November 18, 2025MedtronicReleased the financial report for the second quarter of fiscal year 2026.

This time, Medtronic delivered a report card that exceeded market expectations: revenue for this quarter reached$8.961 billion (approximately RMB 63.7 billion), year-on-year growth6.6%(Organic growth of 5.5%, 75 basis points above the midpoint of guidance); Both GAAP and non-GAAP earnings per share (EPS) achieved 8% year-over-year growth. Meanwhile, the company raised its full-year organic revenue growth forecast from 5.0% to 5.5% and slightly increased the full-year EPS range.

If we only look at the numbers, this is a robustly upward earnings report. However, the "key" to this report does not lie in a one-time exceedance of expectations, but rather in the business structure —Four core technology lines are entering the commercial acceleration phase at the same time.。

For a large-scale medical technology company with business lines spanning dozens of niche markets, this pace is quite rare and constitutes the most noteworthy signal for the industry this quarter.

# From Steady Growth to Rhythmic Change: Structural Turning Points Behind the Data

This quarter, all four business portfolios of Medtronic maintained positive growth:

• Cardiovascular Business: Revenue of $3.436 billion, a year-on-year increase of 10.8% (organic growth of 9.3%), marking the strongest performance in over a decade (excluding pandemic years).

• Neuroscience Business: Increased by 4.5% (organic 3.9%).

• Medical Surgical Business (MedSurg): Increased by 2.1% (organic 1.3%).

• Diabetes Business: Increased by 10.3% (Organic 7.1%).

But more important than the growth rate is the change in the source of growth.

Medtronic Chairman and CEO Geoff Martha described this quarter as an "acceleration point" on the earnings call, attributing the better-than-expected revenue to several "enterprise growth drivers" entering a new phase.Pulse Field Ablation (PFA), Symplicity™ Renal Denervation, Hugo™ Robotic System, and Altaviva™ Neuromodulation Therapy.

These four lines have been laid out in the R&D pipeline for many years, and by the fiscal year 2026, they will no longer be "potential growth points," butBusiness lines that truly contribute to revenue and drive changes in overall growth pace。

From a "steady-state innovation company" to a "multi-engine innovation cycle overlap" company, this is the true structural change.

# PFA: Transitioning from Product Launch Phase to System Implementation Phase

In the cardiovascular sector, the most outstanding contribution this quarter came fromCardiac Ablation Solutions: Revenue Growth71%, including the growth in the U.S. market128%。Behind the growth is Medtronic's systematic implementation in the PFA (Pulsed Field Ablation) field.

The core competitiveness of PFA is not limited to differences in energy types, but rather a more comprehensive delivery system: including a cardiac ablation platform, mapping system, catheter portfolio, and an adapted workflow. Over the past year, this combination has been continuously improved, leading to its rapid acceptance in the U.S. market.

Doctor feedback focuses on the following characteristics:

• The surgical pathway is relatively clear, and the process efficiency is more transparent;

• The integrated combination of mapping and ablation reduces the operational burden;

• Demonstrates high consistency in the real world.

In terms of market expansion path, the growth this quarter means:

PFA is transitioning from the "technical validation phase" to the "commercial system phase," with growth sustainability strengthening.

In this cycle, the increase in installation volume, feedback from hospitals on system stability and efficiency, and a broader network of doctor training are all driving the deeper application of PFA.

# Symplicity™ Renal Denervation: Launch Phase After Payment System Opens

Another important milestone comes from the Symplicity™ Renal Denervation (RDN) System.

This quarter, Medtronic received from the U.S. CMSNational Coverage Decision (NCD), and simultaneously secure favorable coverage policies from multiple commercial insurance companies. RDN addresses a significant clinical pain point on a massive scale: The United States has tens of millions of patients with hypertension who respond poorly to drug control, and RDN offers a new management pathway for some of these individuals.

Related Reading:Medicare Approval! Medtronic's RDN Therapy Welcomes "A Decade in the Making"

The implementation of the payment policy is of great significance to this therapy:

• Clear Payment System, hospitals can more easily carry out projects;

• Doctor Training Network Acceleration, the number of cases began to steadily increase;

• Patient pathways are more predictable, forming a more complete closed-loop from the department to medical insurance.

From the earnings report statement, Medtronic maintains strong confidence in the long-term potential of RDN but does not have aggressive expectations for short-term revenue. In other words, this is a technology line that has clearly entered the commercialization cycle but is still in the "scale initiation phase."

# Hugo™: The U.S. Time Window for Robotic Business

In the surgical robotics field, the key information this quarter is the timeline.

