Last week, MiniMed announced FDA clearance for the MiniMed Flex, a next-generation automated insulin delivery system. Clearance came “several months earlier than anticipated,” according to the filing, facilitating earlier commercialization. R&D for the pump was funded in part by affiliates of private equity firm Blackstone, through a deal dating back to 2020. As a result, the clearance triggers payments to Blackstone, affecting Medtronic’s 2026 guidance as it works through separation of MiniMed.
MiniMed went public earlier this month through an initial public offering (IPO). Medtronic owned approximately 90.03% of the outstanding shares of common stock ahead of a final split-off as of the date of the IPO’s closing.
Based on Medtronic’s ownership interest, it faces a one-time charge of $157 million in the fourth quarter of fiscal 2026 related to a series of future payments to Blackstone, according to the filing. It expects an 8¢ per share impact on fourth-quarter results, in addition to a 2¢ per share dilution to Medtronic shareholders for each month of the quarter based on the timing of the IPO. The company expects a 4¢ per share impact during the fourth quarter, which ends on April 24, 2026.
Given these impacts, Medtronic lowered full-year adjusted EPS projections to a range between $5.50 and $5.54. It previously projected between $5.62 and $5.66 on its third-quarter earnings call last month.
Medtronic does not expect an impact to its 2027 financial results.
