Medtronic (MDT) Fiscal Q1 2027 Earnings Call: Revenue Growth and Guidance Raised
Source Tradingkey
Key Takeaways
- Medtronic reported fiscal 2027 first-quarter revenue of $9.8 billion, up 13.7% on both a reported and organic basis. The extra selling week contributed an estimated $570 million, or 670 basis points, to organic growth.
- Adjusted EPS was $1.45, while adjusted operating profit rose 15% to $2.3 billion. Adjusted operating margin increased 10 basis points to 23.7%.
- Cardiac Ablation Solutions was the primary growth engine, with worldwide revenue up 88% and U.S. revenue up 139%. Sphere-9 gained 9 percentage points of U.S. share, while the U.S. Affera installed base grew more than 35% sequentially.
- Growth was broad-based: Cardiac Rhythm Management increased 15%, Cranial and Spinal Technologies rose 13%, Surgical grew 9%, and Diabetes advanced 15%.
- Management raised fiscal 2027 organic revenue growth guidance to 7.25%-7.75% and adjusted EPS guidance to $5.94-$6.00.
- Medtronic is increasing investment in robotics and other high-growth platforms. Its $700 million Cornerstone Robotics investment provides distribution rights for the Sentire Surgical System in selected markets outside the U.S., with a financial contribution expected from fiscal 2028.
Core Financial Results
| Metric | Fiscal Q1 2027 result | Change or context |
|---|---|---|
| Revenue | $9.8 billion | Up 13.7% reported and organic |
| Extra-week contribution | Approximately $570 million | Added about 670 basis points to organic growth |
| U.S. revenue | — | Up nearly 16% organically |
| International revenue | — | Up 12% organically |
| Adjusted gross margin | 65.2% | Up 10 basis points |
| Adjusted operating profit | $2.3 billion | Up 15% |
| Adjusted operating margin | 23.7% | Up 10 basis points |
| Adjusted SG&A | 32.4% of revenue | Expense increased 14% |
| Adjusted R&D | 7.9% of revenue | Expense increased 6% |
| Adjusted tax rate | 17.2% | Benefit was mainly timing-related |
| Adjusted EPS | $1.45 | Fiscal Q1 result |
| Free cash flow conversion | 70% | Management sees a path toward 80% |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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