Bengaluru: Medtronic beat Wall Street estimates for fourth-quarter revenue and adjusted profit, riding the wave of steady demand for its heart devices used in complex cardiac procedures.
The medical device maker has been pursuing tuck-in acquisitions to strengthen its portfolio following its diabetes business spinoff, focusing on smaller, targeted deals.
In recent months, the company has agreed to acquire SPR Therapeutics for about $650 million and has bought firms such as CathWorks, while also striking deals for Scientia Vascular and Fortimedix to expand its cardiovascular and surgical robotics offerings.
Medtronic’s key growth levers include its pulsed field ablation systems and its transcatheter aortic valve replacement devices, two minimally invasive cardiovascular technologies seeing rapid adoption.
Revenue for the fourth quarter came in at $9.81 billion, compared with estimates of $9.63 billion, according to data compiled by LSEG.
Sales in the company’s cardiovascular segment, which accounts for nearly 40% of sales, jumped 13.8% to $3.8 billion during the quarter, powered by strong demand for its pulsed field ablation portfolio.
Sales in its neuroscience segment rose 5% to $2.75 billion, slightly below analysts’ average estimate of $2.76 billion.
On an adjusted basis, Medtronic reported quarterly profit of $1.55 per share, narrowly beating analysts’ average estimate of $1.54 per share.
The Dublin-Ireland based company forecast adjusted annual profit in the range of $5.90 to $6 per share for fiscal 2027, below the $6.06 per share analysts had penciled in, according to data compiled by LSEG.
Last quarter, Medtronic said it expects an about $300 million hit from tariffs in fiscal 2027, up from around $185 million in fiscal 2026. (Reporting by Padmanabhan Ananthan and Christy Santhosh in Bengaluru; Editing by Diti Pujara)
