Medtronic Raises Full-Year Outlook Following Fiscal First-Quarter Beat
Medtronic (MDT) lifted its full-year outlook on Tuesday as the medical-device maker reported better-than-expected fiscal first-quarter results.The company now anticipates adjusted earnings to be in a range of $5.94 to $6 per share for fiscal 2027, reflecting a higher bottom end versus the prior guidance of $5.90. The current consensus on FactSet is for non-GAAP EPS of $5.95.Organic revenue is pegged to grow by 7.3% to 7.8% for the ongoing fiscal year, compared with previous projections for an increase of 6.8% to 7.3%, according to the firm. The stock inclined 3.3% in the most recent premarket activity."We continue to make targeted investments in innovation, portfolio development, and commercial execution that will support sustainable long-term value creation," Chief Financial Officer Thierry Pieton said in a statement. "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."For the three months through July, Medtronic's adjusted EPS advanced to $1.45 from $1.26 the year before, topping the Street's view for $1.39. Revenue gained 14% to $9.76 billion, exceeding the average analyst estimate of $9.55 billion. Revenue also grew 14% on an organic basis.Last week, Needham said in an emailed client note that it expected Medtronic to top Wall Street's forecasts for the first quarter and raise its fiscal 2027 guidance amid new product launches and stable market growth.Revenue in the cardiovascular portfolio jumped 20% to $3.93 billion in the first quarter, led by a 30% gain in electrophysiology therapies. Sales in the neuroscience and medical surgical divisions rose 10% each to $2.68 billion and $2.28 billion, respectively. Diabetes revenue climbed 17% to $843 million."We are off to a strong start in fiscal 2027," Chief Executive Geoff Martha said. "The strength of our portfolio and pipeline gives us confidence in the opportunities ahead."Separately, Medtronic said it entered into a strategic partnership with Cornerstone Robotics under which it will invest $700 million in the surgical robotics company. The investment will give Medtronic the right to distribute Cornerstone Robotics' Sentire surgical system in certain markets outside the US where the platform is approved.Last month, Becton Dickinson (BDX) raised its full-year earnings guidance, while Abbott Laboratories (ABT) in July lifted its full-year earnings outlook and reported quarterly results above market estimates. Healthcare products conglomerate Johnson & Johnson (JNJ) also raised its guidance for 2026 in July.
