Medtronic Reaffirms 2026 Outlook As Heart and Diabetes Units Drive Growth

Core Insights - Medtronic reported adjusted earnings of $1.36 per share, surpassing expectations of $1.33 [1] Segment Performance - Neuroscience Portfolio revenue reached $2.558 billion, reflecting a 4.1% increase reported and 2.5% organic growth, with mid-single digit increases in Neuromodulation and Cranial & Spinal Technologies, while Specialty Therapies remained flat on an organic basis [2] - Medical Surgical Portfolio revenue was $2.173 billion, marking a 4.9% increase as reported and 2.7% organic growth, driven by low-single digit growth in Surgical & Endoscopy and high-single digit growth in Acute Care & Monitoring on an organic basis [2] - Diabetes business revenue amounted to $796 million, showing a significant increase of 14.8% reported and 8.3% organic growth [2] Financial Outlook - Medtronic reiterated its fiscal 2026 organic revenue growth target of approximately 5.5% and adjusted earnings per share guidance of $5.62 to $5.66, which includes a potential tariff impact of about $185 million [4] - Excluding the tariff impact, the guidance indicates an adjusted EPS growth of approximately 4.5% for fiscal 2026 [4] Strategic Initiatives - The company emphasized its commitment to investing in R&D to enhance its innovation pipeline and executed two key transactions in the quarter as part of its M&A and venture strategy [5] - Medtronic announced its decision to acquire CathWorks, a privately held medical device company in Israel, with the acquisition valued at up to $585 million, including potential undisclosed earn-out payments [6]