Medtronic
Medical Device Manufacturer
Beluga Medical
Developer of Next-Generation ICE Catheter Technology
Recently, globallyMedical DevicesMedtronic Unveils Fiscal 2026 and Fourth-Quarter Results (Fiscal Year Period: Late April 2025 to Late April 2026)Following the earnings release, Medtronic’s stock price surged nearly 6% during intraday trading. The market’s positive response was driven not only by better-than-expected financial performance but also by a fundamental shift in the growth structure of this industry giant.
| Comprehensive Growth Across All Business Segments, Electrophysiology Becomes the Largest Growth Engine
In fiscal year 2026, Medtronic’s full-year revenue reached $36.4 billion (approximately RMB 263.18 billion), representing a year-over-year increase of 8.4% and organic growth of 5.8%, marking the highest annual revenue growth rate for the company in the past decade. Net income and diluted earnings per share (EPS) based on GAAP were $4.801 billion and $3.73, respectively, reflecting increases of 3.0% and 3.3%.
Notably, the fourth quarter demonstrated particularly strong performance, with revenue reaching $9.807 billion (approximately RMB 66.467 billion), a year-over-year increase of 9.9% and organic growth of 6.6%; net profit amounted to $1.259 billion, a year-over-year increase of 18.7%. Adjusted earnings per share were $1.55, exceeding the market expectation of $1.54.
From the perspective of each business segment, all four major businesses achieved growth but with significant divergence. The cardiovascular business generated annual revenue of $13.976 billion, a 12% increase, with fourth-quarter revenue rising 13.8% year-over-year to $3.797 billion, making it the largest contributor to growth; the diabetes business recorded the fastest growth in the fourth quarter at 15%; the medical surgical business grew by 8%; and the neuroscience business saw a relatively modest growth of only 5%.
The fourth quarter’s most significant highlight came from the cardiac ablation solutions business. Global revenue for this segment increased by 78% year-over-year, with a 124% surge in the U.S. market and an additional 8-percentage-point gain in market share. The core products driving this growth were the Affera™ Mapping and Ablation System and the Sphere-9™ Pulsed Field Ablation Catheter.
During its earnings conference call, Medtronic disclosed that its PFA (Pulsed Field Ablation) business revenue increased by 145% year-over-year, while the U.S. installed base of the Affera system grew by 40% quarter-over-quarter. Meanwhile, the company is accelerating the development of its ecosystem encompassing the Sphere-360 catheter, the Prism-2 3D mapping system, and ICE (Intracardiac Echocardiography) catheters, aiming to create a comprehensive electrophysiology solution. Analysts believe that against the backdrop of a continuously growing population of atrial fibrillation patients, Medtronic is becoming one of the most significant players in this field.
In addition, the renal denervation product Symplicity Spyral has begun to enter a phase of commercial scale-up, achieving an annualized revenue of approximately $100 million. Since the implementation of insurance coverage policies, the average weekly number of procedures has doubled.
| Continuously Increasing M&A Investments, Focusing on High-Growth Sectors
On the same day as its earnings release, Medtronic officially announced two strategic investments to bolster intracardiac echocardiography (ICE) catheter technology. The two target companies are Beluga Medical, a U.S.-based pre-clinical company, and CardioACC, a Shenzhen-based enterprise. The latter’s products received approval from the National Medical Products Administration in 2025 and are currently in the early stages of commercialization. Medtronic plans to integrate ICE technology into its Affera ablation system to solidify its competitive advantage in the electrophysiology field.
Meanwhile, Medtronic is restarting its M&A engine. In the past quarter, the company completed the $585 million acquisition of CathWorks, announced the acquisition of neurovascular company Scientia Vascular, and proposed to acquire chronic pain management company SPR Therapeutics for $650 million. Additionally, Medtronic led a financing round of over $100 million for China-based Pama Medical. These transactions are almost entirely concentrated in high-growth sectors such as electrophysiology, neurointervention, chronic pain management, and pulmonary artery denervation. Medtronic’s CEO expects these initiatives to begin contributing revenue in fiscal year 2027.
丨Building a Second Growth Curve, with Short-Term Pressure on Profit Margins
Beyond its electrophysiology business, Medtronic’s multiple innovative platforms are simultaneously entering their commercialization harvest phase. The company stated that the Hugo robotic surgery platform has submitted applications to the FDA for general surgery and gynecological indications, with global surgical volume growing at two to three times the market average; the Stealth AXiS system has received FDA approval; and Altaviva has seen a threefold month-over-month increase in the number of actively implanting physicians. Although these emerging businesses currently contribute a modest revenue scale, their growth rates far exceed the company’s average, helping to build a second growth curve for the company.
However, Medtronic’s adjusted operating margin for the fourth quarter declined by 230 basis points year over year, primarily driven by tariff costs, investments in the commercialization of new products, and sales force expansion. The company estimates that tariffs will impact its fiscal 2027 results by approximately $250 million. Despite this, Medtronic provided an optimistic revenue outlook, projecting organic growth of 6.75% to 7.25% for fiscal 2027, with non-GAAP earnings per share (EPS) of $5.90 to $6.00, representing a growth of 6.7% to 8.5%.