Market Overview - Futures are trading higher after a sluggish start to the holiday-shortened trading week, with all major indices ending the day modestly higher [2] - The Nasdaq closed at 22,578, up 0.14%, marking its fifth consecutive week of decline prior to this [2] - The Dow Jones closed at 49,533, up 0.07%, and the S&P 500 closed at 6,843, up 0.10%, while the small-cap Russell 2000 closed down 0.11% at 2,646 [2] Treasury Bonds - Yields on Treasury bonds were slightly higher as sellers took profits after a solid move higher last week [3] - The 30-year bond closed at 4.69%, and the benchmark 10-year note was last seen at 4.06% [3] Oil and Gas - Oil prices decreased after a rise the previous week, with Brent Crude finishing at $67.32, down 1.94%, and West Texas Intermediate at $62.23, down 1.05% [4] - Natural gas prices fell significantly, closing down 6.2% at $3.04 [4] Precious Metals - Gold and Silver experienced declines due to profit-taking and short selling, with Gold recorded at $4,876, down 2.31%, and Silver at $73.36, down 4.16% [5] Earnings and Economic Data - The focus will shift towards economic data as fourth-quarter earnings wrap up with Walmart's report on Thursday [6] - Despite solid earnings for the quarter, ongoing market issues persist, with some analysts suggesting a 10%-15% correction would be beneficial [6]

Medtronic has reported total revenue of $9bn in Q3 of fiscal year 2026 (FY26), led by the strongest growth the company has recorded in its cardiovascular portfolio in the past decade. With revenue for the quarter indicative of a year-over-year (YoY) rise of 8.7%, Medtronic has reiterated FY26 revenue growth on an organic basis of approximately 5.5%, with earnings anticipated to fall in the $5.62-$5.66 range. In a research note, William Blair analyst Brandon Vasquez highlighted that fiscal third-quarter ...

Core Viewpoint - Medtronic plc reported fiscal third-quarter 2026 results that exceeded analyst expectations, although shares experienced a decline of over 2% intra-day following the release [1] Financial Performance - The company generated revenue of $9.0 billion, reflecting an 8.7% increase on a reported basis and 6.0% organic growth year over year, surpassing the consensus estimate of $8.89 billion [2] - Adjusted earnings per share were reported at $1.36, slightly above expectations of $1.34 [2] - The quarter marked the strongest enterprise revenue growth for the company in 10 quarters [2] Segment Performance - The Cardiovascular Portfolio led the performance with revenue climbing 13.8% as reported and 10.6% organically to $3.46 billion, with Cardiac Ablation Solutions showing particularly strong results, including an 80% increase in global revenue and a 137% surge in U.S. revenue [3] - Other segments also reported gains: the Neuroscience Portfolio increased 4.1% to $2.56 billion, the Medical Surgical Portfolio rose 4.9% to $2.17 billion, and the Diabetes segment grew 14.8% to $796 million [4] Outlook - Medtronic reaffirmed its fiscal 2026 outlook, maintaining expectations for approximately 5.5% organic revenue growth and adjusted EPS between $5.62 and $5.66, which includes a potential $185 million headwind from tariffs [4]

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]

Core Insights - Medtronic plc (MDT) reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of $1.36, a decrease of 2.2% year-over-year, but exceeded the Zacks Consensus Estimate by 2.07% [1] - The company achieved worldwide revenues of $9.02 billion, reflecting an 8.7% increase year-over-year and surpassing the Zacks Consensus Estimate by 1.35% [2] Revenue Breakdown - MDT's revenues are categorized into four segments: Cardiovascular, Medical Surgical, Neuroscience, and Diabetes - Cardiovascular revenues grew 10.6% organically to $3.46 billion, with Cardiac Rhythm & Heart Failure sales reaching $1.86 billion, up 17% year-over-year [3][4] - Medical Surgical sales totaled $2.17 billion, up 2.7% year-over-year, with Acute Care & Monitoring revenues increasing by 7% to $519 million [5] - Neuroscience revenues were $2.56 billion, up 2.5% year-over-year, while Diabetes revenues rose 8.3% organically to $796 million [6] Margin Performance - The gross margin contracted by 265 basis points to 63.8%, attributed to a 17.3% increase in the cost of products sold [7] - Research and development expenses rose 7% year-over-year to $722 million, and selling, general, and administrative expenses increased by 8.8% to $2.96 billion [7] - The adjusted operating margin fell by 253 basis points year-over-year to 23% [7] Fiscal Outlook - For fiscal 2026, Medtronic projects organic revenue growth of 5.5%, with the Zacks Consensus Estimate for worldwide revenues at $36.04 billion [8] - The full-year adjusted EPS is expected to be in the range of $5.62-$5.66, consistent with the Zacks Consensus Estimate of $5.64 [10] Strategic Developments - During the quarter, Medtronic received CE Mark for Sphere-360 and FDA clearance for Hugo robotic-assisted surgery [12] - The company executed its M&A strategy with two key transactions involving CathWorks and Anteris [12] Stock Performance - Following the earnings announcement, MDT shares rose by 2.9% in premarket trading [2] - The overall performance indicates strength in the portfolio, with organic revenue growth exceeding company guidance [11]

