Key insights
- Medtronic reported strong Q4 fiscal 2026 results, exceeding revenue estimates driven by robust Cardiovascular growth, particularly in the US. While EPS met expectations, it saw a year-over-year decline due to specific charges. The company's fiscal 2027 revenue guidance is optimistic and above consensus, though EPS guidance is slightly below. Analyst sentiment is mixed, with some reiterating Buy ratings and price targets, while others maintain Hold ratings citing margin or valuation concerns. The positive revenue outlook, especially in key segments, offers a mild bullish signal for the healthcare sector.
Investing.com - TD Cowen reiterated a Buy rating and $119.00 price target on Medtronic, Inc. (NYSE:MDT) following the company’s fourth quarter fiscal 2026 results.
Medtronic reported fourth quarter revenues that exceeded both TD Cowen and Street estimates, while earnings per share met expectations at $1.55, down 4.3% year-over-year. The quarter included a $0.12 headwind to EPS from a Blackstone charge and the MiniMed separation.
Revenue growth was driven by Cardiovascular results, which rose 10.1% year-over-year on an organic basis. The Cardiac Rhythm & Heart Failure segment delivered $2.1 billion in revenue, up 18.2% year-over-year organically worldwide and 26.3% in the United States.
Cardiac Ablation Solutions posted 78% year-over-year growth within the CRHF segment. TD Cowen expects CRHF strength to continue in fiscal 2027, along with headwinds in Structural Heart.
The firm views Medtronic’s fiscal 2027 guidance as achievable and expects execution amid an extra first quarter selling week. Analysts remain optimistic, with price targets ranging from $78 to $121. For deeper insights into Medtronic’s valuation and growth prospects, investors can access comprehensive analysis through the company’s Pro Research Report, one of 1,400+ available on InvestingPro.
In other recent news, Medtronic, Inc. reported fourth-quarter fiscal 2026 revenue of $9.8 billion, marking a 6.6% organic growth and surpassing the consensus estimate of $9.62 billion. The company’s earnings per share were $1.55, aligning closely with the consensus estimate of $1.54. For fiscal 2027, Medtronic provided revenue guidance that exceeds consensus expectations, although its earnings per share guidance fell below consensus. Several firms have adjusted their price targets for Medtronic. Truist Securities lowered its price target to $86 while maintaining a Hold rating, citing margin softness. Jefferies also reduced its price target to $88, maintaining a Hold rating due to valuation concerns. Bernstein SocGen Group decreased its price target to $97, keeping an Outperform rating, focusing on execution. Meanwhile, BTIG upgraded Medtronic to a Buy rating with a price target of $90, noting an improving growth trajectory. Needham lowered its price target to $101 but maintained a Buy rating, attributing the adjustment to peer multiples.
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