Medtronic plc. Ordinary Shares
MDT · NYSE
Next quarter
Reports Sep 1, 2026, before the open.
Consensus is $1.38 EPS for Jul 2026 across 8 estimates, ranging $1.36 to $1.39.
MDT Apr 2026
- 0.65%
- +5.11%
- $1.54
- $1.55
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Highlights
- Revenue: Q4 revenue was $9.807 billion, up 9.9% reported and 6.6% organically year over year, and 90 basis points above the implied guidance range.
- Adjusted EPS: Non-GAAP diluted EPS was $1.55, versus consensus of $1.54, while GAAP diluted EPS was $0.96 versus $0.82 a year ago.
- Cardiovascular: Revenue increased 10.1% organically to $3.797 billion, led by Cardiac Rhythm & Heart Failure growth and a 78% increase in Cardiac Ablation Solutions globally.
- Ablation share: Cardiac Ablation Solutions grew 124% in the U.S. and gained 8 points of U.S. revenue share, reflecting momentum from the Affera and pulsed-field ablation portfolios.
- Portfolio breadth: Medical Surgical grew 5.1% organically and Neuroscience grew 3.0%; Acute Care & Monitoring rose 10.5% and Diabetes rose 8.1% organically.
- Margin pressure: Q4 non-GAAP operating margin fell 230 basis points to 25.5%, including 160 basis points from the MiniMed Blackstone payment and 80 basis points from tariffs.
- FY27 outlook: Medtronic expects organic revenue growth of 6.75% to 7.25% and non-GAAP EPS of $5.90 to $6.00, implying EPS growth of 6.7% to 8.5%.
- Capital allocation: FY26 operating cash flow was $7.3 billion and free cash flow was $5.4 billion; the quarterly dividend rises to $0.72, marking 49 consecutive annual increases.
- Portfolio actions: Medtronic completed the $525 million CathWorks acquisition, announced planned acquisitions of Scientia Vascular and SPR Therapeutics, and continued separating Diabetes through the MiniMed IPO.
Analysis
Medtronic's fiscal fourth quarter was a strong revenue print with a modest earnings beat, but growth continued to come with margin pressure. Revenue of $9.807 billion rose 9.9% from $8.927 billion a year ago and increased 8.7% sequentially from $9.02 billion in Q3. Organic growth of 6.6% was 90 basis points above the company's implied guidance, while non-GAAP EPS of $1.55 was $0.01 above consensus. GAAP EPS was $0.96, up from $0.82 a year ago but above the $0.89 reported in Q3; non-GAAP EPS declined 4.3% year over year from $1.62.
The defining feature was Cardiovascular, where organic growth reached 10.1% and Cardiac Ablation Solutions revenue surged 78% globally and 124% in the U.S. Medical Surgical and Neuroscience also grew, though at 5.1% and 3.0%, respectively. The trade-off was profitability: Q4 non-GAAP operating margin declined to 25.5% from 27.8% a year ago, with MiniMed-related payments and tariffs accounting for 240 basis points of pressure. Management entered FY27 with a 6.75% to 7.25% organic revenue growth target and $5.90 to $6.00 EPS guidance, supported by a 53rd week, increased M&A and full-year Diabetes consolidation.
Quarterly result
Medtronic exceeded the available quarterly benchmarks on both top line and adjusted earnings. Revenue reached $9.807 billion, versus $8.927 billion in Q4 FY25 and $9.02 billion in Q3 FY26. Reported growth benefited from $308 million of foreign exchange, while organic revenue growth was 6.6%. Non-GAAP EPS was $1.55, narrowly above the $1.54 consensus; GAAP net income was $1.243 billion, or $0.96 per diluted share.
Cardiovascular momentum
Cardiovascular was the central growth engine, with Q4 revenue of $3.797 billion, up 13.8% reported and 10.1% organically. Cardiac Rhythm & Heart Failure grew organically in the high teens, supported by Micra, pacing therapies and defibrillation products. Cardiac Ablation Solutions was the standout: global revenue rose 78%, U.S. revenue increased 124%, and Medtronic gained 8 points of U.S. share. Structural Heart & Aortic and Coronary & Peripheral Vascular each grew organically in the low-single digits.
- Cardiac Ablation Solutions: Growth reflected continued adoption of the Affera mapping and ablation system and pulsed-field ablation products.
- Cardiac Rhythm Management: Micra grew at a mid-teens rate, while the OmniaSecure U.S. launch added momentum to defibrillation.
- Expansion: The $525 million CathWorks acquisition broadens Coronary & Peripheral Vascular into coronary disease diagnosis and treatment.
Other portfolios
Medical Surgical delivered $2.388 billion of revenue, up 8.0% reported and 5.1% organically, led by Acute Care & Monitoring, which grew 10.5% organically, and Endoscopy, which grew at a high-single-digit rate. Neuroscience revenue was $2.751 billion, up 5.0% reported and 3.0% organically, with low-single-digit growth across its divisions. Diabetes revenue increased 15.0% reported and 8.1% organically to $837 million, although its future contribution will change as the MiniMed separation progresses.
- Medical Surgical: Management filed U.S. submissions for Hugo RAS in general surgery and gynecology and for LigaSure RAS vessel sealing.
- Neuroscience: Stealth AXiS received FDA clearances for spine, cranial and ENT indications and CE Mark approval for spine and cranial indications.
- Diabetes: FY26 revenue was $3.112 billion, up 12.9% organically, with the business no longer a reportable segment after the MiniMed IPO.
Margin and cash flow
The quarter's earnings quality was constrained by costs. GAAP operating profit rose 30.4% to $1.873 billion and GAAP operating margin expanded 300 basis points to 19.1%, helped by lower amortization and other items. On the company's adjusted basis, however, operating profit was essentially flat at $2.500 billion and non-GAAP margin fell 230 basis points to 25.5%. The margin included 160 basis points from the MiniMed Blackstone payment and 80 basis points from tariffs. For FY26, operating cash flow rose 4.1% to $7.330 billion and free cash flow increased 4.6% to $5.426 billion.
Fiscal 2027 outlook
Management guided to FY27 organic revenue growth of 6.75% to 7.25%, including the 53rd week and a full year of Diabetes revenue. Non-GAAP diluted EPS is expected at $5.90 to $6.00, representing 6.7% to 8.5% growth and including the 53rd week, increased M&A, tariffs, interest and tax effects. The guidance assumes a neutral to 1% favorable currency impact based on recent exchange rates. Medtronic separately estimates a $250 million pre-tax net tariff impact for FY27 at rates in effect on June 3.
Separation and capital
Medtronic retained approximately 90% of MiniMed after its March 2026 IPO and expects to complete the Diabetes separation within the next fiscal year. It also announced further portfolio expansion through the planned Scientia Vascular and SPR Therapeutics acquisitions. Shareholder returns remain a priority: the company returned $4.2 billion in FY26, including $3.639 billion of dividends and $1.035 billion of share repurchases, and raised the quarterly dividend to $0.72 per share.
