Medtronic plc (NYSE:MDT) stock traded higher Tuesday after the medical device maker beat first-quarter estimates and raised its fiscal 2027 outlook.
Earnings Beat Estimates
Medtronic reported first-quarter fiscal 2027 adjusted earnings of $1.45 per share, beating the consensus estimate of $1.39.
Sales increased 13.7% year over year to $9.756 billion, topping the $9.545 billion estimate. However, an extra fiscal week added about $570 million to organic revenue growth.
GAAP earnings rose 40.7% to $1.14 per share. Operating cash flow totaled $1.79 billion, while free cash flow reached $1.29 billion.
Portfolio Delivers Broad Growth
Cardiovascular sales grew 19.5%, or 18.9% organically, to $3.927 billion. Cardiac Rhythm Management sales rose 15%, while Cardiac Ablation Solutions surged 88%.
Neuroscience revenue climbed 10.3%, or 9.3% organically, to $2.678 billion. Cranial and Spinal Technologies grew 13%, including low-20s growth in enabling technology. Altaviva also helped drive 15% growth in Pelvic Health.
Medical Surgical sales increased 10%, or 10.2% organically, to $2.279 billion. Surgical sales rose 9%, while Acute Care & Monitoring grew 14%.
Diabetes revenue increased 16.9%, or 14.9% organically, to $843 million.
Medtronic Raises Fiscal 2027 Outlook
Medtronic raised its fiscal 2027 adjusted earnings guidance from $5.90-$6 per share to $5.94-$6 per share. The new range compares with the $5.95 consensus estimate.
The company also lifted its organic revenue growth forecast to 7.25% to 7.75%, up from its previous range of 6.75% to 7.25%.
For the second quarter, Medtronic expects adjusted earnings of $1.32 to $1.34 per share. The midpoint falls below the consensus estimate of $1.34.
Medtronic Expands Robotics Business
Separately, Medtronic announced an approximately $700 million strategic investment in Cornerstone Robotics.
The agreement includes rights to distribute Cornerstone’s Sentire Surgical System in select markets outside the U.S. where it has regulatory approval.
Medtronic plans to offer Sentire alongside its Hugo robotic-assisted surgery system. Sentire has received market approval in China, the European Union and Singapore.
Expanding Structural Heart Capabilities
Medtronic also agreed to invest up to $80 million in Pi-Cardia. The company expects to become the exclusive global distributor of Pi-Cardia’s FDA-cleared ShortCut device in 2027. ShortCut supports complex valve-in-valve transcatheter aortic valve replacement procedures.
The agreement gives Medtronic an option to acquire Pi-Cardia after it meets certain milestones. The estimated upfront acquisition price could reach $210 million, plus potential earn-out payments.
MDT Price Action: Medtronic shares were up 1.65% at $92.15 at the time of publication on Tuesday, according to Benzinga Pro data.
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