Medtronic 2026 Q2 Earnings Beats Expectations, Net Income Rises 8.1%

Medtronic (MDT) reported stronger-than-expected fiscal 2026 Q2 results, with revenue and EPS exceeding forecasts. The company raised full-year revenue guidance to 5.5% growth from 5%, reflecting confidence in its growth trajectory.

Revenue

Medtronic’s total revenue rose 6.6% year-over-year to $8.96 billion, driven by robust performance across key segments. Cardiovascular led the charge with $3.44 billion in revenue, fueled by a 10.8% organic increase, while Neuroscience added $2.56 billion, up 4.5% year-over-year. Medical Surgical contributed $2.17 billion, and the Diabetes segment, set for a November 2026 spin-off, generated $757 million. Other segments accounted for $35 million.

Earnings/Net Income

Earnings per share (EPS) climbed 8.1% to $1.07, outpacing the 6.6% revenue growth. Net income surged to $1.38 billion, reflecting sustained profitability for 13 consecutive years. The EPS growth underscores Medtronic’s ability to leverage operational efficiency and pricing power.

Post-Earnings Price Action Review

A backtest of buying Medtronic shares following a revenue raise announcement and holding for 30 days showed a 24.8% cumulative return over three years, outperforming the 18.7% return of a buy-and-hold strategy. This strategy highlights the stock’s tendency to appreciate post-earnings, reinforcing its appeal for event-driven investors.

CEO Commentary

CEO Geoffrey Martha emphasized momentum from high-growth initiatives like PFA cardiac ablation (71% YoY growth) and Hugo robotics. He highlighted investments in manufacturing scale and innovation, stating the company is “positioned for greater acceleration in revenue growth.”

Guidance

CFO Thierry Pieton raised FY26 revenue guidance to ~5.5% growth and EPS to $5.62–$5.66. Q3 EPS is projected at $1.32–$1.34, with full-year operating profit growth expected at ~5%.

Additional News

1. Diabetes Spin-Off: Medtronic plans to spin off its Diabetes business into a standalone entity by November 2026, expected to boost adjusted margins by 100 basis points.

2. FDA Approval: The Altaviva™ device for urge urinary incontinence received FDA clearance, expanding Medtronic’s neuromodulation portfolio.

3. Board Changes: Two new independent directors joined the board, including John Groetelaars and Bill Jellison, to strengthen governance and operational focus.