Medtronic Organic Growth Reaches 13.7% After Two Slower Quarters
The healthcare-technology company lifted fiscal 2027 organic growth guidance to 7.25% to 7.75% after first-quarter sales of $9.8 billion.
Medtronic plc (MDT) reported first-quarter fiscal 2027 organic revenue growth of 13.7%, a sharp step-up from 6.6% in the fourth quarter of fiscal 2026 and 6.0% in the third quarter, and raised its full-year organic growth outlook.
The global healthcare-technology company posted worldwide revenue of $9.756 billion, up 13.7% as reported and 13.7% on an organic basis, roughly 200 basis points above the midpoint of its prior guidance. The company said an extra fiscal week in the 53-week year benefited first-quarter organic growth by approximately $570 million. It also completed the Scientia Vascular and SPR Therapeutics acquisitions, which contributed $14 million and $5 million of inorganic revenue, respectively.
Chairman and Chief Executive Officer Geoff Martha said the company was off to a strong start in fiscal 2027 and that breadth across businesses and newer growth platforms supported the long-term trajectory.
Cardiovascular was the largest portfolio and the clearest inflection. Revenue was $3.927 billion, up 19.5% as reported and 18.9% organic, after 10.1% organic growth in the fourth quarter of fiscal 2026 and 10.6% in the third quarter. Electrophysiology Therapies, the recast division that includes the Cardiac Ablation Solutions franchise, generated $2.218 billion, up 29.5% as reported and 29.1% organic. Cardiac Ablation Solutions grew 88% in the quarter. Interventional Cardiology Therapies were $894 million, CardioVascular Surgery $477 million, and Peripheral Vascular Health $338 million.
The company announced an expanded CE Mark indication for the Affera Mapping and Ablation System and Sphere-9 Catheter for ventricular arrhythmias and a strategic investment in Pi-Cardia, a leaflet-modification company.
Neuroscience revenue was $2.678 billion, up 10.3% as reported and 9.3% organic, after 2.5% organic growth in the third quarter of fiscal 2026. Cranial and Spinal Technologies were $1.365 billion, Specialty Therapies $774 million, and Neuromodulation $539 million. Cranial and Spinal Technologies grew 13%, including low-20s growth in enabling technology, and Altaviva contributed to 15% growth in Pelvic Health.
Medical Surgical revenue was $2.279 billion, up 10.0% as reported and 10.2% organic, after 5.1% organic growth in the fourth quarter and 2.7% in the third quarter. Surgical and Endoscopy were $1.740 billion and Acute Care and Monitoring $539 million. Surgical grew 9% and Acute Care and Monitoring 14%. The company announced a strategic partnership with Cornerstone Robotics to expand access to robotic-assisted surgery and FDA clearance for the Touch Surgery Aide computing platform.
Diabetes revenue was $843 million, up 16.9% as reported and 14.9% organic, after 8.3% organic growth in the third quarter of fiscal 2026. A split-off remains the company’s current preferred structure for separating the Diabetes business, with a final decision not yet reached.
GAAP operating profit was $1.764 billion and operating margin 18.1%, up 22.1% and 120 basis points, respectively. Non-GAAP operating profit was $2.316 billion and operating margin 23.7%, up 14.9% and 10 basis points, respectively. GAAP diluted earnings were $1.14 a share. Non-GAAP diluted earnings were $1.45 a share, ahead of guidance.
The company raised fiscal 2027 organic revenue growth guidance by 50 basis points to 7.25% to 7.75% from 6.75% to 7.25%, and raised fiscal 2027 diluted non-GAAP EPS guidance to $5.94 to $6.00 from $5.90 to $6.00. Chief Financial Officer Thierry Piéton said targeted investments in innovation, portfolio development, and commercial execution would support sustainable long-term value creation, and that strong operating performance and disciplined financial management enabled the higher outlook. The new guidance includes an estimated neutral to 1% accretive impact from foreign currency exchange based on recent rates.