Shares of Medtronic PLC (NYSE:MDT) rose in early trading on Wednesday, after the company reported upbeat fiscal first-quarter results.
Here are some key analyst takeaways:
- BTIG analyst Ryan Zimmerman reiterated a Buy rating, while raising price target from $91 to $100.
- RBC Capital Markets analyst Kendall Au maintained an Outperform rating and price target of $118.
- Needham analyst Mike Matson reaffirmed a Buy rating and price target of $114.
Check out other analyst stock ratings.
BTIG: Medtronic reported revenue of $9.756 billion and adjusted earnings of $1.45 per share. It topped consensus estimates of $9.548 billion and $1.39 per share, respectively. Cardiac & Vascular, Diabetes, and Medical-Surgical each outperformed, partially offset by softer results at Neuroscience.
Management raised its fiscal 2027 guidance, with organic revenue growth now projected at 7.25%-7.75%, versus its prior outlook of 6.75%-7.25%, implying revenue of $38.9-$39.2 billion, Zimmerman said in a note.
The company also raised its earnings guidance for the year, which “looks conservative, only reflecting a portion of the FY1Q27 beat, with the remainder reinvested into commercial acceleration and M&A, leaving room for further upside from here,” he further wrote.
RBC Capital Markets: Medtronic delivered a broad-based beat-and-raise quarter, making “an increasingly compelling case for growth inflection,” Au said. The CAS segment reported another strong quarter, reinforcing that “this franchise remains in the early innings,” he added.
The company delivered the guidance raise that investors were hoping for before the print, “validating the FY27 growth acceleration thesis” the analyst wrote. Management raised its organic revenue growth guidance by 50 basis points (bps) to 7.25%-7.75%, exceeding consensus of around 6.6%.
Needham: Medtronic reported revenue of $9.756 billion, representing 7.0% year-on-year growth excluding an extra selling week, Matson said. Non-GAAP gross margin expanded to 65.2%, topping consensus of 64.8%, he added.
The company announced a strategic partnership with Cornerstone Robotics. It includes a $700 million investment and rights to distribute Cornerstone Robotics’ Sentire surgical system in select markets outside the US, the analyst stated. “The deal is expected to have minimal impact in FY27,” he further wrote.
Management expects Cornerstone to start contributing to growth in fiscal year 2028.
MDT Price Action: Shares of Medtronic had risen by 1.86% to $93.75 at the time of publication on Wednesday.
Image: Shutterstock