Medtronic clearly stated:Expected to obtain the first FDA approval for the Hugo™ robot in the United States (urology indication) in the second half of this fiscal year.。

This is a crucial step in Hugo™'s multi-year strategy.

Compared with the application in the international market, the U.S. market has higher requirements for system stability, procedure coverage, training systems, and more. Therefore, for Medtronic, entering the U.S. means that this system officially becomes an important part of its surgical ecosystem.

It is worth noting that:

• Hernia Repair (Inguinal Hernia) Study Confirms Achievement of Safety and Efficacy Endpoints This Quarter;

• Embrace Gynecology Key Study Initiated; Indication Portfolio Expanding.

According to Medtronic, the robotics business is still in the "early stages of growth," but its significance goes beyond a single product to:

How to form synergy with the company's existing energy platform, instrument portfolio, and imaging navigation in the overall workflow of surgical procedures.

# Altaviva™: Neurostimulation Innovation Targeting Large Populations with "Minimally Invasive" Approach

If PFA and RDN represent "rapidly growing high-tech density tracks," then Altaviva™ embodies a different growth logic:Access a broad but fragmented patient population through a more accessible pathway.。

Altaviva™ is a neuromodulation device implanted near the ankle to treat acute urinary incontinence. This quarter, Medtronic received FDA approval for this product; this condition affects over 16 million people in the U.S., but previous treatment options were limited and complex.

From the financial reports and management statements, Altaviva™ has the following characteristics:

• The surgical procedure is relatively simplified., making it easier for more hospitals to incorporate it into their routine processes;

• Wide Range of Patients Applicable, with typical "high population base characteristics";

• Training needs are on the rise, indicating a relatively fast early clinical adoption rate.

For Medtronic, the commercial logic of such neuromodulation products is not about short-term revenue bursts, but about building "a more balanced growth structure" – encompassing both high-tech-density innovations (such as PFA and robotics) and minimally invasive treatment devices with greater accessibility.

# Industry Perspective: Why Do Multiple Innovation Cycles Overlap in the Same Quarter?

This quarter, the most "trend-significant" aspect of Medtronic is not about a specific product itself, but ratherFour technical lines enter the volume production phase simultaneously。

In the medical technology industry, this kind of synchronization is not common and requires several conditions:

The maturity of the technology cycle reaches a "turning point"

• PFA has been validating safety and feasibility over the past few years and entered the systematic implementation phase this year.

• The key to RDN lies not in technological breakthroughs but in the fact that once the payment pathway is clarified, hospitals can quickly establish procedures.

• The long-term investment in the robot Hugo has reached a critical time node at the regulatory level.

These pipelines were originally at different stages of commercialization, but a synchronized maturity window emerged in the 2025-2026 fiscal year.

Changes in the regulatory and payment environment were completed in the same phase.

• PFA, Altaviva Obtain Clear FDA Approval Pathway;

• RDN Receives CMS NCD as a "Node-Level Event";

• Clear regulatory progress in the Hugo direction;

• The structural moves such as the divestiture of the Diabetes business have enabled the company to focus more on resource allocation.

The growth of medical technology enterprises depends not only on technology but also onWhether supervision and payment are opened simultaneouslyThis year, Medtronic happens to be in a "critical zone": multiple regulatory milestones are being reached in close proximity.

The strategy of system synergy is showing results.

Medtronic has emphasized the "system logic across devices, scenarios, and data" in recent years, continuously increasing R&D and operational investments across multiple business lines. The management also explicitly stated this quarter:

• Significant Increase in R&D Investment；

• Sales and Marketing Teams Expand to Meet Growing Demand；

• Gross margin improvement comes from system efficiency enhancement。

These investments are reflecting in the actual performance of the product lines, enabling multiple innovative business lines to launch expansions within the same time period.

# Conclusion: Beyond the Data, It's the Change in Rhythm

From the financial report level, Medtronic's performance this quarter was stable and exceeded expectations; however, from an industry perspective, what is more noteworthy is the change in the company’s business pace.

What this quarter has presented is not the outstanding performance of a single-point innovation, but:The synchronized efforts of technical pipelines, regulatory nodes, payment systems, and clinical pathways.

This "synchronicity" often means:

• Enterprise growth will shift from "stable output" to "cyclical acceleration";

• The implementation of medical innovation is no longer a single-line push but appears in the form of "combinations";

• The market's focus in the next phase will shift from "pipeline reserves" to "commercialization quality."

During the earnings call, Medtronic's management mentioned "acceleration" multiple times.

From the status of these technical lines, this is not only an expectation for the future but also a process that is truly happening now.