Medtronic plc (MDT) Q1 2027 Financial Results Summary
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Medtronic (MDT) Q1 2027: Strong Revenue Growth and Raised Guidance — Positive Outlook
Medtronic plc (NYSE: MDT) reported robust financial results for the first quarter of fiscal year 2027, ending July 31, 2026. The company achieved a revenue of $9.8 billion, reflecting an increase of $1.2 billion or 13.7% compared to the prior year. This performance exceeded the company's guidance midpoint by approximately 200 basis points.
Key Financial Metrics
- Revenue: $9.8 billion, up $1.2 billion or +13.7% YoY
- GAAP diluted EPS: $1.14, up 40.7% YoY
- Non-GAAP diluted EPS: $1.45, up 15.1% YoY
- Operating profit: $1.764 billion, up 22.1% YoY
- Operating margin: 18.1%, up 120 basis points YoY
Analyst View
This quarter is a positive outcome for shareholders, as Medtronic not only surpassed revenue and earnings expectations but also raised its fiscal 2027 guidance. The company's diversified portfolio and strategic investments in growth platforms are driving sustainable growth. The increase in both GAAP and non-GAAP EPS indicates strong operational performance, which is likely to enhance shareholder value.
Segment Performance
- Cardiovascular Portfolio: Revenue of $3.927 billion, increased 19.5% as reported and 18.9% organically, driven by 15% growth in Cardiac Rhythm Management and 88% growth in Cardiac Ablation Solutions.
- Neuroscience Portfolio: Revenue of $2.678 billion, increased 10.3% reported and 9.3% organically, with 13% growth in Cranial and Spinal Technologies.
- Medical Surgical Portfolio: Revenue of $2.279 billion, increased 10.0% reported and 10.2% organically, led by 14% growth in Acute Care & Monitoring.
- Diabetes Business: Revenue of $843 million, increased 16.9% reported and 14.9% organically.
Guidance Update
Medtronic raised its fiscal 2027 organic revenue growth guidance to a range of 7.25% to 7.75%, up from the previous range of 6.75% to 7.25%. Additionally, the company increased its diluted non-GAAP EPS guidance to a new range of $5.94 to $6.00, compared to the prior range of $5.90 to $6.00. This guidance reflects an estimated neutral to 1% accretive impact from foreign currency exchange based on recent rates.
Strategic Developments
The company announced several strategic initiatives, including:
- Expanded CE Mark indication for the Affera™ Mapping and Ablation System and Sphere-9™ Catheter.
- Strategic investment in Pi-Cardia, focusing on leaflet modification technology.
- Partnership with Cornerstone Robotics to enhance global access to robotic-assisted surgery.
- FDA clearance for the Touch Surgery™ Aide next-generation computing platform.
- Completion of acquisitions of Scientia Vascular and SPR Therapeutics, Inc.
Conclusion and Forward Catalyst
Investors should closely monitor Medtronic's execution on its strategic initiatives and the performance of its new growth platforms in the upcoming quarters. The company's ability to sustain its growth trajectory and effectively integrate recent acquisitions will be critical in maintaining investor confidence and driving future performance. The next quarter will be pivotal as Medtronic continues to leverage its innovative portfolio to address evolving healthcare needs.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions)
Note: The amounts in the following tables are in thousands.
| Three months ended | July 31, 2026 | July 25, 2025 | |
|---|---|---|---|
| Net sales | $ 9,756 | $ 8,578 | |
| Costs and expenses: | |||
| Cost of products sold, excluding amortization of intangible assets | 3,416 | 3,001 | |
| Research and development expense | 771 | 726 | |
| Selling, general, and administrative expense | 3,198 | 2,806 | |
| Amortization of intangible assets | 412 | 459 | |
| Restructuring charges, net | 72 | 45 | |
| Certain litigation charges, net | — | 27 | |
| Other operating expense (income), net | 123 | 70 | |
| Operating profit | 1,764 | 1,445 | |
| Other non-operating expense (income), net | -190 | -33 | |
| Interest expense, net | 186 | 176 | |
| Income before income taxes | 1,769 | 1,302 | |
| Income tax provision | 289 | 255 | |
| Net income | 1,479 | 1,047 | |
| Net income attributable to noncontrolling interests | -9 | -7 | |
| Net income attributable to Medtronic | $ 1,470 | $ 1,040 | |
| Basic earnings per share | $ 1.15 | $ 0.81 | |
| Diluted earnings per share | $ 1.14 | $ 0.81 | |
| Basic weighted average shares outstanding | 1,279.8 | 1,281.6 | |
| Diluted weighted average shares outstanding | 1,285.1 | 1,287.1 |
The data in the schedule above has been intentionally rounded to the nearest million.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
Note: The amounts in the following tables are in thousands.
| July 31, 2026 | April 30, 2026 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 1,691 | $ 1,949 |
| Accounts receivable, net | 2,817 | 2,897 |
| Inventories | 2,531 | 2,269 |
| Other current assets | 1,639 | 1,476 |
| Total current assets | 8,678 | 8,691 |
| Property, plant, and equipment, net | 8,610 | 8,922 |
| Goodwill | 41,592 | 41,673 |
| Intangible assets, net | 7,197 | 7,233 |
| Other assets | 1,459 | 1,161 |
| Total assets | $ 68,536 | $ 68,675 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | 1,626 | 1,240 |
| Other current liabilities | 6,630 | 6,690 |
| Total current liabilities | 8,256 | 7,930 |
| Long-term debt | 21,592 | 21,328 |
| Other liabilities | 16,629 | 16,781 |
| Total liabilities | $ 46,477 | $ 46,039 |
| Shareholders' equity | ||
| Common stock and additional paid-in capital | 3,241 | 3,245 |
| Retained earnings | 20,330 | 20,757 |
| Accumulated other comprehensive income | -1,440 | -1,489 |
| Total shareholders' equity | $ 22,059 | $ 22,636 |
| Total liabilities and shareholders' equity | $ 68,536 | $ 68,675 |
The data in the schedule above has been intentionally rounded to the nearest million.
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