Medtronic Beats Q1 Estimates, Raises Fiscal 2027 Outlook and Commits $700M to Cornerstone Robotics

Medtronic reported fiscal first-quarter 2027 results that topped Wall Street expectations on both revenue and earnings, and simultaneously announced a $700 million strategic investment in Cornerstone Robotics to expand its surgical portfolio. The company posted adjusted earnings per share of $1.45, beating the consensus estimate of $1.39, while revenue reached $9.8 billion, up 13.7% year over year and ahead of the $9.55 billion analyst estimate. Shares rose roughly 5% on the news.

Performance was broad-based, with the Cardiovascular Portfolio growing 18.9% organically, led by 29.1% growth in Electrophysiology Therapies. Medtronic noted that the first quarter included an extra selling week, which contributed approximately $570 million to organic growth. Adjusted operating margin expanded 10 basis points to 23.7%.

On the strength of those results, Medtronic raised its fiscal 2027 organic revenue growth guidance to a range of 7.25% to 7.75%, up from its prior outlook of 6.75% to 7.25%. Full-year adjusted EPS guidance was lifted to $5.94 to $6.00, with a midpoint of $5.97 that edges above the prior consensus of $5.95. CEO Geoff Martha cited the breadth of performance across the company's businesses and growing contributions from newer growth platforms as the basis for the raised outlook.

Alongside the earnings report, Medtronic disclosed the $700 million partnership with Cornerstone Robotics, adding robotic surgery capabilities to its portfolio. The company also completed acquisitions of Scientia Vascular and SPR Therapeutics during the quarter.