Medtronic raised its fiscal 2027 revenue growth outlook and the lower end of its profit forecast on Tuesday, banking on strong demand for its heart devices used in complex cardiovascular procedures.
Medtech firms have been riding a wave of increased adoption of newer technologies and robust surgery demand.
“What gives us confidence is not simply the strength of the quarter, but importantly, the breadth of performance across our businesses and the increasing contributions from newer growth platforms,” CEO Geoff Martha said during a post-earnings call.
Medtronic raised the lower end of its fiscal 2027 adjusted per share profit forecast to $5.94 from $5.90, keeping the upper end at $6.
It now expects annual organic revenue growth between 7.25% and 7.75%, up from the 6.75% to 7.25% growth it projected previously.
Medtronic’s finance chief Thierry Pieton said the company received tariff refunds that almost covered the duties it paid during the quarter, but it has not embedded future refunds in its outlook.
The company separately said it would invest $80 million in heart-valve repair device maker Pi-Cardia, with an option to buy it for $210 million. It also invested $700 million in Cornerstone Robotics, gaining rights to distribute a robotic surgical device in some markets outside the U.S.
Martha told Reuters the penetration of soft tissue robotic surgery in emerging markets is less than 1%, adding that Cornerstone’s Sentire is complementary to Medtronic’s Hugo device.
“We’ve had a steady cadence of M&A … we’re prioritizing the higher growth segments of medtech that we have confidence that are going to be big segments. So not just high growth, but really large patient pools, big segments,” Martha said.
Quarterly sales in the company’s cardiovascular segment jumped 19.5% to $3.93 billion, driven by its pulsed field ablation portfolio – used to treat irregular heart rhythms – which saw 88% growth.
It reported adjusted quarterly per share profit of $1.45 on revenue of $9.76 billion, versus estimates of $1.39 on $9.55 billion sales, per LSEG-compiled data.
