New York, June 3, 2026, 15:05 (EDT)
- Medtronic shares gained 5.4% to $77.74 in afternoon trading, topping both the healthcare sector and main U.S. equity indexes.
- Medtronic topped Wall Street forecasts for both revenue and adjusted profit this quarter, with demand for its heart devices driving the results.
- Medtronic’s fiscal 2027 profit guidance missed Wall Street estimates, as tariffs and the diabetes split remain part of the outlook.
Medtronic shares moved higher Wednesday as the company posted fiscal fourth-quarter revenue and adjusted profit above Wall Street targets, getting a lift from demand for its heart devices for complex cardiac procedures.
Shares were trading 5.4% higher at $77.74 around 2:50 p.m. in New York. The S&P 500 tracking fund slipped 0.5%. A U.S. healthcare ETF gained 1.1%.
Medtronic is betting growth in cardiovascular devices, robotics and bolt-on deals can make up for tight margins and questions over what happens with its planned diabetes business spin. The medical device maker posted fourth-quarter sales of $9.807 billion, rising 9.9% as reported and 6.6% organically, stripping out effects of currency and some deal activity. Non-GAAP earnings landed at $1.55 per share.
Analysts were looking for $9.63 billion in revenue and $1.54 per share in adjusted earnings, according to LSEG data cited by Reuters. CEO Geoff Martha told Reuters that recent deals could begin to boost revenue in fiscal 2027, and make a bigger impact after that.
Cardiac ablation stood out as the main driver, with Medtronic reporting revenue for the segment up 78% worldwide and 124% in the U.S., picking up eight points of market share in the U.S. Cardiovascular sales climbed 13.8% on a reported basis to $3.797 billion.
Martha said the company saw its strongest annual top-line growth in ten years. CFO Thierry Piéton said revenue and EPS both beat expectations.
Medtronic said it’s putting money into Beluga Medical and China’s CardioACC, both working on ICE catheter tech for imaging inside the heart during EP procedures. Rebecca Seidel, who leads the Cardiac Ablation Solutions unit, pointed to “demand for better technologies in electrophysiology.” Chief Medical Officer Khaldoun Tarakji called ICE a “procedural essential.” Medtronic News
Medtronic’s push in cardiac ablation and electrophysiology is winning over RBC Capital Markets analyst Shagun Singh, who told Reuters she’s “encouraged by Medtronic’s growth initiatives.” Singh also said the renal denervation treatment for high blood pressure “remains underappreciated.” Reuters
Robotics is back in focus for investors. Medtronic has filed 510(k) submissions with the U.S. FDA for its Hugo robotic-assisted surgery system, this time targeting general and gynecologic procedures. A 510(k) pathway lets companies show their device is similar to a device already on the market. With these new filings, Medtronic could move Hugo up against Intuitive Surgical’s da Vinci, the leader in those areas.
Medtronic’s surgical head Matt Anderson said these steps were “not just a portfolio expansion”, describing them as tied to a bigger surgical ecosystem. The company also announced FDA clearance for its ProGrip Advanced mesh to be used in robotic-assisted ventral hernia repair. Medtronic News
The rally faded. Medtronic said it sees fiscal 2027 adjusted earnings between $5.90 and $6.00 per share, which misses the $6.06 analysts expected. Reuters also reported the company is bracing for a $250 million tariff hit. CEO Piéton told Reuters Medtronic isn’t “under pressure” to split off the diabetes unit soon, citing soft medtech markets. Reuters
Mizuho’s Anthony Petrone cut the Medtronic price target to $100 from $120 but kept his Outperform call, reports said Wednesday. The new target points to lingering support for the stock, but investors still face questions around device growth, tariffs, margins, and diabetes timing.
