Medtronic Expects 5% Organic Revenue Growth, Raises EPS Guidance to $5.60-$5.66 in FY26

Medtronic has outlined its acceleration to 5% organic revenue growth and raised EPS guidance to $5.60-$5.66. This growth is driven by its CAS and innovation investments. The company's CEO, Geoffrey Straub Martha, stated that Medtronic has started the fiscal year by delivering consistent revenue growth and emphasized confidence in accelerating growth through fiscal 2026.

Medtronic (MDT) has reported robust financial results for the first quarter of fiscal year 2026, underscoring its strong performance and growth prospects. The company's revenue increased by 8.4% to $8.6 billion, reflecting an organic growth of 4.8%. This marks the eleventh consecutive quarter of mid-single digit organic revenue growth [1].

The Cardiac Ablation Solutions (CAS) segment experienced significant growth, with revenue surging by nearly 50%, driven primarily by the strong adoption of pulsed field ablation products. The Cardiovascular portfolio also contributed to the company's strong performance, with a 7.0% organic increase, led by a 9.1% organic growth in Cardiac Rhythm & Heart Failure. The Diabetes business showed a 7.9% organic growth [1].

Medtronic's GAAP diluted earnings per share (EPS) rose by 1% to $0.81, while non-GAAP diluted EPS increased by 2% to $1.26. The company raised its fiscal 2026 EPS guidance to a range of $5.60 to $5.66, up from the previous $5.50 to $5.60. This revised guidance reflects the company's Q1 outperformance and improved assumptions regarding tariff impacts [1].

The company expects a reduced tariff impact of $185 million compared to the previous estimate of $200-350 million. This reduction is due to better-than-expected financials for Q1 fiscal 2025 and the company's strategic changes, including the appointment of two new independent directors and the receipt of CE Mark for its LigaSure™ RAS vessel-sealing technology on the Hugo™ robotic-assisted surgery system [2].

Medtronic's CEO, Geoff Martha, expressed confidence in the company's ability to accelerate its revenue growth in the second half of the fiscal year, driven by innovations such as the proposed National Coverage Determination from CMS for the Symplicity Spyral™ system for hypertension [3].

References:
[1] https://www.gurufocus.com/news/3068501/medtronic-reports-first-quarter-fiscal-2026-financial-results-mdt-stock-news
[2] https://seekingalpha.com/news/4486881-medtronic-stock-down-after-q1-fy26-results
[3] https://www.marketscreener.com/news/medtronic-stock-down-despite-raising-targets-ce7c51ddda8df52d