Medtronic has lifted its full-year adjusted earnings per share guidance to a range of $5.94 to $6.00, raising the lower end of the outlook by 4 cents. The medical device giant reported higher profit and revenue for its fiscal first quarter, fueled by a broad recovery in demand across its business segments and contributions from new growth platforms, while also upgrading its expectations for the full year.
The company simultaneously unveiled two investments totaling approximately $780 million: one targeting a cardiac technology firm and another focused on a surgical robotics developer. Chief Financial Officer Thierry Piedeliec attributed the adjusted EPS and revenue growth to strong operational performance and prudent financial management during the quarter, adding that these factors have bolstered management's confidence in raising the outlook. In premarket trading, shares advanced 6.5% to $96.50.
The company now projects full-year adjusted EPS in the range of $5.94 to $6.00, with the lower end of the guidance raised by 4 cents, and has lifted its organic revenue growth forecast to a band of 7.25% to 7.75%, up from a prior range of 6.75% to 7.25%.
For the quarter, Medtronic posted net income of $1.47 billion, or $1.14 per share, compared with $1.04 billion, or $0.81 per share, in the year-ago period. On an adjusted basis, EPS came in at $1.45, exceeding the FactSet consensus estimate of $1.39. Net sales climbed 14% year over year to $9.76 billion, outpacing Wall Street expectations of $9.55 billion, with organic sales also growing by 14%.
The cardiovascular segment led the way, with revenue surging 20% to $3.93 billion, making it the company's largest revenue source. The neuroscience division saw revenue rise 10% to $2.68 billion, while the medical surgical unit grew 10% to $2.28 billion.
On Tuesday, Medtronic also announced plans to invest approximately $700 million in Cornerstone Robotics, securing distribution rights for its Sentire surgical robotic system in select overseas markets. The company stated that pairing this system with its own Hugo robot-assisted surgery platform will broaden access to robotic surgery, offering surgeons and healthcare institutions more choices and flexible solutions. Additionally, Medtronic has agreed to invest up to $8 million in Pi-Cardia, whose ShortCut device is the first U.S. FDA-approved leaflet modification tool, designed to facilitate valve-in-valve transcatheter aortic valve replacement procedures in patients with coronary obstruction risk. Both companies disclosed that the agreement includes acquisition options: upon achieving preset performance milestones, Medtronic may acquire Pi-Cardia, with an estimated initial purchase consideration of up to $210 million.