Medtronic raises FY27 adjusted EPS guidance after upbeat Q1

Medtronic PLC (NYSE: MDT) on Tuesday reported better-than-expected first-quarter financial results and raised its fiscal 2027 adjusted EPS guidance. It reported quarterly earnings of $1.45 per share versus the analyst consensus estimate of $1.39 per share, and quarterly sales of $9.756 billion versus the analyst consensus estimate of $9.545 billion. The company lifted its fiscal 2027 adjusted earnings guidance to $5.94-$6 per share from $5.90-$6 per share; the new range compares with the $5.95 consensus estimate. Medtronic also increased its organic revenue growth forecast to 7.25% to 7.75% from 6.75% to 7.25%.

For the second quarter, it expects adjusted earnings of $1.32 to $1.34 per share, with the midpoint below the consensus estimate of $1.34. The company also announced a $700 million strategic partnership with Cornerstone Robotics to expand global access to its Sentire Surgical System in select non-U.S. markets. “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” Geoff Martha, Medtronic chairman and chief executive officer, said the company’s execution, along with its innovation engine, puts it in position to serve more patients and deliver durable growth. He added that the strength of the portfolio and pipeline supports confidence in the opportunities ahead. Medtronic shares fell 0.3% to $91.80 in pre-market trading. After the earnings announcement, Baird analyst David Rescott kept a Neutral rating on the stock and lifted the price target to $100 from $91.

Stifel analyst Rick Wise kept a Hold rating and raised the price target to $95 from $80.