Medtronic (NYSE:MDT) executives used the company’s latest earnings call to highlight accelerating growth in several product areas, progress on multiple U.S. launches, and reiterated financial guidance for fiscal 2026 while maintaining an outlook for high single-digit adjusted EPS growth in fiscal 2027.
Growth drivers: hypertension, pelvic health, and U.S. surgical robotics
Management emphasized progress beyond cardiac ablation systems (CAS), pointing to two newer platforms it views as long-term growth drivers: Symplicity Spyral for hypertension and Altaviva for urge urinary incontinence.
Medtronic said it recently launched a direct-to-consumer “Go Beyond” campaign in select U.S. markets, which drove a “50x increase” in website visits versus the prior quarter. Later in the Q&A, the company provided specific web traffic figures, saying Symplicity’s direct-to-consumer website rose from “about 50,000” visits in the prior quarter to “2.5 million” visits in the latest quarter. Executives described those metrics as leading indicators that reflect growing patient interest as the company builds referral pathways, supports reimbursement workflows, and trains hospital staff.
Altaviva, described as a tibial neurostimulation device for urge urinary incontinence (a condition the company said affects 16 million people in the U.S.), is being scaled with physician training and consumer outreach. Management highlighted device attributes including no imaging and no sedation, same-day activation, MRI readiness, “up to 15 years” of battery life, and said early physician and patient feedback has been positive.
In surgical robotics, Medtronic said its Hugo robotic-assisted surgery system received FDA clearance for urologic procedures during the quarter, enabling the company to begin its U.S. launch. Management said initial U.S. installations and cases have already occurred, including first cases at Cleveland Clinic, where surgeons cited system differentiation such as flexibility, portability, an open console, and the company’s instrumentation.
Digital ecosystem and pipeline updates
The company also pointed to growth in its Touch Surgery digital ecosystem, describing it as “AI-powered” technology for data, connectivity, and analytics. Medtronic said Touch Surgery installations increased more than 20% sequentially and have surpassed 1,000 systems globally. Executives added that Hugo is being advanced with a fourth-generation software release and continuous system improvements, and that the company plans to expand Hugo into additional U.S. indications such as hernia within general surgery.
Beyond these launches, leadership cited a broad pipeline across categories including carotid stenting, thrombectomy, coronary drug-coated balloons, cardiac rhythm management, and spine surgery.
Neuroscience milestone: Stealth Access clearance for spine
Medtronic highlighted an FDA clearance for its Stealth Access Surgical System for spinal procedures, describing it as a platform that unifies AI-powered planning, robotics, and navigation into one system. Management noted that navigation drives about 70% of U.S. spine procedures and positioned Stealth Access as both a share-gaining platform and a way to lower barriers for surgeons to adopt robotics without disrupting operating room workflow.
The company said it intends to pursue future cranial and ENT indications for Stealth Access. Executives also said the system is expected to begin contributing to neurosurgery and the cranial and spinal technologies (CST) business as soon as the fourth quarter.
Quarterly performance: cardiovascular strength led by CAS, CRM, and peripherals
On business performance, management reported cardiovascular portfolio revenue grew 11% year-over-year, with 13% growth in the U.S. The company described this as the strongest cardiovascular growth in 10 years, excluding COVID-related comparisons. CAS grew 80% year-over-year, and Medtronic said pulsed field ablation (PFA) accounted for 80% of CAS revenue.
Cardiac rhythm management (CRM) grew 5% and represented 15% of total revenue, driven by continued double-digit growth in Micra, mid-teens growth in the 3830 conduction system pacing lead, and “over 70%” growth in Aurora EV-ICD, according to the company. Peripheral vascular health posted high single-digit growth, with strength across endovenous products. Management said it is looking ahead to continued launch activity in neurovascular carotid stents and a full market release of the Liberant mechanical thrombectomy system.
Structural heart grew low single digits, with stronger international performance and share gains in Europe, partially offset by U.S. performance where the company said it faced competitive pressure after annualizing its Evolut FX+ launch.
Neuroscience grew 3%, which management said was below its expectations for the quarter, but it expects pipeline contributions to begin impacting growth in the fourth quarter. In MedSurg, revenue grew 3% ahead of expectations, including 10% growth in endoscopy and 7% growth in acute care and monitoring. Surgical grew 1%, with strength in wound management and hernia but softness in stapling.
MiniMed, the diabetes business, delivered 15% reported and more than 8% organic growth, led by international markets. The company said it saw sequential improvement in the U.S., driven by Simplera Sync and Instinct, which launched in December. Medtronic also said it secured FDA clearances expanding MiniMed 780G indications, made the 780G available through pharmacy with agreements covering “the majority” of commercially insured U.S. lives, submitted MiniMed Flex to the FDA, and began a U.S. pivotal study for Vivera, its third-generation fully closed-loop algorithm. Management said the MiniMed Fit patch pump remains on track for FDA submission “by this fall.”
Financial results and outlook: guidance reiterated; tariffs and mix discussed
For the quarter, Medtronic reported revenue of $9.0 billion, up 8.7% reported and 6% organic, which management said was 50 basis points above guidance. Adjusted gross margin was 64.9%, ahead of expectations, with pricing contributing 30 basis points and foreign exchange adding about 40 basis points. Mix was a negative 100 basis points, primarily due to CAS and diabetes, which management said are in early stages of their respective ramps. Tariffs were cited as a $93 million impact (110 basis points) in the quarter.
Adjusted operating profit was $2.2 billion, with adjusted operating margin of 24.1%, also ahead of expectations. Adjusted EPS was $1.36, described as $0.03 above the midpoint of guidance, driven by stronger-than-expected revenue in CRM and acute care and monitoring, partially offset by a higher-than-forecast adjusted tax rate of 17.3% due to jurisdictional mix.
The company reiterated fiscal 2026 organic revenue growth guidance of approximately 5.5% and said it expects fourth-quarter growth “around 6%” off a stronger prior-year comparison. Medtronic maintained fiscal 2026 adjusted EPS guidance of $5.62 to $5.66 and said it continues to expect high single-digit EPS growth in fiscal 2027.
During Q&A, management discussed several fiscal 2027 factors it is monitoring, including a larger tariff carryover (described as about $75 million per quarter), the presence of a 53rd week in fiscal 2027, temporary dilution between the planned two-step IPO and full separation of the diabetes business (estimated at $0.01 to $0.02 per month in that period), and an assumed $0.04 to $0.05 of M&A-related dilution embedded in its outlook.
About Medtronic (NYSE:MDT)
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).
