Medtronic Raises 2027 Forecasts Amid Surge in Heart Device Demand

Medtronic has boosted its fiscal 2027 revenue growth projections, largely driven by increasing demand for its heart devices used in complex cardiovascular procedures. The company announced on Tuesday that it has revised the lower end of its adjusted per share profit forecast to $5.94, up from $5.90, while maintaining the upper limit at $6. Additionally, Medtronic now anticipates annual organic revenue growth between 7.25% and 7.75%, improving from the previous forecast of 6.75% to 7.25%.

Investments and Strategic Moves

In a strategic move to bolster its portfolio, Medtronic revealed an $80 million investment in Pi-Cardia, a company specializing in heart-valve repair devices, and secured an option to acquire it for $210 million. The medtech giant also made a significant $700 million investment in Cornerstone Robotics, gaining rights to distribute a new robotic surgical device in select markets outside the United States. CEO Geoff Martha emphasized the potential growth in emerging markets, noting that soft tissue robotic surgery penetration remains below 1% in these regions. Martha described Cornerstone's Sentire device as a complement to Medtronic's own Hugo device.

Strong Financial Performance

Medtronic's cardiovascular segment experienced a notable 19.5% increase in quarterly sales, reaching $3.93 billion, largely attributed to the success of its pulsed field ablation portfolio, which saw an impressive 88% growth. The company posted an adjusted quarterly per share profit of $1.45 on revenue totaling $9.76 billion, outperforming analysts' expectations of $1.39 per share on $9.55 billion in sales, according to data compiled by LSEG.

Future Outlook

Medtronic's financial chief, Thierry Pieton, mentioned that the company received tariff refunds during the quarter, which nearly offset the duties paid, although these refunds have not been factored into future financial outlooks. CEO Martha expressed confidence in the company's growth prospects, highlighting the breadth of performance across Medtronic's various business segments and the increasing contributions from new growth platforms.