Medtronic Raises Fiscal 2027 Outlook Amid Heart Device Surge

Medtronic has increased its fiscal 2027 revenue and profit forecasts, spurred by strong demand for its cardiovascular devices. The company now anticipates annual organic revenue growth between 7.25% and 7.75%, up from its previous projection of 6.75% to 7.25%. Additionally, Medtronic raised the lower end of its adjusted per-share profit forecast to $5.94, maintaining the upper limit at $6.

Strategic Investments Bolster Growth

In a strategic move, 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, it has invested $700 million in Cornerstone Robotics, securing rights to distribute a robotic surgical device in select markets outside the United States. CEO Geoff Martha highlighted the synergy between Cornerstone's Sentire and Medtronic's Hugo device, emphasizing the potential in emerging markets where soft tissue robotic surgery penetration remains below 1%.

Strong Performance Across Segments

Medtronic's cardiovascular segment reported a 19.5% increase in quarterly sales, reaching $3.93 billion. This growth was primarily driven by its pulsed field ablation portfolio, which saw an impressive 88% surge. The company's quarterly profit exceeded expectations, with 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 sales.

Outlook and Market Dynamics

CEO Geoff Martha expressed confidence in the company's prospects, citing the broad performance across business units and contributions from new growth platforms. Medtronic's finance chief, Thierry Pieton, noted that tariff refunds nearly offset the duties paid during the quarter, though future refunds have not been factored into the outlook. The company continues to prioritize high-growth segments in medical technology, focusing on areas with substantial patient pools and significant market potential.