11(th) quarter in a row of mid-single digit organic revenue growth;

Poised to accelerate growth

GALWAY, Ireland, Aug. 19, 2025 /PRNewswire/ -- Medtronic plc $(MDT)$, a global leader in healthcare technology, today announced financial results for its first quarter (Q1) of fiscal year 2026 (FY26), which ended July 25, 2025.

Key Highlights

   -- Revenue of $8.6 billion, adjusted revenue of $8.5 billion, increased 8.4% 
      as reported and 4.8% organic 
 
   -- GAAP diluted EPS of $0.81 increased 1%; non-GAAP diluted EPS of $1.26 
      increased 2% 
 
   -- Company raises FY26 EPS guidance; reiterates FY26 organic revenue growth 
      guidance 
 
   -- Cardiac Ablation Solutions revenue increased nearly 50%, including 72% in 
      the US, on strength of pulsed field ablation (PFA) products 
 
   -- U.S. Centers for Medicare & Medicaid Services $(CMS)$ posted proposed 
      National Coverage Determination (NCD) for the Symplicity Spyral$(TM)$ 
      system for hypertension; final NCD expected on or before October 8, 2025 
 
   -- Received CE Mark for LigaSure(TM) RAS vessel-sealing technology on 
      Hugo(TM) robotic-assisted surgery (RAS) system 

"We delivered another consistent quarter of mid-single digit organic revenue growth, with broad strength from several innovative product categories, including Pulsed Field Ablation, Transcatheter Valves, Neuromodulation, Diabetes, and Leadless Pacing," said Geoff Martha, Medtronic chairman and chief executive officer. "We're confident and well positioned to accelerate our revenue growth in the second half of our fiscal year, as we make meaningful progress on our major growth drivers."

Financial Results

Medtronic reported Q1 worldwide revenue of $8.578 billion and adjusted revenue of $8.539 billion, an increase of 8.4% as reported and 4.8% on an organic basis. The organic revenue growth comparison excludes:

   -- Other revenue of $72 million in the current year and -$52 million in the 
      prior year; and 
 
   -- Foreign currency benefit of $159 million on the remaining segments. 

Q1 revenue by segment included:

   -- Cardiovascular Portfolio revenue of $3.285 billion increased 9.3% as 
      reported and 7.0% organic, with a high-single digit increase in Cardiac 
      Rhythm & Heart Failure, mid-single digit increase in Structural Heart & 
      Aortic, and low-single digit increase in Coronary & Peripheral Vascular, 
      all on an organic basis; 
 
   -- Neuroscience Portfolio revenue of $2.416 billion increased 4.3% reported 
      and 3.1% organic, with a high-single digit increase in Neuromodulation 
      and mid-single digit increase in Cranial & Spinal Technologies, offset by 
      a low-single digit decrease in Specialty Therapies, all on an organic 
      basis; 
 
   -- Medical Surgical Portfolio revenue of $2.083 billion grew 4.4% as 
      reported and 2.4% organic, with low-single digit organic growth in both 
      Surgical & Endoscopy and Acute Care & Monitoring; and 
 
   -- Diabetes business revenue of $721 million increased 11.5% as reported and 
      7.9% organic. 

Q1 GAAP operating profit and operating margin were $1.445 billion and 16.8%, respectively, increases of 13% and 70 basis points, respectively. As detailed in the financial schedules included at the end of the release, Q1 non-GAAP operating profit and operating margin were $2.016 billion and 23.6%, respectively, an increase of 3% and decrease of 80 basis points, respectively.

Q1 GAAP net income and diluted earnings per share (EPS) were $1.040 billion and $0.81, respectively, flat and an increase of 1%, respectively. As detailed in the financial schedules included at the end of this release, Q1 non-GAAP net income and non-GAAP diluted EPS were $1.626 billion and $1.26, respectively, both increases of 2%. Non-GAAP diluted EPS had no impact from foreign currency translation.

Guidance

The company today reiterated its FY26 revenue growth and raised its FY26 EPS guidance.

The company continues to expect FY26 organic revenue growth of approximately 5%. The organic revenue growth guidance excludes the impact of foreign currency exchange and revenue reported as Other. Including Other revenue and the impact of foreign currency exchange, assuming recent foreign currency exchange rates, FY26 revenue growth on a reported basis would be in the range of 6.5% to 6.8%.

Excluding the potential impact from tariffs, Medtronic now expects underlying FY26 diluted non-GAAP EPS growth to be approximately 4.5% versus the prior guidance of approximately 4%. Including the reduced potential impact from tariffs of approximately $185 million versus the prior range of approximately $200 million to $350 million, Medtronic is raising its FY26 diluted non-GAAP EPS guidance to the new range of $5.60 to $5.66 versus the prior range of $5.50 to $5.60.

"As a result of our Q1 EPS outperformance and improved tariff impact assumption, we are raising our full year EPS guidance," said Thierry Piéton, Medtronic chief financial officer. "Our confidence continues to increase as we advance our revenue growth drivers and execute on efficiencies in manufacturing, supply chain, and operating expenses to drive earnings growth, and increase our growth investments in R&D, sales, and marketing, all with a deliberate focus on creating long-term shareholder value."

Video Webcast Information

Medtronic will host a video webcast today, August 19, at 8:00 a.m. EDT (7:00 a.m. CDT) to provide information about its business for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Quarterly Earnings icon at investorrelations.medtronic.com, and this earnings release will be archived at news.medtronic.com. Within 24 hours of the webcast, a replay of the webcast and transcript of the company's prepared remarks will be available by clicking on the Past Events and Presentations link under the News & Events drop-down at investorrelations.medtronic.com.

Financial Schedules and Earnings Presentation

The first quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Quarterly Earnings link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the first quarter earnings presentation, click here.

About Medtronic

Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission -- to alleviate pain, restore health, and extend life -- unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE: MDT), visit www.Medtronic.com and follow on LinkedIn.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, changing global trade policies, material acquisition and divestiture transactions, general economic conditions, and other risks and uncertainties described in the company's periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company. In some cases, you can identify these statements by forward-looking words or expressions, such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "looking ahead," "may," "plan," "possible," "potential," "project," "should," "going to," "will," and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this press release, including to reflect future events or circumstances.

NON-GAAP FINANCIAL MEASURES

This press release contains financial measures, including adjusted net income, adjusted diluted EPS, and organic revenue, which are considered "non-GAAP" financial measures under applicable SEC rules and regulations. References to quarterly or annual figures increasing, decreasing or remaining flat are in comparison to fiscal year 2025, and references to sequential changes are in comparison to the prior fiscal quarter. Unless stated otherwise, quarterly and annual rates and ranges are given on an organic basis.

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