Medtronic Q1 Earnings & Revenues Top Estimates, Stock Up in Pre-Market

Medtronic plc MDT reported first-quarter fiscal 2027 adjusted earnings per share (EPS) of $1.45 per share, which rose 15.1% year over year and topped the Zacks Consensus Estimate by 4.32%.

The metric excludes certain one-time adjustments, including amortization of intangible assets, restructuring and associated costs, as well as acquisition and divestiture-related items. On a GAAP basis, EPS came in at $1.14, up from 81 cents a year earlier.  

MDT's Q1 Revenues

Revenues rose 13.7% year over year to $9.76 billion and beat the consensus mark by 3.02%. The quarter included an extra fiscal week, which benefited organic growth by approximately $570 million.

Following the announcement today, MDT shares rose nearly 5% in pre-market trading. 

MDT’s Segmental Performance Remains Broad-Based

Cardiovascular revenues totaled $3.93 billion in the first quarter of fiscal 2027, up 19.5% year over year on a reported basis and 18.9% organically. Within this, Electrophysiology Therapies revenues rose 29.1%, while Interventional Cardiology Therapies revenue were up 6.5% organically. CardioVascular Surgery and Peripheral Vascular Health revenues advanced 8.1% and 11% respectively, on an organic basis.  

Neuroscience revenues came in at $2.68 billion, up 10.3% reported and 9.3% organically. Cranial & Spinal Technologies led the portfolio with 12.9% organic growth. Specialty Therapies revenues increased 7.4% organically, while Neuromodulation posted 3.3% organic growth.

Medtronic PLC Price, Consensus and EPS Surprise

Medtronic PLC price-consensus-eps-surprise-chart | Medtronic PLC Quote

Medical Surgical revenues were $2.28 billion, up 10% year over year and 10.2% organically. Surgical & Endoscopy revenues increased 9% organically, while Acute Care & Monitoring revenues rose 14.2% organically.

Diabetes revenues jumped 16.9% to $843 million, with organic growth of 14.9%.

MDT Delivers Strong US and Overseas Growth

U.S. revenues rose 16.1% to $4.91 billion, with organic growth of 15.8%. U.S. Cardiovascular was particularly strong, increasing 25.3%, as Electrophysiology Therapies revenues climbed 41.2%.

International revenues advanced 11.4% to $4.85 billion and grew 11.6% organically. International Diabetes recorded 16.8% organic growth, while Cardiovascular increased 13.7%, highlighting strength across major overseas businesses.

MDT’s Q1 Margin Performance

The gross margin in the reported quarter remained flat year over year at 65% despite a 13.8% increase in the cost of products sold, excluding amortization of intangible assets, to $3.42 billion.

Research and development expenses rose 6.2% year over year to $771 million. Selling, general and administrative expenses increased 14% to $3.20 billion.

The adjusted operating margin expanded 10 basis points year over year to 23.7%.

Medtronic Raises Fiscal 2027 Guidance

Medtronic raised its fiscal 2027 organic revenue growth outlook to 7.25%-7.75% from the prior 6.75%-7.25% range.

The company also lifted adjusted EPS guidance to $5.94-$6.00 from the prior $5.90-$6.00 outlook. The guidance incorporates an estimated neutral to 1% accretive foreign currency impact based on recent exchange rates. Medtronic also highlighted recent acquisitions of Scientia Vascular and SPR Therapeutics and continued investment in growth platforms.

The Zacks Consensus Estimate projects fiscal 2027 revenues of $38.64 billion, up 6.3% from the fiscal 2026 levels, while EPS is expected to rise 7.4% to $5.94.

Our Take

Medtronic delivered better-than-expected earnings and revenues in the first quarter of 2027. Cardiovascular remained the key growth engine, with strong performances in Cardiac Rhythm Management and Cardiac Ablation Solutions. Neuroscience, Medical Surgical and Diabetes also delivered healthy organic growth. Management cited strong operating performance, continued innovation investments, portfolio development and commercial execution in supporting the improved 2026 outlook.

During the quarter, Medtronic completed the acquisitions of Scientia Vascular and SPR Therapeutics. The company announced an expanded CE Mark indication for the Affera Mapping and Ablation System and Sphere-9 Catheter for treating ventricular arrhythmias. MDT also received FDA clearance for its next-generation Touch Surgery Aide computing platform.

Medtronic stated that it has entered into a strategic partnership with Cornerstone Robotics to broaden access to robotic-assisted surgery and also announced a strategic investment in Pi-Cardia, strengthening its portfolio development efforts.

MDT’s Zacks Rank & Key Picks

Medtronic currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Globus Medical GMED, Envista NVST and Teleflex TFX.

Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an earnings yield of 6% compared to the industry’s negative 1.3% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 27.9%.

Envista, carrying a Zacks Rank #2 (Buy) at present, posted second-quarter 2026 adjusted earnings of 41 cents per share, exceeding the Zacks Consensus Estimate by 24.2%. Revenues of $730.5 million topped the Zacks Consensus Estimate by 2.2%.

NVST has an estimated long-term earnings growth rate of 13.8% compared with the industry’s 10.8% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 19.4%.

Teleflex, carrying a Zacks Rank #2 at present, posted a second-quarter 2026 adjusted EPS of $1.76, exceeding the Zacks Consensus Estimate by 37.5%. Revenues of $570.3 million outperformed the Zacks Consensus Estimate by 1.9%.

TFX has an estimated long-term earnings growth rate of 20.7% compared with the industry’s 12.9% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.2%.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research