Medtronic: Revenue Reached $9.8 Billion, and the Company Is Raising Its Outlook

Medtronic kicked off fiscal year 2027 with results that caught investors’ attention and suggested that something significant may be unfolding in the healthcare sector. The company also revised its full-year outlook, but the true picture of its performance will only become clear once the details of individual segments and the impact of calendar factors are revealed. [1]

About the company

Medtronic plc is a global medical technology company headquartered in Galway, Ireland. It was founded in 1949 in Minneapolis by Earl Bakken and Palmer Hermundslie and originally focused on repairing medical electronics. Over the course of more than 75 years, Medtronic has grown to become one of the world’s largest medical technology companies. Today, it employs more than 95,000 people and operates in more than 150 countries. The company’s technologies and therapies are used to treat more than 70 medical conditions and include cardiac devices, insulin pumps, surgical technologies, robotic systems, and patient monitoring devices. In fiscal year 2026, Medtronic generated revenue of approximately $36.4 billion, and its technologies touch the lives of tens of millions of patients worldwide every year.[1][2]

Results exceeded market expectations

Medtronic kicked off fiscal year 2027 with results that exceeded analysts’ expectations for both revenue and earnings. The company reported first-quarter revenue of $9.756 billion, representing year-over-year growth of 13.7%. Prior to the earnings release, analysts had expected revenue of approximately $9.55 billion, meaning Medtronic beat the market consensus by more than $200 million and by approximately 2.2%. Adjusted earnings per share reached $1.45, compared to expectations of $1.39, meaning the company beat estimates by approximately 4.3%. GAAP earnings per share also rose 40.7% year-over-year to $1.14. When evaluating revenue growth, however, it is important to consider that fiscal year 2027 has 53 weeks, with the additional week falling in the first quarter. Management estimates that this factor increased quarterly revenue by approximately $570 million. Even after accounting for this benefit, the company stated that organic revenue growth came in about 200 basis points above the midpoint of the company’s original outlook.[3]

The cardiovascular business became the main driver of growth

The cardiovascular portfolio made the largest contribution to growth, with revenue reaching $3.927 billion and growing organically by 18.9% year-over-year. Electrophysiology technologies posted exceptionally strong performance, with organic growth reaching 29.1%; the Cardiac Ablation Solutions business alone grew by 88%, according to the company. However, other major segments also performed well. Neuroscience generated revenue of $2.678 billion and organic growth of 9.3%, while Medical Surgical increased revenue to $2.279 billion with organic growth of 10.2%. Diabetes generated an additional $843 million and grew organically by 14.9%. Strong performance was also evident in the company’s largest market. Revenue in the United States reached $4.906 billion and increased by 16.1% year-over-year, with the U.S. cardiovascular portfolio growing by 25.3%. The results thus show that Medtronic’s growth was not based on a single product or division but was spread across virtually the entire company portfolio.3

Both earnings and cash flow strengthened significantly

Medtronic successfully translated its revenue growth into substantially higher earnings and cash generation. GAAP operating income reached $1.764 billion, up 22.1% year-over-year, while the operating margin increased from 16.8% to 18.1%. Adjusted operating income reached $2.316 billion, and the adjusted operating margin was 23.7%. Net income attributable to Medtronic rose 41.4% to $1.47 billion, while adjusted net income reached $1.86 billion, up 14.4% year-over-year. There was also a significant improvement in cash generation. Operating cash flow rose from $1.088 billion to $1.793 billion, and free cash flow increased from $584 million to $1.29 billion. During the quarter, Medtronic also paid out $921 million in dividends to shareholders and used an additional $267 million for share buybacks. Despite growing profitability, the company continued to invest in research and development, spending $771 million during the quarter compared to $726 million in the same period last year.3

Medtronic raises full-year outlook after a strong quarter

One of the most important pieces of news for investors was not just the quarterly figures themselves, but above all the upward revision of the outlook for the full fiscal year 2027. Following a strong first quarter, Medtronic increased its expected organic revenue growth by 50 basis points to a new range of 7.25% to 7.75%. The original outlook had projected growth of 6.75 to 7.25 percent. Management also revised its earnings forecast upward. Adjusted earnings per share for the full year are now expected to reach $5.94 to $6.00, while the previous forecast started at $5.90. The upper limit thus remained at $6.00, but the increase in the lower limit reflects management’s growing confidence in the company’s ability to maintain its current pace of performance in the coming quarters. Furthermore, current exchange rates are expected to have a neutral to approximately 1% positive impact on full-year adjusted earnings per share. The combination of beating first-quarter expectations and immediately raising the full-year outlook represents one of the most important signals Medtronic sent to investors following the earnings release.3 [2]

New technologies and acquisitions are expected to drive further growth

In addition to strong financial results, Medtronic continues to expand its product portfolio through in-house development, strategic investments, and acquisitions. During the first quarter, the company completed the acquisitions of Scientia Vascular on June 12 and SPR Therapeutics on July 16, with these two companies contributing $14 million and $5 million, respectively, to quarterly revenue. Medtronic also announced a strategic investment in Pi Cardia, a company developing technologies for the treatment of heart valve diseases and entered into a strategic partnership with Cornerstone Robotics to expand the availability of robot-assisted surgery. In the area of proprietary technologies, the Touch Surgery Aide platform received approval from the U.S. Food and Drug Administration (FDA), and the company also announced the expansion of European certification for the Affera Mapping and Ablation System and the Sphere 9 catheter for the treatment of ventricular arrhythmias. According to management, these new growth platforms were one of the key drivers of strong performance in the first quarter. Medtronic is thus not relying solely on its existing portfolio for further growth but is simultaneously directing capital toward new technologies and smaller companies that can expand its presence in cardiology, neuromodulation, and robotic surgery in the coming years.3 [3]

Conclusion

Medtronic entered fiscal year 2027 in very good shape, with first-quarter results showing growth across all of the company’s major segments. Revenue of $9.756 billion, adjusted earnings per share of $1.45, and year-over-year net income growth of 41.4% confirm that the company is successfully combining portfolio expansion with improved profitability and cash generation. Another important signal is the upward revision of the full-year organic revenue growth outlook to 7.25% to 7.75%, which indicates management’s growing confidence in the continuation of this positive trend. A strong cardiovascular segment, growth in the diabetes portfolios, new technology platforms, and continued investment in acquisitions are creating multiple opportunities for further growth at Medtronic. If the company can maintain its current pace, continue to bring new products to market, and translate technological innovations into growing revenue, the first quarter of fiscal year 2027 could mark the beginning of a significantly stronger period for one of the world’s largest medical technology companies. [4]

[1,2,3,4] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Actual results may differ materially from those expressed or implied in any forward-looking statements.

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[1] https://en.wikipedia.org/wiki/Medtronic

[2] https://news.medtronic.com/2026-06-03-Medtronic-reports-fourth-quarter-and-full-year-fiscal-2026-results-delivers-highest-annual-revenue-growth-in-10-years

[3] https://news.medtronic.com/2026-09-01-Medtronic-reports-first-quarter-fiscal-2027-results-delivers-broad-based-portfolio-performance-and-raises-fiscal-2027-guidance