Medtronic’s nears ₩500 billion milestone… ends 2 year sales decline

Sales rise to KRW 495.1 billion and operating profit to KRW 25.5 billion in FY26…ending 2-year downturn

Lowered SG&A ratio and eased inventory burden…shows recovery in both revenue and profitability

Hugo, Micra 2 and TAVI portfolio,…reimbursement changes fuel next phase of growth

Medtronic

Medtronic Korea has ended its 2 consecutive years of declining sales, recovering to nearly KRW 500 billion in annual revenue.

Unlike the previous fiscal year, which was affected by the prolonged conflict between the healthcare sector and the government in 2024 due to the physician walkout, the normalization of clinical practice has helped restore overall business performance. The domestic rollout of the Hugo robotic-assisted surgery system also contributed to the recovery.

Despite the higher burden of cost, the company improved selling and administrative expense efficiency, leading to a rebound in operating profit.

Sales recover to KRW 495.1 billion…highest in 4 years

According to filings with the Financial Supervisory Service, Medtronic Korea recorded KRW 495.1 billion in revenue for its 26th fiscal year (May 2025–April 2026), up 17.4% from KRW 421.7 billion a year earlier.

Revenue had declined for 2 consecutive years, falling from KRW 468.6 billion in FY23 to KRW 441.4 billion in FY24 and KRW 421.7 billion in FY25. Because FY24 covered May 2023–April 2024 and FY25 covered May 2024–April 2025, the impact of the 2024 healthcare disruption was reflected across both fiscal years.

In FY26, the company not only recovered all of the lost revenue but also exceeded its FY23 performance by 5.7%, marking its strongest sales over the past 4 fiscal years.

Operating profit increased 17.7% to KRW 25.5 billion from KRW 21.7 billion, while net profit rose 50.8% to KRW 13.0 billion from KRW 8.6 billion.

5-year Performance of Medtronic Korea (Source: FSS, Unit: KRW 100 million)  Green: Revenue Blue: Operating Profit

Although both revenue and earnings improved, the cost of sales also grew. Cost of sales rose 21.0%, from KRW 278.5 billion to KRW 337.1 billion, outpacing revenue growth. As a result, the gross profit margin declined from 33.9% to 31.9%.

However, this decline was offset by improved SG&A efficiency. Selling, general and administrative expenses increased only 9.1%, from KRW 121.4 billion to KRW 132.5 billion, reducing the SG&A ratio from 28.8% to 26.8% of revenue.

As a result, the operating margin rose slightly from 5.1% to 5.2%, as improved SG&A efficiency offset the lower gross margin.

Among SG&A items, advertising and promotional expenses rose 41.2%, from KRW 5.5 billion to KRW 7.7 billion, reflecting expanded sales and marketing activities as the healthcare environment stabilized and new products were introduced.

By contrast, salaries increased only 5.8%, from KRW 42.4 billion to KRW 44.8 billion, while sales commissions rose 7.3%, from KRW 20.5 billion to KRW 22.0 billion, indicating that overall cost growth remained below the pace of revenue growth despite increased commercial activity.

Next growth phase hinges on new product portfolio

While FY26 confirmed Medtronic Korea's recovery, the key question for the next fiscal year is how much its new product portfolio can sustain future growth.

In surgery, the Hugo robotic-assisted surgery system continues to expand its presence in Korea. Since its first installation at Seoul National University Hospital in May 2025, Hugo has broadened its use across urology, gynecology, and general surgery.

In February this year, Medtronic also launched LigaSure RAS, an energy device designed specifically for Hugo. The addition extends Medtronic's established energy-device portfolio from conventional open and laparoscopic surgery into robotic-assisted procedures, further enhancing Hugo's clinical utility.

Hugo's business model extends beyond equipment sales, encompassing dedicated instruments and consumables, physician training and technical support. As more hospitals install the system and surgical volumes increase, recurring demand for surgical instruments is expected to grow alongside equipment sales.

Medtronic has introduced a new portfolio in 2026, raising expectations of reaching the KRW 500 billion sales mark(clockwise from the left) Micra 2, Hugo robotic surgery, TAVI Evolut FX Plus, Spinal portfolio Kanghui

In cardiovascular care, Medtronic has also begun rolling out new products.

In March, the company launched the next-generation Evolut FX Plus transcatheter aortic valve implantation (TAVI) system in Korea. In April, it introduced Micra 2, a leadless pacemaker featuring longer battery life and improved atrioventricular synchrony.

Because both products were launched just before the close of FY26, their financial contribution is expected to become more visible in the next fiscal year. Future growth will depend on replacing existing products while expanding patient eligibility and hospital adoption.

Reimbursement changes for PFA and TAVI may provide additional momentum

Policy changes implemented after the fiscal year ended could also support future growth.

Pulsed field ablation (PFA) entered the National Health Insurance reimbursement system in May this year. Medtronic is preparing to enter the atrial fibrillation treatment market with the PulseSelect PFA System and the dual-energy Affera Mapping and Ablation System.

Reimbursement criteria for TAVI were also revised in June. Previously, reimbursement was limited to patients aged 80 years or older or those at high surgical risk. Under the revised criteria, patients who are not only at high risk but also unanimously deemed in need of TAVI by the entire interdisciplinary heart team may also become eligible. If the broader reimbursement criteria lead to increased procedure volumes, the newly launched Evolut FX Plus could benefit.

However, challenges remain. Hugo must secure additional hospital installations and build recurring procedural volume amid competition from established robotic surgery platforms. Likewise, reimbursement alone will not automatically drive sales of PFA and TAVI products; hospital adoption, physician training, and accumulated clinical experience will also be essential.

Even so, the company's FY26 sales recovery is viewed positively because it was driven by broad improvement across its existing businesses rather than dependence on a single new product. If Medtronic Korea can build on its nearly KRW 500 billion revenue base with Hugo, new cardiovascular products and expanded reimbursement coverage, the rebound achieved in FY26 could prove sustainable.