Medtronic plc

What they do

Medtronic designs, manufactures, and distributes medical devices and services for heart rhythm disorders, cardiovascular disease, neurological conditions, spinal and musculoskeletal issues, ENT, urological and digestive disorders, surgical care, respiratory and monitoring solutions, and diabetes. The company operates in three reportable segments: Cardiovascular Portfolio, Neuroscience Portfolio, and Medical Surgical Portfolio, serving healthcare systems and physicians in over 150 countries.

Revenue drivers

• Cardiovascular Portfolio — Includes Cardiac Rhythm & Heart Failure (e.g., pacemakers, Micra, OmniaSecure) and Structural Heart & Aortic and Coronary & Peripheral Vascular; Q4 FY26 revenue of $3.797 billion, up 13.8% reported / 10.1% organic.
• Neuroscience Portfolio — Includes Neuromodulation, Cranial & Spinal Technologies, and Specialty Therapies; Q4 FY26 revenue of $2.751 billion, up 5.0% reported / 3.0% organic.
• Medical Surgical Portfolio — Includes Surgical, Endoscopy, and Acute Care Monitoring; Q4 FY26 revenue of $2.388 billion, up 8.0% reported / 5.1% organic, with Endoscopy up high-single-digits and Acute Care Monitoring up low-double-digits.

Recent performance

In Q4 FY26 (ended April 24, 2026), Medtronic reported revenue of $9.807 billion, up 9.9% as reported and 6.6% organic. GAAP diluted EPS was $0.96 and non-GAAP diluted EPS was $1.55, ahead of guidance. For full FY26, revenue was $36.4 billion (adjusted $36.3 billion), up 8.4% as reported and 5.8% organic; GAAP diluted EPS was $3.73 (up 3.3%) and non-GAAP diluted EPS was $5.53 (up 0.7%). Cardiac Ablation Solutions revenue grew 78% globally including 124% U.S. growth, and the company returned $4.2 billion to shareholders in FY26.

Strategy

Medtronic is focusing on three pillars: accelerating innovation-driven growth, delivering superior outcomes and patient/provider experiences, and turning data, AI, and automation into action. Management highlights strength in large businesses like CRM, CST, and Surgical while building momentum in higher-growth opportunities such as Affera, Symplicity, Hugo, Altaviva, and Stealth AXiS. The company is executing tuck-in M&A and venture investments to strengthen portfolios and expand into adjacencies, including completed CathWorks acquisition and announced intentions to acquire Scientia Vascular and SPR Therapeutics. In May 2025, Medtronic announced the separation of its Diabetes Business via an IPO of MiniMed Group, which completed on March 9, 2026.

Risks

• Intense competition — The medical device market is rapidly changing with technological advances; competitors range from large diversified companies to niche manufacturers, and new products or alternative therapies (e.g., GLP-1s) could reduce demand for device-based treatments.
• Rapid technological disruption — Shifts in standards of care, physician preferences, or site-of-service dynamics (e.g., growth of ASCs) could occur faster than expected, potentially making current products less competitive.
• Patent expiration and reprocessed products — Loss of patent protection on proprietary products may lead to competitive devices or reprocessed products that reduce pricing power and market share.
• Diabetes separation execution — The MiniMed IPO completed, but the separation may create operational, financial, or reporting complexities that could affect future financial metrics and comparability.

Outlook

Management is positioning for continued momentum into FY27, citing the highest annual revenue growth in 10 years and disciplined execution. Q4 revenue came in 90 basis points ahead of implied guidance, and the company raised its quarterly dividend to $0.72 per share, marking the 49th consecutive year of increases. They expect strength from recent product launches and pipeline investments to sustain growth.