Medtronic Reaffirms 2026 Outlook As Heart and Diabetes Units Drive Growth

Medtronic Plc (NYSE:MDT) on Tuesday reported third-quarter 2026 results, with sales hitting $9.02 billion, surpassing the consensus estimate of $8.91 billion. This marks an 8.7% increase year-over-year, with organic growth of 6%.

Adjusted earnings of $1.36 per share also beat expectations of $1.33.

Segment Performance

Cardiovascular Portfolio revenue of $3.457 billion, an increase of 13.8% as reported and 10.6% organic, with high-teens increase in Cardiac Rhythm & Heart Failure, low-single digit increase in Structural Heart & Aortic, and mid-single digit increase in Coronary & Peripheral Vascular, all on an organic basis.

Neuroscience Portfolio revenue of $2.558 billion, an increase of 4.1% reported and 2.5% organic, with a mid-single digit increase in Neuromodulation, a mid-single digit increase in Cranial & Spinal Technologies, and flat results in Specialty Therapies, all on an organic basis

Medical Surgical Portfolio revenue of $2.173 billion, an increase of 4.9% as reported and 2.7% organic, with a low-single digit increase in Surgical & Endoscopy, and a high-single digit increase in Acute Care & Monitoring, all on an organic basis

Diabetes business revenue of $796 million, an increase of 14.8% as reported and 8.3% organic.

“Q3 marks another strong quarter, delivering 6% organic revenue growth, ahead of guidance, demonstrating the strength of our portfolio,” said Geoff Martha, Medtronic chairman and CEO.

Outlook

Medtronic reiterates its fiscal 2026 organic revenue growth of approximately 5.5% and adjusted earnings per share guidance of $5.62 to $5.66.

The guidance includes a potential impact from tariffs of approximately $185 million, unchanged from the prior guidance.

Excluding the potential impact from tariffs, the guidance represents fiscal 2026 adjusted EPS growth of approximately 4.5%.

“This quarter, we again delivered accelerated growth while investing decisively in our future,” said Thierry Piéton, Medtronic CFO.

“We continued to invest in R&D to strengthen our innovation pipeline, funded significant growth opportunities while driving G&A leverage, and we executed on our M&A and venture strategy with two key transactions in the quarter. Bottom line, we are executing on our roadmap and positioning the business for sustainable growth.”

In February, Medtronic announced to exercise its option to acquire CathWorks, a privately held medical device company based in Israel.

The acquisition is valued at up to $585 million with potential undisclosed earn-out payments post-acquisition.

MDT Price Action: Medtronic shares were down 2.84% at $96.66 at the time of publication on Tuesday, according to Benzinga Pro data.

Image via Shutterstock