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Medtronic Posts Strong Q4 as Cardiovascular Devices Drive Best Annual Revenue Growth in a Decade

Strong sales from pulsed field ablation and TAVR have lifted revenue while tariff-driven costs alongside conservative FY27 EPS guidance reduce near-term profit expectations

Overview

  • Medtronic reported fourth-quarter revenue of $9.81 billion and adjusted EPS of $1.55, narrowly beating estimates and capping a fiscal year with about $36.4 billion in revenue, its strongest annual top-line growth in ten years.
  • The cardiovascular business powered the quarter with sales of roughly $3.8 billion, a 13.8% year-over-year gain driven by rapid uptake of pulsed field ablation and growing transcatheter aortic valve procedures.
  • On June 3 the company issued fiscal 2027 guidance of $5.90 to $6.00 adjusted EPS and organic revenue growth of 6.75% to 7.25%, a profit range below Street expectations that factors in material tariff-related cost pressure estimated between about $250 million and $300 million.
  • Management is pursuing small "tuck-in" deals and product advances to sustain momentum, including agreed acquisitions such as SPR Therapeutics plus buys of CathWorks, Scientia Vascular and Fortimedix and regulatory filings for its Hugo surgical robot.
  • Medtronic raised its quarterly dividend to $0.72 while investors and analysts weighed the trade-off between durable device demand that improves patient access to less invasive care and near-term margin pressure from tariffs and conservative guidance.