Medtronic plc. Ordinary Shares
MDT · NYSE
Next quarter
Expected to report Nov 17, 2026 — estimated from last year’s reporting date.
Consensus is $1.34 EPS for Oct 2026 across 8 estimates, ranging $1.32 to $1.40.
MDT Jul 2026
- 4.32%
- $1.39
- $1.45
- —
- $9.76B
Reported results
- $9.76B
- 64.99%
- $1.76B
- 18.08%
- $1.47B
- $1.14
Highlights
- Revenue: Q1 FY27 revenue was $9.756 billion, up 13.7% reported and organically, approximately 200 basis points above the guidance midpoint; the 53rd fiscal week contributed an estimated $570 million.
- Adjusted earnings: Non-GAAP diluted EPS was $1.45, ahead of the $1.39 consensus estimate by $0.06, or 4.32%; GAAP diluted EPS was $1.14.
- Guidance: Medtronic raised FY27 organic revenue growth guidance by 50 basis points to 7.25%-7.75% and increased non-GAAP EPS guidance to $5.94-$6.00 from $5.90-$6.00.
- Cardiovascular: Revenue rose 18.9% organically to $3.927 billion, led by Electrophysiology Therapies, which grew 29.1% organically, and Cardiac Ablation Solutions, which grew 88%.
- Broad portfolio growth: Neuroscience grew 9.3% organically to $2.678 billion, Medical Surgical grew 10.2% to $2.279 billion, and Diabetes grew 14.9% to $843 million.
- Profitability: GAAP operating profit increased 22.1% to $1.764 billion, with operating margin up to 18.1%; non-GAAP operating margin was 23.7%, up 10 basis points.
- Cash generation: Operating cash flow increased to $1.793 billion from $1.088 billion, while free cash flow rose to $1.290 billion from $584 million despite $503 million of capital spending.
- Portfolio development: Medtronic completed the Scientia Vascular and SPR Therapeutics acquisitions, funded $1.162 billion of acquisitions during the quarter, invested in Pi-Cardia, and partnered with Cornerstone Robotics.
Analysis
Medtronic’s Q1 FY27 was a broad-based beat and guidance raise. Revenue of $9.756 billion grew 13.7% organically year over year and was roughly 200 basis points above the midpoint of guidance, while non-GAAP EPS of $1.45 exceeded the $1.39 consensus estimate. GAAP operating profit rose 22.1% to $1.764 billion, and net income attributable to Medtronic increased 41.4% to $1.470 billion. The comparison benefited materially from the 53rd fiscal week, which management estimates added approximately $570 million of revenue and organic growth.
The defining feature was breadth rather than reliance on a single franchise. Cardiovascular grew 18.9% organically, led by Electrophysiology Therapies, while Neuroscience, Medical Surgical and Diabetes all delivered organic growth of at least 9.3%. Adjusted operating margin expanded only 10 basis points to 23.7%, but cash generation improved sharply, with free cash flow reaching $1.290 billion. Medtronic raised its FY27 organic growth target to 7.25%-7.75% and non-GAAP EPS target to $5.94-$6.00. Q4 FY26 results were not included in the supplied material; against the latest supplied Q3 FY26, revenue was up 8.2% and operating profit up 20.8%.
Guidance and earnings
Medtronic converted the strong opening quarter into a modestly higher full-year outlook. The 50-basis-point increase in the organic revenue range and the new $5.94-$6.00 adjusted EPS range reflect performance ahead of expectations, disciplined cost management and confidence that newer growth platforms can continue contributing. The reported quarter included a 53rd fiscal week, estimated to have added $570 million of revenue, so the headline 13.7% organic growth rate should not be treated as a normalized run rate.
- Revenue beat: Sales of $9.756 billion were approximately 200 basis points above the guidance midpoint and increased 13.7% both as reported and organically.
- Earnings beat: Non-GAAP EPS of $1.45 was $0.06 above the $1.39 consensus estimate, while GAAP EPS was $1.14.
- Margin: Non-GAAP operating profit rose 14.9% to $2.316 billion, with adjusted operating margin increasing 10 basis points to 23.7%.
Cardiovascular momentum
Cardiovascular was the most important growth engine, with organic revenue up 18.9% to $3.927 billion. Electrophysiology was particularly strong, supported by demand across mapping, ablation and rhythm-management products. The company also expanded the CE Mark indication for its Affera Mapping and Ablation System and Sphere-9 Catheter to ventricular arrhythmias, extending the addressable opportunity.
- Electrophysiology: Organic revenue increased 29.1% to $2.210 billion, including high-20s growth in the portfolio’s electrophysiology therapies.
- Other cardiovascular franchises: Interventional Cardiology grew 6.5%, CardioVascular Surgery 8.1% and Peripheral Vascular Health 11.0% organically.
- Strategic investment: Medtronic announced an investment in Pi-Cardia, whose leaflet-modification technology expands the company’s structural-heart development options.
Neuroscience and medical surgical
Growth extended beyond cardiovascular, supporting management’s emphasis on portfolio breadth. Neuroscience revenue increased 9.3% organically to $2.678 billion, with Cranial and Spinal Technologies the principal contributor. Medical Surgical grew 10.2% organically to $2.279 billion, led by both its surgical and monitoring businesses.
- Neuroscience: Cranial and Spinal Technologies grew 12.9% organically, including low-20s growth in enabling technology; Specialty Therapies rose 7.4% and Neuromodulation 3.3%.
- Medical Surgical: Surgical and Endoscopy increased 9.0% organically, while Acute Care and Monitoring grew 14.2%.
- Robotics and software: Medtronic partnered with Cornerstone Robotics to expand access to robotic-assisted surgery and received FDA clearance for the next-generation Touch Surgery Aide computing platform.
Diabetes separation
Diabetes remained a meaningful growth contributor while Medtronic continues preparing the business for separation. Revenue grew 14.9% organically to $843 million, with international growth of 16.8% and U.S. growth of 10.6%. The company said a split-off remains its preferred structure, but the final separation method has not been determined.
- Growth: Diabetes reported revenue increased 16.9% to $843 million, or 14.9% organically.
- Separation costs: Acquisition and divestiture-related charges included costs associated with the impending Diabetes separation; these were among the items excluded from adjusted results.
Cash and portfolio investment
Cash conversion improved substantially year over year. Operating cash flow rose $705 million to $1.793 billion and free cash flow increased $706 million to $1.290 billion, even as capital additions remained broadly stable at $503 million. Medtronic used $1.162 billion for acquisitions during the quarter as it added Scientia Vascular and SPR Therapeutics to its portfolio.
- Cash generation: Free cash flow was $1.290 billion versus $584 million in the year-ago quarter, after $503 million of capital expenditures.
- Capital allocation: The company paid $921 million in dividends and repurchased $267 million of ordinary shares.
- M&A: Scientia Vascular closed on June 12 and SPR Therapeutics closed on July 16; their current-quarter revenue contributions were $14 million and $5 million, respectively.
