Published: November 18, 2025
Medtronic plc (NYSE: MDT) is back in the spotlight today after reporting stronger‑than‑expected results for the second quarter of fiscal 2026 and raising its full‑year outlook. The medical technology giant delivered solid revenue and earnings growth, highlighted powerful momentum in its cardiac ablation franchise, and signaled confidence in accelerating growth in the second half of the year.
Shares of Medtronic jumped intraday to around $100–101, up roughly 4–5% after the announcement, as investors reacted to a classic “beat‑and‑raise” quarter. ChartMill
Q2 FY26 by the numbers: solid beat on revenue and EPS
For the quarter ended October 24, 2025, Medtronic reported:
- Revenue:$8.96 billion (reported as $9.0 billion in rounded figures)
- +6.6% year over year on a reported basis
- +5.5% organic growth, about 75 basis points above the midpoint of prior guidance
- GAAP diluted EPS:$1.07, up 8% year over year
- Non‑GAAP diluted EPS:$1.36, also up 8%, and above company guidance
On Wall Street’s scorecard, Medtronic comfortably cleared the bar:
- Zacks notes EPS of $1.36 vs. consensus $1.31, an earnings surprise of +3.82%.
- Revenue of $8.96 billion topped the $8.86–$8.95 billion consensus range cited by Zacks and Benzinga.
That marks Medtronic’s fourth straight quarter of beating consensus EPS estimates, according to Zacks.
Profitability also trended higher:
- GAAP operating profit:$1.686 billion, operating margin 18.8%, up 6% year over year (margin down 20 bps).
- Non‑GAAP operating profit:$2.162 billion, margin 24.1%, up 6% year over year (margin also down 20 bps).
Management highlighted underlying efficiency gains in gross margin, even as the company increased R&D and commercial investments to support high‑growth programs.
Segment performance: cardiovascular leads, diabetes accelerates
Medtronic’s Q2 results were driven by broad‑based growth across its major portfolios, with cardiovascular and diabetes in the spotlight.
Cardiovascular Portfolio
- Revenue:$3.436 billion
- Growth:+10.8% reported, +9.3% organic
- Drivers:
- Cardiac Rhythm & Heart Failure: mid‑teens organic growth
- Structural Heart & Aortic: high‑single‑digit organic growth
- Coronary & Peripheral Vascular: low‑single‑digit organic growth
A standout within cardiovascular was Cardiac Ablation Solutions, where revenue surged 71% globally, including a remarkable 128% growth in the U.S., powered by the company’s pulsed field ablation (PFA) portfolio for atrial fibrillation.
Neuroscience Portfolio
- Revenue:$2.562 billion
- Growth:+4.5% reported, +3.9% organic
- Highlights:
- High‑single‑digit organic growth in Neuromodulation
- Mid‑single‑digit growth in Cranial & Spinal Technologies
- Flat performance in Specialty Therapies
Medical Surgical Portfolio
- Revenue:$2.171 billion
- Growth:+2.1% reported, +1.3% organic
- Both Surgical & Endoscopy and Acute Care & Monitoring posted low‑single‑digit organic growth, reflecting steady demand in surgical tools and patient monitoring.
Diabetes Business
- Revenue:$757 million
- Growth:+10.3% reported, +7.1% organic
Benzinga notes particularly strong demand in Medtronic’s cardiovascular and diabetes franchises, underscoring that these areas continue to act as growth engines for the company.
Enterprise growth drivers: PFA, Symplicity, Hugo robotics and Altaviva
Alongside the headline numbers, Medtronic used today’s release to spotlight a cluster of “enterprise growth drivers” it expects to propel revenue acceleration in the back half of FY26 and beyond. Medtronic News+1
Key catalysts highlighted by the company include:
- Pulsed Field Ablation (PFA) franchise for atrial fibrillation
- 71% growth in Cardiac Ablation Solutions shows strong adoption of Medtronic’s PFA technology for treating arrhythmias.
- Symplicity™ renal denervation system for uncontrolled hypertension
- Medtronic recently received a broad, favorable National Coverage Determination (NCD) from CMS and multiple positive commercial payer decisions in the U.S., targeting an addressable market the company estimates at 18 million people with uncontrolled high blood pressure.
- Hugo™ robotic‑assisted surgery system
- The Enable Hernia Repair study met safety and effectiveness endpoints, and the company has initiated the Embrace Gynecology U.S. pivotal study, reinforcing Medtronic’s push into surgical robotics.
- Altaviva™ therapy for urge urinary incontinence
- Medtronic secured U.S. FDA approval for the Altaviva device, positioned as a simpler option to treat urge urinary incontinence, a condition affecting over 16 million people in the U.S.
