Medtronic plc: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 18 November 2025: press release. Guidance figures: 3 raised, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue grew 5.5% organically: Revenue was $8.961 billion, up 6.6% as reported and 5.5% organic. Management said revenue was 75 basis points above the guidance midpoint. Source
• Non-GAAP EPS rose 8%: Non-GAAP diluted EPS was $1.36 and GAAP diluted EPS was $1.07, both up 8% from a year earlier. Management said non-GAAP EPS was above guidance. Source
• Organic revenue guidance raised: FY26 organic revenue growth guidance was raised to approximately 5.5% from approximately 5.0%, following first-half outperformance cited by the CFO. Source
• EPS guidance range moved up: The FY26 diluted non-GAAP EPS range is $5.62 to $5.66, with the low end raised from $5.60 and the top end unchanged. Source
• Cardiovascular grew 9.3% organically: Cardiovascular revenue was $3.436 billion, up 9.3% organic, with Cardiac Rhythm & Heart Failure up mid-teens and Structural Heart & Aortic up high-single digits. Source
• Cardiac Ablation revenue rose 71%: Cardiac Ablation Solutions revenue rose 71%, including 128% in the U.S., on the pulsed field ablation portfolio. Source
• Symplicity coverage determination received: A CMS National Coverage Determination for the Symplicity procedure for uncontrolled hypertension was received, along with several commercial payer coverage policies. Source
• Gross margin efficiency gains cited: Management cited underlying efficiency gains in gross margin, with non-GAAP gross margin at 65.9% in the quarter, against 65.2% a year earlier. Source

“Overall, procedure volumes and our end markets are robust, and we’re executing well across the business,”

Geoff Martha, Medtronic chairman and chief executive officer

Guidance

What changed from last quarter

• Guidance raised: FY26 organic revenue growth guidance raised to approximately 5.5% from approximately 5.0%. Source
• Guidance raised: Low end of the FY26 diluted non-GAAP EPS range raised to $5.62 from $5.60; top end kept at $5.66. Source
• New: CMS National Coverage Determination for the Symplicity procedure for uncontrolled hypertension was received, following the proposed NCD in the prior quarter. Source
• New: FDA approval received for the Altaviva device for urge urinary incontinence. Source
• New: FDA cleared the MiniMed 780G system for integration with the Instinct sensor and approved its use in Type 2 diabetes. Source
• New: Hugo Enable Hernia Repair study reported as meeting its safety and effectiveness endpoints. Source

Results and growth drivers

• Revenue grew 5.5% organically: Revenue was $8.961 billion, up 6.6% as reported and 5.5% organic. Management said revenue was 75 basis points above the guidance midpoint. Source
• Non-GAAP EPS rose 8%: Non-GAAP diluted EPS was $1.36 and GAAP diluted EPS was $1.07, both up 8% from a year earlier. Management said non-GAAP EPS was above guidance. Source
• GAAP net income rose 8%: GAAP net income attributable to Medtronic was $1.374 billion, up 8%. GAAP operating profit was $1.686 billion, up 6%, at an 18.8% margin. Source
• Currency and Other excluded from organic: Organic growth excludes a $111 million currency benefit on the remaining segments and $35 million of Other revenue. Dutch Obesity Clinic divestiture revenue was $5 million. Source

Guidance changes

• Organic revenue guidance raised: FY26 organic revenue growth guidance was raised to approximately 5.5% from approximately 5.0%, following first-half outperformance cited by the CFO. Source
• EPS guidance range moved up: The FY26 diluted non-GAAP EPS range is $5.62 to $5.66, with the low end raised from $5.60 and the top end unchanged. Source
• Growth ex-tariffs raised to 4.5%: Excluding the potential tariff impact, FY26 diluted non-GAAP EPS growth is approximately 4.5%, versus approximately 4% in the prior guidance. Source

“Given our outperformance in the first half of the year and confidence we have in our revenue growth acceleration, we are raising today our full year revenue and EPS guidance.”

