Medtronic Elevates 2027 Forecast Citing Heart Device Surge
Medtronic revises its fiscal 2027 projections upward, driven by increased demand for cardiovascular devices.
Medtronic has revised its fiscal 2027 financial forecasts upward, citing strong demand for its cardiovascular devices. The medical technology giant has increased the lower end of its adjusted per-share profit forecast from $5.90 to $5.94, maintaining the upper limit at $6. The company now anticipates annual organic revenue growth to range between 7.25% and 7.75%, an increase from the previously projected 6.75% to 7.25%.
Investments in Cardiac and Robotic Technologies
In a strategic move to expand its portfolio, Medtronic announced an $80 million investment in Pi-Cardia, a heart-valve repair device manufacturer, with an option to acquire the company for $210 million. Additionally, Medtronic has invested $700 million in Cornerstone Robotics, securing distribution rights for a robotic surgical device in select international markets. CEO Geoff Martha noted that Cornerstone's Sentire device complements Medtronic's Hugo system, particularly in emerging markets where robotic surgery penetration remains below 1%.
Strong Performance in Cardiovascular Segment
Medtronic's cardiovascular segment reported a 19.5% increase in quarterly sales, reaching $3.93 billion. This growth was largely driven by an 88% increase in its pulsed field ablation portfolio, which is utilized in treating irregular heart rhythms. The company reported an adjusted quarterly per-share profit of $1.45 on revenue of $9.76 billion, surpassing forecasts of $1.39 per share on $9.55 billion in sales, according to data compiled by LSEG.
Optimism Fueled by Broad-Based Growth
CEO Geoff Martha expressed confidence in the company's future, attributing it not only to recent quarterly strength but also to the broad performance across various business units and the rising contributions from newer growth platforms. Medtronic's Finance Chief Thierry Pieton mentioned that recent tariff refunds nearly offset the duties paid during the quarter, though no future refunds have been factored into the company's outlook.