MDT -- FQ4 FY2026 Earnings Review
Most Recent Quarter: FQ4 FY2026 (ended April 24, 2026, reported June 3, 2026). Full fiscal year FY2026 also covered.
FQ4 Revenue
$9.81B
+9.9% rep / +6.6% organic | Beat by ~$190M
Non-GAAP EPS
$1.55
+vs $1.54 cons | FY26 $5.53
Cardiac Ablation
+78%
Global rev (+124% U.S.) | +8pts U.S. share
FY2027 EPS Guide
$5.90-6.00
+6.7% to +8.5% | organic +6.75-7.25%
Verdict: A genuine re-acceleration, not financial engineering. FY26 organic growth of +5.8% was Medtronic’s best in a decade, and Q4 capped it at +6.6% organic with a clean beat on both revenue and EPS. The engine is Cardiac Ablation (PFA/Affera) up +78% globally and taking ~8pts of U.S. share, dragging Cardiac Rhythm to +18% organic. Management guided FY27 to +6.75-7.25% organic and $5.90-6.00 non-GAAP EPS (+6.7-8.5%) — an EPS growth inflection after a flat FY26 — while advancing the Diabetes separation and filing Hugo with the FDA. The stock rose ~6% on the print.
Market reaction — rewarded: Shares rose ~5.7% to $77.95 on results, off a depressed base (near the 52-week low of $73.31 vs high $106.33; ~$100B market cap). After years of low-single-digit growth and a de-rated multiple, evidence of durable mid-single-digit-plus organic growth, an EPS-growth inflection guide, a 49th straight dividend hike, and portfolio simplification (Diabetes separation) is exactly what the bull case needed.
Q4 FY2026 Segment Performance
| Segment / Business (Q4 FY26) | Revenue | Reported | Organic |
|---|---|---|---|
| Cardiovascular | $3,797M | +13.8% | +10.1% |
| Cardiac Rhythm & Heart Failure | $2,110M | +21.8% | +18.2% |
| Structural Heart & Aortic | $1,002M | +6.2% | +2.0% |
| Coronary & Peripheral Vascular | $685M | +4.0% | +0.6% |
| Neuroscience | $2,751M | +5.0% | +3.0% |
| Cranial & Spinal Technologies | $1,403M | +4.6% | +3.3% |
| Specialty Therapies | $806M | +6.2% | +3.4% |
| Neuromodulation | $542M | +4.3% | +1.7% |
| Medical Surgical | $2,388M | +8.0% | +5.1% |
| Surgical & Endoscopy | $1,820M | +6.5% | +3.5% |
| Acute Care & Monitoring | $568M | +12.9% | +10.5% |
| Diabetes | $837M | +15.0% | +8.1% |
| Total | $9,807M | +9.9% | +6.6% |
Source: Medtronic FQ4 FY2026 press release (June 3, 2026). Organic growth excludes FX and M&A. Cardiovascular led on Cardiac Rhythm & Heart Failure (+18.2% organic), powered by Cardiac Ablation Solutions / pulsed-field ablation (Affera, Sphere-9).
Beat / Miss vs Consensus
| Q4 FY26 Metric | Consensus | Actual | Beat/Miss |
|---|---|---|---|
| Revenue | $9,620M | $9,807M | BEAT +1.9% |
| Organic revenue growth | ~5.7% | +6.6% | BEAT +90bps |
| Non-GAAP Diluted EPS | $1.54 | $1.55 | BEAT +0.6% |
Consensus per FMP/Street estimates (revenue $9.62B, non-GAAP EPS $1.54). Organic growth was ~90bps ahead of Q4 implied guidance per management.
Revenue & EPS Trend -- Quarterly (8 Quarters)
| Metric | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 |
|---|---|---|---|---|---|---|---|---|
| Total Revenue ($M) | $7,915 | $8,403 | $8,292 | $8,927 | $8,578 | $8,961 | $9,018 | $9,807 |
| Reported YoY | +2.8% | +5.2% | +2.5% | +3.9% | +8.4% | +6.6% | +8.8% | +9.9% |
| GAAP Diluted EPS | $0.80 | $0.99 | $1.01 | $0.82 | $0.81 | $1.07 | $0.89 | $0.96 |
| Non-GAAP Diluted EPS | — | — | — | — | $1.26 | $1.26 | $1.46 | $1.55 |
Reported revenue growth has stair-stepped from ~+3% (FY25) to ~+10% (Q4 FY26). Total revenue and GAAP EPS per FMP income statements; non-GAAP EPS per Medtronic releases (FY26 quarters shown sum to the reported $5.53 full-year non-GAAP EPS). FY25 quarterly non-GAAP figures omitted for sourcing consistency.
