MDT

Image source: The Motley Fool. Tuesday, Sept. 1, 2026 at 7:45 a.m. ET Head of Medtronic Investor Relations - Ingrid Goldberg Chairman and Chief Executive Officer - Geoffrey Martha Chief Financial Officer - Thierry Pieton Medical-Surgical Portfolio - Mike Marinaro Ingrid Goldberg: Good morning, and welcome to our fiscal '27 first quarter earnings webcast. I'm Ingrid Goldberg, Head of Medtronic Investor Relations. And I'm joined by Geoff Martha, Chairman and Chief Executive Officer; and Thierry Pieton, Chief Financial Officer. Geoff and Thierry will provide comments on the results of our first quarter, which ended on July 31, 2026, and our outlook for the remainder of the fiscal year '27. After our prepared remarks, we'll take questions from the sell-side analysts that cover the company. Earlier this morning, we issued a press release discussing our quarterly results and several financial schedules. We also posted an earnings presentation that provides additional details on our performance. The presentation can be accessed in our earnings press release or on our website at investorrelations.medtronic.com. During today's program, many of our statements will be forward-looking, and actual results may differ materially as explained in our SEC filings. We undertake no obligation to update any forward-looking statements. Unless otherwise stated, all comparisons are on a year-over-year basis and revenue comparisons are made on an organic basis, which excludes the impact of foreign currency, first quarter revenue in the current and prior year reported as other as well as significant acquisitions, divestitures or other significant discrete items. As a reminder, fiscal '27 is a 53-week fiscal year with the extra week occurring in the first fiscal month of the first quarter and is included in our Q1 results. References to sequential revenue changes compared to the fourth quarter of fiscal '26 and are made on an as-reported basis. Unless otherwise stated, all references to share gains or losses are on a revenue and year-over-year 52-week basis, comparing our most recently completed fiscal quarter to our competitors' most recently completed calendar quarter. Reconciliations of all non-GAAP financial measures can be found in our earnings press release or on our website at investorrelations.medtronic.com. And finally, our EPS guidance does not include any charges or gains that would be reported as non-GAAP adjustments to earnings during the fiscal year. With that, I'm now pleased to hand it over to you, Geoff. Geoffrey Martha: Okay. Thanks, Ingrid, and good morning, everyone. Thank you for joining us. Look, Q1 represents a strong start to fiscal '27, with revenue of $9.8 billion and adjusted EPS of $1.45, both well ahead of expectations. Organic revenue growth was 13.7%, reflecting strong underlying market demand and excellent execution across our businesses. Importantly, these results reinforce our confidence in the durability of our growth. Our 3 largest businesses, CRM, CST and Surgical, all delivered strong results this quarter. Cardiac Ablation Solutions continues to perform exceptionally well, and we are making progress in Symplicity, Altaviva and Robotics with Hugo. And at the same time, our recent acquisitions are contributing to reported growth and strengthening our portfolio for the long term. So we are executing, and this quarter's results are a clear proof point. Our strategic and operational focus is translating into stronger commercial performance and greater consistency. With healthy underlying markets, relentless execution and multiple growth platforms, all gaining scale, Medtronic is increasingly well positioned to deliver on our fiscal '27 targets and our long-term revenue and earnings trajectory. So with that, let's get into the details of what drove the quarter. Starting with Cardiac Rhythm Management, which delivered an outstanding quarter with global growth of 15%. Performance reflected strength across both high-power and low-power therapies with contributions from EV-ICD, Micra and conduction system pacing, including OmniaSecure. At more than $5.5 billion in annual revenue, CRM is one of our largest businesses and has been a long-standing source of strength for the company. As an example, Micra, which launched more than a decade ago, continues to grow at a healthy double-digit rate, which underscores the lasting impact of meaningful innovation within CRM. And we're not standing still. We are further advancing innovation across pacing, defibrillation and diagnostics, supported by a strong pipeline and excellent execution from our teams. Look, CRM is a flagship business for Medtronic, and we continue to view this business as a key source of innovation, one that will drive durable growth for years to come. Cranial & Spinal Technologies was another Q1 highlight, delivering 13% growth, including 14% in the U.S. and 10% internationally. Our AiBLE ecosystem continues to resonate with customers as it connects technologies that have traditionally operated in silos. By bringing together AI-driven planning, imaging, navigation, robotics, implants and outcomes data across the surgical journey, AiBLE helps surgeons make more informed decisions, operate with greater precision and learn from each and every case. And our recently launched Stealth AXiS platform also meaningfully outperformed this quarter. While we're still early in the launch, adoption is building and customer feedback has been very positive. With U.S. spine robotics penetration still in the single digits, we see a significant opportunity to drive ecosystem pull-through and extend our leadership position in spine and cranial technologies for years to come. Now moving to Surgical, which delivered another strong quarter with 9% global growth. Surgical is our largest operating unit with over $6 billion in annual revenue. Here, we're leveraging our decades of innovation and operating room partnerships to build a connected surgical ecosystem. And we're going to dive deeper on this in just a few minutes. In addition to these businesses, our next cycle of large growth opportunities are playing a more significant role in our performance. Cardiac Ablation Solutions delivered another quarter of excellent performance, further strengthening our position in one of the most attractive markets in med tech. In Q1, CAS delivered 88% worldwide growth, reflecting the team's execution and the strength of our platform. Sphere-9 momentum continued with a 9-point increase in U.S. share during the quarter. And I'm pleased to share that we achieved an important commitment this quarter, ahead of the time frame we promised, surpassing the $2 billion mark in trailing 12-month revenue. The broader EP space remains healthy, growing in the mid-teens, and we continue to expect CAS to grow at more than 2.5x the market rate this fiscal year. Our U.S. Affera installed base again grew more than 35% sequentially in Q1, demonstrating that we remain in the early innings of this opportunity. And as we look ahead, our runway extends well beyond today's share gains as we build out a comprehensive EP platform, one that spans mapping, ICE catheters, focal ablation software and single-shot innovation, positioning ourselves to serve electrophysiologists with a more -- with more complete solutions and expand the number of patients who can benefit from advanced EP therapies. This quarter, we expanded our offering with CE Mark for Sphere-9 for the treatment of ventricular arrhythmias, including ventricular tachycardia, opening the door to a patient population that is notoriously difficult to treat. And enrollment in our U.S. VT pivotal trial is also underway. We're only at the beginning for CAS. With a differentiated platform, a growing installed base, expanding indications and a strong innovation pipeline, we are well positioned to treat more patients to continue to gain share and further extend our leadership in this large and growing market. Now turning to Symplicity. Q1 was another strong quarter, and we are increasingly encouraged by this market's evolution. Real-world outcomes, well, they just keep getting better as evidenced by the 3-year data we recently presented. And we are pleased to share that the SPYRAL AFFIRM clinical trial was accepted for a late-breaker at TCT this fall. Look, the conversations with clinicians is increasingly shifting from awareness to access and more hospitals are approaching us about establishing Ardian programs. Here, our key focus areas are on expanding coverage and integrating Ardian into the care pathway. Looking ahead for Ardian, our transradial catheter remains on track to launch in the second half of this fiscal year. This is an important step forward as many interventional cardiology procedures are performed via radial access today, making the therapy easier to integrate into existing workflows and potentially improving patient outcomes. These positive signals further reinforce our conviction that Symplicity is one of the most compelling long-term growth opportunities in med tech. Now turning to Pelvic Health. The business delivered strong growth this quarter, increasing 15%, driven by significant progress from Altaviva, where procedures doubled sequentially. Demand for Altaviva is building. And while we are still early in our launch, Altaviva is gaining traction with physicians as well as the 16 million U.S. patients who still suffer from urge urinary incontinence. As we continue to expand training, reimbursement support and patient awareness, we are really encouraged by the progress we are already seeing. And we are confident in Altaviva's ability to become a meaningful contributor to growth for years to come. Okay. Back to Surgical. We have a strong leadership position in surgery, built on decades of innovation, trusted technologies and a long-standing partnerships with surgeons worldwide. As robotic-assisted surgery continues to expand, we believe our portfolio breadth, our global reach and our operating room presence uniquely position us to help shape the future of surgery and extend the benefits of these technologies to more patients around the world. Robotic-assisted surgery, or RAS, is one of the most compelling growth opportunities in health care, with global penetration still in the single digits and only 1% in emerging markets. At the same time, RAS is in high demand with procedure volumes up approximately 16% per year over the last decade. There is a significant runway here, and we expect robust expansion for many years to come. Now we've established our foundation in soft tissue robotics with Hugo, where we continue to make meaningful progress. By the end of the fiscal year, we expect Hugo to surpass 50,000 completed procedures with procedure growth continuing at more than twice the market rate. We're also advancing our platform through new capabilities and new indications, including the expected U.S. expansions into general surgery and gynecology. We are investing in building out a broader surgical ecosystem, just like in CST, an ecosystem that integrates robotics, advanced visualization, navigation, instrumentation and digital technologies, including AI-enabled capabilities like Touch Surgery. Today, Touch Surgery is used in more than 1,500 operating rooms globally, supporting AI-powered insights, collaboration and workflows. And with Touch Surgery Aide, unveiled at SRS, we are bringing 300x more computing power into the operating room and creating a foundation for increasingly advanced AI capabilities over time. And now that brings us to Cornerstone robotics. As announced this morning, we are