Thierry Piéton, Medtronic chief financial officer

Segments and regions

• Cardiovascular grew 9.3% organically: Cardiovascular revenue was $3.436 billion, up 9.3% organic, with Cardiac Rhythm & Heart Failure up mid-teens and Structural Heart & Aortic up high-single digits. Source
• Neuroscience grew 3.9% organically: Neuroscience revenue was $2.562 billion, up 3.9% organic. Neuromodulation rose high-single digits and Specialty Therapies was flat. Source
• Medical Surgical grew 1.3% organically: Medical Surgical revenue was $2.171 billion, up 1.3% organic, with low-single digit organic increases in Surgical & Endoscopy and Acute Care & Monitoring. Source
• Diabetes grew 7.1% organically: Diabetes revenue was $757 million, up 10.3% as reported and 7.1% organic. Source
• U.S. revenue grew 4.8% organically: U.S. revenue was $4.516 billion, up 4.9% as reported and 4.8% organic, with reportable segments up 4.8% organic in the U.S. schedule. Source

Growth programs and products

• Cardiac Ablation revenue rose 71%: Cardiac Ablation Solutions revenue rose 71%, including 128% in the U.S., on the pulsed field ablation portfolio. Source
• Symplicity coverage determination received: A CMS National Coverage Determination for the Symplicity procedure for uncontrolled hypertension was received, along with several commercial payer coverage policies. Source
• Altaviva approved for urge incontinence: FDA approved the Altaviva device, described as a simple option for urge urinary incontinence affecting over 16 million people in the U.S. Source
• Hugo hernia study met endpoints: The Hugo Enable Hernia Repair study met its safety and effectiveness endpoints, and the Embrace Gynecology US pivotal study was initiated. Source
• MiniMed 780G clearance and expanded use: FDA cleared the MiniMed 780G system for integration with the Instinct sensor and approved use in Type 2 diabetes. Source

Costs, margins and investment

• Gross margin efficiency gains cited: Management cited underlying efficiency gains in gross margin, with non-GAAP gross margin at 65.9% in the quarter, against 65.2% a year earlier. Source
• Sales investment raised for demand: Sales and marketing investment was increased in light of outsized demand and building momentum for key programs, according to the CFO. Source
• R&D expense increased: GAAP R&D expense was $754 million, up from $697 million, or 8.4% of net sales. Source
• Non-GAAP operating margin down 20 basis points: Non-GAAP operating margin was 24.1%, down 20 basis points, with non-GAAP operating profit of $2.162 billion, up 6%. Source

Cash, capital and shareholder returns

• Six-month free cash flow reported: Six-month free cash flow was $1.041 billion, against $1.020 billion a year earlier, after operating cash flow of $2.013 billion and $972 million of capital additions. Source
• Dividends and buybacks lower: Six-month dividends were $1.820 billion and share repurchases were $495 million, against $2.780 billion of repurchases a year earlier. Source
• Debt issued and repaid: Six-month long-term debt issuance was $1.747 billion, and payments on long-term debt were $2.930 billion. Source
• Period-end cash balance lower: Cash and cash equivalents were $1.282 billion at period end, against $1.394 billion a year earlier. Source

Coming up, as management said on 18 November 2025

• Back-half revenue acceleration expected: Management said it is positioned for greater revenue growth acceleration in the back half of fiscal 2026 and beyond, citing several enterprise growth drivers. Source
• Diabetes business separation pending: Management referred to the impending separation of the Diabetes business, and the release gives no closing date. Source

Earlier plans management reported on

• Met: The prior release expected the final CMS NCD on or before October 8, 2025; this release reports the NCD was received.
• Not stated: The prior release said the company was confident of accelerating revenue growth in the second half of the fiscal year.

Other quarters

• Q1 FY2027 earnings call
• Q4 FY2026 earnings call
• Q3 FY2026 earnings call
• Q1 FY2026 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.