Financial Performance - Medtronic reported Q1 FY26 revenue of $8.539 billion, a 6.7% increase compared to Q1 FY25, with organic revenue growth of 4.8%[24] - Adjusted diluted EPS was $1.26, a 2.4% increase year-over-year[24] - The company is raising FY26 EPS guidance and expects high-single digit EPS growth in FY27[15, 58] Segment Performance - Cardiovascular segment revenue reached $3.285 billion, with 7.0% organic growth[21, 40] - Cardiac Ablation Solutions experienced nearly 50% global growth, including over 70% US growth[15, 32, 39] - Neuroscience segment revenue was $2.416 billion, with 3.1% organic growth[21, 45] - Medical Surgical segment revenue totaled $2.083 billion, with 2.4% organic growth[21, 50] - Diabetes segment revenue was $721 million, with 7.9% organic growth[21, 55] Strategic Initiatives - Medtronic is executing strategic portfolio management, including Diabetes separation within 15 months[15, 55] - The company anticipates a net FY26 tariff impact of approximately $185 million, a decrease from the previous estimate of $200-350 million[15] Future Outlook - Medtronic expects revenue growth to accelerate in the second half of the fiscal year due to significant product launches[14, 31] - Cardiac Ablation Solutions is expected to grow even faster in Q2 and H2 due to PFA supply expansion[15]

Core Insights - Medtronic plc reported its first quarter fiscal 2026 financial results, achieving mid-single digit organic revenue growth for the 11th consecutive quarter, with expectations to accelerate growth in the second half of the fiscal year [1][2][3] Financial Performance - The company reported worldwide revenue of $8.578 billion, an increase of 8.4% as reported and 4.8% on an organic basis [3][4] - GAAP operating profit was $1.445 billion with an operating margin of 16.8%, reflecting a 13% increase and a 70 basis point improvement [3][4] - Non-GAAP operating profit was $2.016 billion with a margin of 23.6%, showing a 3% increase but an 80 basis point decrease [3][4] Earnings and Guidance - GAAP net income was $1.040 billion, with diluted earnings per share (EPS) at $0.81, remaining flat, while non-GAAP diluted EPS increased by 2% to $1.26 [4][8] - The company raised its FY26 EPS guidance to a range of $5.60 to $5.66, up from the previous range of $5.50 to $5.60, and reiterated its organic revenue growth guidance of approximately 5% [7][8][9] Segment Performance - Cardiac Ablation Solutions revenue surged nearly 50%, with a 72% increase in the U.S. driven by pulsed field ablation products [4][5] - The Cardiovascular Portfolio generated $3.285 billion in revenue, a 9.3% increase as reported and 7.0% organic [5][19] - The Diabetes business reported revenue of $721 million, an increase of 11.5% as reported and 7.9% organic [5][19] International and U.S. Revenue - International revenue reached $4.354 billion, a 13.6% increase, while U.S. revenue was $4.224 billion, reflecting a 3.5% increase [22][19] - The Cardiovascular segment in the international market grew by 12.6%, with notable increases in Cardiac Rhythm & Heart Failure and Structural Heart & Aortic categories [22][19] Operational Efficiency - The company is focused on improving efficiencies in manufacturing, supply chain, and operating expenses to drive earnings growth while increasing investments in R&D, sales, and marketing [9][8]