Medtronic plc, a global leader in healthcare technology, has reported its financial results for the fourth quarter and fiscal year 2026, ending April 24, 2026. The company achieved its highest annual revenue growth in a decade, driven by disciplined execution and a strong portfolio.
Fourth Quarter Highlights
Revenue for the fourth quarter reached $9.8 billion, a 9.9% increase as reported and 6.6% on an organic basis, surpassing implied guidance by 90 basis points. GAAP diluted earnings per share (EPS) were $0.96, while non-GAAP diluted EPS came in at $1.55, ahead of guidance.
Cardiac Ablation Solutions revenue surged 78% globally, including a 124% increase in the United States, capturing an additional 8 points of U.S. market share. The Cardiovascular segment grew 10.1%, led by mid-single-digit growth in Cardiac Rhythm Management, driven by continued strength in Cardiac Pacing Therapies and Defibrillation Solutions, including mid-teens growth in Micra and a strong OmniaSecure U.S. launch.
The Medical Surgical segment delivered strong performance, up 5.1%, led by Acute Care & Monitoring and Endoscopy, which grew low-double-digits and high-single-digits, respectively.
Regulatory and Strategic Developments
Medtronic filed a submission with the U.S. FDA for the Hugo RAS system for general surgery and gynecologic indications, as well as the LigaSure RAS vessel sealer. The company also received FDA clearance for ProGrip Advanced. Additionally, it secured FDA clearance for Spine, Cranial, and ENT indications and CE Mark for Spine and Cranial indications for the Stealth AXiS Surgical System.
The company executed several tuck-in mergers and acquisitions and venture capital transactions to strengthen portfolios, accelerate growth, and expand into high-growth adjacencies. These included completing the CathWorks acquisition in Coronary and Renal Denervation, announcing intentions to acquire Scientia Vascular in Neurovascular and SPR Therapeutics in Neuromodulation, entering into agreements with Merit Medical Systems for the ViaVerte system in Neuromodulation, and investing in Pulnovo Medical in Cardiovascular.
The dividend for the first quarter of fiscal 2027 was increased to $0.72 per share, implying an annual rate of $2.88 per share. This marks the 49th consecutive year of dividend increases.
Fiscal Year 2026 Highlights
Full-year fiscal 2026 revenue was $36.4 billion, with adjusted revenue of $36.3 billion, representing an 8.4% increase as reported and 5.8% organic growth. GAAP diluted EPS of $3.73 increased 3.3%, while non-GAAP diluted EPS of $5.53 increased 0.7%.
Operating margin remained flat year-over-year, while the non-GAAP operating margin decreased 130 basis points, or 150 basis points on a constant currency basis. Operating profit reached $6.467 billion, up 8.6%, and non-GAAP operating profit was $8.856 billion, up 2.4% but down 0.6% on a constant currency basis.
Cash from operations totaled $7.3 billion, with free cash flow of $5.4 billion. The company closed the fiscal year with $9.2 billion in cash and investments. Medtronic returned $4.2 billion to shareholders during the fiscal year.
“Our performance reflects the strongest annual top-line growth Medtronic has delivered in 10 years, powered by disciplined execution across our portfolio and continued operational rigor,” said Geoff Martha, Medtronic chairman and chief executive officer. “These results represent the compounding impact of deliberate choices we’ve made to strengthen our strategy, sharpen execution, and invest in the areas that will drive our future. We saw continued strength in some of our largest businesses like CRM, CST and Surgical, and we are building momentum in our highest growth opportunities, such as Affera, Symplicity, Hugo, Altaviva and Stealth AXiS. Together with the investments we’re making in our pipeline, Medtronic is well positioned to deliver sustained growth and long-term value.”
Detailed Fourth Quarter Revenue Breakdown
Medtronic reported Q4 worldwide revenue of $9.807 billion, an increase of 9.9% as reported and 6.6% on an organic basis. The organic revenue growth comparison excludes other revenue of $34 million in the current year versus $31 million in the prior year, revenue from the Dutch Obesity Clinic divestiture with no revenue in the current year and $17 million in the prior year, and a foreign exchange benefit of $308 million on remaining net sales.
Revenue by portfolio included:
- Cardiovascular Portfolio: $3.797 billion, up 13.8% as reported and 10.1% organic, with high-teens growth in Cardiac Rhythm & Heart Failure, low-single-digit growth in Structural Heart & Aortic, and low-single-digit growth in Coronary & Peripheral Vascular on an organic basis.
- Neuroscience Portfolio: $2.751 billion, up 5.0% reported and 3.0% organic, with low-single-digit growth in Neuromodulation, Cranial & Spinal Technologies, and Specialty Therapies on an organic basis.
- Medical Surgical Portfolio: $2.388 billion, up 8.0% as reported and 5.1% organic, with low-single-digit growth in Surgical & Endoscopy and low-double-digit growth in Acute Care & Monitoring on an organic basis.
- Diabetes Business: $837 million, up 15.0% as reported and 8.1% organic.
