Medtronic plc (NYSE:MDT) shares rose 5% after the medical device company reported first-quarter fiscal 2027 results above analyst expectations and increased its full-year revenue growth and earnings guidance.
Adjusted earnings per share came in at $1.45, exceeding the consensus estimate of $1.39 by $0.06.
Revenue increased 13.7% year over year to $9.8 billion, compared with an analyst estimate of $9.55 billion.
Medtronic raises fiscal 2027 outlook
Medtronic increased its fiscal 2027 organic revenue growth guidance to between 7.25% and 7.75%, compared with its previous forecast of 6.75% to 7.25%.
The company also raised its full-year adjusted EPS forecast to a range of $5.94 to $6.00.
The midpoint of the new earnings guidance is $5.97, compared with the analyst consensus estimate of $5.95.
The forecasts represent Medtronic’s current expectations and remain subject to changes in operating and market conditions.
Cardiovascular portfolio reports 18.9% organic growth
Growth was recorded across several of Medtronic’s business areas during the quarter.
The Cardiovascular Portfolio generated organic growth of 18.9%, including a 29.1% increase in Electrophysiology Therapies. The Neuroscience business grew 9.3% organically, while Medical Surgical recorded organic growth of 10.2%.
“We are off to a strong start in fiscal 2027. What gives us confidence is not simply the strength of the quarter, but importantly, the breadth of performance across our businesses and the increasing contributions from newer growth platforms,” said Geoff Martha, Medtronic chairman and chief executive officer.
Medtronic noted that fiscal 2027 includes an additional week in the first quarter, which contributed approximately $570 million to organic growth.
Adjusted operating margin increased by 10 basis points year over year to 23.7%.
Medtronic completes two acquisitions
During the quarter, Medtronic completed its acquisitions of Scientia Vascular and SPR Therapeutics.
The company’s Diabetes business, which Medtronic plans to separate, generated revenue of $843 million and recorded organic growth of 14.9%.
Tuesday’s share-price increase followed quarterly revenue and adjusted earnings that exceeded analyst estimates alongside Medtronic’s higher fiscal 2027 guidance. The company’s outlook remains dependent on its future financial and operating performance.
Medtronic stock price
