Medtronic Beats Q1 FY2027 Estimates, Raises Full-Year Guidance and Commits $780M to Robotics and Heart Tech

Medtronic posted fiscal first-quarter 2027 revenue of $9.76 billion, up 13.7% year over year and ahead of the $9.54 billion analyst consensus, while adjusted earnings per share of $1.45 beat the $1.39 estimate by $0.06 and rose 15.1% from the prior-year period. GAAP net income attributable to Medtronic climbed to $1.47 billion, or $1.14 per share, from $1.04 billion, or $0.81 per share, a year earlier. The company noted that the quarter included an extra fiscal selling week, which contributed approximately $570 million to organic revenue growth. Shares gained roughly 4 to 5 percent on the session, even as the broader Dow Jones index fell more than 300 points.

Growth was broad across all four segments. The Cardiovascular portfolio led with $3.9 billion in revenue, up 19.5% year over year, driven by Cardiac Ablation Solutions which surged 88% organically and Electrophysiology Therapies which grew 29.1%. Neuroscience contributed $2.7 billion, up 10.3%, Medical Surgical added $2.3 billion, up 10.0%, and Diabetes generated $843 million, up 16.9%. Non-GAAP operating margin expanded 10 basis points to 23.7%, while GAAP operating margin widened 120 basis points to 18.1%, and free cash flow reached $1.3 billion.

Medtronic raised its fiscal 2027 organic revenue growth outlook to a range of 7.25% to 7.75%, up from the prior 6.75% to 7.25%, and set adjusted revenue guidance at approximately $38.9 billion to $39.2 billion. Adjusted EPS guidance was tightened to $5.94 to $6.00, compared with the previous range of $5.90 to $6.00, roughly in line with the $5.95 to $5.96 street estimate. TD Cowen reiterated its Buy rating on the stock following the results.

Alongside earnings, Medtronic announced a $700 million strategic partnership with Cornerstone Robotics, securing rights to distribute the Sentire surgical robot in select markets outside the United States alongside its existing Hugo robotic system. The company said it expects Hugo procedures to exceed 50,000 globally by fiscal year-end. Medtronic also disclosed a separate investment of up to $80 million in Israel-based Pi-Cardia to accelerate innovation in complex transcatheter aortic valve replacement. Additional portfolio moves included the closing of the Scientia Vascular and SPR Therapeutics acquisitions, the expansion of the Affera CE Mark to ventricular arrhythmias, and FDA clearance of its next-generation Touch Surgery Aide platform. The diabetes spinoff MiniMed also surged following the results.