Medtronic (NYSE:MDT) Issues Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Medtronic (NYSE:MDT) released its earnings results on Tuesday. The medical technology company reported $1.45 earnings per share for the quarter, beating analysts’ consensus estimates of $1.39 by $0.06, FiscalAI reports. Medtronic had a net margin of 13.93% and a return on equity of 14.89%. The business had revenue of $9.76 billion during the quarter, compared to the consensus estimate of $9.55 billion. During the same quarter last year, the firm earned $1.26 earnings per share. The firm’s revenue for the quarter was up 13.7% compared to the same quarter last year. Medtronic updated its Q2 2027 guidance to 1.320-1.340 EPS and its FY 2027 guidance to 5.940-6.000 EPS.

Here are the key takeaways from Medtronic’s conference call:

• Strong Q1 performance: Revenue reached $9.8 billion, with organic growth of 13.7% and adjusted EPS of $1.45, both ahead of expectations. Management cited broad-based demand and execution across CRM, Cranial & Spinal Technologies, and Surgical.
• Growth platforms continued to gain traction. Cardiac Ablation Solutions grew 88%, its U.S. Affera installed base increased more than 35% sequentially, Altaviva procedures doubled sequentially, and Hugo robotics procedures are expected to exceed 50,000 by fiscal year-end.
• Medtronic raised fiscal 2027 organic revenue growth guidance by 50 basis points to 7.25%–7.75% and increased adjusted EPS guidance to $5.94–$6.00. The company still expects operating profit growth of approximately 10% and operating-margin expansion of about 50 basis points.
• The quarter benefited from an extra selling week, contributing approximately $570 million, or 670 basis points, to organic revenue growth. Management expects second-quarter organic growth of roughly 6% and warned that Acute Care and Monitoring growth should normalize during the year.
• Investments in growth initiatives, including the $700 million Cornerstone Robotics investment, will create foregone interest expense and limit near-term margin upside. The planned MiniMed separation remains on track before fiscal year-end, but its timing is still dependent on achieving optimal economics for stakeholders.

Medtronic Price Performance

Shares of MDT opened at $92.10 on Thursday. The firm has a market capitalization of $117.89 billion, a PE ratio of 22.69, a PEG ratio of 2.15 and a beta of 0.56. The company’s 50-day moving average is $86.27 and its 200-day moving average is $85.35. Medtronic has a fifty-two week low of $73.31 and a fifty-two week high of $106.33. The company has a debt-to-equity ratio of 0.52, a current ratio of 2.13 and a quick ratio of 1.62.

Medtronic Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Friday, September 25th will be given a $0.72 dividend. The ex-dividend date of this dividend is Friday, September 25th. This represents a $2.88 annualized dividend and a dividend yield of 3.1%. Medtronic’s dividend payout ratio is presently 70.94%.

Insider Activity at Medtronic

In related news, EVP Harry Skip Kiil sold 4,189 shares of Medtronic stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $80.44, for a total transaction of $336,963.16. Following the completion of the sale, the executive vice president owned 37,227 shares of the company’s stock, valued at approximately $2,994,539.88. The trade was a 10.11% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.27% of the company’s stock.

Institutional Investors Weigh In On Medtronic

Hedge funds have recently bought and sold shares of the stock. Wellington Management Group LLP boosted its holdings in shares of Medtronic by 35.3% during the third quarter. Wellington Management Group LLP now owns 10,189,586 shares of the medical technology company’s stock worth $970,456,000 after acquiring an additional 2,658,981 shares during the period. AQR Capital Management LLC increased its stake in shares of Medtronic by 68.3% during the third quarter. AQR Capital Management LLC now owns 3,329,414 shares of the medical technology company’s stock worth $314,397,000 after purchasing an additional 1,350,888 shares during the period. Lazard Asset Management LLC increased its stake in shares of Medtronic by 19.0% during the third quarter. Lazard Asset Management LLC now owns 6,001,342 shares of the medical technology company’s stock worth $571,502,000 after purchasing an additional 957,149 shares during the period. Schroder Investment Management Group lifted its holdings in Medtronic by 12.5% during the 4th quarter. Schroder Investment Management Group now owns 8,468,982 shares of the medical technology company’s stock worth $813,530,000 after purchasing an additional 939,133 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in Medtronic by 62.6% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,430,723 shares of the medical technology company’s stock worth $231,502,000 after purchasing an additional 935,941 shares during the last quarter. 82.06% of the stock is currently owned by institutional investors and hedge funds.

