Medtronic Warns of $200 Million Tariff Hit and Lowers Earnings Outlook

Medtronic Warns Of $200 Million Tariff Hit And Lowers Earnings Outlook

Medtronic just took a $200 million punch to the gut—courtesy of tariffs. And Wall Street didn’t exactly send flowers.

In a move that had investors blinking twice at their screens, the medical device giant said Tuesday it’s bracing for a $200 million hit this fiscal year due to tariffs tied to U.S.-China trade tensions.

Ouch.

According to Bloomberg, the company warned the financial pain is coming from export tariffs—something that’s putting a real squeeze on the global medtech business. The announcement sent shockwaves through the market as Medtronic also dropped a not-so-sweet earnings outlook.

Sure, the company did beat estimates in Q4, pulling in $8.93 billion in revenue and $1.62 in adjusted earnings per share. Nice. But that wasn’t enough to calm the waters after it lowered its forecast for the coming year.

Why the drop in optimism? That looming $200 million tariff cloud isn’t exactly rainbows and butterflies.

Investors got edgy, even as the company’s stock ticked up slightly in Tuesday morning trading. (Because nothing says “confidence” like a nervous bounce.)

The bigger picture? Tariffs are once again the villain of the medtech world. And while Medtronic’s CEO stopped short of slamming trade policy directly, the numbers speak volumes. One analyst told Bloomberg this is going to be “a significant headwind” in the months ahead.

And just to keep things spicy, Medtronic is also spinning off its diabetes unit—a move that could shake things up even more.

So, yeah. Tariffs: 1, Medtronic: bruised, but standing.

Let’s hope next quarter brings fewer trade wars and more applause.