Medtronic Earnings Beat, Signal Decade-High Growth

Medtronic (NYSE: MDT) reported fourth-quarter and fiscal 2026 results on June 3, 2026, showing its strongest annual revenue growth in 10 years. Cardiac ablation, diabetes, and medical-surgical sales lifted Q4 revenue and non-GAAP earnings per share (EPS) above company guidance and Street expectations.

Quarter and Full-Year Results

For the three months ended April 24, 2026, Medtronic said total revenue reached $9.8 billion, up 9.9% as reported and 6.6% organically, about 90 basis points above implied guidance. GAAP diluted EPS was $0.96, and non-GAAP diluted EPS was $1.55, exceeding company forecasts.

For fiscal 2026, the company reported revenue of $36.4 billion, up 8.4% as reported and 5.8% organically, with adjusted revenue of $36.3 billion. GAAP diluted EPS was $3.73, and non-GAAP diluted EPS was $5.53. GAAP operating margin remained roughly flat, while non-GAAP operating margin contracted by 130 basis points (150 basis points on a constant-currency basis). GAAP operating profit rose to $6.5 billion, and non-GAAP operating profit reached $8.9 billion. Cash from operations totaled $7.3 billion, free cash flow was $5.4 billion, and the company returned $4.2 billion to shareholders. Chairman and CEO Geoff Martha said, "Our performance reflects the strongest annual top-line growth Medtronic has delivered in 10 years."

Drivers and Strategic Moves

Cardiac Ablation Solutions revenue surged 78% globally and 124% in the U.S., gaining eight percentage points of U.S. market share. Cardiovascular segment revenue grew 10.1%, driven by mid-single-digit growth in cardiac rhythm-management products and mid-teens growth in Micra leadless pacemakers, supported by a strong OmniaSecure U.S. launch. Medical Surgical sales rose 5.1%, led by low-double-digit growth in Acute Care & Monitoring and high-single-digit growth in Endoscopy.

Medtronic completed its acquisition of CathWorks to strengthen coronary and renal-denervation capabilities. It also announced plans to acquire SPR Therapeutics and Scientia Vascular to expand neuromodulation and neurovascular portfolios. The company disclosed a commercial agreement with Merit Medical to offer the ViaVerte system and a venture investment in Pulnovo Medical, describing these as tuck-in M&A and venture capital moves to accelerate growth in adjacent markets.

On the regulatory front, Medtronic filed submissions with the U.S. Food and Drug Administration (FDA) for the Hugo robotic-assisted surgery platform for general surgery and gynecologic indications, and for the LigaSure RAS vessel sealer. The Stealth AXiS Surgical System received FDA clearance for spine, cranial, and ear-nose-throat uses, along with CE Mark approval for spine and cranial indications. Separately, the FDA approved Medtronic’s next-generation Mosaic Neo mitral bioprosthesis.

For fiscal 2027, Medtronic guided for organic revenue growth of roughly 6.75% to 7.25% and non-GAAP diluted EPS between $5.90 and $6.00, below Street consensus near $6.06. The company raised its Q1 dividend to $0.72 per share, implying an annualized $2.88 and marking its 49th consecutive year of dividend increases.

This guidance, combined with the non-GAAP margin compression in fiscal 2026, presents a mixed near-term outlook, even as Medtronic emphasizes product filings, targeted acquisitions, and tuck-in investments to sustain momentum into fiscal 2027.