Key Medtronic News

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Beat-and-raise results: Medtronic reported fiscal Q1 FY2027 adjusted EPS of $1.45, ahead of the $1.39 consensus, while revenue increased 13.7% year over year to $9.76 billion, exceeding estimates. Growth was broad-based, led by cardiovascular sales, with additional contributions from neuroscience, medical surgery and diabetes. Medtronic Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Higher fiscal-year outlook: Management raised fiscal 2027 organic revenue-growth guidance to 7.25%-7.75% and adjusted EPS guidance to $5.94-$6.00. Analysts viewed the update as evidence that growth is accelerating across the portfolio, although the outlook benefited from an extra fiscal week in the quarter. Medtronic Begins Fiscal 2027 With a Beat-and-Raise
• Positive Sentiment: Robotics and heart-tech expansion: Medtronic committed approximately $700 million to a strategic partnership with Cornerstone Robotics, gaining rights to distribute its Sentire surgical system in select markets outside the United States. It also plans to invest up to $80 million in Pi-Cardia to support complex transcatheter aortic-valve replacement procedures. These deals broaden Medtronic’s growth platforms alongside its Hugo robotic system. Medtronic Announces Strategic Partnership with Cornerstone Robotics
• Positive Sentiment: Supportive analyst views and trading activity: RBC reaffirmed an Outperform rating with a $118 target, while BTIG raised its target to $100 and kept a Buy rating. Unusually heavy call-option activity also indicates increased speculative interest following the earnings report. Medtronic Analysts Raise Their Forecasts
• Neutral Sentiment: Stifel raised its price target to $95 but retained a Hold rating, and Baird lifted its target to $100 while maintaining Neutral, signaling that valuation and execution remain considerations despite the improved outlook. Medtronic Shares Gap Up on Better-Than-Expected Earnings

Wall Street Analyst Weigh In

MDT has been the subject of a number of recent research reports. Wells Fargo & Company increased their price objective on shares of Medtronic from $102.00 to $104.00 and gave the stock an “overweight” rating in a research note on Wednesday. BTIG Research lifted their target price on Medtronic from $91.00 to $100.00 and gave the company a “buy” rating in a research report on Tuesday. TD Cowen upped their target price on Medtronic from $100.00 to $110.00 and gave the stock a “buy” rating in a report on Friday, August 28th. Stifel Nicolaus upped their target price on Medtronic from $80.00 to $95.00 and gave the stock a “hold” rating in a report on Wednesday. Finally, Bank of America increased their price target on Medtronic from $95.00 to $110.00 and gave the company a “buy” rating in a research report on Wednesday. Nineteen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, Medtronic has an average rating of “Moderate Buy” and an average target price of $102.96.

About Medtronic

Medtronic plc is a global medical technology company that develops and manufactures a broad range of therapeutic devices and health care solutions. Headquartered legally in Ireland with principal operational offices in the United States, the company markets products to hospitals, physicians and health systems worldwide and has grown from its founding in 1949 into one of the largest medical-device manufacturers serving global health-care markets.

Medtronic’s offerings span several clinical areas, including cardiac rhythm and heart failure (pacemakers, implantable cardioverter‑defibrillators and related cardiac therapies), minimally invasive and surgical technologies (laparoscopic and advanced energy devices, visualization systems and surgical innovations), restorative therapies (spine and orthopedics, neuromodulation and neurovascular treatments) and diabetes management (insulin-delivery systems and glucose monitoring solutions).