Full-Year FY2026 Results & FY2027 Guidance
| Metric | FY2025 | FY2026 | FY2027 Guide |
|---|---|---|---|
| Revenue ($B) | $33.5 | $36.364 | organic +6.75% to +7.25% |
| Reported growth | — | +8.4% | — |
| Organic growth | +4.9% | +5.8% | +6.75–7.25% |
| Non-GAAP Diluted EPS | $5.49 | $5.53 | $5.90 – $6.00 |
| Growth | — | +0.7% | +6.7% to +8.5% |
| Free Cash Flow ($B) | $5.19 | $5.426 | — |
| Quarterly Dividend | $0.70 | $0.72 | 49th consecutive annual raise |
FY26 delivered record revenue of $36.4B (+8.4% reported / +5.8% organic) — the strongest growth in 10 years — but non-GAAP EPS was nearly flat (+0.7%) as FX, tariffs and mix cost ~130bps of non-GAAP operating margin (to 24.4%). The FY27 guide is the tell: +6.75-7.25% organic and $5.90-6.00 EPS implies +6.7-8.5% EPS growth — i.e. management expects the margin drag to abate and operating leverage to return on top of sustained growth. Free cash flow rose to $5.43B; the dividend was raised to $0.72/quarter ($2.88 annualized), the 49th consecutive annual increase.
Key Catalysts & Strategic Moves
| Catalyst / Driver | Status & Read-Through |
|---|---|
| Cardiac Ablation / PFA (Affera, Sphere-9) | Cardiac Ablation Solutions revenue +78% globally (+124% U.S.) in Q4, adding ~8pts of U.S. share. The single biggest growth engine; PFA adoption is the core re-acceleration story and the main reason CRHF grew +18% organic. |
| Hugo robotic surgery (RAS) | Filed U.S. FDA submissions for Hugo RAS in general surgery and gynecology, plus LigaSure RAS vessel sealer. A potential multi-year Medical Surgical catalyst entering the Intuitive-dominated soft-tissue robotics market. |
| Diabetes separation (MiniMed) | To be separated via capital-markets transactions (spin/split/offering); MiniMed IPO raised $538M in proceeds. Removes a lower-margin, slower-growth unit and sharpens the device portfolio. Diabetes still grew +8.1% organic in Q4. |
| GLP-1 / obesity overhang | Diabetes +15% reported and bariatric concerns have faded as a headline risk; management framing the device franchise as resilient. Worth monitoring for Surgical/obesity read-through. |
| Margin recovery | Non-GAAP operating margin -130bps in FY26 (FX, mix, tariffs) to 24.4%; FY27 EPS guide of +6.7–8.5% on +7% organic implies margin and leverage inflection ahead. |
Indirect Read-Throughs
| Topic | Read-Through |
|---|---|
| Med-tech demand / procedures | Hospital procedure volumes healthy; broad-based organic acceleration to +6.6% (FY +5.8%, best in a decade) signals a constructive utilization backdrop for peers (BSX, ABT, SYK, ISRG). |
| PFA category | Medtronic taking U.S. ablation share (+8pts) — competitive read for BSX (Farapulse) and J&J; the PFA market is expanding the pie but share is shifting. |
| FX / tariffs | Cited as FY26 margin headwinds; relevant read-through for other multinational device makers on FY27 margin bridges. |
| Capital return | 49th straight dividend increase to $2.88/yr annualized; signals confidence and a shareholder-return tilt alongside the Diabetes separation. |
Transcript & Contradictions
The FQ4 FY2026 earnings call was held June 3, 2026, but the full transcript was not yet available via the earnings-transcript API at the time of writing; this review is built from Medtronic’s press release, 8-K financial tables, FMP fundamentals, and public reporting. Street Q&A and verbatim management tone analysis will be added when the transcript posts. No contradictions were identified between the press release, segment tables, and guidance.
Data sourced from Medtronic FQ4 / FY2026 press release & 8-K (June 3, 2026), FMP fundamentals (income statement, cash flow, revenue segmentation) and consensus, and public reporting. Daloopa MCP was unavailable in this run. Stock price $77.95 (NYSE: MDT) as of the June 3, 2026 session; review covers the FQ4 FY2026 quarter ended April 24, 2026.