Medtronic raises FY27 guidance after 13.7% Q1 revenue growth
Medtronic has reported first-quarter fiscal 2027 revenue of $9.756 billion, up 13.7% on both a reported and organic basis, and raised its full-year guidance for a second time since the fiscal year began. The Galway-headquartered medtech giant said the result came in approximately 200 basis points above the midpoint of its prior guidance range.
Non-GAAP diluted earnings per share came in at $1.45, ahead of management expectations, while GAAP diluted EPS reached $1.14, up 40.7% year on year. The company attributed the outperformance to broad portfolio momentum rather than any single franchise, a point chairman and chief executive Geoff Martha emphasised in the release.
"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," Martha said.
Divisional performance
Medtronic's Cardiovascular portfolio was the standout division, posting 18.9% organic growth to reach $3.927 billion. Within that segment, Cardiac Ablation Solutions grew 88% organically, reflecting continued uptake of the Affera mapping and ablation system. Medtronic also announced an expanded CE Mark for Affera and its Sphere-9 catheter, extending the indication to ventricular arrhythmias, a move that broadens the system's addressable market beyond atrial fibrillation.
The Neuroscience portfolio grew 9.3% organically to $2.678 billion, driven by low-double-digit growth in Cranial and Spinal Technologies. The company noted low-20s growth in enabling technology within that sub-segment, a category that includes surgical navigation and robotics. Medtronic also announced a strategic partnership with Cornerstone Robotics to extend global access to robotic-assisted surgery, and received FDA clearance for the next-generation Touch Surgery Aide computing platform during the quarter.
Medical Surgical revenue of $2.279 billion grew 10.2% organically, while the Diabetes business contributed $843 million, up 14.9% organically. Medtronic noted it completed the acquisitions of Scientia Vascular and SPR Therapeutics during the quarter and made a strategic investment in Pi-Cardia, a leaflet modification technology developer. The company added that the Q1 result included the benefit of an extra fiscal week, which it estimates added approximately $570 million to organic growth.
Guidance and market context
Medtronic raised its FY27 organic revenue growth guidance to 7.25% to 7.75%, up from 6.75% to 7.25%, and tightened its non-GAAP diluted EPS range to $5.94 to $6.00. Chief financial officer Thierry Piéton said the combination of operating performance and financial discipline enabled the upgrade.
The results land at a moment of heightened competitive activity across the medtech sector. Medtronic's cardiac ablation franchise, in particular, operates in a space where competitors including Abbott and Johnson and Johnson's Biosense Webster subsidiary have been investing heavily in pulse-field ablation and high-density mapping platforms. The Affera system's expanded CE Mark indication into ventricular arrhythmias could help Medtronic differentiate ahead of anticipated US label expansion discussions.
The planned separation of the Diabetes business remains a strategic variable. The company said a split-off is its preferred structure but that no final decision has been reached, meaning the segment's strong Q1 performance could influence how investors and potential partners value the standalone entity when a transaction eventually materialises. Medtronic guides for a neutral to one-percent accretive foreign-currency impact on EPS guidance based on current rates.