Medtronic reported a strong Q1 FY2027, with revenue and EPS beating expectations driven by broad-based growth across its portfolio, particularly in cardiac ablation (CAS) and CRM. Management raised full-year revenue and EPS guidance, citing confidence in underlying demand and execution. Q1 revenue grew 13.7% organically to $9.8B, with EPS of $1.45, both beating expectations.
Medtronic reported a strong Q1 FY2027, with revenue and EPS beating expectations driven by broad-based growth across its portfolio, particularly in cardiac ablation (CAS) and CRM. Management raised full-year revenue and EPS guidance, citing confidence in underlying demand and execution. Q1 revenue grew 13.7% organically to $9.8B, with EPS of $1.45, both beating expectations.
Medtronic reported a strong Q1 FY2027, with revenue and EPS beating expectations driven by broad-based growth across its portfolio, particularly in cardiac ablation (CAS) and CRM. Management raised full-year revenue and EPS guidance, citing confidence in underlying demand and…
Guidance · revenue to $8.4B
Strong performance across major businesses: CRM +15%, CST +13%, Surgical +9%, CAS +88%.
Management raised FY27 organic revenue growth guidance to 7.25-7.75% and EPS to $5.94-$6.00.
Management discussed AI-driven capabilities in Touch Surgery, bringing 300 times more computing power into the operating room, and highlighted AI-enabled planning in the Able ecosystem for spine and cranial technologies.
Management cited strong underlying market demand and broad-based strength across geographies, with procedure volumes healthy across nearly all end markets. They raised full-year organic revenue growth guidance, signaling confidence in demand durability.
Management did not provide explicit commentary on capital expenditure or capacity expansion. They mentioned investments in growth areas like robotics and electrophysiology, but not capex details.
Management emphasized strong results, raised guidance, and expressed confidence in growth platforms and execution, using phrases like 'strong start' and 'proof point.'
“In Q1, CAST delivered 88% worldwide growth, reflecting the team's execution and the strength of our platform. Sphere 9 momentum continued with a nine point increase in US share during the quarter.”
“we estimate contributed approximately $570 million or 670 basis points to total organic enterprise revenue growth. Excluding the impact of the extra week, we delivered our strongest quarterly performance in nearly eight years, excluding CO…”
“we expect fiscal year 27 operating profit to grow approximately 10% with operating margin expanding approximately 50 basis points year over year.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| EPS | FY2027 Q2 | $1.32–$1.34inline 컨센서스 대비 | $1.33 | MAINTAINED |
| EPS | FY2027 | $5.94–$6.00above 컨센서스 대비 | $5.97 | RAISED |
| Revenue | FY2027 Q2 | $8.3B–$8.5Babove 컨센서스 대비 | $8.4B | MAINTAINED |
| Revenue | FY2027 | $37.2B–$37.8Babove 컨센서스 대비 | $37.5B | RAISED |
| 제시 시점 | 지표 | 목표 기간 | 가이던스 | 실제 | 결과 |
|---|---|---|---|---|---|
| FY2026 Q4 | Revenue | FY2027 Q1 | $10.3B–$10.5B | $9.756B | Missed |
The distribution agreement with Merit Medical extends Medtronic's reach in the BVNA market, which is growing over 20%.
“through our distribution agreement with Merit Medical, which expands our presence in BVNA.”
… progresses and physician experience builds. We expect pelvic health to become a stronger and stronger contributor to neuroscience in fiscal year 27 and beyond. The ENT grew 7% worldwide driven by low double-digit growth in the US. Neuromodulation was at 3% globally driven by ongoing SCS market softness and replacement headwinds in DBS. Our neuromodulation position has been strengthened by the acquisition of SPI therapeutics in peripheral nerve stimulation and through our distribution agreement with Merit Medical, which expands our presence in BVNA. Both segments are growing over 20% annually. Together, these strategic actions increase our exposure to attractive high growth markets and reinforce our broader pain portfolio. Now turning to medical surgical, which had a strong quarter and delivered 10% growth globally with balanced performance in the US and internationally. Surgical revenue increased 9% with similar performance across the US and international markets. We saw strength in advanced energy and wound management, driven by shared gains from our ligature vessel sealing and V-lock barbed sutures. As Geoff mentioned, we're pleased with our launch of Hugo, which had an …
Medtronic is making strategic investments in structural heart, with Anteris being a targeted bet on TAVR technology.
“We made the Interis investment a few months ago. in the TABR space.”
