Shares of Medtronic rose in premarket trading Tuesday after the medical device giant reported better than-expected quarterly earnings and announced a $700 million investment to bolster its surgical systems offerings.

The company posted adjusted earnings of $1.45 a share in the fiscal first quarter ended July 31, up $1.26 a year ago and above Wall Street's expectation of $1.39. Revenue grew 14% to $9.76 billion, beating the analyst consensus call for $9.55 billion, according to FactSet.

Medtronic, which develops many health devices including pacemakers and insulin pumps for diabetes, also raised its fiscal year organic revenue expectations and narrowed its profit guidance.

The company announced separately Tuesday a $700 million investment that gives Medtronic the rights to distribute Cornerstone Robotics' "Sentire" surgical system outside the U.S. in key markets.

Medtronic stock rose 8.7% to $98.54 in premarket trading on Tuesday after ending Monday down 0.6%. Shares were down 5.6% on the year as of the closing bell on Monday.