On Wednesday, Medtronic plc (NYSE:MDT) reported fourth-quarter revenue that exceeded Wall Street expectations, supported by strong growth in its Cardiovascular and Diabetes businesses.

Earnings Beat Expectations

Adjusted earnings came in at $1.55 per share, slightly above analysts’ estimates of $1.54 per share.

Revenue increased 9.9% year over year to $9.81 billion, topping the consensus estimate of $9.64 billion. Organic revenue growth was 6.6%.

Cardiovascular revenue rose 13.8% year over year to $3.80 billion, or 10.1% organically, driven by high-teens growth in Cardiac Rhythm & Heart Failure and modest gains in Structural Heart & Aortic and Coronary & Peripheral Vascular.

BTIG Upgrades Medtronic

BTIG upgraded Medtronic from Neutral to Buy, with a price forecast of $90. Analyst Ryan Zimmerman on Wednesday wrote, “MDT has demonstrated consistent MSD organic growth in the past several quarters, and the trajectory is improving.”

Zimmerman said Medtronic trades at a discount to peers despite offering a combination of earnings durability and income that the market has yet to fully recognize. BTIG added that underlying organic growth is accelerating and sustaining at a higher level.

“MDT trades at a discount to peers in a market where income and durability are underappreciated,” the analyst said.

Revenue growth is becoming broader across segments as previously underperforming businesses improve, M&A activity increases, and new products contribute more meaningfully throughout the year.

Leerink Sees Attractive Setup Despite Lower Price Forecast

Leerink Partners lowered the price forecast from $117 to $104 for Medtronic to reflect a re-rating of large-cap MedTech valuations more broadly.

Analyst Mike Kratky highlights MDT as one of the Top Picks for 2026 and sees an attractive setup for the stock at current levels.

Analyst Kratky reiterates the Outperform rating encouraged by Medtronic’s ongoing commercial execution and sees ample opportunities for additional upside for the stock on both a near-term and longer-term basis.

MDT Price Action: Medtronic shares were up 4.30% at $81.30 at the time of publication on Thursday, according to Benzinga Pro data.

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