Medtronic (MDT) delivered modest beats on revenue and earnings in fiscal Q4, helped by broad-based strength across its portfolio, most notably in the Cardiovascular segment, RBC Capital Markets said in a note emailed Thursday.

Cardiovascular sales climbed 8%, led by nearly 30% growth in Cardiac Ablation Solutions. Double-digit gains in Diabetes and Neuromodulation and high-single-digit growth in US Surgical Technologies also contributed.

The company issued fiscal 2026 EPS guidance of $5.50 to $5.60, below the $5.83 consensus. Excluding potential tariff effects, the midpoint implies about 4% underlying growth. The lower end of the range assumes a resumption of higher US-China tariffs, while the upper end assumes the current pause remains in place through the fiscal year, according to the note.

Adjusting for below-the-line impacts such as higher interest and tax expenses, EPS growth would be closer to 7%, and around 8% excluding headwinds from the ramp-up in the Diabetes business.

The brokerage lowered its fiscal 2026 EPS forecast to $5.57 on $35.25 billion in sales, reflecting slightly softer margins. Despite the lowered near-term profit expectations, RBC said Medtronic's 10th straight quarter of mid-single-digit organic revenue growth reflects durable momentum.

Several upcoming catalysts could drive upside, including continued growth in Pulsed Field Ablation, a $2 billion opportunity in Cardiac Ablation, expansion across the cardiovascular portfolio, the diabetes spin-off, and the rollout of the Hugo surgical robot.

RBC said these factors position the company for a sustained growth profile and sees room for upside to management's mid-single-digit organic revenue outlook.

The firm reduced its price target on Medtronic's stock to $101 from $105, and maintained its outperform rating.

Price: 81.60, Change: -2.81, Percent Change: -3.33