Medtronic (MDT) reported fiscal Q4 organic revenue growth ahead of expectations amid strength in its Cardiovascular and Medical Surgical businesses, Truist Securities said in a note Wednesday.
The brokerage said Medtronic posted 6.5% organic revenue growth excluding Diabetes and Other that topped consensus estimates. Cardiovascular and Medical Surgical revenue exceeded expectations.
Truist noted that gross margin and operating margin were below expectations and elevated selling, general and administrative expenses weighed on profitability. Adjusted earnings per share of $1.55 exceeded estimates by $0.01 due to foreign exchange and non-operating items, according to the note.
The brokerage said Medtronic's fiscal 2027 guidance for 6.75% to 7.25% organic revenue growth is broadly in line with expectations after adjusting for the benefit of an extra selling week.
Guidance includes contributions from the Diabetes business, incorporates about $250 million of tariff-related costs, and does not assume any benefit from share repurchases related to the planned Diabetes spin-off.
Truist maintained its hold rating and $95 price target on Medtronic.
Shares of Medtronic were up 5.5% in Wednesday trading.
Price: $77.79, Change: $+4.04, Percent Change: +5.48%