Medtronic (NYSE:MDT) Posts Earnings Results, Beats Expectations By $0.06 EPS

Medtronic (NYSE:MDT) announced its quarterly earnings results on Tuesday. The medical technology company reported $1.45 earnings per share for the quarter, beating the consensus estimate of $1.39 by $0.06, FiscalAI reports. The company had revenue of $9.76 billion during the quarter, compared to the consensus estimate of $9.55 billion. Medtronic had a net margin of 13.20% and a return on equity of 14.51%. The firm’s quarterly revenue was up 13.7% compared to the same quarter last year. During the same quarter last year, the firm earned $1.26 earnings per share. Medtronic updated its Q2 2027 guidance to 1.320-1.340 EPS and its FY 2027 guidance to 5.940-6.000 EPS.

Here are the key takeaways from Medtronic’s conference call:

• Strong Q1 performance: Revenue reached $9.8 billion, with organic growth of 13.7% and adjusted EPS of $1.45, both ahead of expectations. Management cited broad-based demand and execution across CRM, Cranial & Spinal Technologies, and Surgical.
• Growth platforms continued to gain traction. Cardiac Ablation Solutions grew 88%, its U.S. Affera installed base increased more than 35% sequentially, Altaviva procedures doubled sequentially, and Hugo robotics procedures are expected to exceed 50,000 by fiscal year-end.
• Medtronic raised fiscal 2027 organic revenue growth guidance by 50 basis points to 7.25%–7.75% and increased adjusted EPS guidance to $5.94–$6.00. The company still expects operating profit growth of approximately 10% and operating-margin expansion of about 50 basis points.
• The quarter benefited from an extra selling week, contributing approximately $570 million, or 670 basis points, to organic revenue growth. Management expects second-quarter organic growth of roughly 6% and warned that Acute Care and Monitoring growth should normalize during the year.
• Investments in growth initiatives, including the $700 million Cornerstone Robotics investment, will create foregone interest expense and limit near-term margin upside. The planned MiniMed separation remains on track before fiscal year-end, but its timing is still dependent on achieving optimal economics for stakeholders.

Medtronic Trading Up 1.4%

Shares of Medtronic stock opened at $91.92 on Wednesday. The company has a debt-to-equity ratio of 0.52, a current ratio of 2.13 and a quick ratio of 1.62. The stock has a market capitalization of $117.66 billion, a PE ratio of 24.64, a P/E/G ratio of 2.43 and a beta of 0.56. Medtronic has a 1-year low of $73.31 and a 1-year high of $106.33. The company’s fifty day simple moving average is $86.03 and its 200-day simple moving average is $85.42.

Medtronic Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 16th. Shareholders of record on Friday, September 25th will be given a $0.72 dividend. The ex-dividend date is Friday, September 25th. This represents a $2.88 annualized dividend and a yield of 3.1%. Medtronic’s dividend payout ratio (DPR) is presently 77.21%.

Analyst Upgrades and Downgrades

Several brokerages have commented on MDT. Mizuho cut their target price on Medtronic from $120.00 to $100.00 and set an “outperform” rating on the stock in a research note on Wednesday, June 3rd. Bank of America reaffirmed a “buy” rating on shares of Medtronic in a research report on Wednesday. Royal Bank Of Canada reissued an “outperform” rating and issued a $118.00 target price on shares of Medtronic in a research report on Thursday, June 4th. Weiss Ratings restated a “hold (c)” rating on shares of Medtronic in a research note on Tuesday, August 18th. Finally, Truist Financial dropped their price target on shares of Medtronic from $95.00 to $86.00 and set a “hold” rating on the stock in a report on Thursday, June 4th. Nineteen equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, Medtronic presently has an average rating of “Moderate Buy” and an average target price of $100.17.

Key Stories Impacting Medtronic

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Q1 results exceeded expectations. Medtronic reported adjusted EPS of $1.45 versus the $1.39 consensus estimate, while revenue rose 13.7% year over year to $9.76 billion, topping estimates of approximately $9.55 billion. Growth was broad-based, led by cardiovascular revenue of $3.93 billion, up nearly 19% organically. Medtronic fiscal first-quarter results
• Positive Sentiment: Full-year guidance was raised. Medtronic increased fiscal 2027 organic revenue-growth guidance to 7.25%-7.75% and adjusted EPS guidance to $5.94-$6.00, with management citing strong demand for cardiovascular devices, newer growth platforms and improved margins. Medtronic raises fiscal 2027 forecast
• Positive Sentiment: Robotics expansion strengthens Medtronic’s growth strategy. The company plans to invest approximately $700 million in Hong Kong-based Cornerstone Robotics and obtain rights to distribute its Sentire surgical system in select approved markets outside the U.S. The system will complement Medtronic’s Hugo robotic platform, broadening its minimally invasive surgery offering. Medtronic Cornerstone Robotics partnership
• Positive Sentiment: Additional structural-heart investment supports future products. Medtronic will invest up to $80 million in Pi-Cardia, securing an option to strengthen its technology portfolio for complex transcatheter aortic valve replacement procedures. Analysts at William Blair reiterated a Buy rating, while BTIG raised its price target from $91 to $100.
• Neutral Sentiment: Second-quarter fiscal 2027 EPS guidance of $1.32-$1.34 was slightly below the $1.35 consensus, although full-year guidance remained broadly in line with expectations after the increase.
• Neutral Sentiment: The quarter benefited from an additional fiscal week, which contributed approximately $570 million to organic revenue, creating a comparison factor investors may monitor in coming periods.

Insider Buying and Selling

In related news, EVP Harry Skip Kiil sold 4,189 shares of Medtronic 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 transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.27% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in MDT. Quadrant Capital Group LLC grew its stake in shares of Medtronic by 0.3% during the 4th quarter. Quadrant Capital Group LLC now owns 32,477 shares of the medical technology company’s stock valued at $3,120,000 after acquiring an additional 101 shares during the period. Rossby Financial LCC increased its holdings in Medtronic by 5.1% in the 4th quarter. Rossby Financial LCC now owns 2,193 shares of the medical technology company’s stock worth $211,000 after acquiring an additional 107 shares in the last quarter. Wealthspire Retirement LLC increased its holdings in Medtronic by 5.0% in the 4th quarter. Wealthspire Retirement LLC now owns 2,410 shares of the medical technology company’s stock worth $232,000 after acquiring an additional 114 shares in the last quarter. Mitchell Mcleod Pugh & Williams Inc. raised its stake in Medtronic by 2.0% during the 4th quarter. Mitchell Mcleod Pugh & Williams Inc. now owns 6,043 shares of the medical technology company’s stock worth $622,000 after acquiring an additional 117 shares during the period. Finally, Florida Financial Advisors LLC raised its stake in Medtronic by 4.8% during the 2nd quarter. Florida Financial Advisors LLC now owns 2,683 shares of the medical technology company’s stock worth $234,000 after acquiring an additional 122 shares during the period. Institutional investors own 82.06% of the company’s stock.

Medtronic Company Profile

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).