Medtronic beats Q2 expectations, raises full-year outlook
Investing.com -- Medtronic plc (NYSE:MDT) reported second-quarter fiscal 2026 results that exceeded analyst expectations, with the medical device maker raising its full-year guidance on the strength of its cardiovascular portfolio and other growth drivers.
The company posted adjusted earnings per share of $1.36, beating the analyst consensus of $1.31, while revenue reached $9 billion, surpassing estimates of $8.87 billion. Revenue increased 6.6% as reported and 5.5% on an organic basis compared to the same period last year.
Medtronic’s shares rose 2.1% following the announcement, despite the company’s strong performance and raised outlook.
The company’s Cardiovascular Portfolio led growth with a 10.8% revenue increase as reported, driven by a 71% surge in Cardiac Ablation Solutions revenue, including 128% growth in the U.S. on the strength of its pulsed field ablation portfolio. The company noted this represented its strongest Cardiovascular revenue growth in over a decade, excluding pandemic periods.
"We delivered a strong second quarter, with both revenue and EPS beating expectations," said Geoff Martha, Medtronic chairman and chief executive officer. "Overall, procedure volumes and our end markets are robust, and we’re executing well across the business."
Based on its first-half performance, Medtronic raised its fiscal 2026 organic revenue growth guidance to approximately 5.5%, up from its previous forecast of 5.0%. The company also increased its full-year adjusted EPS guidance to a range of $5.62 to $5.66, compared to the prior range of $5.60 to $5.66, which is in line with the analyst consensus of $5.62.
The Diabetes business showed strong momentum with revenue increasing 10.3% as reported and 7.1% organically. The Neuroscience Portfolio grew 4.5% as reported, while the Medical Surgical Portfolio increased 2.1%.
Medtronic also highlighted recent regulatory wins, including favorable coverage determinations for its Symplicity procedure for uncontrolled hypertension and FDA approval for its Altaviva device for urge urinary incontinence.
