Medtronic Just Posted Its Best Quarter in 2.5 Years

"Medtronic ( NYSE: MDT) delivered its strongest enterprise revenue growth in 10 quarters, posting 8.7% reported growth (6.0% organic) for Q3 fiscal 2026. Cardiac Ablation Drives Outperformance The Cardiovascular Portfolio led the quarter with 13.8% reported growth, powered by an exceptional 80% surge in Cardiac Ablation Solutions. U.S. cardiac ablation revenue exploded 137%, driven by the company's pulsed field ablation (PFA) portfolio. Cardiac Rhythm & Heart Failure revenue reached $1.86 billion, up 17%, while Diabetes posted 8.3% organic growth to $796 million."

"Regulatory Wins and M&A Activity Medtronic achieved critical milestones, including CE Mark approval for Sphere-360 and FDA clearance for the Hugo robotic-assisted surgery system, with first cases completed in February 2026. The company also secured FDA clearance for the Stealth AXiS spinal system. The strategic acquisition of CathWorks (coronary/renal denervation) and strategic investment in Anteris (structural heart) expand the portfolio."

"Non-GAAP operating profit reached $2.18 billion with a 24.1% margin, though GAAP net income declined 11.67% year-over-year to $1.14 billion. CEO Geoff Martha emphasized confidence in the trajectory: "Our innovation pipeline and portfolio breadth give us confidence in our ability to sustain long-term growth." Management reiterated full-year guidance for approximately 5.5% organic growth and EPS of $5.62 to $5.66, which includes a $185 million tariff impact."

Medtronic reported Q3 fiscal 2026 revenue of $9.02 billion and non-GAAP EPS of $1.36, marking 8.7% reported growth (6.0% organic). The Cardiovascular portfolio led with 13.8% reported growth, led by an 80% rise in Cardiac Ablation Solutions and a 137% increase in U.S. cardiac ablation revenue driven by the pulsed field ablation portfolio. Cardiac Rhythm & Heart Failure revenue rose to $1.86 billion and Diabetes grew 8.3% organically to $796 million. Non-GAAP operating profit was $2.18 billion (24.1% margin) while GAAP net income fell to $1.14 billion. Key regulatory clearances and strategic deals broadened the portfolio, and management reiterated full-year guidance of roughly 5.5% organic growth and EPS of $5.62–$5.66, including a $185 million tariff impact.

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