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- **Revenue Acceleration**: Q2 organic growth 5.5%, CAS up 71%, driving FY26 guidance raise to 5.5% from 5.0%.
- **PFA Dominance**: Affera system adoption surging, with U.S. share +300%, targeting $2 billion revenue soon.
- **Symplicity Breakthrough**: Medicare NCD enables broad access, with 30 million lives covered by commercial payers.
- **Altaviva Launch Success**: Physician training oversubscribed, consumer demand strong for 16M U.S. incontinence patients.
- **EPS Growth**: Q2 EPS $1.36 (+8%), FY26 EPS guidance $5.62-$5.66, up from $5.60-$5.66.
- **Investment Strategy**: R&D > sales growth, SG&A leverage in FY26, with FY27 targeting high single-digit EPS growth.

**【CEO Summary Section】**
- **Revenue Growth and Acceleration**: Q2 revenue of $9 billion grew 6.6% reported and 5.5% organic, with CAS (Cardiac Ablation Systems) revenue up 71% year-over-year. PFA (Pulmonary Vein Ablation) franchise grew 71%, driven by Affera system adoption, with U.S. share increasing over 300%.
- **Strategic Growth Drivers**: 
  - **Symplicity (Hypertension)**: Received Medicare NCD enabling broader access, with commercial payer wins covering 30 million lives. 3-year clinical data shows 18.5mmHg systolic BP reduction.
  - **Altaviva (Incontinence)**: U.S. launch shows strong physician demand, with consumer search activity surge. Addresses 16 million U.S. patients.
  - **Hugo Robotics**: Expected FDA approval for urology indication in Q3 FY26, with international expansion ongoing.
- **Investment in Growth**: Increased OpEx for PFA, Symplicity, and Altaviva launches, while maintaining EPS growth. R&D and SG&A investments to accelerate pipeline.

**【CFO Financial Commentary】**
- **Financial Performance**: Adjusted EPS of $1.36 (+8%), beating midpoint by $0.05. Gross margin 65.9% (+70bps YoY), driven by pricing and COGS efficiency, offset by CAS and Diabetes mix headwinds.
- **Guidance Update**: Full year revenue guidance raised to 5.5% growth (from 5.0%), with Q3 and Q4 acceleration. FY26 EPS guidance $5.62-$5.66, up from $5.60-$5.66.
- **Margin Dynamics**: Gross margin expected to decline 40bps YoY due to tariffs, but operating margin to improve sequentially. FY27 targets high single-digit EPS growth with reduced CAS/ Diabetes mix impact.

**【Q&A Highlights】**
- **Symplicity Commercial Momentum**: Medicare NCD faster than expected, with commercial payers covering 30 million lives. Q3/Q4 revenue contribution to be modest, but ramping in FY26.
- **Altaviva Launch**: Oversubscribed physician training, with early cases showing procedure simplicity and patient satisfaction.
- **R&D and SG&A**: R&D to grow > sales, with focus on PFA, Symplicity, Hugo, and core franchises. SG&A to leverage in FY26, with long-term targets for 10% R&D and improved SG&A efficiency.
- **Tuck-in M&A**: Prioritizing high-growth segments like Cardiology and Neuroscience, with active ventures arm supporting pipeline.


Medtronic plc (MDT) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

MDT

MDT fundamentals

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