Core Insights - Medtronic reported $9.02 billion in revenue for the quarter ended January 2026, marking an 8.7% year-over-year increase and a surprise of +1.35% over the Zacks Consensus Estimate of $8.9 billion [1] - The earnings per share (EPS) for the same period was $1.36, slightly down from $1.39 a year ago, with an EPS surprise of +2.07% compared to the consensus estimate of $1.33 [1] Revenue Breakdown - U.S. Revenue: $4.49 billion, a 6% year-over-year increase, but below the average estimate of $4.59 billion [4] - International Revenue: $4.52 billion, exceeding the average estimate of $4.3 billion [4] - Cardiovascular Revenue: $3.46 billion, a 13.8% year-over-year increase, surpassing the average estimate of $3.39 billion [4] - Neuroscience Revenue: $2.56 billion, a 4.1% year-over-year increase, slightly below the average estimate of $2.58 billion [4] - Medical Surgical Revenue: $2.17 billion, a 4.9% year-over-year increase, exceeding the average estimate of $2.14 billion [4] - Diabetes Revenue: $796 million, a 14.7% year-over-year increase, surpassing the average estimate of $773.73 million [4] - Cardiac Rhythm & Heart Failure Revenue: $1.86 billion, a significant 20.1% year-over-year increase, exceeding the average estimate of $1.8 billion [4] Stock Performance - Medtronic shares have returned +2.8% over the past month, contrasting with a -1.4% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Medtronic Just Posted Its Best Quarter in 2.5 Years - 24/7 Wall St.[S&P 5006,801.40 -0.57%][Dow Jones49,305.60 -0.48%][Nasdaq 10024,498.60 -0.73%][Russell 20002,624.86 -0.54%][FTSE 10010,519.70 +0.48%][Nikkei 22556,668.00 -0.19%][Stock Market Live February 17, 2026: S&P 500 (ETF) Fighting to Go Green Again][Investing]# Medtronic Just Posted Its Best Quarter in 2.5 Years### Quick ReadMedtronic (MDT) delivered its strongest revenue growth in 10 quarters and beat Wall Street on revenue and earnings.Medtronic's ...

Financial Data and Key Metrics Changes - The company reported revenue of $9 billion, reflecting an 8.7% increase year-over-year and a 6% organic growth, which is a 50 basis point acceleration from the previous quarter [18][19] - Adjusted gross margin was 64.9%, ahead of expectations, with a 30 basis point benefit from pricing [19][20] - Adjusted operating profit was $2.2 billion, resulting in an adjusted operating margin of 24.1%, also ahead of expectations [21] Business Line Data and Key Metrics Changes - The cardiovascular portfolio delivered 11% year-over-year revenue growth, with 13% growth in the U.S., marking the strongest growth in the last 10 years, excluding COVID comparisons [12] - Cardiac rhythm management (CRM) contributed 15% of total revenue and grew 5%, driven by double-digit growth in Micra and over 70% growth in Aurora EV-ICD [12][13] - The neuroscience portfolio grew 3%, with expectations for the pipeline to impact growth in the fourth quarter [14][15] Market Data and Key Metrics Changes - U.S. growth was 6% year-over-year, the strongest performance since fiscal year 2019, excluding COVID comparisons [19] - In China, low single-digit growth was reported while navigating volume-based procurement challenges [19] - Western Europe experienced high single-digit growth, contributing to balanced geographical performance [19] Company Strategy and Development Direction - The company is focused on expanding its innovation pipeline, particularly in high-growth areas such as hypertension treatment with Symplicity and urinary incontinence with Altaviva [2][3] - The launch of the Hugo robotic system is seen as a significant growth driver, with initial installations and positive feedback from early cases [5][6] - The company is committed to M&A strategies, focusing on tuck-in deals that align with existing business segments [59][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining revenue and earnings growth, highlighting strong contributors like CAS and CRM [10][24] - The company anticipates continued growth from new product launches and market expansions, particularly in the U.S. [10][39] - There is an expectation for high single-digit EPS growth in fiscal year 2027, despite some headwinds from tariffs and M&A activities [24][68] Other Important Information - The planned separation of the MiniMed diabetes business is on track, with expectations for completion by the end of calendar year 2026 [18] - The company is investing in R&D and marketing to support growth areas, particularly in renal denervation and Altaviva [66] Q&A Session Summary Question: Comments on accelerating revenue growth next year and high single-digit earnings growth - Management indicated that growth will continue, driven by strong performance in CAS and other growth drivers like Symplicity and Altaviva [30][39] Question: Monitoring progress for RDN and Altaviva - Management mentioned strong leading indicators, including training of over 500 physicians and opening of new accounts for RDN [43] Question: Thoughts on capital allocation and M&A strategy - The company is focused on tuck-in M&A opportunities that align with existing business segments, prioritizing high-growth areas [59][60] Question: Impact of Hugo on surgical business growth - Management expressed excitement about the Hugo system's potential, noting positive feedback from initial cases and strong leading indicators [87]