further enhancing and expanding our robotic portfolio through a strategic investment and distribution agreement for Cornerstone's Sentire Surgical System in select markets outside the U.S. Sentire complements Hugo by extending our reach into select international markets and broadening the range of customer needs that we can address as robotic surgery continues to expand globally. So taken together, the platforms, Hugo, Touch Surgery Aide, Sentire and our enhanced surgical instrumentation position Medtronic to build a differentiated global robotics portfolio, combining advanced robotics, AI, visualization and instrumentation to push the field forward, improving surgical precision and workflow and serve a broader range of customers and patients around the world. Look, Q1 performance is further evidence that our strategy is translating into stronger results. We are accelerating growth, advancing innovation and focusing the portfolio and deploying capital with discipline. Overall, our progress this quarter reinforces our confidence in fiscal '27 and in our long-term revenue and earnings growth potential. With that, I'm going to turn it over to Thierry to walk through more detailed business results, our financials and our updated guidance. So over to you, Thierry. Thierry Pieton: Thanks, Geoff, and hello, everyone. I appreciate you joining today. Before we begin, I'd like to remind everyone this quarter benefited from the extra selling week, which we estimate contributed approximately $570 million or 670 basis points to total organic enterprise revenue growth. Excluding the impact of the extra week, we delivered our strongest quarterly performance in nearly 8 years, excluding COVID comps. Revenue this quarter was $9.8 billion, up 13.7% on both the reported and organic basis. Geographically, we saw nearly 16% growth in the U.S. and 12% internationally. Cardiovascular delivered 19% revenue growth this quarter, excluding 25% in the U.S. and 14% internationally. Electrophysiology Therapies or EPT, which includes our CRM and CAS businesses, grew 29%, including 41% in the U.S. and 18% internationally. Within EPT, Cardiac Ablation Solutions was again a significant contributor, delivering 88% growth, up 139% in the U.S. As Geoff outlined, while we are gaining share rapidly in CAS, this business is still in the early stages of its trajectory. In Q2, we expect to outpace the market by more than 3x with growth rates moderating over the remainder of the fiscal year as we lap increasingly strong comps. Cardiac Rhythm Management was up 15% worldwide including balanced performance between the U.S. and international markets, gaining 80 basis points of global share. Conduction System Pacing continues to gain momentum adding over 200 basis points to CRM in the first quarter. As CSP adoption expands across a growing patient population, Medtronic remains the leader with CSP capable leads in both high and low power segments. Our broad portfolio and innovation pipeline, position us to extend our leadership in this large franchise. Pivoting to Interventional Cardiology Therapies, which include Structural Heart and Coronary and Renal Denervation. ICT grew 7% globally, driven mainly by 11% in international growth. Structural Heart grew low single digits. Similarly to Q4, U.S. procedure volume trends remain stable. Our internal programs in mitral and tricuspid replacement are on track. And we're taking steps to broaden our opportunity over time through targeted external investments as evidenced by our strategic investment earlier this year in Anteris as well as Pi-Cardia announced this morning. Pi-Cardia is the first FDA-cleared leaflet modification technology for TAVR procedures for patients at risk for coronary obstruction, one of the fastest-growing segments in Structural Heart. Coronary and Renal Denervation grew 13% globally. Our coronary business was up low double digits, with CathWorks, our AI and advanced computational science platform for angio-based FFR contributing nearly 300 basis points of organic growth. In Ardian, we continue to make progress in the first quarter. Positive trends across access, market development and adoption reinforce our confidence in this very large opportunity. Cardiovascular Surgery, which includes our cardiac surgery and aortic businesses grew 8% globally, and Peripheral Vascular Health was up 11%. Now moving to Neuroscience. The portfolio grew 9% worldwide, driven by 11% in the U.S. and 7% internationally. Cranial & Spinal Technologies delivered 13% growth worldwide. Performance was driven by continued strength in Core Spine, up 14% and Neurosurgery up 15%, along with strong contribution from Stealth AXiS following its first full quarter since commercial launch. Specialty Therapies was up 7%, including 10% in the U.S. and 4% internationally. Within Specialty, Neurovascular grew 4% globally driven by 9% in hemorrhagic and continued strength across flow diversion, intrasaccular embolization, carotid stenting and access devices. In August, Onyx 12 received U.S. FDA approval for MMA embolization to treat subdural hematomas. All 3 Onyx viscosities are now approved for a 1-minute shake time versus the conventional 20 minutes. This quarter, we completed our acquisition of Scientia, which represents an important advancement in navigation, enabling neuro interventionalists to reach areas of the brain that have historically been extremely difficult to access. Pelvic Health delivered 15% growth globally. In SNM, Medtronic continues to outpace peers and Altaviva's performance is now more than offsetting SNM market softness. We're pleased with the continued progress in Altaviva as physician training expands, reimbursement progresses and physician experience builds. We expect Pelvic Health to become a stronger and stronger contributor to neuroscience in fiscal year '27 and beyond. ENT grew 7% worldwide, driven by low double-digit growth in the U.S. Neuromodulation was up 3% globally driven by ongoing SCS market softness and replacement headwinds in DBS. Our neuromodulation position has been strengthened by the acquisition of SPR Therapeutics in peripheral nerve stimulation, and through our distribution agreement with Merit Medical, which expands our presence in BVNA. Both segments are growing over 20% annually. Together, these strategic actions increased our exposure to attractive high-growth markets and reinforce our broader pain portfolio. Now turning to Medical Surgical, which had a strong quarter and delivered 10% growth globally with balanced performance in the U.S. and internationally. Surgical revenue increased 9% with similar performance across the U.S. and international markets. We saw strength in Advanced Energy and Wound Management driven by share gains from our LigaSure vessel sealing and V-Loc barbed sutures. As Geoff mentioned, we are pleased with our launch of Hugo, which had an increase in contribution in the quarter. Endoscopy grew high single digits, driven by further momentum of Endoflip 300 system and of PillCam. Acute Care and Monitoring was up 14% globally including high teens growth in the U.S. Results were driven by mid-40s growth in McGRATH video laryngoscopy, high 30s in Microstream capnography and high single digits in Nellcor pulse oximetry. This performance was a positive tailwind in the quarter. However, we expect ACM to normalize as we move through 2027. Finally, the Diabetes business delivered 15% growth, driven by U.S. acceleration and robust growth internationally. Our strategic intent for the separation of MiniMed is unchanged, create 2 focused companies that will allow both MiniMed and Medtronic to execute more effectively, pursue their distinct capital allocation strategies and align with the investor bases that best match their respective financial profiles. Before we shift to the P&L and guidance, I wanted to spend a moment on what we're seeing in terms of procedure volumes. Look, Q1 was a very strong quarter for Medtronic, underpinned by healthy underlying procedure volumes across nearly all of our end markets and geographies. Importantly, this strength was broad-based and not concentrated in any one therapy or region. We continue to see resilient demand across chronic disease, high acuity conditions and life-saving interventions, areas where Medtronic is particularly well positioned given our differentiated innovation and strong clinical evidence. While we continue to monitor the broader environment closely, as usual, the underlying demand backdrop remains constructive and reinforces our confidence in the durability of our growth. Overall, we're pleased with Q1 performance as well as the widespread contribution to revenue from many operating units. Now moving down the P&L. Our adjusted gross margin was 65.2%, up 10 basis points year-over-year. Now let me walk you through the elements that shape gross margin this quarter. We've maintained our discipline on pricing, which provided 30 basis point benefit to the quarter. Net of inflation, cost down contributed 50 basis points this quarter, driven primarily by COGS efficiency programs and strong execution across our portfolios, global operations and supply chain teams. In Q1, we rationalized more than 9,000 SKUs, further streamlining our product portfolio to focus on the areas with the greatest customer impact, while enhancing supply chain performance and delivering cost efficiencies across the enterprise. Mix was unfavorable by 50 basis points, largely reflective of the diabetes and CAS businesses. Consistent with prior quarters, while the near-term capital mix continues to impact our gross margin, it's reflective of our strong commercial performance and growing installed base, which is expanding our foundation for future pull-through of higher-margin catheter sales over the long term. The tariff-related impact was a slight headwind as tariffs paid were largely offset by related refunds. And finally, the impact from foreign exchange was roughly neutral. Adjusted SG&A was 32.4% of revenue and increased 14% year-over-year. We continue to make investments to accelerate the commercialization of our growth opportunities, while also integrating several recent acquisitions. Adjusted R&D was 7.9% of revenue in Q1 and increased 6% year-over-year. Here, we are focused on driving sustainable growth through investments in innovation, complemented by targeted inorganic opportunities. This discipline is reflected in acquisitions like SPR Therapeutics and Scientia, both of which operate in markets with CAGRs exceeding 20%. These businesses are demonstrating strong early traction. And while not reflected in our organic growth today, they're expected to contribute over $150 million to inorganic growth in fiscal year '27. Our adjusted operating profit was $2.3 billion and increased 15% year-over-year. This resulted in an adjusted operating margin of 23.7%, up 10 basis points from the prior year, while we continue to invest behind our highest priority growth opportunities. Our adjusted tax rate was 17.2%, slightly better than expected. The benefit was mostly timing, and we expect this to be offset later in the year. All in, our adjusted EPS was $1.45, $0.06 above the midpoint of our guidance range and of Street expectations. Now turning to our guidance. As a reminder, our full year guidance includes the Diabetes business through fiscal year-end. On the top line, we are pleased with the strong performance in the first quarter, and are raising our fiscal year '27 organic revenue growth guidance to 7.25% to 7.75%, which represents a 50 basis points increase from our prior guidance. In the second quarter, we're