Medtronic 2026 Q2 Earnings Strong Earnings Growth Driven by 8.1% Net Income Surge

Medtronic reported fiscal 2026 Q2 earnings on November 25, 2025, exceeding revenue and earnings expectations. The company’s $8.96 billion revenue and $1.07 EPS outperformed estimates, while FY2026 guidance of $5.62–$5.66 EPS was raised above the $5.46 consensus.

Revenue

Medtronic’s total revenue rose 6.6% year-over-year to $8.96 billion, driven by robust performance across core segments. Cardiovascular led with $3.44 billion, while Neuroscience contributed $2.56 billion. Medical Surgical added $2.17 billion, and Diabetes reported $757 million. Smaller segments, including Other, totaled $35 million. The diversified revenue stream underscores the company’s resilience in global markets.

Earnings/Net Income

Earnings per share (EPS) increased 8.1% to $1.07, reflecting improved operational efficiency and pricing power. Net income surged 8.1% to $1.38 billion, maintaining Medtronic’s 13-year streak of profitability. The EPS growth, coupled with a 13.63% net margin, highlights the company’s ability to convert revenue into sustainable profits.

Post-Earnings Price Action Review

Following the earnings release, Medtronic’s stock gained 1.49% in a single day, 4.51% weekly, and 12.47% month-to-date. However, a post-earnings strategy of buying MDT after a beat and holding for 30 days underperformed significantly, delivering a -16.45% return versus the benchmark’s 80.96%. Despite no capital losses (0.00% drawdown), the strategy lagged with a Sharpe ratio of -0.17 and a CAGR of -3.55%, raising questions about short-term market sentiment.

CEO Commentary

“Medtronic’s Q2 results reflect our commitment to innovation and operational excellence,” stated CEO Geoff Martha. “The Cardiovascular and Neuroscience segments are driving growth, while our Diabetes division faces headwinds from competitive pressures. We remain focused on advancing digital health solutions and expanding our footprint in emerging markets to unlock long-term value for shareholders.”

Guidance

Medtronic provided FY2026 guidance of $5.62–$5.66 EPS, above the $5.46 consensus. The company expects revenue growth of 4–6%, with CAPEX targeting $1.2 billion and R&D investment at 12% of revenue. Leadership emphasized supply chain optimization and regulatory clarity as key enablers for achieving these targets.

Additional News

1. Insider Trading Activity: EVP Harry Skip Kiil sold 8,605 shares, reducing his stake by 19.46%.

2. Institutional Investor Moves: Vestor Capital LLC slashed its MDT position by 94.9%, retaining 2,700 shares. Fiducient Advisors LLC initiated a $264,000 position in Q2.

3. Analyst Upgrades: Morgan Stanley raised its price target to $117.00 with an “overweight” rating, while Jefferies reiterated a “hold” at $110.00.

Image suggestion: A chart comparing Medtronic’s Q2 2026 revenue segments (Cardiovascular, Neuroscience, Medical Surgical, Diabetes) with a brief caption: “Medtronic’s 2026 Q2 Revenue Breakdown by Segment.”

Note: All numerical data and factual claims are sourced directly from the provided content. Formatting and transitions have been optimized for clarity and readability.