- MiniMed™ 780G insulin pump ecosystem
- The FDA has cleared the MiniMed 780G system to integrate with the Instinct sensor and expanded its use to people living with Type 2 diabetes, broadening Medtronic’s digital diabetes footprint.
CEO Geoff Martha said the company delivered a strong quarter with both revenue and EPS above expectations and emphasized “robust” procedure volumes across end markets, while CFO Thierry Piéton pointed to underlying margin efficiency despite higher R&D and commercial spend to support these growth platforms. Medtronic News+1
FY26 outlook raised: more growth, still conservative
On the back of the Q2 beat, Medtronic raised its fiscal 2026 guidance:
- Organic revenue growth guidance:
- Now ≈5.5%, up from ≈5.0% previously
- Diluted non‑GAAP EPS guidance:
- New range: $5.62–$5.66
- Prior range: $5.60–$5.66
The EPS outlook continues to bake in roughly $185 million of potential tariff impact, unchanged from prior guidance. Ex‑tariffs, Medtronic’s updated forecast implies about 4.5% year‑over‑year EPS growth for FY26.
Management’s commentary suggests a company willing to nudge guidance higher without getting overly aggressive, leaving room for upside if execution and demand trends hold through the second half of the fiscal year.
Zacks’ latest model points to:
- Next quarter (Q3 FY26):
- Consensus EPS around $1.35 on revenue of about $8.83 billion
- Full FY26:
- Consensus EPS around $5.63 on revenue of roughly $35.8 billion
That’s broadly aligned with, and now slightly below, Medtronic’s own updated guidance range, giving the company some cushion.
The market response today has been decidedly positive:
- ChartMill reports Medtronic trading around $100.86, up 4.76% intraday, after the earnings release and guidance hike.
- Finviz/Zacks data shows the stock is now up roughly 20.5% year‑to‑date, outpacing the S&P 500’s gain of about 13.4%.
Pre‑market, Benzinga highlighted that analysts were looking for $1.31 EPS and $8.86 billion in revenue, with the stock closing Monday at $96.28 before the print.
Coverage from financial media today underscores a similar narrative:
- Zacks: “Q2 earnings and revenues top estimates,” with Medtronic continuing its streak of earnings beats. Finviz
- ChartMill: Emphasizes a dual beat (revenue and EPS) and raised guidance, with shares re‑rating higher on the news.
- Benzinga: Focuses on “high demand” in cardiovascular and diabetes and the company’s investment in R&D and sales to support growth programs. Benzinga
Benzinga’s pre‑earnings piece also noted several major firms raising price targets in recent weeks, including J.P. Morgan, Truist, Stifel, Citigroup, and Argus, with ratings ranging from Neutral/Hold to Buy and targets stretching into the low‑to‑mid‑$100s.
What today’s Medtronic news means for investors
While every investor’s situation is different, a few themes stand out from today’s news flow:
- Execution is improving across the portfolio
- Consistent EPS beats and mid‑single‑digit organic revenue growth suggest Medtronic is executing more reliably after several years of uneven performance and supply chain headwinds.
- High‑growth platforms are gaining critical mass
- The 71% surge in Cardiac Ablation Solutions, progress in Hugo surgical robotics, expanded diabetes indications, and the fully reimbursed Symplicity hypertension therapy collectively point to multiple growth “spokes,” not just a single product story. Medtronic News+1
- Guidance remains realistic, not euphoric
- The guidance raise is incremental rather than dramatic, which may be interpreted as disciplined — especially considering macro uncertainty and tariff risk still embedded in the numbers.
- Valuation and industry context matter
- Zacks currently rates Medtronic a Rank #3 (Hold), pointing out that the broader Medical – Products industry sits in the lower half of its industry ranking, even as MDT’s year‑to‑date performance has been strong.
- Key watch‑list items going forward
- Adoption trends in PFA and Symplicity RDN
- Commercial traction and clinical milestones for Hugo robotics
- Growth and competitive dynamics in diabetes tech (MiniMed 780G ecosystem)
- Margin evolution as Medtronic balances higher R&D/sales spend with efficiency gains
Bottom line
On November 18, 2025, Medtronic delivered exactly what investors typically want to see:
- A clean beat on both revenue and EPS
- A raised full‑year outlook
- Clear proof that its newer platforms — especially PFA, renal denervation, robotics and advanced diabetes technologies — are starting to move the growth needle.
With the stock now trading solidly above $100 and up significantly for the year, the market has begun to recognize that Medtronic’s turnaround and growth story is gaining traction. For investors, the next chapters will hinge on whether the company can sustain mid‑single‑digit organic growth, scale its high‑growth franchises, and continue to expand earnings despite ongoing macro and tariff headwinds.
This article is for informational purposes only and does not constitute investment advice, a recommendation, or a solicitation to buy or sell any securities.
