Medtronic (NYSE:MDT) Shares Gap Up After Earnings Beat

Medtronic PLC (NYSE:MDT)’s share price gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $90.65, but opened at $94.00. Medtronic shares last traded at $91.97, with a volume of 3,671,154 shares.

The medical technology company reported $1.45 EPS for the quarter, beating analysts’ consensus estimates of $1.39 by $0.06. The company had revenue of $9.76 billion during the quarter, compared to the consensus estimate of $9.55 billion. Medtronic had a return on equity of 14.51% and a net margin of 13.20%.Medtronic’s revenue was up 13.7% on a year-over-year basis. During the same period last year, the business posted $1.26 earnings per share. Medtronic has set its Q2 2027 guidance at 1.320-1.340 EPS and its FY 2027 guidance at 5.940-6.000 EPS.

Medtronic Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Friday, September 25th will be given a dividend of $0.72 per share. 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 (DPR) is currently 77.21%.

Medtronic News Summary

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic raised its fiscal 2027 guidance, increasing organic revenue growth expectations to 7.25%–7.75% and diluted non-GAAP EPS guidance to $5.94–$6.00. The company cited broad-based demand and strength in newer growth platforms. Medtronic boosts fiscal 2027 forecasts on heart device demand
• Positive Sentiment: Fiscal first-quarter revenue rose 13.7% to $9.756 billion, exceeding the $9.55 billion analyst consensus. Adjusted EPS was $1.45 versus expectations of $1.39, while GAAP net income was $1.47 billion and GAAP EPS was $1.14. Medtronic Q1 Revenue Rises 13.7% to $9.756 Billion, Raises FY27 Guidance
• Positive Sentiment: All major businesses posted strong growth: Cardiovascular revenue increased 19.5%, Neuroscience 10.3%, Medical Surgical 10.0%, and Diabetes 16.9% on a reported basis. Cardiovascular demand was especially strong in complex procedures. Medtronic Lifts Outlook, Invests Over $700 Million in Heart Tech and Robotics
• Positive Sentiment: Medtronic is investing more than $700 million in heart technology and robotics, including a strategic investment in Pi-Cardia to advance complex transcatheter aortic valve replacement procedures. The spending could strengthen longer-term growth but may increase near-term investment costs. Medtronic Announces Strategic Investment in Pi-Cardia
• Neutral Sentiment: An additional fiscal week contributed approximately $570 million to first-quarter organic revenue, creating a comparison benefit investors will need to consider when assessing the underlying growth rate.
• Negative Sentiment: Recent insider activity was entirely selling, with three reported open-market sales and no purchases over the past six months. Institutional positioning was also mixed, with major investors both adding to and reducing their holdings.

Wall Street Analysts Forecast Growth

Several analysts have commented on MDT shares. Needham & Company LLC lifted their price objective on shares of Medtronic from $101.00 to $114.00 and gave the stock a “buy” rating in a research report on Thursday, August 27th. Truist Financial decreased their target price on Medtronic from $95.00 to $86.00 and set a “hold” rating for the company in a research report on Thursday, June 4th. Jefferies Financial Group reaffirmed a “hold” rating and set a $88.00 price target on shares of Medtronic in a research report on Thursday, June 4th. Evercore set a $105.00 price target on Medtronic in a research note on Monday, July 6th. Finally, Piper Sandler restated a “neutral” rating on shares of Medtronic in a research note on Monday, August 10th. Eighteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $99.79.

Insider Activity

In related news, EVP Harry Skip Kiil sold 4,189 shares of the business’s stock in a transaction on Monday, June 8th. The stock was sold at an average price of $80.44, for a total transaction of $336,963.16. Following the sale, the executive vice president directly owned 37,227 shares in the company, valued at approximately $2,994,539.88. The trade was a 10.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.27% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in MDT. Madison Asset Management LLC raised its stake in Medtronic by 15.0% in the fourth quarter. Madison Asset Management LLC now owns 195,216 shares of the medical technology company’s stock valued at $18,752,000 after purchasing an additional 25,527 shares in the last quarter. First Eagle Investment Management LLC grew its stake in Medtronic by 0.4% in the 4th quarter. First Eagle Investment Management LLC now owns 9,775,234 shares of the medical technology company’s stock worth $939,009,000 after buying an additional 40,196 shares in the last quarter. Gradient Investments LLC increased its holdings in shares of Medtronic by 3.9% in the 2nd quarter. Gradient Investments LLC now owns 496,513 shares of the medical technology company’s stock worth $38,842,000 after buying an additional 18,509 shares during the last quarter. Czech National Bank raised its position in shares of Medtronic by 4.7% during the 2nd quarter. Czech National Bank now owns 365,443 shares of the medical technology company’s stock valued at $28,589,000 after buying an additional 16,292 shares in the last quarter. Finally, Cerity Partners LLC raised its position in shares of Medtronic by 12.7% during the 4th quarter. Cerity Partners LLC now owns 791,015 shares of the medical technology company’s stock valued at $75,988,000 after buying an additional 89,111 shares in the last quarter. Hedge funds and other institutional investors own 82.06% of the company’s stock.

Medtronic Price Performance

The company has a current ratio of 2.13, a quick ratio of 1.62 and a debt-to-equity ratio of 0.52. The company has a market capitalization of $117.07 billion, a P/E ratio of 24.57, a P/E/G ratio of 2.45 and a beta of 0.55. The business’s fifty day moving average price is $85.81 and its 200-day moving average price is $85.48.

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).