Medtronic cuts annual forecast on $157 million one-time charge

March 24 (Reuters) - Medtronic MDT.N cut its profit forecast for fiscal 2026 on Tuesday, citing a one-time charge of about $157 million tied to payments related to a research collaboration and the U.S. initial public offering of its diabetes unit.

• The medical device maker expects 2026 adjusted profit per share to be between $5.50 and $5.54, compared with $5.62 to $5.66 forecast previously.

• Analysts estimate annual adjusted profit at $5.63 per share, according to data compiled by LSEG.

• The charges were tied to payments under an R&D agreement between Blackstone Life Sciences and Medtronic's diabetes unit, MiniMed, to fund the development of a smartphone-controlled insulin pump, the company said.

• The U.S. Food and Drug Administration had cleared the insulin pump, branded as MiniMed Flex, last week, a decision that came several months earlier than anticipated.

• MiniMed debuted on Nasdaq earlier this month after Medtronic spun off the unit, which makes insulin pumps, glucose monitors and sensors, to simplify its portfolio and concentrate on higher-margin growth markets.

• Medtronic said it does not expect the payments to impact its fiscal 2027 results.