Medtronic's net income slipped one percent to $821 million for the quarter ending July 29. Revenue rose 7 percent to $4 billion.
Disappointing sales for spinal and heart defibrillator products offset revenue gains from other devices.
Medtronic's new CEO, Omar Ishrak, says the company's financial performance was not satisfactory. In a conference call with investors he vowed to increase the company's profits.
"There's a lot of work ahead of us. I don't minimize that for one minute. And I still have a lot to learn," he said. "But I do believe Medtronic has number of strengths from which to build. And I expect our performance to improve incrementally quarter after quarter."
Ishrak also said the company needs to focus on technologies that will help the bottom lines of both providers and insurers.
"I'm taking initial steps to ensure our business units, geographies and functions have completely aligned goals with the clear understanding of their roles and responsibilities," he said.
Ishrak is the former head of General Electric's health care unit. He joined Medtronic in June.
Ishrak is only the second CEO in Medtronic's 60-year history to come from outside the company.
Medtronic shares were up nearly five percent in trading this morning.