Medtronic (MDT) Raises its Outlook Again as Heart Device Demand Keeps Climbing

Medtronic plc (NYSE: MDT) has raised its lower adjusted earnings per share (EPS) forecast for fiscal 2027 to $5.94, up from the previous $5.90, and its revenue growth outlook, stating an expected 7.25% to 7.75% annual organic revenue growth. The Ireland-based company now anticipates first-quarter fiscal 2027 revenue of $9.756 billion, a 13.7% increase both reported and organically, surpassing analyst consensus of $9.55 billion. Adjusted earnings per share for the quarter reached $1.45, outperforming the $1.39 estimate.

Broad-based segment growth included 19.5% growth in cardiovascular revenue, 16.9% growth in diabetes revenue, 10.3% growth in neuroscience revenue, and 10.0% growth in medical surgical revenue. The company attributes about $570 million of this growth to an extra week in the reporting period.

Despite the positive guidance, Medtronic still trails some earlier analyst expectations, with its $5.94-to-$6.00 EPS range below the $6.06 per share projected by some analysts. The guidance still includes the diabetes business, which Medtronic may separate before fiscal year-end, potentially affecting the outlook. The company faces well-capitalized competitors and tariff costs, which could limit earnings growth.

Medtronic's broad growth and strong demand, along with new technologies and partnerships, create more growth opportunities.