Medtronic Raises FY2027 Guidance on Heart-Device Demand
Medtronic Raises FY2027 Guidance after stronger cardiovascular-device sales and a $700 million robotics investment, likely prompting portfolio reweighting.
KEY TAKEAWAYS
- Q1 revenue was $9.8 billion and non-GAAP EPS was $1.45.
- Raised FY2027 organic revenue growth guidance to 7.3%-7.8% and non-GAAP EPS to $5.94-$6.00.
- Cardiovascular revenue was $3.9 billion with pulsed-field ablation sales up 88%.
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Medtronic raised the low end of its fiscal 2027 organic-revenue and adjusted earnings-per-share (EPS) outlook after reporting first-quarter results on Sept. 1, 2026, citing broad strength led by cardiovascular device sales.
Quarter Results and Guidance
Medtronic reported fiscal first-quarter revenue of $9.8 billion, a 13.7% increase as reported and organically for the quarter ended July 31, 2026. Non-GAAP diluted EPS was $1.45, and GAAP diluted EPS was $1.14. The company raised its full-year organic revenue growth guidance to 7.25%–7.75% from 6.75%–7.25% and increased its non-GAAP diluted EPS outlook to $5.94–$6.00 from $5.90–$6.00.
Cardiovascular Momentum and Strategic Investment
Medtronic’s investor presentation showed cardiovascular revenue of $3.9 billion, up 19.5%, with pulsed field ablation sales rising 88%. Management said the guidance reflects an extra selling week, full-year consolidation of the Diabetes business, increased mergers and acquisitions, tariffs, and an estimated neutral to 1% foreign exchange tailwind. The company reiterated its goal of generating 20% of revenue from products and therapies introduced in the prior 36 months.
Separately, Medtronic announced an approximately $700 million strategic investment in Cornerstone Robotics, which includes rights to distribute the Sentire surgical system in select markets outside the U.S. where it is approved.
Together, the guidance increase and the Cornerstone investment highlight Medtronic’s focus on near-term cardiovascular-device growth alongside strategic bets on surgical robotics as complementary drivers of its fiscal 2027 outlook.
