Geoffrey Martha: 'We started the fiscal year by delivering another consistent quarter of mid-single-digit revenue growth. And we’re pleased to be able to raise our EPS guidance for the full year on the back of the strong start of the year.'
— Geoffrey Martha
03Detailed Report
MDT
Company MDT
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 22, 2026
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Executive Summary
Medtronic reported Q1 FY2026 revenue of $8.578 billion, delivering 4.8% organic growth and adjusted EPS of $1.26, with the quarter aligned to the top end of guidance and EPS modestly ahead of the midpoint. The quarterly performance reflects a bifurcated growth mix: a standout acceleration in Cardiac Ablation Solutions (CAS) and Cardiovascular (CV) portfolio activity, offset by slower momentum in certain Neuroscience and Diabetes ramp-up dynamics. Management signaled an explicit path to an accelerated growth trajectory in the back half of FY26, anchored by ongoing CAS deployment (nearly 50% growth in CAS this quarter, with continued ramp in mapping systems and new catheters like Sphere-360), the anticipated Denervation (Symplicity) market expansion in the U.S. post CMS NCD, and the continued cadence of Diabetes innovations (Simplera Sync, Instinct, and the planned MiniMed separation). The company raised FY26 organic revenue growth guidance to ~5% and reiterated an EPS target range of $5.60-$5.66, underpinned by FX tailwinds and efficiency gains. Medtronic is also advancing its strategy with governance enhancements (two new independent directors, Growth and Operating board committees) and an Investor Day planned for mid-calendar year 2026 to outline a refreshed growth framework and long-term targets.
Key Performance Indicators
Revenue
Decreasing
8.58B
QoQ: 3.45% | YoY: -0.13%
Gross Profit
Decreasing
5.14B
59.93% margin
QoQ: -6.75% | YoY: -1.08%
Operating Income
Decreasing
1.45B
QoQ: -12.21% | YoY: -5.37%
Net Income
Increasing
1.04B
QoQ: -19.63% | YoY: 59.02%
EPS
Increasing
0.81
QoQ: -19.80% | YoY: 65.31%
Revenue Trend
Margin Analysis
Financial Highlights
Key Q1 FY2026 metrics and implications:
- Revenue: $8.578B, reported growth 8.4% and organic growth 4.8% vs guidance; Q2 guidance implies continued mid-single-digit organic growth.
- Gross margin: 65.1% adjusted gross margin, down 80 bps YoY, driven by mix (CAS vs Diabetes) and ramp costs, partially offset by pricing benefits (≈+30 bps) and FX tailwinds (+0.10 of a point).
- Operating performance: Adjusted operating profit $2.0B; adjusted operating margin 23.6% (implies durable margin discipline alongside higher growth investment).
- R&D and SG&A: Adjusted R&D up 7.7% YoY, with higher investment in CAS and Ardian; SG&A leverage persisted with opex growing 170 bps below revenue growth.
- Net income and EPS: Net income $1.04B; adjusted EPS $1.26, $0.03 above guidance midpoint.
- Cash flow: Operating cash flow $1.088B; capex $0.504B; free cash flow $0.584B; net debt position shows a negative net debt (cash) of approximately $1.088B, though quarterly cash flow data show meaningful post-period FX effects and working-capital movements; financing activities contributed to a net cash outflow in the period.
- Guidance: FY26 organic revenue growth guidance raised to ~5%; Q2 EPS guidance $1.30–$1.32; full-year EPS guidance $5.60–$5.66 (tariffs reduced to ~$185M for FY26); FX tailwinds now expected to add $550–$650M to FY26 revenue.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
8.58B
-0.13%
3.45%
Gross Profit
5.14B
-1.08%
-6.75%
Operating Income
1.45B
-5.37%
-12.21%
Net Income
1.04B
59.02%
-19.63%
EPS
0.81
65.31%
-19.80%
Key Financial Ratios
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