Medtronic 2026 Q2 Earnings Strong Revenue and Net Income Growth

Medtronic (MDT) reported fiscal 2026 Q2 earnings on November 25, 2025, delivering revenue growth of 6.6% year-over-year to $8.96 billion. The company exceeded quarterly revenue estimates and maintained a 13-year streak of profitability. Earnings per share (EPS) rose 8.1% to $1.07, driven by operational efficiency and strong demand across core segments.

Revenue

Cardiovascular led with $3.44 billion in revenue, followed by Neuroscience contributing $2.56 billion. Medical Surgical added $2.17 billion, while the Diabetes segment generated $757 million. Smaller segments, including Other, accounted for $35 million. The diversified revenue base reflects Medtronic’s robust market position in critical medical device categories.

Earnings/Net Income

Medtronic’s EPS increased to $1.07 in Q2 2026, an 8.1% rise compared to $0.99 in Q2 2025. Net income grew to $1.38 billion, up 8.1% from $1.28 billion in the prior-year period. The 8.1% EPS growth outpaced the 6.6% revenue increase, signaling enhanced profitability.

Price Action

MDT shares gained 1.49% in the latest trading day, 4.51% over the past week, and 12.47% month-to-date. Post-earnings performance, however, showed mixed signals.

Post-Earnings Price Action Review

The strategy of buying MDT when earnings beat and holding for 30 days resulted in a significant underperformance, with a total return of -16.45% compared to the benchmark return of 80.96%. Despite a maximum drawdown of 0.00% (indicating no capital losses during the holding period), the strategy underperformed the market with a Sharpe ratio of -0.17 and a compound annual growth rate (CAGR) of -3.55%.

Additional News

Recent non-earnings developments included insider trading activity and institutional shareholder adjustments. Denise L. Blomquist, an officer, gifted 170 shares to a third party on November 20, 2025. Fiducient Advisors LLC acquired a new position in Q2, purchasing 3,033 shares valued at $264,000. Conversely, Vestor Capital LLC slashed its stake by 94.9%, retaining 2,700 shares worth $220,000. These moves highlight evolving investor sentiment amid Medtronic’s strategic focus on long-term growth.