Medtronic (NYSE: MDT) blew past Wall Street’s high expectations amid double-digit revenue growth, driven by strong demand for AFib-treating pulsed-field ablation (PFA) and more.
“Q1 represents a strong start to fiscal ’27. … These results reinforce our confidence in the durability of our growth,” CEO Geoff Martha said during the Minnesota-run medtech giant’s earnings call this morning.
Medtronic is reinvesting in high-growth platforms including Affera cardiac PFA systems, Hugo robot-assisted surgery, hypertension-treating Symplicity Spyral renal denervation (with a transradial catheter slated to launch in the second half of the fiscal year), and the urinary incontinence-treating Altaviva tibial neuromodulation implant.
Today, Medtronic announced $780 million in strategic investments: A $700 million investment in Cornerstone Robotics includes the rights to distribute Cornerstone’s Sentire surgical system in select markets outside the U.S. where the system is market-approved. It also steered funds in complex TAVR tech with an $80 million investment in Pi-Cardia and its ShortCut leaflet modification tech.
MDT shares were up more than 2% to $92.51 apiece by midday trading today. The S&P 500 was down slightly.
Said Baird analysts led by David Rescott: “Expectations were relatively high heading into the print, and we think MDT’s 2%/4% revenue/EPS beat + the Cornerstone Robotics strategic partnership should be enough to push shares higher today.”
Needham & Co. analysts led by Mike Matson agreed: “We believe that MDT is in the early stages of a strong product cycle that should drive faster organic revenue growth, and we believe that its stronger growth in F1Q27 supports this thesis, and we reiterate our Buy rating.”
For the quarter ended July 31, 2026, Medtronic earned $1.470 billion, or $1.14 per share, off of $9.756 billion in revenue. The bottom line was 41.3%, and sales were up 13.7% compared with the same quarter one year ago. (An extra week in Q1 2027 versus Q1 2026 benefited organic revenue growth by roughly $570 million.)
All of Medtronic’s major segments saw double-digit revenue growth: Cardiovascular was up 19.5% year-over-year to $3.927 billion (with Electrophysiology, which includes pulsed field ablation, up 29.5%), Neuroscience was up 10.3% to $2.678 billion, and Medical Surgical was up 10.0% to $2,279 billion. Much of the remainder of the revenue came from Medtronic’s stake in its former Diabetes business — now the publicly traded, standalone MiniMed — with the separation expected to complete at the end of the current fiscal year.
Adjusted to exclude one-time items, Medtronic EPS was $1.45. The result was 6¢ ahead of The Street, where analysts expected EPS of $1.39 and revenue of $9.54 billion.
Medtronic raised its fiscal year 2027 organic revenue growth guidance to 7.25–7.75% from the prior guidance of 6.75–7.25%. The company also raised its full-year adjusted EPS guidance to $5.94–6.00 from the prior $5.90–6.00.
“We continue to make targeted investments in innovation, portfolio development, and commercial execution that will support sustainable long-term value creation,” CFO Thierry Piéton said in a news release. “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.”
Medtronic demonstrates it’s serious about surgical robotics
During Medtronic’s earnings call this morning, Martha said the company expects its Hugo system to surpass 50,000 completed procedures by the end of the fiscal year, with procedure growth continuing at more than twice the market rate and expected U.S. expansions into general surgery and gynecology. (For context, Intuitive’s da Vinci systems have been used in more than 20 million procedures over the decades.)
The Cornerstone Robotics investment and Sentire system distribution rights add to Medtronic’s efforts in the space. Hong Kong–based Cornerstone Robotics has completed multispecialty clinical trials for Sentire and received a CE mark in May 2026 for use in minimally invasive general, gynecologic, thoracic, and urologic surgical procedures. Sentire also has market approval in China and Singapore.
“Sentire complements Hugo by extending our reach into select international markets and broadening the range of customer needs that we can address as robotic surgery continues to expand globally. So, taken together, the platforms Hugo, Touch Surgery Aide, Sentire, and our enhanced surgical instrumentation position Medtronic to build a differentiated global robotics portfolio, combining advanced robotics, AI, visualization, and instrumentation to push the field forward, improving surgical precision and workflow, and serve a broader range of customers and patients around the world,” Martha said.
BTIG analysts led by Ryan Zimmerman kept their Buy rating and upped their price target for MDT shares, saying the growth-driving products were still in their early innings. On the Cornerstone deal, they said, “The news regarding MDT’s investment in Cornerstone Robotics will raise questions about Hugo’s durability, but we think MDT’s multi-option approach rips the Band-Aid off as this was inevitable (in our view).”
Medtech pay analysis: Medtronic increases pay for top executives and the median employee