expecting roughly 6% organic revenue growth. Based on recent FX rates, we expect foreign exchange to be a roughly $50 million to $150 million headwind for the full year with approximate $25 million to $75 million headwind in 2Q. Moving down the P&L and starting with gross margin. We continue to expect pricing and COGS efficiency programs to offset the current impact of business mix, which is primarily from diabetes and CAS. This headwind is expected to reduce following the completion of the MiniMed separation, which we intend to close prior to fiscal year-end. We continue to make targeted investments that are focused on our highest priority growth opportunities and are intended to strengthen the durability of our long-term revenue profile. Taken together, we expect fiscal year '27 operating profit to grow approximately 10%, with operating margin expanding approximately 50 basis points year-over-year. Moving to EPS. Given the strength in the first quarter, we're also raising our fiscal '27 guidance range to $5.94 to $6. For the second quarter, we expect EPS in the range of $1.32 to $1.34, which includes a roughly neutral impact from foreign exchange at recent rates. To close, we are well positioned for a strong year. I'm encouraged by the strength of our first quarter performance and the continued progress we made against our strategic priorities. At the same time, our operational focus has begun translating into our financial results. Portfolio simplification, SKU rationalization, cost out, and broader supply chain initiatives are beginning to deliver structural efficiencies down the P&L, and we see further opportunity ahead. We're pairing that discipline with targeted organic and inorganic investment to accelerate innovation and support commercialization and expand our growth platforms. Look, we are laser-focused on translating stronger growth and enhanced efficiency into durable earnings leverage. With that, back to you, Geoff. Geoffrey Martha: Okay. Thanks, Thierry. Q1 was a strong start to fiscal '27 and another proof point that our strategy is translating into results. What gives us confidence is not simply the strength of the quarter, but also the breadth of our performance this quarter. Growth is being driven by several businesses, multiple innovation platforms and teams who are executing at a high level across Medtronic. We look forward to sharing a deeper look at our portfolio and our pipeline and our capital allocation strategy as well as our long-term growth opportunities at our upcoming Investor Day scheduled for December 10 and 11. With that, I'd like to thank our Medtronic colleagues around the world. The progress we are making reflects the discipline, focus and execution of our teams. I want to thank you for your hard work and continued commitment to reaching more patients. Together, we bring our mission to life for the people who are counting on us the most. Okay. Let's turn to Q&A now. And Ingrid, please provide the instructions and queue up the analysts. Ingrid Goldberg: [Operator Instructions] Finally, please be advised that the Q&A session is being recorded. [Operator Instructions] Our first question comes from Travis Steed at Bank of America. Travis Steed: Congrats on a great quarter. I guess I want to -- CAS is doing really well, but I want to spend a second on kind of the Medtronic business ex CAS and just kind of the ability to accelerate and improve kind of the base business ex CAS at Medtronic kind of going forward. We saw Altaviva having an impact. So maybe just spend some time on that and also the investments this morning with the Cornerstone deal. When does that show up in kind of the base surgery revenue? And how is that contract structured with Cornerstone? And then, Thierry, I wanted to also follow up the margin guide, I think, ticked down like 10 basis points from 50 basis points -- from 60 to 50 basis points. Just wanted to clarify that if that's because of some of the investments you've done this year. Geoffrey Martha: Okay. A couple of other questions there. Thanks for the questions, Travis. First on the -- I'll take -- I'll start on the first one, just on the business performance and get it ex CAS. I'd say, first of all, what we like about the quarter is the breadth and the depth of the performance, right? You had a number of businesses, including our big 3 perform really well. Cardiac Rhythm, CST and improving performance in surgical. And on that breadth note, a lot of different countries around the world contributed to the growth. And then as you point out, we had a number of growth drivers on top of this to give you the depth, right, CAS being the biggest one, but also some good progress in Altaviva, Ardian, Hugo. So we've got these growth drivers all moving forward. So look, from our perspective, the performance is broad-based, and we had strong execution. And it's really -- as we talked about this last quarter, the compounding impact of a lot of strategic, operational and cultural changes that we've made. So beyond CAS, like you said, you're getting to your question, like I said, we have these other growth drivers that we're feeling really good about. We can talk about the announcement we made this morning in Structural Heart with Pi-Cardia as well as in soft tissue robotics with Cornerstone Robotics. There's a lot to talk about and Ardian is making good progress as well. Altaviva is starting to inflect. So -- and on top of that, you've got Stealth AXiS really doing well in CST. So we feel good about these other growth drivers. But if I go around the horn, I mean, just talk about Neuroscience for a second. Lots going on there. I mentioned Stealth AXiS in CST. We talked about Altaviva. We can get more into that. And then in Neurovascular, we see an acceleration here in the back half of the year, getting that business to mid-single digit. It's partly the acquisition of Scientia that's not in our organic growth. And on top of that, we'll get to this mid-single digit. But it is getting us into more cases, and we've got a lot of new products there, more indications for Onyx. We've got carotid stenting, and we've got RT. So we've got a number of new products there that are driving. And of course, in Pain Stim in our Neuromod business, we've got the new BVNA partnership that's accelerating as well as SPR, which is moving us upstream. And so that business will benefit from that. So you're going to see a nice acceleration in neuroscience, continued performance in cardiovascular, and you're seeing the acceleration in surgery. I don't know, Thierry, if you want to add to that and get to the guidance question. Thierry Pieton: I would say one thing that I mentioned, you mentioned the different investments that we made. In aggregate, we should expect around $150 million worth of revenue in the full year from these acquisitions with kind of a partial year impact. And it's in organic for now, but it will turn into -- inorganic for now, will turn into organic. And all of these investments and acquisitions are in areas where the CAGR is significantly higher than the rest of the business, right? We're talking segments where the growth is typically north of 20%. So that's further good news down the road. I think one that I would mention, you talked about neuroscience. In neuroscience, in every single segment, we have meaningful innovation happening. So we have Stealth AXiS in CST. You talked about Scientia, Onyx, Neuroguard, Artisse in neurovascular. We've got Stealth AXiS ENT version for the ENT business and ApexCut that's coming out. So every franchise there has good news going forward. So look, I think we've got a lot of good news ahead of us. And there was a question on Cornerstone, but maybe to talk about the margin question, Travis. There's -- yes, it's really the result of the investments that we're making. So just to talk about the guidance for a moment. So we're raising the revenue guidance by 50 basis points and slightly raising the EPS. The way to think about the EPS raise is we took the upside of the first quarter. And then a couple of things. I would say part of it, about $0.01 is driven by tax, which is timing, which we assume is going to come back the other way for the rest of the year. We've invented now in the guidance, the foregone interest that is going to come from the investment that we just made in Cornerstone. So it's a $700 million investment, and we're going to have some foregone interest on that. And then to your point, what we're doing is we're taking a portion of the upside from a revenue perspective and a portion only and reinvesting that to accelerate our commercial performance. The last thing I would say is this is only the first quarter, right? And we want to set the business up for success in the remainder of the year. Geoffrey Martha: I'm sure we're going to get more questions on Cornerstone and Pi-Cardia. But just high level, I'd say, first on Pi-Cardia, excited about the investment. And it's part of a broader theme in Structural Heart, where we're just making -- doubling down on that space. We made the Anteris investment a few months ago in the TAVR space. We're investing heavily in tricuspid and mitral. We've got an ecosystem that we're building with DASI on the sizing as well and now Pi-Cardia here. It's just another investment in the space, and we're bullish on it, and we're going to keep going there. And in terms of Cornerstone, look, we're just really excited about our progress in soft tissue. We've made a lot of progress. We talked about it in the commentary on Hugo. That's our play in the U.S. Cornerstone is really about access and choice. It's a global play for us. It's one of a number of investments we're making in soft tissue. But this one in particular, it's a global play. It gives customers choice around the world, and we're really excited about it. And it just goes with a bunch of other investments we're making. We -- our Touch Surgery platform, our digital platform, we believe we're leading, and we've got a nice lead in Touch Surgery, and we were at 1,500 installed base. We just rolled out our newest version of that aide, which is like 300x more computing power in the surgical suite. We're investments in visualization, robotic instrumentation. So there's a lot going on in soft tissue, and we're really excited about our progress there. Ingrid Goldberg: Our next question comes from Larry Biegelsen at Wells Fargo. Larry Biegelsen: I'll keep it at one, Geoff, and follow up on Cornerstone. Just maybe expand on the deal rationale. I'm going to just ask it head on. Some investors may think this is a signal you're not confident in Hugo, address that and maybe a little bit more on the financial implications and which markets you're going to launch this in and whether it includes the U.S. And just lastly, is there an option to acquire the company? Geoffrey Martha: Well, look, we've got Mike Marinaro on the line here, too, from our Medical-Surgical portfolio. I'm going to turn it to him for a second and then maybe, Thierry, you can hit some of the financial questions. But on the Hugo question, it's just the opposite. I mean, we're very excited about the progress that we're making in Hugo. We talked about it in the commentary. We'll be by the end of the fiscal year, over 50,000 cases, 250 units installed. We're continuing to roll out new -- we're getting new clinical indications. We expect multiple new indications by -- in the fall here. We're investing -- I was just in our North Haven, Connecticut facility, where we do a lot of the instrumentation last week, and we've got a host of new instruments coming out. So we're really bullish about Hugo. That is our U.S. play and other countries as well. But Cornerstone, like I said, does give us -- it's like more of a global play, gives our customers -- it helps us drive up access to robotic surgery, which is very underpenetrated, particularly in emerging markets, and it gives our customers choice. And maybe I'll call on Mike to provide a little bit more detail and answer some of the other questions, and we'll go back to Thierry on the financial side. Mike Marinaro: Yes. Thanks, Geoff. And Larry, thanks for the question. I think Geoff covered it very well. This is a distribution and partnership deal that we're very excited about. As Geoff mentioned, this is a global play. It's an opportunity for us to build out a full portfolio of robotics, a full portfolio offering and an ecosystem. And it builds on the progress that we made with Hugo. I think Geoff just spoke to it. But this quarter, we've spoken about now our expectations around installs. Really pleased to see with Hugo that our procedure volume continues to grow at 2x the market rate and then our digital ecosystem, of course, is now expanding. I think as you've seen at Society of Robotic Surgery, I know you have a prominent presence there. There is a growing suite of capabilities globally. And it's becoming clear to us that there are going to be 2 or 3 platforms that we'll win in the market. And this is an opportunity for us to build out a portfolio of offerings that really meets the customer need and the specifics of the customer situation very well where they sit. So this is an opportunity for us to take that strategy and expand access in one of the largest markets in med tech that is still highly underpenetrated, and we see it as complementary and really just an expression of our confidence in the progress that we continue to make here with Hugo. Lastly, I'd say we're in this to win. This is a critical area for us. We are leaders in surgery, and this investment is an investment to build out that portfolio of offerings because we're here to win, and we're excited about this platform and portfolio that we'll build together between Hugo, Cornerstone and our Touch Surgery ecosystem. Thierry Pieton: And then on the financials, Larry, just -- so for this year, other than the impact of the foregone interest that I mentioned in the previous question, the impact should be minimal. Starting in '28, though, we should start seeing the impact of the distribution agreement. And this will contribute the growth that we're experiencing coming from robotics, generally speaking, first with Hugo and now with Sentire, making that stronger and stronger. So we do expect to see a lift in volume and in margins coming into '28 through the distribution agreement. The question on the acquisition, look, we -- on the potential acquisition, we just made a large investment. The investment that we made does provide us some strategic optionality going forward, I would say. But the way we're approaching it is similar to what we do in a lot of these investments. We like to take a position, have a seat on the board, understand how the company is being run, start developing the collaboration. And then once we understand what's under the hood, so to speak, consider our options. So some optionality there. Geoffrey Martha: And just, Larry, just to reemphasize, I just want to make sure we're not mincing any words here and there's no earnings speak. We are doubling down here. We have a lot of confidence and conviction about our position in soft tissue right now. And as Mike said, that's the key. We're in it. We are building a winning strategy here. We feel good about our position. We feel good about Hugo. We've got confidence and conviction, but there's no arrogance as my college hockey coach used to say, head on a swivel Panther-like stance. There's lots going on here, and we've got to continue to invest and continue to execute here. We like our -- we want to become that meaningful #2 and gain on the market leader. And we really like the -- what we believe is a multiyear head start over the next scaled competitor, which is important. Ingrid Goldberg: So Vijay Kumar, you are next. Vijay at Evercore. Vijay Kumar: Congrats on a nice spring this morning. I had a 2-parter for you, Geoff. One on diabetes split-off timing. When you look at Medtronic versus stock prices and MiniMed stock, obviously, it's come off the bottom. Why not -- what is the hesitancy in announcing the split off? And one on the CAS. I want to make sure I heard this correctly. I think your prior comment was about twice the rate of market growth. And I think today, you said 2.5x the rate of market growth. So did underlying CAS assumptions improve? And what is driving this confidence? Geoffrey Martha: Well, thanks, Vijay, for the question. Maybe I'll start with the CAS question, and then Thierry, you can take the diabetes question. Yes, we did say for the balance of the fiscal year, that we would grow 2.5x the market. And we think the market is mid-teens. And in Q3 -- or Q2 rather, it might even be higher than that. So look, we're just -- there's a lot going on in CAS. I'd say -- first of all, there's still room to run on Sphere-9, right? We're still relatively early in that launch as evidenced by the 35% sequential growth over the prior quarter. It tells you we're still early. Sphere-9 remains kind of one of a kind in that dual energy point-to-point space and with a lot of different features and benefits that physicians like and it continues to grow, and we're getting more clinical indications there. We're on the -- we still got a CE Mark for VT, geographic expansion, we're just launching in Japan. So it's just a lot of room to run on that one. And then we're starting to see progress with Sphere-360 in Europe. And we're going to keep going here. We're building out an ecosystem. That's a trend here at Medtronic. You saw it in CST, it's procedural or surgical ecosystem. We're doing that in soft tissue, and we're now doing it in various areas of cardiology, CAS being one. We talked about 2 investments in ICE technology last quarter, and we're going to keep going. So again, not too dissimilar from soft tissue. I mean, we like our position. On this one, we're further ahead and marching towards that market leadership. But you got to keep investing here, not just in the therapy itself, but also the ecosystem around it. And I forgot about mapping, too, the integrated mapping continue to kind of drive mapping upgrades every year. So there's a lot going on in CAS, and that's driving our -- plus you got a great market, right? The market is growing fast. So all that is giving us the confidence and conviction. And then I'll turn over to you on diabetes. Thierry Pieton: Yes. And just on CAS, it's -- you're right, Vijay, it's 2.5x the market on the full year. We expect it to be north of 3x the market in the second quarter. So we expect another good quarter in Q2 despite comps that are getting tougher and tougher. On diabetes, look, first, as you mentioned, it's great to see that the stock has come back up, and we're encouraged to see that. I think it's a testament to the fact that the business is performing, right? So they had a good fourth quarter last year. As you can see in the print here, and Chad and Que will give you more details a bit later, they had a good first quarter. So growth is accelerating, in particular, in the U.S. They have a ton of favorability from an innovation perspective. Every single launch is happening ahead of schedule, which is great news. So it's super encouraging going forward. There's no hesitation on our side. So no change in schedule or anything like that. We had mentioned that we would do the separation when we think the economics are optimal for our shareholders and for our stakeholders, generally speaking, and we stick to that position. So no hesitation going forward with the separation just when the time is right. Ingrid Goldberg: All right. Great. Next question comes from Mike Kratky at Leerink. Michael Kratky: So congrats on the strong quarter. Really encouraging to see the 35% sequential growth for your U.S. Affera installed base after 40% last quarter. So can you provide any additional color on utilization trends in centers after they've added an Affera system? How quickly are you seeing your PFA market share shift in those centers? And where are you seeing your share kind of stabilize over time there? Geoffrey Martha: Well, we're seeing -- let me see here, I'm going to my notes here. Well, so first of all, 75% of our U.S. installed base are at high-volume centers, right? So right now, we're still concentrated in these high-volume centers, which is not a bad thing. But it also tells us we've got room to run in the lower volume centers across the U.S. 30% of our accounts are doing 70% of the ablations, right? These are high-volume centers. That's the 300-plus ablations a year. That's what we define as a high-volume center. And then many of these large accounts have only 1 or 2 systems, and they're asking for more. So we're seeing -- like once Affera goes in there, most of our experience, Mike, is in these high-volume accounts, right? And once our system gets in there, the utilization is high. We're seeing them add systems. And so we're -- that's all a good sign. That utilization number is something we're watching every quarter. And like I said, so we're focused on those high-volume centers, and we've got a lot of room to run in centers outside of these high-volume centers. Do you have anything to add there? Thierry Pieton: No, I think I'm glad you picked up on the 35% because it's 35% in Q1 after 40% in Q4. So if you think of just the mathematical, mechanical impact of what that means from a pull-through perspective, it's just super encouraging. Geoffrey Martha: And for just a variety of reasons, I won't go through all the list of benefits. It's -- Affera is becoming the workhorse in these centers, and that bodes well. And then we've got Sphere-360 coming, which, as I mentioned earlier, goes right at the heart of the largest -- our largest PFA competitor. So feeling bullish on CAS right now. Ingrid Goldberg: Next question comes from Anthony Petrone at Mizuho. Anthony Petrone: Congratulations here on a solid quarter. I'll stick to one and maybe go back to Vijay, which is maybe capital allocation in diabetes. There will be a pretty significant hole in the portfolio. It's also growth accretive based on the quarterly numbers for this fiscal quarter, diabetes growing 15%, excluding the week, you're at roughly 7%. So maybe how the capital allocation will change post diabetes being completely separated? Will the cadence of tuck-in deals accelerate? Will you consider scale deals? Is a buyback in the cards here as well, considering that med tech valuations are off the bottom, but are still certainly not at multiyear highs. So just looking ahead to what the capital allocation program looks like post diabetes. Geoffrey Martha: Well, thanks, Anthony, for the question. Thierry can comment on the financial impact here. But on the growth side, at the Medtronic level, it's about 20 basis points, right? It's not -- and with our growth accelerating, we're very comfortable. And as we project forward, we're comfortable with losing that 20 basis points. And from a profitability standpoint, from a gross margin standpoint, it's a big step up. Thierry can walk through that. Look, the diabetes business, it is fundamentally different from the rest of Medtronic. That's why we made this decision. It's more consumer based. There's a number of other reasons. But financially, also that industry is a lower margin business, right, on its best day, materially lower than the rest of Medtronic. And so getting that capital allocation question, I wouldn't say anything has changed. We've already made that switch, and you're seeing it in our performance. We've made that switch to allocating our capital to the highest growth opportunities in med tech, the highest growth, but also where we have confidence that they're going to be big. So high growth, large patient pools. And the third thing is where we feel like we have a right to win. We've got strong commercial presence, a good reputation. We understand the clinical nature of it. We understand the technologies, et cetera. And that's where our capital allocation is focused. We're much more prioritized in these high-growth areas, much more of a top-down at our leadership team level, allocating that capital. And you're seeing the uptick in M&A already, okay? That's broad-based, organic and inorganic. And on the M&A, you've seen over the last 18 months, we've been working on this for probably 3 years to get that pipeline of M&A going. And it is -- it's not the scale deals, it's the tuck-in deals. And it's not just -- it's venture -- an uptick in venture investing, an uptick in structured deals where you make an investment and then you have strategic optionality later and then just flat out acquisitions. You're seeing it across the board, prioritizing those high-growth areas. And we announced 2 more investments today. So you're going to see that continue in those areas of cardiology, neuroscience and our Medical-Surgical area. Thierry Pieton: I don't know what to add. Geoff, that was a pretty complete answer. Just a couple of numbers. I mean, Geoff said, it's about 20 basis points of growth. It is lower margin. So when we deconsolidate diabetes, our gross margin will go up about 50 basis points. Our operating margin will go up about 100 basis points. It typically -- the R&D as a percentage of revenue is about double in diabetes, what the rest of the business is. So it does give us an opportunity to reallocate capital to the other segments of the company where we typically get better returns. As Geoff said, this is not a -- going forward, when we deconsolidate, it's something that we've already started doing. So if you look at the last 12 months or so, we went from doing about $2.8 billion of R&D and $0.5 billion of acquisitions to almost $3 billion in R&D and $2 billion in acquisitions -- or investments. So we more than doubled the investment in innovation. And that's something that we intend to continue doing going forward. So that's the recipe. And again, diabetes, the separation gives us some flexibility to do more of that. From a buyback perspective, no specific plans in that area, but never close to if the conditions are right, doing it for tactical reasons. Geoffrey Martha: And just to kind of further emphasize the point and get into our mindset, just go back and look at some of our actions, right, in terms of prioritizing these high-growth areas. We had to take CAS, right, which we just talked about AFib ablation. We have an organic program, PulseSelect. And at the same time, we thought the space was so important, we decided to go out and invest $1 billion in an inorganic platform. So multiple shots on goal. And here we are today announcing these type of results. We picked up another 9 points of share in the highest growth -- one of the highest growth segments in med tech. I mean, we want to put together these decisive winning strategies. And then we talked about soft tissue surgery. Again, a lot of investments organically in Hugo and that ecosystem around it, like the digital platform with Touch Surgery. And then here we go today, announcing an inorganic investment, again, doubling down on these high-growth spaces where we believe we have a right to win and putting together winning strategies. Thierry Pieton: And just one thing I want to add because it's important. You might have seen in the numbers this morning, our free cash flow performance for the first quarter was very strong. Cash conversion is improving. We were at 70% in the first quarter, which is good, but we think we have a strong path to getting to 80%. We've got a strong balance sheet. So independently of the diabetes deal, we've got a lot of firepower to go do this investment. So we look forward to continuing to deploy capital. Ingrid Goldberg: Okay. Matt O'Brien at Piper Sandler, you are up next. Matthew O'Brien: Okay. So just real quick, I know we're running long. On renal denervation, I just want to be sure I'm clear on the message here because obviously, CAS is doing really well. So how are you thinking about the trajectory of that business now? The market opportunity, any update on what you're thinking in terms of the market? And then do you really need transradial to accelerate that franchise over the next several years? Is it a reimbursement thing? What's really the clear message on renal denervation here as we get this update here in Q1? Geoffrey Martha: Well, thanks for the question, Matt, on Ardian. I still -- we have confidence and conviction that this is going to be one of the biggest things in med tech, right? And there's 3 things driving it. You touched on some of them. One is the improving clinical evidence, which I'll touch upon. The other is broader reimbursement coverage and the third is market development. In terms of the evidence, right, the real-world outcomes just keep getting better. I don't know what else to say that we had great 3-year data at CRT, where you saw like 18 -- over 18-point reduction in the office, over a 13-point reduction in the ambulatory setting. I mean, these are materially higher, like 2x, 3x, 4x higher than the clinical trial. And then we put in the commentary today, SPYRAL AFFIRM was accepted as a late-breaker TCT. So more data coming out. I think that's full 6-month data coming out in a very visible conference. So what you're seeing is the difference from the trial is material in terms of the improved results. And we're also seeing really strong durability of these results, especially versus like ultrasound. So this is driving -- the conversation is shifting, right? KOLs and hospitals are coming to us to really get some of these programs going as they see this continued improvement in clinical evidence. Also driving that would be more improvement in reimbursement coverage, right? Beyond the national coverage decision for CMS, we're seeing these commercial payers continue to jump on board. And this quarter, we had a number of them. Particularly, we had some bigger ones like Highmark. So we're seeing that reimbursement coverage improve. And then the market development. That's where a lot of the focus is now. And look, as you -- I know, Matt, you get out there, you talk to a lot of the KOLs, and we're out there talking to them as well as the hospital C-suite. And the conversation, like I said, is shifting. The enthusiasm is there, and we're really partnering with them to build out these programs on the back of the clinical evidence, on the back of more insurance coverage, building out those referral pathways and driving consumer/patient awareness on these. So again, we thought we made a good progress on a number of those leading indicators, and it bodes well for the ramp here over the next quarters and years to come. Ingrid Goldberg: All right. I think we have time for 2 more. So the next question comes from Robbie Marcus at JPMorgan. Robert Marcus: Great. Congrats on the nice quarter. Thierry, I wanted to ask on margins. This quarter, it came in just a bit above the Street on operating margin. How are you thinking about reinvesting this top line upside versus driving margin expansion, both in the first quarter and for the rest of the year? And then a quick follow-up. You talked about tariffs, rebates offsetting tariffs paid. Do you have the tariff rebate number so we can all keep track of that as some of the one-time benefits in the quarter? Thierry Pieton: Yes. Thanks, Robbie. So I'll start with the rebates -- with the tariff, sorry. So the refunds in the first quarter were such that we were a slight net negative on the impact from tariffs. So they almost compensated the full tariffs. Going forward for the year, just to be clear, we have not embedded future refunds. So wanted to remain prudent going forward. So we're -- we have a construction for the remainder of the year that doesn't bank on any refunds happening. We are continuing to submit for refunds. So there's a potential upside coming from that. From a margin expansion perspective, look, we're in growth mode. So we're taking a portion of the upside that we're seeing from a revenue perspective and reinvesting in the growth areas and a portion only. And so the construction that we've got on a full year basis today still calls for an operating margin that should be up about 50 basis points on a full year basis, which should put us with an op profit up 10%, so significantly higher than our revenue growth. So look, we're going through all the different parts of the company, right? Cost of goods sold, the manufacturing efficiency, the relationships with the suppliers. We're looking at logistics costs, and we're looking at overhead. And we're really looking at how we can drive efficiency at every level. And it's starting to pay off. You've seen some of it in the first quarter. And on the full year, we're going to deliver a leverage P&L. Ingrid Goldberg: All right. I'm waiting for my queue up here on our last question. It should come from -- perfect, Rick Wise at Stifel. Thierry Pieton: Might be on mute, Rick. Ingrid Goldberg: All right, Rick, we'll get you on the next one, please. The next question is going to come from Joanne then, Joanne at Citi. Joanne Wuensch: Really nice quarter. To wrap it up, I think I'll ask about Charlotte, North Carolina and why are we going there? And what can we expect from the analyst meeting? And my second question sort of probably ties to that one. For a while, I used to think of Medtronic -- or we used to think of Medtronic as sort of a mid-single-digit revenue grower, high single-digit EPS. Has that formula shifted? Geoffrey Martha: Well, look, I'll start with your last question -- the back half of the question and let Thierry pile on there. But look, we -- Thierry mentioned between the strong cash flow that we're generating, our cash flow is improving here continues to improve. It's always been good, but it's improving, had a really strong quarter. We're going to continue to focus on that. And then our focus on gross margin and operating margins are going to allow us to invest more, both organically and inorganically. And then ramping up our inorganic tuck-in acquisitions, combining that with our organic, you're seeing effectively a doubling of our investment in innovation, and we've been doing this for a while. And now you're seeing that growth tick up. And clearly, we have aspirations for higher growth than we've done historically. You've seen over the last couple of years, we've gotten the growth to mid-single digits, but we're not satisfied with that. That's why the more investments and the focus on execution. We have -- I can't describe in words the sense of urgency on the investments and the execution to continue. You've seen in the last 2 quarters a bit of an inflection of growth, and we want to kind of continue with that. So before I get to the Charlotte, Thierry, any other comments on that? Thierry Pieton: No. Look, I think you said it all. So we're clearly at an inflection from a growth perspective, and we're working the P&L. As I just said, we're continuing to make progress in pricing. We're continuing to make progress in cost out. We're reinvesting in innovation, but we're getting leverage from an overhead perspective. So we're really focused on driving the leverage on the income statement as well. And it's one of the things that we'll talk about in Charlotte. Geoffrey Martha: Yes. And so Charlotte, why are we going there? So look, the IRCAD facility there in Charlotte is an impressive facility. IRCAD is mainly historically outside -- the physician training outside the U.S. This is their first North American site, and we have a big presence in that site. And it's a good way, Joanne, to actually see -- especially a lot of our technology now is -- or more and more of it is capital. So you got our AiBLE platform and Stealth AXiS. You have all of our soft tissue technology, which we keep adding to. You have the digital piece. It really helps to see it in action and IRCAD is set up so that you can actually see it. We'll have physicians there walking you through it and describing how they're using it. And these are physicians that also use our competition. We all have our weak moments, but they'll be able to provide, I think, a good balance of how we stand up versus the competition, and we'll talk about where we're going with these technologies as well. And then the other thing, look, on these earnings calls and some of our other events that we do, the different banking meetings, we don't get a chance to go in depth with some of the other parts of our growth pipeline. And so there's a lot that we haven't talked about that we're going to talk about. And in addition to that, you're going to go down a layer into the org below my leadership team to some of the business unit leaders and the experts in these specific areas, and you're going to hear it from them as well. So physicians plus the business unit leaders themselves, new growth investments that we haven't talked about and then going way deeper into some of these big areas like these surgical ecosystems in a showcase, a space that is built for this. And so December 10 and 11, please mark your calendar. It's -- we're really excited to share, and I know the team is as well. So thanks for the question, Joanne. Ingrid Goldberg: Right. Great. Well, that wraps up the call. So thank you, everyone, very much for joining. I appreciate your support and continued interest in Medtronic. And Geoff, if you have any other additional prepared remarks, please go ahead. Geoffrey Martha: No. I mean, look, thanks for -- thanks, as always, for joining today. Really appreciate the engagement. I appreciate the support and the continued interest in Medtronic. With that, have a great rest of your day, and thank you very much. Before you buy stock in Medtronic, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Medtronic wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Medtronic. The Motley Fool has a disclosure policy. Medtronic (MDT) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

Medtronic plc MDT used its first-quarter fiscal 2027 earnings call to emphasize that growth is broadening across major franchises while newer platforms gain scale. Management also raised its full-year outlook and defended continued investment in robotics, ablation and other higher-growth areas. Adjusted earnings of $1.45 per share topped the Zacks Consensus Estimate of $1.39. Revenues of $9.76 billion also exceeded the consensus estimate of $9.47 billion by 3.00%. Medtronic PLC price-consensus-eps-surprise-chart | Medtronic PLC Quote Executive vice president and CFO Thierry Pieton raised fiscal 2027 organic revenue growth guidance to 7.25-7.75% from 6.75-7.25%. Pieton also increased adjusted earnings guidance to $5.94-$6.00 from $5.90-$6.00. For the second quarter, management expects roughly 6% organic revenue growth and adjusted earnings of $1.32-$1.34 per share. Pieton said foreign exchange is expected to be a $50-$150 million full-year headwind, including a $25-$75 million second-quarter headwind. Chairman and CEO Geoff Martha stressed that the quarter was not driven by one franchise. Cardiac Rhythm Management grew 15%, Cranial & Spinal Technologies rose 13%, and Surgical advanced 9%. Martha also highlighted Cardiac Ablation Solutions, which grew 88% worldwide. Sphere-9 gained 9 points of U.S. share, while the U.S. Affera installed base increased more than 35% sequentially. Pieton said CAS is expected to grow at 2.5 times the market rate for fiscal 2027 and more than three times the market rate in the second quarter as comparisons get tougher. A Wells Fargo analyst asked whether Medtronic's $700 million Cornerstone Robotics investment reflected reduced confidence in Hugo. Chairman and CEO Geoff Martha rejected that interpretation and said the deal expands global access and customer choice. Martha said Hugo remains the company's U.S. robotics platform, with more than 50,000 completed procedures expected by fiscal year-end. Medtronic is also expanding indications, instruments and digital capabilities around the system. Executive Vice President and CFO Thierry Pieton said the Cornerstone deal should have minimal fiscal 2027 financial impact beyond foregone interest. He expects the distribution agreement to begin contributing to volume and margins in fiscal 2028. Executive Vice President and CFO Thierry Pieton said adjusted gross margin was 65.2%, up 10 basis points, as pricing and cost reductions offset unfavorable mix. Adjusted operating margin rose 10 basis points to 23.7%. Pieton continues to expect about 50 basis points of full-year operating margin expansion and approximately 10% operating profit growth. A JPMorgan analyst pressed management on reinvestment and tariffs. Pieton said Medtronic is reinvesting only part of the revenue upside, while first-quarter tariff refunds nearly offset tariff costs. The full-year outlook does not assume future refunds. A Mizuho analyst asked how capital allocation could change after the planned Diabetes separation. Chairman and CEO Geoff Martha said Medtronic's emphasis remains on tuck-in acquisitions, venture investments and structured deals rather than scale transactions. Executive Vice President and CFO Thierry Pieton said recent acquisitions are expected to contribute more than $150 million of inorganic revenue in fiscal 2027. He also said deconsolidating Diabetes would raise gross margin by about 50 basis points and operating margin by about 100 basis points. Pieton said Medtronic has no specific buyback plan, while retaining flexibility for tactical repurchases under the right conditions. Chairman and CEO Geoff Martha framed the quarter as evidence that Medtronic's strategy is translating into broader commercial execution, with established franchises and newer growth platforms contributing together. Executive Vice President and CFO Thierry Pieton kept the focus on pricing, cost reductions, portfolio simplification and targeted investment, aiming to pair stronger revenue growth with operating leverage. MDT carries a Zacks Rank #3 (Hold), along with a Value Score of B, Growth Score of C, Momentum Score of C and VGM Score of B. Under the Zacks framework, the B grades are more favorable than the C grades, while a Zacks Rank #3 indicates a neutral standing versus the top-ranked stocks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Style Scores are designed to complement the Zacks Rank, with A and B grades representing stronger characteristics within each style. The Zacks Rank can change as earnings estimates are revised following the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Medtronic PLC (MDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

With central banks lifting interest rates to tackle inflation, investors are hunting for themes that do not rely purely on cheap money to grow. Artificial intelligence in healthcare is one such story. It focuses on software and data rather than heavy assets. This article highlights three Transformative AI Healthcare Stocks from our screener that apply algorithms to diagnostics, treatment decisions, and hospital efficiency. The three stocks that follow are only a starting sample from this theme. The full screen surfaced 35 more companies with equally compelling narratives that are not covered in the article. To go deeper into this opportunity, analyze and identify your own highest conviction ideas directly in the Transformative Artificial intelligence (AI) Healthcare Stocks screener. Pfizer is one of the largest global biopharma companies, discovering, developing, manufacturing and selling treatments across internal medicine, vaccines, oncology, rare diseases and biosimilars. Its direct link to transformative AI comes from the collaboration with Boltz, PBC to build biomolecular AI foundation models aimed at speeding up drug discovery and sharpening precision in how new therapies are designed. The Global Biopharmaceuticals Business generates about US$62.3b in revenue, with only a small part of that tied directly to AI efforts, and Pfizer’s market cap is about US$162.2b. Investors looking at Pfizer get access to a broad late stage pipeline in areas such as oncology and obesity, as well as a clear AI angle through its biomolecular modeling work with Boltz that targets faster, more precise drug development. At the same time, there are real watchpoints, including a heavy patent expiry cycle, regulatory pressure on drug pricing and a recent large one off loss that clouds profit trends. The interest lies in whether this AI enabled R&D push, combined with ongoing cost saving efforts and a strong global commercial footprint, can turn that complexity into a more efficient, higher value portfolio over the rest of the decade. Pfizer’s AI fueled drug design push could reshape a US$162.2b giant; however, patent cliffs and pricing pressure still loom large. Get the fuller picture with the 2 key rewards and 4 important warning signs Tempus AI runs a healthcare data and diagnostics platform that links genomic testing, clinical records and imaging with its Next AI and Algos tools to support precision diagnostics, treatment decisions and trial matching. The company generates about US$1.4b in revenue from Medical Labs and Research, largely tied to diagnostics services such as NGS tests and pathology, which in turn feed its AI models and data products. Tempus AI has a market cap of roughly US$11.4b. Investors watching how AI is reshaping diagnostics may want Tempus AI on their radar. The company combines a growing diagnostics franchise with a large de identified data asset and AI tools that support oncology, cardiovascular risk detection and trial matching, helped by collaborations with big pharma and leading hospitals. At the same time, Tempus is still loss making, carries meaningful debt and has seen insider selling, so expectations around AI driven growth and a move toward profitability within a few years carry execution risk. The key question is whether the data flywheel and higher margin data and application revenue can turn today’s complex story into a more durable healthcare AI platform over time. Tempus AI is building an accelerating data and diagnostics engine, yet the real story sits in how its losses, debt and insider selling line up against the 1 key reward and 2 important warning signs Medtronic is a large global medical device company that supplies hospitals and specialists with everything from cardiac implants and neuromodulation systems to surgical tools and insulin pumps, and now layers AI into key parts of that portfolio. Its