Medtronic PLC Earnings
Medtronic plc, a global leader in healthcare technology, recently reported robust financial results for its second quarter (Q2) of fiscal year 2026 (FY26), which ended on October 24, 2025. The company achieved both revenue and earnings per share (EPS) that exceeded expectations, leading to an upward revision of its full-year guidance. This performance highlights Medtronic's resilience in a competitive market and its strategic focus on innovation and growth.
Medtronic PLC Results
The company recorded a solid performance in Q2 FY26, with significant improvements in key financial metrics compared to previous quarters. Below is the table showcasing Medtronic’s financial performance:
| Financial Metric | Q2 FY26 | YoY Change |
|---|---|---|
| Total Revenue (in billions) | $9.0 | 6.6% (Reported) |
| GAAP Diluted EPS | $1.07 | 8% |
| Non-GAAP Diluted EPS | $1.36 | 8% |
| GAAP Operating Profit Margin | 18.8% | -20 bps |
| Non-GAAP Operating Profit | $2.162 | 6% |
| Non-GAAP Operating Margin | 24.1% | -20 bps |
The reported revenue of $9.0 billion reflects a 6.6% increase compared to the same quarter last year, with organic growth being slightly lower at 5.5%. Medtronic's GAAP diluted earnings per share (EPS) also increased by 8% compared to Q2 FY25 achieving $1.07, while the non-GAAP diluted EPS also rose by 8% to $1.36.
Revenue Breakdown
Revenue performance across Medtronic’s major segments is shown in the following table:
| Segment | Q2 FY26 Revenue (in billions) | YoY Growth (Reported) | Organic Growth |
|---|---|---|---|
| Cardiovascular Portfolio | $3.436 | 10.8% | 9.3% |
| Neuroscience Portfolio | $2.562 | 4.5% | 3.9% |
| Medical Surgical Portfolio | $2.171 | 2.1% | 1.3% |
| Diabetes Business | $0.757 | 10.3% | 7.1% |
In-Depth Analysis of Segment Performance
The Cardiovascular Portfolio showed the strongest growth across Medtronic's businesses, with a 10.8% rise in reported sales, making it the driving force behind the company’s exceptional performance this quarter. This was bolstered by significant advancements in the Cardiac Ablation Solutions segment, which recorded a remarkable 71% growth, largely attributed to the strength of the pulsed field ablation (PFA) portfolio, particularly in the United States which saw 128% growth. Meanwhile, the Neuroscience Portfolio exhibited steady growth due to high demand in Neuromodulation, although some areas like Specialty Therapies remained flat. Conversely, the Medical Surgical Portfolio posted modest gains, while the Diabetes Business noted a strong 10.3% increase, driven by innovative diabetes management solutions like the MiniMed™ 780G system.
Key Developments
Medtronic saw significant operational highlights this quarter:
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Regulatory Milestones: The company received broad coverage from the U.S. Centers for Medicare & Medicaid Services (CMS) for the Symplicity™ procedure, which targets high blood pressure. The U.S. FDA also approved the Altaviva™ device for urinary incontinence and cleared the MiniMed™ 780G system for Type 2 diabetes.
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Robotics and Surgery Innovation: The Hugo™ robotic-assisted surgery system achieved key safety and effectiveness milestones in the Enable Hernia Repair study and initiated a study within Embrace Gynecology.
Comments from Company Officers
Geoff Martha, Medtronic’s Chairman and CEO, remarked, "We delivered a strong second quarter, with both revenue and EPS beating expectations. Overall, procedure volumes and our end markets are robust, and we're executing well across the business." He emphasized the potential for further growth driven by key products such as the PFA franchise for atrial fibrillation (Afib) and other innovative solutions.
Thierry Piéton, the Chief Financial Officer, noted that the strategic investments in R&D and sales and marketing are yielding results. "Given our outperformance in the first half of the year and the confidence we have in revenue growth acceleration, we are raising today our full-year revenue and EPS guidance," Piéton said.
Dividends and Share Repurchases
Although the detailed data on dividends and share repurchase programs was not provided, Medtronic’s consistent performance and increased guidance suggest a stable outlook which may potentially enable strong shareholder returns, including sustained dividend payments.
Medtronic PLC Stock Forecast
Based on Medtronic's strong Q2 performance and optimistic future guidance, there is a positive outlook for the company’s stock price. The market capitalization is marked at approximately $101.72 billion. Assuming continued growth in key segments and successful execution of strategic initiatives, the stock could see significant appreciation.
High and Low Projections
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High Projection: Under a bullish scenario where Medtronic accelerates its growth trajectory through successful launches and global expansion, the stock could reach upwards of a $0.55 per share price increase.
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Low Projection: In a more conservative scenario, considering potential market and competitive pressures or geopolitical factors, the stock might be expected to maintain its value around current levels.
Conclusion
Medtronic's Q2 FY26 results highlight the company's strength in innovation and market execution. With a robust portfolio capable of capitalizing on futuristic healthcare solutions, Medtronic is set to continue its positive growth momentum, enriching its stakeholders and further establishing its dominance in the healthcare technology domain.
