Medtronic Chairman and CEO Geoffrey Martha disclosed that the company now expects a $250 million tariff hit for fiscal 2027, down from a prior $300 million estimate due to supply chain adjustments, with $75 million of that impact occurring in the first quarter. Martha noted the figure could change given new US tariff threats targeting multiple trading partners, saying the company will have to re-evaluate. He described tariffs as remaining pretty meaningful, surging year over year and adding pressure along with higher input costs such as fuel, while emphasizing that around 80% of Medtronic's supply chain and over 90% of its R&D are based in the US. Martha pointed to growth as a buffer, citing a 78% revenue jump in cardiac ablation alongside strength in pacemakers, surgical, and spine businesses, and noted the medtech firm put $2 billion into acquisitions over the past fiscal year and invests $5 billion to $6 billion annually in innovation.
Medtronic PLCCEO lowered tariff impact estimate to $250M for FY2027, but tariffs remain a meaningful and growing pressure.