Medtronic (MDT) delivered a broad-based beat-and-raise to begin fiscal 2027, marking a defining step in its growth acceleration, with another strong quarter and outlook expected for its Cardiac Ablation Solutions segment, in addition to durable growth across several segments, RBC Capital Markets said in a note Tuesday.

The company's Sphere-9 catheter remains "one of a kind" in dual-energy point-to-point ablation, while more than 35% growth in the US Affera mapping and ablation system installed base suggests that the product cycle is far from mature, according to the note.

The Cardiac Rhythm Management unit grew 15% with 80 basis points of global share gain, with conduction system pacing adding over 200 basis points to CRM growth. The Cranial and Spine Therapies segment also grew 13%, with Stealth AXiS "meaningfully outperforming" in its first full quarter following the launch, while US spine robotics penetration remains in the single digits, the note said.

The company raised its organic revenue growth guidance by 50 basis points to 7.25% to 7.75%, exceeding consensus of 6.6% organic revenue growth. Management remained positive, with particular emphasis on the company's growth inflection over the last two quarters, the note added.

RBC kept an outperform rating on Medtronic with a price target of $118.

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