Medtronic (MDT) is likely to beat its fiscal Q4 earnings and revenue estimates by a modest amount, Needham said in a note emailed Monday.

The firm said it expects new product launches, healthy market growth, and management's own conservative guidance to lead to a modest beat.

"We believe that Medtronic is in the early stages of a strong product cycle lead by its Affera PFA system, Symplicity RDN system, Simplera Sync CGM, and Hugo robot," Needham said.

Medtronic is due to report its earnings on Wednesday. Analysts polled by FactSet estimate $1.58 in fiscal Q4 non-GAAP earnings per share on revenue of $8.81 billion.

Needham is estimating EPS of $1.58 on revenue of $8.80 billion. The firm also expects the company to initiate fiscal 2026 guidance "that brackets consensus."

Meanwhile, Needham expects the company to be able to absorb "most of the impact" of tariffs on its margins during fiscal 2026.

"Among our large-cap companies, Medtronic has greater exposure to China at ~7% of its total sales," the firm said.

According to Needham, the company's global manufacturing network may allow it to produce products outside the US that can then be sold in China. The firm maintains a hold rating on the stock.

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