TradingKey - Medtronic (MDT) reported fiscal 2027 first-quarter financial results, with both revenue and earnings exceeding market expectations, while raising its full-year growth outlook. Boosted by the strong earnings report, Medtronic's stock rose nearly 9% in pre-market trading.

Source: TradingView

For the first fiscal quarter ended July 31, 2026, Medtronic reported global revenue of $9.756 billion, up 13.7% year-over-year, exceeding analyst expectations of $9.55 billion. GAAP net income rose to $1.47 billion, with diluted earnings per share of $1.14, up 40.7% year-over-year. Adjusted earnings per share reached $1.45, beating market expectations of $1.39 by $0.06.

Profitability also improved, with Medtronic reporting a GAAP operating profit of $1.764 billion for the quarter and a GAAP operating margin of 18.1%. Adjusted operating profit reached $2.316 billion, corresponding to an adjusted margin of 23.7%, up 10 basis points from the same period last year. Revenue growth and cost controls together drove the company's earnings above expectations.

In terms of business performance, Medtronic's main segments all maintained growth.

Organic revenue in the Cardiovascular segment grew 18.9% year-over-year, with the electrophysiology business growing 29.1%, making it the standout performer of the quarter. The Neuroscience and Medical Surgical segments grew 9.3% and 10.2%, respectively. The Diabetes business, which is planned for separation, also maintained a relatively fast growth rate, with organic revenue increasing 14.9% to $843 million.

Geoff Martha, Chairman and CEO of Medtronic, stated that the company got off to a strong start in fiscal year 2027. He noted that confidence stems not only from the quarter's financial performance, but also from broad-based growth across business segments and the expanding contributions from emerging platforms. He believes that efficient commercial execution, product innovation, and the R&D pipeline will help the company reach more patients and sustain long-term growth.

Based on its first-quarter performance, Medtronic raised its fiscal 2027 organic revenue growth guidance from 6.75%-7.25% to 7.25%-7.75%. Full-year adjusted diluted earnings per share guidance was also narrowed and raised from $5.90-$6.00 to $5.94-$6.00, with a midpoint of $5.97, slightly above the market expectation of $5.95. This forecast includes an estimated neutral to approximately 1% foreign exchange impact based on recent exchange rates.

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