Medtronic Raises 2027 Forecasts Amid Growing Heart Device Demand
Medtronic sees increased demand for heart devices, boosting its fiscal 2027 growth outlook.
Medtronic has revised its fiscal 2027 growth forecasts upward, driven by strong demand for its advanced heart devices used in complex cardiovascular procedures. The medical technology giant announced the updated projections on Tuesday, citing robust adoption of its innovative solutions across various segments.
Heart Devices Fuel Growth
Medtronic's increased confidence stems from the widespread strength across its business operations and the growing impact of new growth platforms. CEO Geoff Martha emphasized the company's strategic focus on segments with large patient pools and high growth potential. The company has adjusted the lower end of its fiscal 2027 adjusted per-share profit forecast to $5.94 from $5.90, while maintaining the upper limit at $6. Additionally, Medtronic now anticipates annual organic revenue growth between 7.25% and 7.75%, an increase from its previous estimate of 6.75% to 7.25%.
Strategic Investments and Market Expansion
In a move to strengthen its position in the medtech sector, Medtronic announced an $80 million investment in Pi-Cardia, a heart-valve repair device maker, with an option to acquire the company for $210 million. Furthermore, Medtronic has invested $700 million in Cornerstone Robotics, securing distribution rights for a robotic surgical device in select international markets. Martha highlighted the potential for growth in soft tissue robotic surgery, particularly in emerging markets where penetration is below 1%.
Financial Performance and Outlook
Medtronic reported a significant 19.5% increase in sales within its cardiovascular segment, reaching $3.93 billion, largely due to the success of its pulsed field ablation portfolio, which experienced an 88% growth. For the quarter, the company achieved an adjusted per-share profit of $1.45 on revenue of $9.76 billion, surpassing LSEG-compiled estimates of $1.39 per share on $9.55 billion in sales. The company's finance chief, Thierry Pieton, noted that recent tariff refunds nearly offset the duties paid during the quarter, though future refunds have not been factored into the current outlook.