Medtronic Raises Fiscal 2027 Guidance on 13.7% Revenue Growth

Medtronic plc (MDT ) on September 1, 2026, reported financial results for the first quarter of fiscal year 2027, which ended July 31, 2026, posting worldwide revenue of $9.756 billion, an increase of 13.7% as reported and 13.7% on an organic basis. The company said the organic result came in roughly 200 basis points above the midpoint of its guidance, and it raised its full-year fiscal 2027 organic revenue growth and non-GAAP diluted earnings per share guidance.

GAAP diluted EPS was $1.14, up 40.7% from $0.81 in the prior-year quarter, while non-GAAP diluted EPS was $1.45, an increase of 15.1% that the company described as ahead of guidance. GAAP net income attributable to Medtronic was $1.470 billion, up 41.4%, and non-GAAP net income was $1.860 billion, up 14.4%. GAAP operating profit was $1.764 billion with an operating margin of 18.1%, increases of 22.1% and 120 basis points, respectively. Non-GAAP operating profit was $2.316 billion with a margin of 23.7%, increases of 14.9% and 10 basis points.

Fiscal 2027 is a 53-week fiscal year for Medtronic, with the extra week occurring in the first fiscal month of the first quarter and included in reported results. The company estimates the extra week benefited first-quarter organic growth by approximately $570 million. The organic comparison excludes Other revenue of $29 million in the current year versus $72 million in the prior year, revenue from the divested Dutch Obesity Clinic business with no revenue in the current year and $17 million in the prior year, Scientia Vascular revenue of $14 million following its June 12 close, SPR Therapeutics revenue of $5 million following its July 16 close, and a foreign exchange benefit of $57 million on the remaining net sales.

Portfolio Performance

The Cardiovascular Portfolio generated revenue of $3.927 billion, up 19.5% as reported and 18.9% organic. Medtronic reported a high-20s organic increase in Electrophysiology Therapies, high-single digit increases in Interventional Cardiology Therapies and CardioVascular Surgery, and a low-double digit increase in Peripheral Vascular Health. The company highlighted 15% growth in Cardiac Rhythm Management and 88% growth in Cardiac Ablation Solutions.

The Neuroscience Portfolio reported revenue of $2.678 billion, up 10.3% as reported and 9.3% organic, with a low-double digit organic increase in Cranial and Spinal Technologies, a high-single digit increase in Specialty Therapies, and a low-single digit increase in Neuromodulation. Medtronic cited 13% growth in Cranial and Spinal Technologies, including low-20s growth in enabling technology, and said its Altaviva product meaningfully contributed to 15% growth in Pelvic Health.

The Medical Surgical Portfolio posted revenue of $2.279 billion, up 10.0% as reported and 10.2% organic, with a high-single digit organic increase in Surgical and Endoscopy and a mid-teens increase in Acute Care and Monitoring. The Diabetes business reported revenue of $843 million, up 16.9% as reported and 14.9% organic. Medtronic noted that its Diabetes figures may not correspond to financial information presented by MiniMed Group, Inc. (MMED ), whose financials were prepared on a carve-out basis through its initial public offering and on a standalone basis after the IPO.

U.S. revenue was $4.906 billion, up 16.1% as reported, and international revenue was $4.850 billion, up 11.4% as reported.

Raised Guidance and Cash Flow

Medtronic raised its fiscal 2027 organic revenue growth guidance to a range of 7.25% to 7.75%, up from prior guidance of 6.75% to 7.25%, and raised its fiscal 2027 diluted non-GAAP EPS guidance to a new range of $5.94 to $6.00 from the prior $5.90 to $6.00. The guidance includes an estimated neutral to 1% accretive impact from foreign currency exchange based on recent rates.

“The combination of strong operating performance and disciplined financial management drove revenue and adjusted EPS ahead of expectations, enabling us to raise our fiscal 2027 guidance,” said Thierry Piéton, Medtronic chief financial officer.

“We are off to a strong start in fiscal 2027. What gives us confidence is not simply the strength of the quarter, but importantly, the breadth of performance across our businesses and the increasing contributions from newer growth platforms,” said Geoff Martha, Medtronic chairman and chief executive officer.

Net cash provided by operating activities was $1.793 billion, compared with $1.088 billion in the prior-year quarter. Free cash flow, which the company defines as operating cash flow less additions to property, plant, and equipment, was $1.290 billion versus $584 million a year earlier. Medtronic paid $921 million in dividends to shareholders, repurchased $267 million of ordinary shares, and spent $1.162 billion on acquisitions, net of cash acquired.

During the quarter, Medtronic completed the acquisitions of Scientia Vascular and SPR Therapeutics, Inc., and announced a strategic investment in Pi-Cardia, a company it described as a pioneer in leaflet modification technology. It announced an expanded CE Mark indication for the Affera Mapping and Ablation System and Sphere-9 Catheter for the treatment of ventricular arrhythmias, FDA clearance for the Touch Surgery Aide next-generation computing platform, and a strategic partnership with Cornerstone Robotics to expand global access to robotic-assisted surgery.

Medtronic also stated that the separation of its Diabetes business is expected to be completed through a series of capital markets transactions, which may include a spin-off, split-off, offering, or a combination thereof. The company said a split-off is its current preferred separation structure, though a final decision has not been reached.

Medtronic hosted a video webcast on September 1 at 7:45 a.m. EST, and said a replay and transcript of prepared remarks would be available within 24 hours on its investor relations site.