Medtronic Reports Strong Q1, Driven By Cardiac Technology And Product Innovation

Medtronic Reports Strong Q1, Driven By Cardiac Technology And Product Innovation

GALWAY, Ireland (August 19, 2025) — Medtronic plc, the global medical technology company with its operational headquarters in Fridley, Minnesota, announced robust financial results for its first fiscal quarter of 2026, marking the company’s 11th consecutive quarter of mid-single digit organic revenue growth. The company reported a strong beat on both revenue and earnings, with adjusted revenue reaching $8.54 billion and non-GAAP diluted earnings per share (EPS) of $1.26, surpassing analyst expectations.

The strong performance was fueled by key product innovations and an acceleration in the company's core businesses. The Cardiovascular Portfolio was a major growth driver, with its Cardiac Ablation Solutions segment revenue increasing by nearly 50%, thanks to the strong adoption of its pulsed field ablation (PFA) products in the United States.

“We delivered another consistent quarter of mid-single digit organic revenue growth, with broad strength from several innovative product categories,” said Geoff Martha, Medtronic chairman and chief executive officer. “We're confident and well positioned to accelerate our revenue growth in the second half of our fiscal year, as we make meaningful progress on our major growth drivers.”

Beyond the top-line growth, Medtronic also raised its full-year fiscal 2026 EPS guidance, now projecting a range of $5.60 to $5.66, up from the previous range of $5.50 to $5.60. This upward revision reflects the company's first-quarter outperformance and an improved outlook on the impact of tariffs. The company also maintained its forecast for approximately 5% organic revenue growth for the full fiscal year.

The company's positive momentum was also bolstered by significant regulatory and product news. The U.S. Centers for Medicare & Medicaid Services (CMS) posted a proposed National Coverage Determination (NCD) for the Symplicity Spyral™ system, an important step toward expanding access for patients with hypertension. A final decision on the NCD is expected on or before October 8, 2025.

Other key highlights from the quarter include:

• Neuroscience Portfolio revenue increased 3.1% organically, led by strong performance in Neuromodulation and Cranial & Spinal Technologies.
• Medical Surgical Portfolio revenue grew 2.4% on an organic basis. The company also received CE Mark approval for its LigaSure™ RAS vessel-sealing technology for the Hugo™ robotic-assisted surgery system.
• Diabetes business revenue grew 7.9% organically, driven by continued adoption of its insulin pump and continuous glucose monitoring products. The company also confirmed its plan to spin off the Diabetes business within the next 18 months.

While the financial results were largely positive, Medtronic's stock saw a slight decline in premarket trading following the announcement, a reaction analysts attributed to ongoing margin pressures and the long-term nature of the growth story. Still, the quarter's performance demonstrated a strong operational momentum and a successful strategy focused on innovation and high-growth markets.

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MinneapoliMedia