Medtronic reported strong third-quarter results for fiscal year 2026, delivering its highest enterprise revenue growth in 10 quarters, driven by accelerating demand across its cardiovascular portfolio, particularly in cardiac ablation technologies.
For the quarter ended January 23, 2026, the Galway-headquartered medical technology company posted worldwide revenue of $9.017 billion, reflecting an 8.7 percent increase on a reported basis and 6.0 percent organic growth, 50 basis points ahead of its third-quarter guidance. The performance marks a continued acceleration in growth momentum across the enterprise.
GAAP diluted earnings per share stood at $0.89, while non-GAAP diluted EPS reached $1.36, three cents above the midpoint of company guidance. GAAP net income totaled $1.143 billion, compared to non-GAAP net income of $1.750 billion. GAAP operating profit was $1.464 billion, translating to an operating margin of 16.2 percent, while non-GAAP operating profit was $2.177 billion, with a 24.1 percent operating margin.
The cardiovascular portfolio emerged as the strongest growth engine. Segment revenue reached $3.457 billion, rising 13.8 percent as reported and 10.6 percent organically. Within the segment, Cardiac Rhythm & Heart Failure posted high-teens organic growth, Structural Heart & Aortic recorded low-single digit gains, and Coronary & Peripheral Vascular delivered mid-single digit growth.
A standout performer was Cardiac Ablation Solutions, where revenue surged 80 percent globally, including a 137 percent increase in the United States, fueled by strong uptake of the company’s pulsed field ablation portfolio. The quarter also saw the company secure CE Mark approval for the Sphere-360 system and initiate a U.S. pivotal trial.
Beyond cardiovascular care, the Neuroscience portfolio generated $2.558 billion in revenue, up 4.1 percent reported and 2.5 percent organic, with mid-single digit organic growth in both Neuromodulation and Cranial & Spinal Technologies, while Specialty Therapies remained flat.
The Medical Surgical portfolio recorded $2.173 billion in revenue, increasing 4.9 percent reported and 2.7 percent organic. Growth was led by high-single digit expansion in Acute Care & Monitoring and low-single digit gains in Surgical & Endoscopy.
The Diabetes business delivered $796 million in revenue, reflecting 14.8 percent reported growth and 8.3 percent organic growth, supported by double-digit strength in international markets.
During the quarter, Medtronic advanced its innovation and regulatory agenda. The company secured U.S. FDA clearance for the Hugo robotic-assisted surgery system, with first procedures completed during the month, and received FDA clearance for the Stealth AXiS Surgical System for spinal procedures. It also executed two strategic acquisitions: CathWorks, strengthening its Coronary and Renal Denervation capabilities, and Anteris, expanding its Structural Heart portfolio.
In terms of financial outlook, Medtronic reiterated its fiscal 2026 guidance, projecting approximately 5.5 percent organic revenue growth and diluted non-GAAP EPS in the range of $5.62 to $5.66. This outlook includes a potential tariff impact of around $185 million, unchanged from prior guidance. Excluding tariff effects, the EPS guidance implies growth of roughly 4.5 percent for the fiscal year.
The quarter’s results underscore strengthening procedural volumes and broad-based portfolio momentum, with cardiovascular technologies — particularly pulsed field ablation — serving as a key catalyst in driving the company’s strongest enterprise revenue expansion in nearly three years.
Also Read