Global Finance News
03 Jun 2026, 13:57
Medtronic (MDT) rose about 5% after delivering a strong earnings report that exceeded expectations, posted its fastest annual revenue growth in a decade, and issued better-than-expected fiscal 2027 guidance.
The medical device giant reported fourth-quarter revenue of $9.8 billion, up 9.9% year-over-year, while non-GAAP EPS came in at $1.55, ahead of management's guidance. The company benefited from broad-based strength across its portfolio, particularly in cardiovascular devices, diabetes care, and surgical products. One standout was Cardiac Ablation Solutions, where revenue surged 78% globally and 124% in the United States as Medtronic continued gaining market share.
Investors were particularly encouraged by the company's outlook. Medtronic expects fiscal 2027 organic revenue growth of 6.75% to 7.25% and non-GAAP EPS of $5.90 to $6.00, implying earnings growth of roughly 7% to 9%. The guidance suggests management expects its growth momentum to continue despite tariffs and other macroeconomic headwinds.
The company also highlighted several growth drivers, including its Affera cardiac ablation platform, Hugo robotic surgery system, Symplicity renal denervation technology, and Stealth AXiS surgical navigation platform. Recent acquisitions and investments in areas such as coronary intervention, neurovascular devices, neuromodulation, and cardiovascular technologies further reinforced confidence in future growth prospects.
Another positive factor for income-focused investors was Medtronic's announcement of its 49th consecutive annual dividend increase, raising the annual dividend to $2.88 per share. The company generated $7.3 billion of operating cash flow during fiscal 2026 and ended the year with $9.2 billion in cash and investments, highlighting its strong financial position.
Overall, investors appear to be rewarding Medtronic for delivering accelerating revenue growth, strong execution in key product categories, a healthy pipeline of new technologies, and an upbeat outlook for fiscal 2027. The combination of earnings upside, guidance growth, market-share gains, and dividend increases explains the stock's strong move higher following the results.
The medical device giant reported fourth-quarter revenue of $9.8 billion, up 9.9% year-over-year, while non-GAAP EPS came in at $1.55, ahead of management's guidance. The company benefited from broad-based strength across its portfolio, particularly in cardiovascular devices, diabetes care, and surgical products. One standout was Cardiac Ablation Solutions, where revenue surged 78% globally and 124% in the United States as Medtronic continued gaining market share.
Investors were particularly encouraged by the company's outlook. Medtronic expects fiscal 2027 organic revenue growth of 6.75% to 7.25% and non-GAAP EPS of $5.90 to $6.00, implying earnings growth of roughly 7% to 9%. The guidance suggests management expects its growth momentum to continue despite tariffs and other macroeconomic headwinds.
The company also highlighted several growth drivers, including its Affera cardiac ablation platform, Hugo robotic surgery system, Symplicity renal denervation technology, and Stealth AXiS surgical navigation platform. Recent acquisitions and investments in areas such as coronary intervention, neurovascular devices, neuromodulation, and cardiovascular technologies further reinforced confidence in future growth prospects.
Another positive factor for income-focused investors was Medtronic's announcement of its 49th consecutive annual dividend increase, raising the annual dividend to $2.88 per share. The company generated $7.3 billion of operating cash flow during fiscal 2026 and ended the year with $9.2 billion in cash and investments, highlighting its strong financial position.
Overall, investors appear to be rewarding Medtronic for delivering accelerating revenue growth, strong execution in key product categories, a healthy pipeline of new technologies, and an upbeat outlook for fiscal 2027. The combination of earnings upside, guidance growth, market-share gains, and dividend increases explains the stock's strong move higher following the results.
