Medtronic raises FY 2027 outlook

Medtronic (MDT) increased its fiscal 2027 guidance after reporting a first quarter that exceeded market expectations. For the quarter ended July 31, 2026, revenue was about $9.76 billion, reflecting reported and organic growth of roughly 13.7%. On an adjusted basis, diluted earnings per share were $1.45, above consensus estimates of about $1.39. The company said quarterly growth was helped by approximately $570 million from an extra week in the first fiscal quarter.

The performance was described as broad based across the portfolio, but cardiovascular devices were a key contributor. Higher demand in this area underpinned both the top-line beat and the subsequent decision to raise full-year forecasts. Management characterized the results as consistent with stronger underlying procedure and device trends, alongside the calendar-related benefit from the additional week.

Cardiovascular sales in the first quarter were reported at $3.93 billion, a 19.5% increase from the prior-year period. Growth in this segment was driven in part by Medtronic’s pulsed field ablation (PFA) portfolio. PFA revenue expanded 88% in the quarter, highlighting robust demand for the company’s newer heart-device technologies.

The strength in cardiovascular helped offset variability elsewhere and positioned the franchise as a central growth engine within Medtronic. The outsized contribution from PFA underscores how newer therapies are scaling within the broader cardiovascular offering, supporting both revenue expansion and confidence in longer-term targets.

Following the strong quarter, Medtronic raised the lower end of its fiscal 2027 adjusted diluted EPS guidance to $5.94 from $5.90, while maintaining the upper end at $6.00. The updated range was set against analysts’ average expectation of $5.95. The company also increased its annual organic revenue growth guidance to a range of 7.25% to 7.75%, up from a prior band of 6.75% to 7.25%.

Management said the fiscal 2027 outlook currently includes the Diabetes business. The company indicated that if a full separation of the Diabetes unit is completed before the end of the fiscal year, it will update its guidance to reflect that change. The separation remains unfinalized, with a split-off identified as the preferred structure, but no final decision has been reached.