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MiniMed Group Beats Expectations, Raises Full-Year Guidance
22 Sep
Summary
- MiniMed Group reported a 16.6% rise in worldwide net sales to $843 million.
- Analysts from BofA, Mizuho, and BTIG raised price targets following the report.
- Separation costs impacted free cash flow, resulting in a negative $90 million.
MiniMed Group, Inc. announced strong first-quarter fiscal 2027 results for the period ending July 31, 2026. Worldwide net sales increased by 16.6% to $843 million, with U.S. net sales growing by 13.1%. Building on this performance, management has raised the full-year organic revenue growth guidance to approximately 10.5% from the previously projected 10%.
Positive analyst reactions followed the announcement, with several financial institutions, including BofA, Mizuho, and BTIG, raising their price targets for MiniMed Group's stock. These firms highlighted the company's impressive product pipeline, with key milestones for products like MiniMed Fit and MiniMed Flex achieved ahead of schedule. Operational metrics also support the optimistic outlook, showing significant year-over-year growth in new pump sales and an increasing global CGM attachment rate.
Despite the strong revenue growth and positive market reception, the company's free cash flow for the quarter was negative $90 million. This was largely attributed to $111 million in separation and standup costs associated with establishing MiniMed Group as an independent entity. Additional factors affecting margins included accelerated spending for product filings and a currency remeasurement charge. The transition from Medtronic continues, with many service agreements still ongoing.
