Core Insights - Medtronic has regained momentum, with its stock price expected to rise, reflecting a bottoming process over several years [2][3] - The stock is projected to rally over the coming quarters and years, supported by modest growth, healthy margins, cash flow, and capital returns [3] - Analysts indicate accumulation trends, with strong Q2 results and guidance affirming strength and capital returns for fiscal year 2026 and beyond [3] Financial Performance - Medtronic's stock price could advance by 20% to 30%, driven by a favorable growth outlook and mid-single-digit growth in fiscal year 2026 [4][5] - The company reported $8.96 billion in net revenue for Q2, marking a 6.6% year-over-year increase, which outpaced consensus expectations [8] - Organic growth was up 5.5%, with the Cardiovascular portfolio growing by 10.8%, and diabetic sales increasing by 10.3% year-over-year [9] Capital Returns - Capital returns are significant, with a reliable dividend yield of 2.95% and a payout ratio of approximately 50%, ensuring sustainability [6] - Medtronic is recognized as a Dividend Aristocrat, having increased dividends for over 40 consecutive years, alongside earnings growth and a healthy balance sheet [7] - Share buybacks are ongoing, expected to continue reducing the share count incrementally each quarter [7]