# MiniMed's growth story hides a cash flow problem

> Nine analysts raised targets, but the diabetes tech company faces margin pressure and Medtronic separation risks.
- Title: MiniMed's growth story hides a cash flow problem | Shortify
- Summary: Nine analysts raised targets, but the diabetes tech company faces margin pressure and Medtronic separation risks. MiniMed is growing fast, but investors need…
- Keywords: minimed, mmed, medtronic, diabetes technology, continuous glucose monitoring, cgm, insulin pumps, medical devices, earnings, cash flow, margin pressure, spinoff
- Source: Alphastreet - Earnings Decoded. Market Intelligence Delivered — https://news.alphastreet.com/minimed-mmed-nine-analysts-raised-targets-but-cash-flow-still-has-a-catch
- Author: Newsdesk
- Published: 2026-09-22T15:44:08+00:00
- Read time: 1 min
- Topics: minimed, mmed, medtronic, diabetes technology, continuous glucose monitoring, cgm, insulin pumps, medical devices, earnings, cash flow, margin pressure, spinoff
## MiniMed posts strong sales growth
The diabetes tech company reported $843 million in Q1 fiscal 2027 sales, up 15.8% year-over-year. U.S. revenue grew 13.1% while international markets expanded 16.9%.
## CGM and pump sales accelerate
Continuous glucose monitoring sales jumped 19.9% to $431 million, while insulin pump sales grew 21.5% to $144 million. The CGM attachment rate hit 69%, showing strong ecosystem adoption.
## International markets now lead revenue
International sales contributed $603 million, or 71.5% of total revenue, growing 18.1% year-over-year. The Simplera sensor and Instinct launch fueled expansion outside the U.S.
## Margin squeeze threatens profitability
Gross margin fell to 55.1% from 56.6% as Simplera sensors, which carry lower margins, make up a bigger share of sales. Management calls it temporary, but it offsets revenue gains.
## Cash flow still lags despite recovery
Operating cash flow improved to negative $49 million from negative $141 million, but MiniMed holds only $207 million in cash against significant liabilities. The company is not yet cash-generative.
## Medtronic spinoff begins this month
Medtronic owns 89.86% of MiniMed and launched an exchange offer on September 14, 2026, to split off at least 80.1% of shares to Medtronic shareholders on a tax-free basis. The offer expires October 9, 2026.
## Analysts raise targets, but risks remain
Nine analysts raised price targets to a median of $23.00 with a Moderate Buy rating. But the bull case requires three things to work: margin recovery, sustained growth converting to cash flow, and a smooth Medtronic separation.
## Key takeaway

MiniMed is growing fast, but investors need to watch whether it can turn that growth into real cash flow as it splits from Medtronic.