Medtronic Raises 2027 Forecasts Amid Rising Heart Device Demand

Medtronic has raised its fiscal 2027 revenue growth and profit forecasts, fueled by a surge in demand for its heart devices used in complex cardiovascular procedures. The medical technology giant now anticipates annual organic revenue growth between 7.25% and 7.75%, up from its previous projection of 6.75% to 7.25%. Concurrently, the lower end of its adjusted per share profit forecast was increased to $5.94 from $5.90, with the upper end remaining at $6.

Strategic Investments in Heart and Robotic Devices

In addition to revising its financial outlook, Medtronic announced significant investments in the medical device sector. The company is set to invest $80 million in Pi-Cardia, a heart-valve repair device maker, with an option to acquire it for $210 million. Moreover, Medtronic has invested $700 million in Cornerstone Robotics, acquiring distribution rights for a robotic surgical device in select markets outside the United States.

CEO Geoff Martha expressed confidence in the company’s performance across various segments, highlighting the increasing contributions from newer growth platforms. He noted that the penetration of soft tissue robotic surgery in emerging markets remains below 1%, indicating substantial growth potential. Martha emphasized Medtronic's focus on high-growth segments within the medtech industry, aiming to tap into large patient pools.

Cardiovascular Segment Drives Growth

Medtronic's cardiovascular segment reported a 19.5% increase in quarterly sales, reaching $3.93 billion. This growth was largely driven by its pulsed field ablation portfolio, which saw an impressive 88% surge. The portfolio is used to treat irregular heart rhythms, underscoring the robust demand for advanced cardiovascular solutions.

According to Medtronic's finance chief, Thierry Pieton, the company received tariff refunds that nearly covered the duties paid during the quarter, although future refunds have not been factored into the financial outlook. Medtronic reported an adjusted quarterly per share profit of $1.45 on revenue of $9.76 billion, surpassing analysts’ estimates of $1.39 per share on $9.55 billion in sales, as compiled by LSEG data.