The company is experiencing its strongest cardiovascular revenue growth in over a decade, with Cardiac Ablation Solutions revenue increasing 71% on the strength of its pulsed field ablation (PFA) portfolio. Medtronic is close to earning clearance for its Hugo system, a robotic-assisted surgery device, which could help maintain the stock's momentum into 2026. The company is spinning off its diabetes care unit, a strategic move expected to be beneficial as the business has weak margins and faces intense competition.
Cyborg Score Rationale
Q2 FY26 revenue reached $9.0 billion, up 6.6% as reported and 5.5% organic, with raised full-year guidance of 5.5% organic revenue growth. Cardiovascular portfolio revenue growth of 9% marks strongest performance in over a decade outside pandemic comparables, with PFA franchise growing 71% globally. Strategic portfolio optimization and innovation pipeline position the company well for sustained growth.
Top Insights
Medtronic delivered above-guidance revenue and EPS driven by strong growth in cardiac ablation with accelerated share gains in its PFA franchise, and raised full-year revenue and EPS guidance citing broad-based procedure volume strength.
Management emphasized upcoming contributions from new product launches such as Simplicity for hypertension and Altaviva for incontinence, as well as the expansion of the HUGO robotics platform and innovative diabetes sensors.
Under CEO Geoff Martha's leadership since 2020, Medtronic has undergone a major transformation, trading bureaucratic safety for operational agility through reorganization into 20 decentralized Operating Units.
2026 revenue is projected at $45.2B with EPS guidance of $5.50-$5.60, with shares trading at 10-12% discount to fair value estimate of $111.
Named Competitors
da Vinci — Robotic-assisted surgical systems
FreeStyle Libre — Continuous glucose monitoring systems
G7 — Continuous glucose monitoring
Johnson & Johnson Cardiac Devices — Cardiac devices and ablation solutions
Recent Developments
(November 2025) Received broad, favorable National Coverage Determination (NCD) from U.S. Centers for Medicare & Medicaid Services (CMS) for the Symplicity procedure for treatment of uncontrolled hypertension.
(November 2025) Q2 FY26 revenue of $9.0 billion, up 6.6% as reported with adjusted EPS of $1.36 up 8%, leading company to raise FY26 guidance.
(December 2025) MiniMed Group, the diabetes business of Medtronic, filed for an initial public offering in the United States.
Open the full interactive Medtronic plc report
Strategic research, analyst-debate audio, full Cyborg Score breakdown across 11 dimensions, and saved-company audio playlists.