Medtronic Just Posted Its Best Quarter in 2.5 Years

Medtronic (NYSE: MDT | MDT Price Prediction) delivered its strongest enterprise revenue growth in 10 quarters, posting 8.7% reported growth (6.0% organic) for Q3 fiscal 2026. The medical device giant beat Wall Street expectations with non-GAAP EPS of $1.36 versus the $1.35 consensus, while revenue reached $9.02 billion against $8.99 billion estimates.

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.

Profitability and Outlook

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. Shares traded at $95.88 as of February 17, up 3.5% over the past year but down 5.5% in the past week.