Medical device giant Medtronic PLC reported fourth-quarter financial results that surpassed Wall Street forecasts, driven by sustained strong demand for cardiac devices used in complex surgeries. This positive news spurred a 2.8% increase in the company's pre-market stock price.
The financial report shows Medtronic PLC achieved fourth-quarter revenue of $9.81 billion, exceeding the market consensus of $9.63 billion. The largest segment, its core cardiovascular business, saw sales surge 13.8% year-over-year to reach $3.8 billion. Analysis indicates this robust growth was primarily fueled by high demand for its pulsed field ablation (PFA) product portfolio. Regarding profitability, the company's adjusted earnings per share for the quarter were $1.55, slightly above the average analyst estimate of $1.54.
Medtronic PLC also announced an investment in California-based Beluga Medica to acquire its advanced cardiac imaging catheter technology, further expanding its cardiovascular product offerings. In recent years, the company has consistently strengthened its portfolio through small, targeted acquisitions. Over recent months, Medtronic PLC has completed several transactions aimed at enhancing its cardiovascular and surgical robotics segments, including the approximately $650 million acquisition of SPR Therapeutics and the advancement of merger and acquisition projects involving companies such as CathWorks, Scientia Vascular, and Fortimedix.
Looking ahead, Medtronic PLC provided its forecast for adjusted earnings per share for fiscal year 2027, projecting a range of $5.90 to $6.00. This is slightly below the analyst consensus estimate of $6.06. The company explained that this outlook already incorporates the financials of its diabetes business, which is now the independent publicly-traded company MiniMed. If the final divestiture of this business is completed before year-end, the company will promptly update its related financial forecasts.
Furthermore, in its earnings report, Medtronic PLC noted it has revised down its expected tariff impact for fiscal 2027 from a previous estimate of $300 million to $250 million.