Medtronic Q1 2027 earnings: profit and sales beat estimates, guidance raised
Medtronic topped profit and sales expectations in its fiscal Q1 2027, driven by strong heart-device sales, and raised its full-year guidance.
| Q1 2027 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $1.45 | $1.40 | +3.4% |
| Revenue | $9.76B | $9.64B | +1.2% |
Key takeaways
- Adjusted profit per share and revenue both came in above what analysts had penciled in, and Medtronic called it a strong start to the fiscal year.
- Sales grew about 14% from a year earlier, but roughly $570 million of that came from an extra week in this year’s quarter (a calendar quirk of Medtronic’s fiscal calendar), so the underlying growth rate is somewhat smaller than the headline number suggests.
- The heart-related products (cardiovascular) business was the standout, growing nearly 19%; within it, devices that regulate heart rhythm rose 15% and a newer heart-ablation product line roughly tripled in sales, both signs the company’s newer treatments are gaining traction with doctors.
- Encouraged by the quarter, Medtronic raised its full-year sales growth target and now expects adjusted earnings per share of $5.94 to $6.00 for fiscal 2027, up from its earlier forecast.
- TTM gross margin near 66% and operating margin near 18% show Medtronic still keeps a large share of each sales dollar after production costs, with a smaller slice left after other operating expenses and taxes are paid — a fairly typical profile for a large medical-device maker.
- CEO Geoff Martha said the quarter’s strength wasn’t just the top-line number but the breadth of performance across businesses, including growing contributions from newer product lines.
- Management pointed to its Hugo surgical robot and its Ardian blood-pressure device as long-term growth opportunities it’s investing in for future quarters.
- The company also announced expanded European regulatory approval (CE Mark) for its Affera mapping and Sphere-9 ablation catheter system used to treat irregular heartbeats.
Q1 2027 in context
| Metric | Jul 2026 | Jul 2025 | Change |
|---|---|---|---|
| Revenue | $9.8B | $8.6B | +13.7% |
| Net income | $1.5B | $1.0B | +41.3% |
| Free cash flow | $1.3B | $584M | +120.9% |
| Diluted EPS | $1.14 | $0.81 | +40.7% |
| Gross margin | 65.0% | 65.0% | -0.0 pts |
| Operating margin | 18.1% | 16.8% | +1.2 pts |
| Net margin | 15.1% | 12.1% | +2.9 pts |
Figures for the quarter ended Jul 2026 and the quarter ended Jul 2025, as reported to the SEC.
How the stock took it
Medtronic PLC closed at $90.65 on Aug 31, 2026, the last session before the report, and at $92.18 on Sep 2, 2026, the first session after it — +1.7% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 65.8% | Trailing 12 months |
| Operating margin | 17.8% | Trailing 12 months |
| Net profit margin | 13.2% | Trailing 12 months |
| Pretax margin | 16.9% | Trailing 12 months |
| EPS | $3.73 | Trailing 12 months |
| Revenue growth (YoY) | 8.4% | Trailing 12 months |
| EPS growth (YoY) | 3.1% | Trailing 12 months |
| Return on equity | 9.8% | Trailing 12 months |
Sources: company report · earnings call