Medtronic (MDT) Q2 2026 Revenue and Profit Beat Estimates, Raises Full-Year Outlook

Medtronic (MDT.US) reported a strong second quarter for fiscal year 2026, with revenue reaching $8.961 billion, marking a 6.6% increase as reported and 5.5% organic growth. This exceeded analyst estimates of $8.863 billion. Non-GAAP diluted EPS for the quarter was $1.36, an 8% increase, also surpassing analyst expectations of $1.31. These results underscore robust performance across its end markets and operational execution.

Strong Segment Performance Driven by Key Innovations

The Cardiovascular Portfolio demonstrated significant growth, with revenue increasing 10.8% as reported and 9.3% organically to $3.436 billion. This performance represents the strongest cardiovascular revenue growth in over a decade, excluding pandemic-related impacts. A major contributor was Cardiac Ablation Solutions, which saw a 71% increase in revenue, including 128% growth in the U.S., primarily driven by the strength of its pulsed field ablation (PFA) portfolio.

Other segments also showed positive traction, including the Neuroscience Portfolio which grew 4.5% as reported and 3.9% organically to $2.562 billion. The Diabetes business revenue increased 10.3% as reported and 7.1% organically to $757 million. Key product approvals and clearances further bolstered segment performance, such as the U.S. FDA clearance for the Altaviva™ device for urge urinary incontinence and the MiniMed™ 780G system for Type 2 diabetes integration.

Management Raises Full-Year Guidance

Building on its strong quarterly performance, Medtronic raised its full-year fiscal year 2026 organic revenue growth guidance to approximately 5.5%, an increase from the prior guidance of approximately 5.0%. The company also increased its diluted non-GAAP EPS guidance to a new range of $5.62 to $5.66, up from the previous $5.60 to $5.66. This updated outlook reflects management's confidence in continued revenue acceleration, particularly from enterprise growth drivers like the PFA franchise for Afib and the Symplicity™ procedure for hypertension.