Medtronic Just Retired 55 Million Shares Without Spending Cash. Is the Stock a Buy?

Medtronic (MDT) retired 55 million shares at no cash cost after completing the spinoff of its diabetes segment, now trading as MiniMed (MMED). Fewer shares outstanding mechanically lifts future earnings per share, which is the core of the bull case.

The operating backdrop supports it. MDT posted Q1 FY2027 revenue growth of 14%. The company also reports more than 50 FDA approvals feeding a reinvigorated pipeline, an operational improvement the source credits for the turnaround narrative.

Income investors have a second angle. MDT sits one year away from Dividend King status, with 49 consecutive years of dividend increases. A 50th raise would cement a status that tends to attract steady, long-horizon buyers.

Valuation is the open question. The source says MDT trades at a discount to medtech peers, a group that includes JNJ, EW, ABT and SYK. Interpretation: a 14% growth print plus a shrinking share count makes that discount harder to justify, though the market may still be pricing in execution risk after the separation.