in Q3. Then we'll have a carryover of tariffs going into '27. And we expect foreign exchange, which is the last item there, to be a slight tailwind going into '27. So if you go it's a long it's a long answer. Apologies. But I think it's important that you understand the algorithm. Going into '27, we'll keep investing in R&D. To get to the 10% over time. But you should expect to see leverage on the SG&A line in '27. So, look, we're confident that with the growth with what we're doing from our gross margin performance in a sustainable fashion and COGS and pricing, and the leverage on the overhead, we'll have a leveraged P&L on the operating profit line in 2027. And that's why we hold on our commitment to have high single-digit EPS growth going into next year. Geoffrey Martha: Yeah. You know, just to just to add to that, you know, there's more oxygen here. To create for the investment. You know, it's good to see the improved pricing. And as we go forwa”
Verify independently
SEC filings for MDT ↗ · Claim quote is verbatim from the 2026Q2 earnings call.