Medtronic 2026 Q1 Earnings Stable EPS Amid Revenue Growth

Medtronic delivered better-than-expected revenue growth in Q1 2026 while maintaining consistent earnings per share. The company also raised its fiscal year revenue and EPS guidance, signaling confidence in its long-term performance.

Revenue
Revenue rose 8.4% year-over-year to $8.58 billion, driven by strong performance across key business lines. Cardiovascular led the charge with $3.29 billion in revenue, followed by Neuroscience at $2.42 billion. Medical Surgical contributed $2.08 billion, while the Diabetes segment added $721 million. Additional contributions came from the Other segment, generating $72 million in revenue. These figures underscore the company's diversified growth and continued leadership in high-impact medical technologies.

Earnings/Net Income
Medtronic reported stable earnings per share of $0.81, consistent with the prior-year period. However, net income declined slightly by 0.2% to $1.05 billion. While the EPS remained steady, the marginal drop in net income highlights the challenges of maintaining profit growth in a competitive market.

Price Action
The stock has experienced mixed short-term performance, with a 0.27% decline during the latest trading day, a 2.54% increase over the past week, and a 0.82% drop month-to-date.

Post Earnings Price Action Review
Following the earnings report, a strategy of buying Medtronic shares on the day of the release and holding for 30 days generated a modest 3.01% return, outperforming the benchmark by only 1.03% CAGR. However, the stock underperformed the broader market, which delivered an impressive 58.85% return, resulting in a -55.84% excess loss. The approach showed minimal volatility, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.05, indicating a low-risk but low-return investment profile.

CEO Commentary
Chairman and CEO Geoff Martha emphasized the company’s consistent execution and innovation across key franchises, including TAVR, PFA, leadless pacemakers, diabetes, spine, and neuromodulation. He expressed optimism about Medtronic’s long-term growth potential and reinforced the company’s commitment to expanding patient access and leveraging its robust pipeline in high-impact markets.

Guidance
Looking ahead, Medtronic expects durable, mid-single-digit organic revenue growth with EPS leverage as foreign currency effects abate. The company has raised its FY25 organic revenue growth guidance to 4.75% to 5% and non-GAAP EPS guidance to $5.44 to $5.50.

Additional News
On August 26, 2025, Thematics Asset Management sold 36,878 shares of Medtronic PLC (MDT). While the sale does not indicate a broader trend or shift in investor sentiment, it reflects normal institutional activity. The transaction occurred on the same day as the earnings release, potentially influencing short-term market dynamics. No major mergers, acquisitions, or executive changes were reported within the past three weeks, and Medtronic has not announced any new dividend or buyback initiatives as of this date.