Medtronic plc: Q1 FY2027 earnings call

What management said about Q1 FY2027, from the documents filed with the SEC on 1 September 2026: press release. Guidance figures: 2 raised, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 13.7% organically: Revenue was $9.756 billion, up 13.7% reported and 13.7% organic, about 200 basis points above the guidance midpoint. Source
• Extra week added to growth: The 53-week fiscal year placed an extra week in the first fiscal month of Q1; the company estimates it added about $570 million to Q1 organic growth. Source
• Non-GAAP EPS rose 15.1%: Non-GAAP diluted EPS was $1.45, up 15.1%; non-GAAP net income was $1.860 billion, up 14.4%. GAAP diluted EPS was $1.14, up 40.7%. Source
• Cardiovascular grew 18.9% organically: Cardiovascular revenue was $3.927 billion, up 19.5% reported and 18.9% organic, with Electrophysiology Therapies up in the high-20s organically. Source
• Non-GAAP operating margin reached 23.7%: Non-GAAP operating profit was $2.316 billion, up 14.9%, with operating margin of 23.7%, up 10 basis points. Source
• Free cash flow reached $1.29 billion: Free cash flow was $1.290 billion, compared with $584 million a year earlier, after capital expenditure of $503 million. Source

“What gives us confidence is not simply the strength of the quarter, but importantly, the breadth of performance across our businesses and the increasing contributions from newer growth platforms,”

Geoff Martha, Medtronic chairman and chief executive officer

Guidance

What changed from last quarter

• Guidance raised: FY27 organic revenue growth guidance raised 50 basis points to 7.25% to 7.75%. Source
• Guidance raised: FY27 diluted non-GAAP EPS guidance range changed to $5.94 to $6.00 from $5.90 to $6.00. Source
• New: Strategic investment in Pi-Cardia, a developer of leaflet modification technology, announced. Source
• New: Strategic partnership with Cornerstone Robotics announced to expand global access to robotic-assisted surgery. Source
• New: Acquisitions of Scientia Vascular and SPR Therapeutics completed; the prior release described an intention to acquire both. Source
• New: Split-off is now named as the current preferred Diabetes separation structure; the prior release named an offering and split-off. Source

Results and growth drivers

• Revenue rose 13.7% organically: Revenue was $9.756 billion, up 13.7% reported and 13.7% organic, about 200 basis points above the guidance midpoint. Source
• Extra week added to growth: The 53-week fiscal year placed an extra week in the first fiscal month of Q1; the company estimates it added about $570 million to Q1 organic growth. Source
• Non-GAAP EPS rose 15.1%: Non-GAAP diluted EPS was $1.45, up 15.1%; non-GAAP net income was $1.860 billion, up 14.4%. GAAP diluted EPS was $1.14, up 40.7%. Source
• Foreign exchange added $57 million: Foreign exchange added $57 million to remaining net sales; organic growth excludes this amount along with Other revenue and divested business revenue. Source

Cardiovascular Portfolio

• Cardiovascular grew 18.9% organically: Cardiovascular revenue was $3.927 billion, up 19.5% reported and 18.9% organic, with Electrophysiology Therapies up in the high-20s organically. Source
• Ablation and rhythm management grew: Cardiac Rhythm Management grew 15% and Cardiac Ablation Solutions grew 88%, per the company's highlights. Source
• Cardiovascular divisions reorganized: Cardiovascular divisions were realigned in FY27 into Electrophysiology, Interventional Cardiology, CardioVascular Surgery and Peripheral Vascular Health; prior year was recast. Source
• Affera and Sphere-9 CE Mark expanded: The company announced an expanded CE Mark indication for the Affera Mapping and Ablation System and Sphere-9 Catheter for treatment of ventricular arrhythmias. Source

“We continue to make targeted investments in innovation, portfolio development, and commercial execution that will support sustainable long-term value creation,”

Thierry Piéton, Medtronic chief financial officer

Neuroscience Portfolio

• Neuroscience grew 9.3% organically: Neuroscience revenue was $2.678 billion, up 10.3% reported and 9.3% organic, with low-double digit growth in Cranial & Spinal Technologies. Source
• Enabling technology grew low-20s: Cranial and Spinal Technologies grew 13%, including low-20s growth in enabling technology, per the company's highlights. Source
• Altaviva contributed to Pelvic Health: Altaviva meaningfully contributed to 15% growth in Pelvic Health, according to the company. Source

Medical Surgical and Diabetes

• Medical Surgical grew 10.2%: Medical Surgical revenue was $2.279 billion, up 10.0% reported and 10.2% organic, with high-single digit growth in Surgical & Endoscopy. Source
• Acute Care & Monitoring grew mid-teens: Acute Care & Monitoring grew in the mid-teens organically, and the highlights cite 14% growth for the segment. Source
• Diabetes revenue rose 14.9%: Diabetes revenue was $843 million, up 16.9% reported and 14.9% organic; the company notes these figures may differ from MiniMed's reported results. Source

“Our execution, alongside our innovation engine, positions us to serve more patients and deliver durable growth.”

Geoff Martha, Medtronic chairman and chief executive officer

Margins and operating costs

• Non-GAAP operating margin reached 23.7%: Non-GAAP operating profit was $2.316 billion, up 14.9%, with operating margin of 23.7%, up 10 basis points. Source
• GAAP operating margin up 120 basis points: GAAP operating profit was $1.764 billion, up 22.1%, with operating margin of 18.1%. Source
• Non-GAAP gross margin 65.2%: Non-GAAP gross margin was 65.2%, compared with 65.1% in the prior-year quarter; GAAP gross margin was 65.0%. Source
• Other operating expense rose: Other operating expense was $123 million, compared with $70 million a year earlier; non-GAAP other operating expense was $110 million. Source

Cash flow and capital returns

• Free cash flow reached $1.29 billion: Free cash flow was $1.290 billion, compared with $584 million a year earlier, after capital expenditure of $503 million. Source
• Operating cash flow rose to $1.793 billion: Net cash from operating activities was $1.793 billion, compared with $1.088 billion a year earlier. Source
• