Medtronic Adds Independent Directors, Revises 2026 Profit Forecast Amid Elliott Stake

In addition to the board changes, Medtronic announced it has raised its full-year profit forecast for fiscal 2026. 

Medtronic Inc. appoints two new independent directors to its board and establishes committees to enhance shareholder value. 

This follows activist investor Elliott Investment Management emerging as one of the company’s largest shareholders.

The medical device maker named John Groetelaars, former interim CEO of Dentsply Sirona, and Bill Jellison, former CFO at Stryker, as the incoming independent directors. Both executives bring extensive experience in med-tech leadership to the board.

In addition to the board changes, Medtronic announced it has raised its full-year profit forecast for fiscal 2026. 

The company now expects a smaller hit of around $185 million from U.S. tariffs, compared with a previously anticipated range of $200 million to $350 million. Thierry Pieton, Medtronic’s finance chief, said during a conference call, “Execution of mitigation efforts helped reduce the impact from tariffs.”

Shares of Medtronic, which have increased 16% year-to-date, fell 5% in early trading following the announcement. Analyst John Boylan of Edward Jones noted, “Investors were hoping for more operating improvements and sales growth than we got this quarter and in guidance.”

Elliott partner Marc Steinberg said the investment reflects confidence in Medtronic’s growth potential. “Our decision to become one of Medtronic's largest investors was driven by our strong conviction that the company is entering a new chapter of exceptional value creation defined by accelerating growth, operational improvement, and enhanced strategic clarity,” Steinberg said.

Medtronic said one of the new committees will focus on tuck-in mergers and acquisitions, research and development investments, and potential divestitures. In contrast, the other committee will aim to boost earnings growth. Both panels will be led by CEO Geoff Martha and include the newly appointed directors Groetelaars and Jellison.

Mike Kratky of Leerink Partners described the changes as a positive step, stating, “We view these changes as an incrementally positive development for Medtronic,” citing Elliott’s history of boosting share performance in other healthcare companies.

Stay tuned for more such updates on Digital Health News