Medtronic Raises Fiscal 2027 Outlook Amid Heart Device Surge

Medtronic has increased its fiscal 2027 revenue growth projections, citing robust demand for its heart devices used in complex cardiovascular procedures. The company is optimistic about the performance across its business units, as well as the contributions from new growth platforms.

Strategic Investments Bolster Growth

Medtronic announced a significant investment strategy, including an $80 million stake in heart-valve repair device maker Pi-Cardia, with an option to purchase the company for $210 million. Additionally, Medtronic has invested $700 million in Cornerstone Robotics, securing rights to distribute a robotic surgical device in select markets outside the U.S.

CEO Geoff Martha highlighted the potential in emerging markets, where the penetration of soft tissue robotic surgery is currently under 1%. He emphasized that Medtronic is focusing on high-growth segments within the medtech industry that also offer large patient pools.

Financial Performance and Forecasts

Medtronic's fiscal 2027 forecast now includes an increase in the lower end of its adjusted per share profit estimate to $5.94, maintaining the upper limit at $6. The company also revised its annual organic revenue growth expectations to a range of 7.25% to 7.75%, up from the previous 6.75% to 7.25% forecast.

Thierry Pieton, Medtronic's finance chief, disclosed that the company received tariff refunds nearly offsetting the duties paid during the quarter, though future refunds are not factored into the outlook.

Strong Quarterly Results

In its cardiovascular segment, Medtronic reported a 19.5% increase in quarterly sales, reaching $3.93 billion. This growth was largely driven by an 88% increase in its pulsed field ablation portfolio, which is used to treat irregular heart rhythms.

Overall, Medtronic reported an adjusted quarterly profit of $1.45 per share on revenues of $9.76 billion, surpassing analyst expectations of $1.39 per share on $9.55 billion in sales, according to LSEG data.