clearest tie to transformative AI is the surgical video and analytics platform in the Medical Surgical Portfolio, which uses machine learning on intraoperative video to support decisions and smoother workflows, alongside AI enabled remote monitoring software in cardiovascular care. Medtronic has a market cap of about US$116.0b. Medtronic gives you exposure to AI inside the operating room and at the bedside, where its video analytics, robotic assisted surgery and remote monitoring tools aim to improve how complex procedures are done and how chronic conditions are managed. The potential prize is growth in higher value, data rich platforms as procedure volumes and digital health adoption move forward, backed by a large installed base and a long track record in devices. The catch is that underperforming segments, margin pressure and execution risk around big launches such as Hugo robotics and new diabetes systems could affect returns if adoption is slower than expected. For investors willing to watch those fault lines closely, Medtronic’s AI driven shift could be an important factor in how the next few years play out. Medtronic’s AI push in the operating room could be more than hype, particularly if higher value platforms shift the earnings mix. Scan the analyst forecasts for Medtronic to see what expectations might be missing. Fresh stock themes move fast. By the time most investors notice the breakout momentum, the best entry points can be gone. Scan these curated ideas before the crowd and review them in detail. Hunt for early-stage stories with real balance sheet strength by reviewing the curated 22 elite penny stocks with strong financials before momentum starts and prices move higher. Track where real earnings power meets AI momentum by checking the hand picked 75 profitable AI stocks that aren't just burning cash while expectations are still under the radar. Target reliable cash flows and payout resilience by scanning the curated 12 dividend fortresses before yields change and income opportunities become more widely followed. This article by Simply Wall St is general in nature. 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Medtronic plc MDT reported first-quarter fiscal 2027 adjusted earnings per share (EPS) of $1.45 per share, which rose 15.1% year over year and topped the Zacks Consensus Estimate by 4.32%. The metric excludes certain one-time adjustments, including amortization of intangible assets, restructuring and associated costs, as well as acquisition and divestiture-related items. On a GAAP basis, EPS came in at $1.14, up from 81 cents a year earlier. Revenues rose 13.7% year over year to $9.76 billion and beat the consensus mark by 3.02%. The quarter included an extra fiscal week, which benefited organic growth by approximately $570 million. Following the announcement today, MDT shares rose nearly 5% in pre-market trading. Cardiovascular revenues totaled $3.93 billion in the first quarter of fiscal 2027, up 19.5% year over year on a reported basis and 18.9% organically. Within this, Electrophysiology Therapies revenues rose 29.1%, while Interventional Cardiology Therapies revenue were up 6.5% organically. CardioVascular Surgery and Peripheral Vascular Health revenues advanced 8.1% and 11% respectively, on an organic basis. Neuroscience revenues came in at $2.68 billion, up 10.3% reported and 9.3% organically. Cranial & Spinal Technologies led the portfolio with 12.9% organic growth. Specialty Therapies revenues increased 7.4% organically, while Neuromodulation posted 3.3% organic growth. Medtronic PLC price-consensus-eps-surprise-chart | Medtronic PLC Quote Medical Surgical revenues were $2.28 billion, up 10% year over year and 10.2% organically. Surgical & Endoscopy revenues increased 9% organically, while Acute Care & Monitoring revenues rose 14.2% organically. Diabetes revenues jumped 16.9% to $843 million, with organic growth of 14.9%. U.S. revenues rose 16.1% to $4.91 billion, with organic growth of 15.8%. U.S. Cardiovascular was particularly strong, increasing 25.3%, as Electrophysiology Therapies revenues climbed 41.2%. International revenues advanced 11.4% to $4.85 billion and grew 11.6% organically. International Diabetes recorded 16.8% organic growth, while Cardiovascular increased 13.7%, highlighting strength across major overseas businesses. The gross margin in the reported quarter remained flat year over year at 65% despite a 13.8% increase in the cost of products sold, excluding amortization of intangible assets, to $3.42 billion. Research and development expenses rose 6.2% year over year to $771 million. Selling, general and administrative expenses increased 14% to $3.20 billion. The adjusted operating margin expanded 10 basis points year over year to 23.7%. Medtronic raised its fiscal 2027 organic revenue growth outlook to 7.25%-7.75% from the prior 6.75%-7.25% range. The company also lifted adjusted EPS guidance to $5.94-$6.00 from the prior $5.90-$6.00 outlook. The guidance incorporates an estimated neutral to 1% accretive foreign currency impact based on recent exchange rates. Medtronic also highlighted recent acquisitions of Scientia Vascular and SPR Therapeutics and continued investment in growth platforms. The Zacks Consensus Estimate projects fiscal 2027 revenues of $38.64 billion, up 6.3% from the fiscal 2026 levels, while EPS is expected to rise 7.4% to $5.94. Medtronic delivered better-than-expected earnings and revenues in the first quarter of 2027. Cardiovascular remained the key growth engine, with strong performances in Cardiac Rhythm Management and Cardiac Ablation Solutions. Neuroscience, Medical Surgical and Diabetes also delivered healthy organic growth. Management cited strong operating performance, continued innovation investments, portfolio development and commercial execution in supporting the improved 2026 outlook. During the quarter, Medtronic completed the acquisitions of Scientia Vascular and SPR Therapeutics. The company announced an expanded CE Mark indication for the Affera Mapping and Ablation System and Sphere-9 Catheter for treating ventricular arrhythmias. MDT also received FDA clearance for its next-generation Touch Surgery Aide computing platform. Medtronic stated that it has entered into a strategic partnership with Cornerstone Robotics to broaden access to robotic-assisted surgery and also announced a strategic investment in Pi-Cardia, strengthening its portfolio development efforts. Medtronic currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Globus Medical GMED, Envista NVST and Teleflex TFX. Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here. GMED has an earnings yield of 6% compared to the industry’s negative 1.3% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 27.9%. Envista, carrying a Zacks Rank #2 (Buy) at present, posted second-quarter 2026 adjusted earnings of 41 cents per share, exceeding the Zacks Consensus Estimate by 24.2%. Revenues of $730.5 million topped the Zacks Consensus Estimate by 2.2%. NVST has an estimated long-term earnings growth rate of 13.8% compared with the industry’s 10.8% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 19.4%. Teleflex, carrying a Zacks Rank #2 at present, posted a second-quarter 2026 adjusted EPS of $1.76, exceeding the Zacks Consensus Estimate by 37.5%. Revenues of $570.3 million outperformed the Zacks Consensus Estimate by 1.9%. TFX has an estimated long-term earnings growth rate of 20.7% compared with the industry’s 12.9% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Medtronic PLC (MDT) : Free Stock Analysis Report Teleflex Incorporated (TFX) : Free Stock Analysis Report Globus Medical, Inc. (GMED) : Free Stock Analysis Report Envista Holdings Corporation (NVST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Organic revenue growth of 13.7% was driven by strong underlying market demand and execution across the 'Big 3' businesses: CRM, CST, and Surgical. Cardiac Ablation Solutions (CAS) delivered 88% growth, fueled by Sphere-9 share gains and the Affera mapping platform reaching a $2 billion trailing 12-month revenue milestone. The AiBLE ecosystem in Cranial & Spinal Technologies is driving growth by connecting AI-driven planning, robotics, and navigation, which traditionally operated in silos. Management attributes the broad-based performance to the compounding impact of multi-year strategic, operational, and cultural changes aimed at commercial consistency. Operational efficiency programs, including the rationalization of over 9,000 SKUs, are beginning to deliver structural cost savings and supply chain performance improvements. Strategic investments in high-growth markets (CAGR >20%) like neurovascular navigation and peripheral nerve stimulation are intended to shift the portfolio toward higher-growth segments. Raised fiscal year '27 organic revenue growth guidance to 7.25% to 7.75%, reflecting confidence in the durability of current growth trajectories. The separation of the Diabetes business (MiniMed) is intended to close prior to fiscal year-end, which is expected to expand corporate gross margins by 50 basis points and operating margins by 100 basis points. Management expects CAS to grow at more than 2.5x the market rate for the full year, despite moderating growth rates in the second half due to increasingly difficult comparisons. The robotics strategy focuses on building a 'winning #2' position in soft tissue, with Hugo expected to surpass 50,000 procedures by year-end and new U.S. indications anticipated in the fall. Capital allocation remains focused on 'tuck-in' M&A and structured deals in high-growth areas where Medtronic has a clear right to win, such as structural heart and robotics. Announced a $700 million strategic investment and distribution agreement for Cornerstone's Sentire Surgical System to provide a global robotics play and customer choice outside the U.S. Made a strategic investment in Pi-Cardia, the first FDA-cleared leaflet modification technology for TAVR, to address the fast-growing segment of patients at risk for coronary obstruction. The extra selling week in Q1 contributed approximately $570 million (670 basis points) to organic revenue growth, a non-recurring benefit that will not repeat in future quarters. Foreign exchange is projected to be a $50 million to $150 million headwind for the full year based on recent rates. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the Cornerstone deal is a global play for access and choice, complementary to Hugo, which remains the primary U.S. strategy. The investment provides strategic optionality, including a seat on the board and potential future acquisition rights after evaluating the partnership's performance. Growth is expected to outpace the market by 3x in Q2, driven by the Affera installed base growing 35% sequentially and high utilization in large-volume centers. Future growth is supported by geographic expansion into Japan and the upcoming launch of Sphere-360 in Europe to compete in the single-shot PFA market. Medtronic is reinvesting a portion of revenue upside into commercial acceleration while still targeting 50 basis points of operating margin expansion for the full year. Management is focused on driving 'durable earnings leverage' by improving cash conversion toward an 80% target and capturing COGS efficiencies. Confidence remains high due to improving real-world outcomes showing 18-point office blood pressure reductions, which significantly outperform initial clinical trials. The launch of a transradial catheter in the second half of the year is expected to improve integration into existing interventional cardiology workflows.