Hey everybody, congrats on a great quarter. I guess I want to, CAS is doing really well, but I want to spend a second on kind of the Medtronic business ex-CAS and just kind of the ability to accelerate and improve kind of the base business ex-CAS at Medtronic kind of going forward. We saw AltaViva having an impact. So maybe just spend some time on that. And then also the investments this morning with the Cornerstone deal. When does that show up in kind of the base surgery revenue and how does that contract structured with with Cornerstone and then Thierry wanted to also follow up the the margin guide I think took down like 10 basis points from 50 basis points from 60 to 50 basis points…
I'm sure we're going to get more questions on Cornerstone and Picardia, but just high level. I'd say first on Picardia, excited about the investment. And it's part of a broader theme in Structural Heart where we're just making, doubling down on that space. We made the Interis investment a few months ago. in the TABR space. We're investing heavily in Tricuspid and Mitral. We've got an ecosystem that we're building with Dossie on the sizing as well. And now Picardia here is just another investment in the space. We're bullish on it and we're going to keep going there. And in terms of Cornerstone, look, We're just really excited about our progress in soft tissue. We've made a lot of progress. We talked about it in the commentary on Hugo. That's our play in the US. Cornerstone is really about access and choice. It's a global play for us. It's one of a number of investments we're making in soft tissue. But this one in particular, it's a global play. It gives customers choice around the world. And we're really excited about it. And it just goes with and a bunch of other investments we're making. Our touch surgery platform, our digital platform, we believe we're leading and we've got a nice lead in touch surgery. And we were at 1,500 installed base. We just rolled out our newest version of that aid, which is like 300 times more computing power in the surgical suite. We're investing in visualization, robotic instrumentation. So there's a lot going on in soft tissue and we're real excited about our progress there.
Medtronic's cardiac ablation (CAS) business grew 88% globally and 139% in the US, and its US installed base for the Affera system grew 35% sequentially, indicating strong pull-through and market share gains. — Accelerating share gains in the high-growth PFA market pressure competitors like Boston Scientific and Abbott.
… room partnerships to build a connected surgical ecosystem. And we're going to dive deeper on this in just a few minutes. In addition to these businesses, our next cycle of large growth opportunities are playing a more significant role in our performance. Cardiac Ablation Solutions delivered another quarter of excellent performance, further strengthening our position in one of the most attractive markets in medtech. In Q1, CAST delivered 88% worldwide growth, reflecting the team's execution and the strength of our platform. Sphere 9 momentum continued with a nine point increase in US share during the quarter. and I'm pleased to share that we achieved an important commitment this quarter ahead of the timeframe we promised, surpassing the 2 billion mark in trailing 12 month revenue. The broader EP space remains healthy, growing in the mid teens and we continue to expect CAS to grow up more than two and a half times the market rate this fiscal year. Our U.S. Zafira installed base again grew more than 35% sequentially in Q1, demonstrating that we remain in the early innings of this opportunity. And as we look ahead, our runway extends well beyond today's share gains as we build out a …
The 'extra week' in fiscal Q1 contributed approximately $570 million, or 670 bps, to revenue growth, but even excluding that, underlying growth was the strongest in nearly 8 years, indicating robust organic demand. — This indicates strong broad-based market demand across Medtronic's portfolio, not just one-off tailwinds.
“we estimate contributed approximately $570 million or 670 basis points to total organic enterprise revenue growth. Excluding the impact of the extra week, we delivered our strongest quarterly performance in nearly eight years, excluding”
So over to you Thierry. Hey, thanks, Geoff. And hello, everyone. I appreciate you joining today. Before we begin, I'd like to remind everyone this quarter benefited from the extra selling week, which we estimate contributed approximately $570 million or 670 basis points to total organic enterprise revenue growth. Excluding the impact of the extra week, we delivered our strongest quarterly performance in nearly eight years, excluding COVID comps. Revenue this quarter was $9.8 billion, up 13.7% on both a reported and organic basis. Geographically, we saw nearly 16% growth in the US and 12% internationally. Cardiovascular delivered 19% revenue growth this quarter, excluding 25% in the US and 14% internationally. Electrophysiology therapies, or EPT, which includes our CRM and CAS businesses, grew 29%, including 41% in the US and 18% internationally. Within EPT, Cardiac Ablation Solutions was again a significant contributor, delivering 88% growth, up 139% in the US. As Geoff outlined, while we are gaining share rapidly in CAS, this business is still in the early stages of its trajectory. In Q2, we expect to outpace the market by more than 3x, with growth rates moderating over the …