Medtronic Q1 FY2026 Earnings: Cardiac Ablation Sales Surge 50%, Diabetes Unit Files for IPO

▲Source of the article: Eshare Medical Device Hub

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On August 19, 2025, Medtronic (NYSE: MDT), a global medical technology giant, releasedFirst Quarter of Fiscal Year 2026(As of July 25, 2025) earnings report.

Due to Trump's tariff policyUnstableAgainst the backdrop of the macro environment, Medtronic still delivered a stable and promising report card:

• Year-over-year revenueGrowth8.4%, Organic Growth4.8%；

• Non-GAAP Earnings Per Share (EPS) $1.26, Exceeding the Median Expectation；

• Raise Full-Year EPS Guidance to $5.60-$5.66；

This quarter, Medtronic achieved revenue$8.58 billion, Organic Growth4.8%, marking the 11th consecutive quarter of mid-single-digit growth, in line with the company's guidance.

• Non-GAAP Operating ProfitReached 20.16 billion US dollars, a year-on-year increase of 3%, with a corresponding profit margin of 23.6%;

• EPSAt $1.26, up 2% year-over-year, surpassing market expectations;

• Full-year EPS Guidance RangeRaised to $5.60-$5.66, reflecting the company's confidence in accelerated growth in the second half of the year.

The company also disclosed that, after excluding foreign exchange and "other income" factors, its core business still demonstrated strong growth momentum, particularly with outstanding performance in key product lines.

1. Cardiovascular：

Revenue of $3.285 billion, organic growth of 7.0%

As Medtronic's "cash engine," this segment continues to demonstrate steady growth, with highlights including:

• Cardiac Ablation Solutions (CAS) Revenue Grew Nearly 50% Year-over-Year, the growth rate in the U.S. market was as high as 72%;

• PFA (Pulse Field Ablation) System Sphere-9™ and Affera™ Navigation System Shine;

• Pacemakers, ICDs, and TAVR devices continue to increase their market share.

Future catalysts include CMS'sFinal NCD Decision on the Symplicity™ Hypertension Ablation System(Expected release in October) and the successive launches of new products Contego™ and Liberant™.

2. Neuroscience (Neuroscience）：

Revenue of $2.416 billion, organic growth of 3.1%

• NeuromodulationSub-sector growth of 8.6%, driven by the Inceptiv™ Closed-Loop Stimulation System and BrainSense™ Smart DBS System;

• Spinal Surgery AiBLE™ SystemContinuously expand market share;

• Specialty Therapies slightly declined, but with the gradual recovery of the Chinese market and the launch of new products, a rebound is expected in the future.

  

3. Medical Surgical：

Revenue of $2.083 billion, organic growth of 2.4%

Despite challenges such as a decline in surgical volumes in the U.S. market and the substitution effect of robotic surgeries, reliance on advanced technologies like LigaSure™...Source Equipment andStrong demand in emerging markets led to a slight overall growth in the sector.

The Hugo™ Robotic Surgery System is expected to be approved in the U.S. in the second half of the year, which is expected to revitalize the surgical ecosystem.

4. Diabetes：

Revenue of $7.21 billion, organic growth of 7.9%

The boardBlock WelcomeTo reach the growth inflection point, the international market showed strong performance (+11.4%). Driving factors include:

• The number of installations of the MiniMed™ 780G closed-loop insulin pump has increased;

• Simplera Sync™ Sensor Performance Exceeds Expectations;

• The Instinct (in collaboration with Abbott), set to launch in the fall, will further enhance CGM competitiveness.

Medtronic is in the midst of a systematic transformation and upgrade process, with its core approach summarized as a "technological innovation + strategic focus" dual-driven model, forming a profit growth flywheel centered on high value-added products.

From the perspective of technological innovation, this quarter Medtronic has accelerated the commercialization process and clinical validation across multiple product lines:

• Cardiac Ablation System Affera Sphere-9™ and Sphere-360™Rapidly expanding, the former has become one of the leaders in the PFA market, and the latter, as a new generation single-shot ablation catheter, is about to launch its registration trial.

  
  

• Visualase™ V2 Neuro Laser Ablation SystemFDA Approved,VitalFlow ECMO SystemObtained CE certification, opening new growth points in the fields of critical neurological and cardiopulmonary support;

  
  

• Diabetes SectorContinued Progress: MiniMed™ 780G System Receives New Indications Approval in Europe (Children, Pregnant Women, Type 2 Diabetes), and the More Compact and Accurate Simplera Sync™ and Instinct CGM Sensor to Launch This Fall.

  
  

This series of technological breakthroughs highlights Medtronic's leading R&D advantages in key areas such as cardiovascular, neuroscience, and diabetes management, also providing it with stronger "bargaining power" and a competitive moat.

More importantly, in order to concentrate resources on core growth areas, Medtronic is simultaneously advancing its significant capital structure adjustment —Divest Diabetes Business MiniMed, planning in the futureCompleted IPO and spin-off within 15 months。

This initiative will:

• BringA 50-basis-point increase in gross marginAnd100 Basis Points Improvement in Operating Margin；

• Enables Medtronic to focus on high-growth, high-profit businesses such as cardiovascular, neuromodulation, and surgical operations;

• Enhance operational flexibility and accelerate capital returns.

This divestiture is not simply about "doing subtraction," but rather using "subtraction" as a pathway to "do multiplication" for core businesses — unleashing organizational vitality, enhancing investment efficiency, and driving high-quality sustainable growth.

Notably, Medtronic also announced in tandem with activist investors on August 19.Elliott Investment ManagementAdvance cooperation to promote the optimization of governance structure.

• The company has appointedTwo New Independent Directors with Deep MedTech Operational Experience；

• EstablishmentTwo New Board Committees, respectively focusing onPortfolio Optimization (including M&A)AndImprovement in Operational Efficiency and Profit Margins；

• Elliott publicly expressed optimism about Medtronic's innovation and growth transformation potential, stating that the company is at a "turning point for value creation."

  
  

Moreover, the company plans to hold in 2026Investor Day, and disclose future financial goals and strategic restructuring directions.

By introducing external pressure mechanisms and executing professional capabilities, Medtronic is clearly accelerating its transformation from an "innovation giant" to a more flexible and efficient global leader in medical technology.

Medtronic Kicks Off Fiscal Year 2026 with Strong Momentum, Core Product Lines Show Comprehensive Strength; PFA, Neuromodulation, Robotic Surgery, and CGM Segments Thrive Across the Board. With Catalysts Such as CMS NCD, Hugo Launch, and Diabetes Spin-off Gradually Materializing, Revenue and Profit Growth Are Expected to Accelerate in Tandem.

More importantly, the company is actively shaping a more focused, more efficient, and strategically clearer "New Medtronic" through external collaboration, internal focus, and technological innovation.

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