Key insights
- Medtronic reported better-than-expected Q4 earnings and revenue, driven by strong performance in Cardiac Ablation Solutions and record annual revenue growth. The company also announced a dividend increase, marking its 49th consecutive year. However, its FY27 EPS guidance fell slightly short of analyst expectations, tempering some of the positive momentum. The stock's surge was company-specific, as the broader US equity market declined.
Investing.com -- Medtronic stock surged 5.1% in morning trading after the medical device giant delivered a better-than-expected fiscal fourth-quarter earnings report before the market opened today. The company reported Q4 revenue of $9.8 billion, up 9.9% as reported and 6.6% organically, coming in 90 basis points ahead of its own implied guidance, while non-GAAP diluted EPS of $1.55 also exceeded guidance. For the full fiscal year 2026, worldwide revenue reached $36.4 billion, an increase of 8.4% as reported and 5.8% organically — the strongest annual revenue growth the company has achieved in ten years.
A standout segment powered the beat: Cardiac Ablation Solutions grew 78% in the quarter, including 124% in the U.S., with the business now annualizing at more than $2 billion in revenue. Adding to the positive sentiment, the board approved a dividend increase to $0.72 per ordinary share quarterly, translating to $2.88 annually, marking the 49th consecutive year of a dividend increase. CEO Geoff Martha underscored the breadth of the performance, stating: "These results represent the compounding impact of deliberate choices we’ve made across strategy, operations, and culture." However, fiscal 2027 adjusted EPS guidance of $5.90 to $6.00 fell short of the analyst consensus of $6.06, capping some of the initial pre-market enthusiasm.
The broader U.S. equity market provided little tailwind for the move. The S&P 500 was down 0.3%, the Dow Jones was off 0.5%, and the NASDAQ slipped 0.5% during the same session, meaning Medtronic’s gain was entirely driven by company-specific catalysts rather than any macro lift. Key competitor Intuitive Surgical continues to build on its established da Vinci robotic surgery system, but Medtronic’s strong cardiac and surgical results appeared to reassure investors about its competitive positioning in the medical device space.
Taken together, a decisive earnings beat, record annual revenue growth, a dividend hike, and robust momentum in high-growth segments like cardiac ablation combined to push shares sharply higher today, overcoming both a soft broader market and a slightly underwhelming EPS outlook for the year ahead. The company’s guidance for FY27 organic revenue growth of 6.75% to 7.25% gave investors enough confidence in the underlying business trajectory to sustain the rally through the morning session.
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