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Medtronic beats Q1 FY2027 estimates and raises guidance
Revenue rose 13.7% to more than $9.75 billion, and free cash flow more than doubled as the company widened margins.
Medtronic reported Q1 results for fiscal year 2027 that beat estimates and outperformed its own outlook, positioning the company for a continued improvement in earnings and capital returns, according to MarketBeat Ratings.
The medical device maker said revenue increased 13.7% to more than $9.75 billion, helped by a well-telegraphed extra week. Strength was broad-based, with double-digit or near-double-digit gains across segments, led by an 18.9% increase in Cardiovascular, while Rhythm Management grew 15%.
Medtronic also highlighted growth in newer areas, including Ablation Solutions, which rose 80%. Other segments grew organically by 9.3% in Neurosciences, 10.2% in Medical and Surgical, and 14.9% in Diabetes.
On profitability, the company widened margins on both a GAAP and adjusted basis. MarketBeat Ratings noted adjusted operating earnings rose 14.9%, adjusted earnings per share increased 15.1%, and free cash flow more than doubled, with management expecting the strengths to carry into the next quarter and the rest of the year.