This article first appeared on GuruFocus. Revenue: $9.8 billion, up 13.7% on both reported and organic basis. Adjusted EPS: $1.45, $0.06 above the midpoint of guidance. Adjusted Gross Margin: 65.2%, up 10 basis points year over year. Adjusted Operating Profit: $2.3 billion, up 15% year over year. Adjusted Operating Margin: 23.7%, up 10 basis points from the prior year. Adjusted SG&A: 32.4% of revenue, increased 14% year over year. Adjusted R&D: 7.9% of revenue, increased 6% year over year. Adjusted Tax Rate: 17.2%, slightly better than expected. Cardiac Rhythm Management (CRM) Revenue: Global growth of 15%, gaining 80 basis points of global share. Cardiac Ablation Solutions (CAS) Revenue: 88% worldwide growth, with US growth of 139%. Cranial and Spinal Technologies (CST) Revenue: 13% growth, including 14% in the US and 10% internationally. Surgical Revenue: 9% global growth. Pelvic Health Revenue: 15% growth globally. Diabetes Revenue: 15% growth. Fiscal Year 2027 Organic Revenue Growth Guidance: Raised to 7.25% to 7.75%. Fiscal Year 2027 EPS Guidance: Raised to $5.94 to $6.00. Warning! GuruFocus has detected 7 Warning Signs with LITE. Is MDT fairly valued? Test your thesis with our free DCF calculator. Release Date: September 01, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Medtronic PLC (NYSE:MDT) delivered a strong fiscal Q1 2027 with revenue of $9.8 billion and adjusted EPS of $1.45, both well ahead of expectations, driven by 13.7% organic revenue growth. The company's Cardiac Ablation Solutions (CAS) business continues to outperform, delivering 88% worldwide growth and surpassing the $2 billion trailing 12-month revenue mark ahead of schedule, with a 9-point increase in US share. Medtronic PLC (NYSE:MDT) is seeing broad-based strength across its largest businesses, with Cardiac Rhythm Management (CRM) growing 15%, Cranial and Spinal Technologies (CST) up 13%, and Surgical up 9%, demonstrating the durability of its growth. The company is making significant progress in its next cycle of growth platforms, including Symplicity (renal denervation), Altaviva (pelvic health), and Hugo (robotic surgery), all showing strong momentum and early adoption. Medtronic PLC (NYSE:MDT) raised its full-year fiscal 2027 organic revenue growth guidance to 7.25%-7.75%, a 50 basis point increase, reflecting confidence in continued strong performance and execution. The company is strategically deploying capital to enhance its portfolio, including a $700 million investment in Cornerstone Robotics and an investment in Pi-Cardia, expanding its reach in high-growth markets like soft tissue robotics and structural heart. Medtronic PLC (NYSE:MDT)'s Q1 results were significantly boosted by an extra selling week, contributing approximately $570 million or 670 basis points to organic growth, which may not be repeatable in subsequent quarters. The company faces ongoing gross margin headwinds from unfavorable business mix, particularly from the fast-growing Diabetes and CAS businesses, which are lower margin and continue to pressure overall profitability. Medtronic PLC (NYSE:MDT) expects foreign exchange to be a headwind for the full year, with a projected $50 million to $150 million negative impact on revenue, potentially dampening reported growth. The Neuromodulation business saw only 3% growth globally, impacted by softness in the SCS market and replacement headwinds in DBS, indicating challenges in certain legacy product lines. The company's guidance for Q2 implies a significant slowdown to roughly 6% organic revenue growth, suggesting that the exceptional Q1 performance may not be sustained in the near term. Medtronic PLC (NYSE:MDT) is making significant investments in acquisitions and commercial expansion, which are expected to create near-term pressure on operating margins and EPS, as evidenced by the slight reduction in full-year operating margin expansion guidance. Q: Can you provide more color on the utilization trends and market share shifts in centers after they adopt the Affera system, and where do you see share stabilizing over time? A: Geoff Martha (CEO) noted that 75% of the US installed base is at high-volume centers (300+ ablations per year), which still leaves significant room to grow in lower-volume centers. Once Affera is installed, utilization is high, and many large accounts are adding additional systems. The 35% sequential growth in the US Affera installed base in Q1, following 40% in Q4, demonstrates the strong pull-through and early-stage opportunity. Thierry Pieton (CFO) added that the mechanical impact of this installed base growth is very encouraging for future catheter sales. Q: Some investors may view the Cornerstone Robotics investment as a signal of a lack of confidence in Hugo. Can you address this and provide more details on the deal's financial implications, target markets, and potential for full acquisition? A: Geoff Martha (CEO) strongly refuted this, stating the investment is "just the opposite" and reflects confidence in Hugo, which is expected to surpass 50,000 procedures by fiscal year-end. The Cornerstone deal is a global play to expand access and provide customer choice in underpenetrated markets, complementing Hugo's US focus. Mike Marinaro (President, Medical Surgical Portfolio) emphasized this builds a full portfolio of robotics offerings. Thierry Pieton (CFO) noted minimal financial impact in FY27 besides foregone interest, with contributions to growth starting in FY28, and confirmed the investment provides strategic optionality for a potential future acquisition. Q: Given the strong performance of the base business ex-CAS, can you elaborate on the other growth drivers and the structure of the Cornerstone deal? Also, why was the operating margin guidance ticked down? A: Geoff Martha (CEO) highlighted the breadth of growth across the "big three" businesses (CRM, CST, Surgical) and other drivers like Altaviva, Ardian, and Hugo. He detailed upcoming catalysts in Neuroscience, including Stealth AXiS, Scientia, and new products in Neurovascular. Thierry Pieton (CFO) explained the margin guidance reflects reinvestment of a portion of the revenue upside into commercial acceleration, the foregone interest from the $700 million Cornerstone investment, and tax timing benefits expected to reverse. He confirmed the company is raising FY27 revenue guidance by 50 basis points. Q: How are you thinking about the trajectory of the renal denervation (Ardian) business, the market opportunity, and what is needed to accelerate the franchise? A: Geoff Martha (CEO) reaffirmed strong conviction in Ardian as one of the biggest opportunities in med tech, driven by three factors: improving clinical evidence (with real-world outcomes showing 2x-4x better results than trials and strong durability), expanding reimbursement coverage (including new commercial payers like Highmark), and market development. He noted the conversation with hospitals is shifting from awareness to access, with more institutions approaching Medtronic to establish programs, and the transradial catheter launch in H2 is expected to further integrate the therapy into existing workflows. Q: With the diabetes separation approaching, how will capital allocation change post-separation? Will the cadence of tuck-in deals accelerate, and is a buyback being considered? A: Geoff Martha (CEO) stated the strategy has already shifted, focusing capital on high-growth, large patient pool areas where Medtronic has a "right to win." This has resulted in a doubling of investment in innovation, from $2.8B in R&D and $0.5B in acquisitions to nearly $3B in R&D and $2B in acquisitions over the last 12 months. Thierry Pieton (CFO) added that deconsolidating diabetes will improve gross margin by ~50 basis points and operating margin by ~100 basis points, providing more flexibility. He noted no specific buyback plans but strong free cash flow and a solid balance sheet provide ample firepower for continued investments. Q: Can you clarify the margin performance in Q1 and how you're balancing reinvestment of top-line upside versus driving margin expansion for the rest of the year? Also, what was the tariff rebate number? A: Thierry Pieton (CFO) explained that tariff refunds in Q1 almost fully offset tariffs paid, resulting in a slight net negative impact. For the rest of the year, the guidance does not embed future refunds, creating potential upside. On margins, the company is in "growth mode," reinvesting only a portion of the revenue upside while still expecting FY27 operating margin to expand ~50 basis points and operating profit to grow ~10%. He highlighted ongoing efficiency programs across COGS, manufacturing, logistics, and overhead that are starting to pay off. Q: Why is the Investor Day being held in Charlotte, North Carolina, and has the company's growth formula shifted from mid-single-digit revenue growth? A: Geoff Martha (CEO) explained the IRCAD facility in Charlotte is an impressive training site where investors can see the technology in action, including AiBLE, Stealth AXiS, and soft tissue robotics. The event will feature physicians and business unit leaders providing deeper dives into the pipeline and new growth investments. On growth, he stated the company has "aspirations for higher growth" than historical mid-single digits, and the recent inflection in growth over the last two quarters reflects the focus on execution and increased investment. Thierry Pieton (CFO) added the company is at an inflection point and will discuss driving income statement leverage at the event. Q: What is driving the confidence in the CAS business growing at 2.5 times the market rate, and is there any hesitation on the diabetes split-off timing? A: Geoff Martha (CEO) cited several factors for CAS confidence: the early stage of the Sphere-9 launch (evidenced by 35% sequential installed base growth), its unique dual-energy point-to-point positioning, new clinical indications (CE Mark for VT), geographic expansion (Japan launch), and the building ecosystem around mapping and ICE technology. Thierry Pieton (CFO) confirmed the expectation to grow north of 3x the market in Q2. On diabetes, he stated there is "no hesitation" and no change in schedule, with the separation occurring when economics are optimal for shareholders, noting the business is performing well with launches ahead of schedule. Q: How should we think about the impact of the recent acquisitions (SPR Therapeutics, Scientia, For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Medtronic plc will release its first earnings report before the opening bell on Tuesday, Sept. 1. Analysts expect the company to report quarterly earnings of $1.39 per share, up from $1.26 per share in the year-ago period. The consensus estimate for Medtronic’s quarterly revenue is $9.54 billion. It reported $8.54 billion last year, according to Benzinga Pro. Ahead of quarterly earnings, TD Cowen analyst Joshua Jennings maintained Medtronic at Buy on Friday and raised the price target from $100 to $110. Don’t Miss: Think Your ‘Safe’ Stocks Protect You? You’re Ignoring the Real Growth Triggers — Here’s What to Add Now Caught With Nothing Saved for Retirement? These 5 Game‑Changing Tips Could Still Save You With the recent buzz around Medtronic, some investors may be eyeing potential gains from the company’s dividends too. As of now, Medtronic has an annual dividend yield of 3.16%, with a quarterly dividend of 72 cents per share ($2.88 per year). So, how can investors use its dividend yield to pocket a regular $500 per month? To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $190,032 or around 2,083 shares. For a more modest $100 per month or $1,200 per year, you would need $38,043 or around 417 shares. To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.88 in this case). So, $6,000 / $2.88 = 2,083 ($500 per month), and $1,200 / $2.88 = 417 shares ($100 per month). Trending: Think you’re saving enough for your kids? You might be dangerously off — see why Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time. How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price. For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40). Similarly, changes in dividend payments can affect the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield. See Also: Still Learning the Market? These 50 Must-Know Terms Can Help You Catch Up Fast Photo via Shutterstock Read Next: A single bad hire can set a startup back years. Here are the 5 hires founders most often misjudge — and why Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry. Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly. As electricity demand rises alongside AI, data centers, and renewable energy, long-duration energy storage is becoming increasingly important. Qnetic is developing a kinetic energy storage system designed to provide long-lasting, chemical-free electricity storage, offering investors exposure to the infrastructure supporting a more resilient and reliable power grid. For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process. Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches. Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth. © 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.