By Mackenzie Tatananni

Medtronic stock rose after the medical device maker beat Wall Street's quarterly revenue and profit expectations, overshadowing a softer-than-expected fiscal-year outlook.

Revenue rose nearly 7% on an organic basis to $9.8 billion, ahead of the company's own guidance as well as the $9.6 billion analysts had anticipated. The company posted higher revenue across all four of its business segments. Medtronic also reported adjusted earnings of $1.55 a share, a touch ahead of Wall Street's expectation for $1.54.

Fiscal-year guidance was light of estimates. For fiscal 2027, the company targets adjusted earnings in the range of $5.90 to $6 a share. Analysts polled by FactSet were looking for earnings of $6.05 a share. Guidance assumes consolidation of Medtronic's diabetes business, which is currently being spun off into an independent company called MiniMed.

Shares rose 2.8% in premarket trading Wednesday. Futures tracking the benchmark S&P 500 were slightly lower.

Ahead of the results, Mizuho analyst remarked that the business "feels much less fundamentally broken" than the last time it was unusually cheap, trading at a forward price-to-earnings multiple that it has only hit two other times in the last 13 years. He expects Medtronic's growth to accelerate by late 2027 as several new products hit their stride over the next two years.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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June 03, 2026 07:20 ET (11:20 GMT)

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