Medtronic (NYSE:MDT) Q3 2026 Earnings call February 17, 2026 08:00 AM ET Company ParticipantsGeoff Martha - Chairman and CEOIngrid Goldberg - VP and Head of Investor RelationsThierry Piéton - EVP and CFOConference Call ParticipantsChris Pasquale - Equity Research AnalystChris Pasquale - Partner and Senior Analyst of Medical Devices and SuppliesDanielle Antalffy - Equity Research Analyst of Medical Devices and SuppliesJoanne Wuensch - Managing Director and Senior Equity Research Analyst of Medical Technology ...

Financial Data and Key Metrics Changes - The company reported revenue of $9 billion, growing 8.7% reported and 6% organic, which is a 50 basis point acceleration from the prior quarter and 50 basis points above guidance [15][18] - Adjusted gross margin was 64.9%, ahead of expectations, with a 30 basis point benefit from pricing and a negative 100 basis points impact from mix [16][17] - Adjusted operating profit was $2.2 billion, resulting in an adjusted operating margin of 24.1%, also ahead of expectations [18] Business Line Data and Key Metrics Changes - The cardiovascular portfolio delivered 11% year-over-year revenue growth, with CAS growing 80% year-over-year, primarily driven by PFA [10][11] - Cardiac rhythm management (CRM) contributed 15% of total revenue and grew 5%, driven by double-digit growth in Micro and over 70% growth in Aurora EV-ICD [10] - Neuroscience portfolio grew 3%, with cranial and spinal technologies delivering mid-single-digit growth [11][12] - The diabetes business, MiniMed, delivered 15% reported and over 8% organic growth, led by strong performance in international markets [14] Market Data and Key Metrics Changes - U.S. growth was 6% year-over-year, the strongest performance since fiscal year 2019, excluding COVID comparisons [16] - In China, low single-digit growth was reported, with mid-single-digit growth excluding volume-based procurement impacts [16] Company Strategy and Development Direction - The company is focused on driving sustained innovation across its portfolio, with significant investments in R&D and M&A to capitalize on high-growth opportunities [5][22] - The launch of Hugo and the expansion of Symplicity and UltraViva are key growth drivers, with expectations for these products to significantly impact revenue in the coming quarters [8][9] - The company is committed to a two-step IPO and split for the MiniMed business, expected to be completed by the end of calendar year 2026 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, highlighting strong contributors and businesses positioned for meaningful growth [8][22] - The company anticipates continued growth in the cardiovascular market, with expectations for high teens growth in fiscal 2027 [50] - Management acknowledged challenges in certain segments but emphasized plans to strengthen competitiveness and improve growth trajectories [9][22] Other Important Information - The company is actively pursuing M&A opportunities, focusing on tuck-in deals that align with its strategic goals [59] - The impact of tariffs on gross margin is expected to be approximately $185 million, with ongoing efforts to mitigate these effects [19][21] Q&A Session Summary Question: Comments on accelerating revenue growth next year - Management highlighted strong growth in CAS and other key drivers like Symplicity and UltraViva, expecting continued growth into FY 2027 [26][28] Question: Clarification on product launch progress for RDN and UltraViva - Management noted strong leading indicators for both products, including physician training and account openings, with plans to provide more concrete goalposts in the future [41][42] Question: Thoughts on capital allocation and M&A strategy - Management confirmed a focus on tuck-in M&A opportunities and strategic investments in high-growth areas, emphasizing a balanced approach to capital allocation [58][59] Question: Insights on CAS growth and market dynamics - Management expressed confidence in sustaining CAS growth, anticipating continued strong performance in the cardiovascular market [50][52] Question: Guidance for fiscal 2027 and EPS growth - Management reiterated high single-digit EPS growth guidance for FY 2027, factoring in various headwinds and growth drivers [66][69]