Key Takeaways:
Medtronic posted Q4 revenue of $9.8 billion, up 9.9%, as annual growth hit a 10-year high.
"The results reflect the strongest annual top-line growth Medtronic has delivered in 10 years, powered by disciplined execution across our portfolio," Chief Executive Officer Geoff Martha said.
For the fiscal year ended April 24, revenue reached $36.4 billion, up 8.4% reported and 5.8% organic. GAAP diluted EPS rose 3.3% to $3.73, while non-GAAP diluted EPS increased 0.7% to $5.53. Non-GAAP operating margin contracted 130 basis points to 24.4%, reflecting items including a MiniMed Blackstone payment and tariff impacts. Operating profit rose 8.6% to $6.5 billion, while non-GAAP operating profit increased 2.4% to $8.9 billion. Free cash flow totaled $5.4 billion, and the company ended the year with $9.2 billion in cash and investments.
Cardiovascular led segment growth at 12% for the year, followed by Diabetes at 12.9%, Medical Surgical at 4.9% and Neuroscience at 4.5%. Cardiac Ablation Solutions revenue surged 78% globally, including 124% U.S. growth, as the business gained 8 points of U.S. market share. Within Cardiac Rhythm Management, Micra pacing posted mid-teens growth and the OmniaSecure defibrillation lead saw a strong U.S. launch. Medical Surgical rose 5.1% in Q4, led by low-double-digit growth in Acute Care and high-single-digit growth in Endoscopy.
The company filed 510(k) submissions with the FDA to expand its Hugo robotic-assisted surgery system into general and gynecologic surgery and received clearance for ProGrip Advanced mesh in robotic ventral hernia repair. Hugo, already cleared for urologic procedures since December 2025, has nearly five years of commercial use across more than 35 countries. Medtronic completed its acquisition of CathWorks in coronary and renal denervation and announced plans to acquire SPR Therapeutics in neuromodulation and Scientia Vascular in neurovascular.
Medtronic guided for fiscal 2027 organic revenue growth of 6.75% to 7.25% and non-GAAP diluted EPS of $5.90 to $6.00, implying 6.7% to 8.5% EPS growth. The outlook includes a 53rd week and full-year Diabetes business consolidation. The board raised the quarterly dividend to $0.72 per share, implying an annualized $2.88, marking the 49th consecutive annual increase. The company returned $4.2 billion to shareholders in fiscal 2026 through dividends and share repurchases.
The guidance raise shows management expects continued momentum from new product cycles and recent acquisitions. Investors will watch the Q1 earnings call for segment-level margin trends and Hugo RAS adoption updates.
This article is for informational purposes only and does not constitute investment advice.
