Medtronic Raises Fiscal 2027 Guidance After Q1 Revenue Grows 13.7%

Medtronic raised its fiscal 2027 guidance on September 1 after reporting first-quarter revenue of $9.756 billion, up 13.7% both as reported and on an organic basis, for the quarter that ended July 31, 2026.

The quarter included an extra fiscal week, which the company estimates added about $570 million to organic growth, according to its earnings release. Medtronic said revenue came in roughly 200 basis points above the midpoint of its guidance.

GAAP net income was $1.470 billion, or $1.14 per diluted share, up 41.4% and 40.7% respectively. Non-GAAP net income was $1.860 billion and non-GAAP diluted earnings per share were $1.45, up 14.4% and 15.1%, which the company said was ahead of its guidance.

Guidance and segments

Medtronic raised its fiscal 2027 organic revenue growth guidance to 7.25% to 7.75%, from 6.75% to 7.25%, and its non-GAAP diluted EPS guidance to $5.94 to $6.00, from $5.90 to $6.00. The EPS range includes an estimated neutral to 1% accretive effect from currency exchange rates, the company said.

Cardiovascular revenue was $3.927 billion, up 19.5% as reported and 18.9% organic, led by 15% growth in Cardiac Rhythm Management and 88% growth in Cardiac Ablation Solutions. Neuroscience revenue was $2.678 billion, up 10.3% as reported and 9.3% organic. Medical Surgical revenue was $2.279 billion, up 10.0% as reported and 10.2% organic, and Diabetes revenue was $843 million, up 16.9% as reported and 14.9% organic.

"What gives us confidence is not simply the strength of the quarter, but importantly, the breadth of performance across our businesses and the increasing contributions from newer growth platforms," said Geoff Martha, chairman and chief executive.

About $780 million in new investments

Medtronic also announced two investments the same day. It will invest approximately $700 million in Cornerstone Robotics, a deal that includes rights to distribute Cornerstone's Sentire surgical system in select markets outside the U.S. where it is approved, the company said. Medtronic will sell Sentire alongside its own Hugo robotic-assisted surgery system, which it said is now used in more than 35 countries. Sentire received a CE mark in May 2026 and has market approval in China and Singapore, according to the release.

Separately, Medtronic will invest up to $80 million in Pi-Cardia, an Israeli company that makes the ShortCut leaflet modification device for valve-in-valve transcatheter aortic valve replacement, and expects to become ShortCut's exclusive global commercial distributor in 2027, according to a joint release. The agreement gives Medtronic an option to acquire Pi-Cardia once it reaches predefined milestones, for an estimated upfront price of up to $210 million plus potential earn-out payments. The Pi-Cardia transactions are subject to regulatory approval and customary closing conditions.

During the quarter Medtronic completed its acquisitions of Scientia Vascular and SPR Therapeutics. It also said the separation of its Diabetes business is expected to be completed through capital markets transactions, with a split-off its current preferred structure, though no final decision has been made.