MDT Stock Set to Benefit From the FDA Clearance of Hugo RAS System

Medtronic plc MDT has secured FDA approval for the Hugo robotic-assisted surgery (RAS) system for use in urologic surgical procedures. The clearance provides U.S. surgeons and the health system with a versatile robotic-assisted platform to expand soft-tissue robotic surgery programs and access to minimally invasive care.

The introduction of the Hugo RAS system in the United States builds on Medtronic's broad surgical offering, including the Touch Surgery ecosystem, to deliver a connected, integrated operating room — today and in the future.

MDT Stock’s Likely Trend Following the News

Following the Dec. 3 announcement, MDT shares have edged up 0.02%, closing at $101.99 yesterday. Despite the United States leading in robotic surgery adoption, hospitals continue to face challenges in capacity and access. The company’s Hugo RAS system helps address this gap, offering an innovative approach to robotic-assisted surgery and bringing choice to hospitals and surgeons across the country. Accordingly, we expect the news to positively impact the stock’s performance.

Medtronic has a market capitalization of $130.73 billion at present. The company’s earnings yield of 5.5% comfortably surpassed the industry’s 0.1% yield. In the last reported quarter, it delivered an earnings surprise of 3.8%.

Significance of Medtronic’s Hugo RAS System

The Hugo RAS system includes three main differentiators. Its modular design allows robotic arms to be easily moved, shared and deployed across any care setting, helping to maximize utilization and providing surgeons with the flexibility to customize their approach. The open surgeon console provides greater situational awareness and visualization, reduces physical strain and creates enhanced training opportunities for surgical teams, enabling better bedside communication and team integration.

Additionally, the System connects seamlessly with the Touch Surgery ecosystem, which provides pre-operative training tools, remote tele-proctoring capabilities and AI-powered post-operative case insights. With the addition of the Hugo RAS system, Medtronic is the first and only company that can meet surgeons’ needs across all surgical modalities — open, laparoscopic and robotic-assisted.

Outside the United States, the Hugo RAS system has been used in tens of thousands of urologic, gynecologic and general surgery procedures in more than 30 countries. Medtronic plans to expand its use in the United States to other surgical specialties, with indications for general and gynecologic surgical procedures expected to follow the initial urology clearance.

Industry Prospects Favoring MDT

According to IMARC Group, the global urology robotic surgery market was valued at $2 billion in 2024 and is projected to witness a compound annual growth rate (CAGR) of 8.7% through 2033. One of the factors fueling the market’s growth is the increasing demand for minimally invasive assisted surgeries for knee and hip replacements due to their multiple benefits over traditional surgical procedures.

More Updates From MDT

Medtronic has also begun the broad U.S. commercial launch of the MiniMed 780G system integrated with Abbott’s Instinct sensor, following the FDA clearance of the system earlier this year to enable sensor integration. The launch expands the company’s sensor portfolio, offering more choices alongside the new Simplera Sync sensor and the Guardian 4 sensor — all part of a growing ecosystem designed to make diabetes care easier and more personalized.

MDT Stock Price Performance

In the past six months, shares of MDT have gained 16.6% against the industry’s 1.3% fall. 

MDT’s Zacks Rank and Other Top Picks

Medtronic currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader medical space are BrightSpring Health Services BTSG, Illumina ILMN and Omnicell OMCL. While BrightSpring and Illumina eachsport a Zacks Rank #1 (Strong Buy), Omnicell carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Estimates for BrightSpring Health Services’ 2025 EPS have increased 5.7% in the past 30 days. Shares of the company have surged 92.3% in the past year compared with the industry’s 1.1% growth. BTSG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.1%. In the last reported quarter, it delivered an earnings surprise of 11.1%.  

Illumina shares have fallen 9.4% in the past year. Estimates for the company’s 2025 EPS have increased 0.9% to $4.71 in the past 30 days. ILMN’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, delivering an average surprise of 6.7%. In the last reported quarter, it posted an earnings surprise of 15.5%.

Omnicell shares have dropped 13.9% in the past year. Estimates for the company’s 2025 EPS have increased 8.3% to $1.70 in the past 30 days. OMCL’s earnings topped estimates in each of the trailing four quarters, delivering an average surprise of 38.7%. In the last reported quarter, it posted an earnings surprise of 41.7%.

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This article originally published on Zacks Investment Research (zacks.com).

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