Medtronic Raises 2027 Forecasts Amid Rising Heart Device Demand

Medtronic has raised its fiscal 2027 revenue and profit forecasts, citing robust demand for its heart devices used in complex cardiovascular procedures. The company now anticipates annual organic revenue growth of 7.25% to 7.75%, up from a previous range of 6.75% to 7.25%. The lower end of its adjusted per-share profit forecast has been increased to $5.94 from $5.90, while the upper limit remains at $6.

Strategic Investments in Medtech

The medical technology giant announced an $80 million investment in heart-valve repair device maker Pi-Cardia, with an option to acquire the company for $210 million. Additionally, Medtronic invested $700 million in Cornerstone Robotics, securing distribution rights for a robotic surgical device in certain markets outside the United States. CEO Geoff Martha highlighted the low penetration of soft tissue robotic surgery in emerging markets, emphasizing the complementary role of Cornerstone's Sentire device alongside Medtronic's Hugo system.

Strong Quarterly Performance

Medtronic reported a 19.5% increase in quarterly sales for its cardiovascular segment, driven by an 88% surge in its pulsed field ablation portfolio, which is used to treat irregular heart rhythms. The company posted an adjusted quarterly per-share profit of $1.45 on revenue of $9.76 billion, surpassing analyst expectations of $1.39 per share on $9.55 billion in sales, according to LSEG data.

Outlook and Market Position

Medtronic's CFO Thierry Pieton noted that the company received tariff refunds nearly covering the duties paid during the quarter, although future refunds have not been factored into the outlook. Geoff Martha emphasized the strategic focus on high-growth segments within the medtech industry, targeting large patient pools and significant market opportunities. The company's steady approach to mergers and acquisitions aims to capitalize on these expanding segments.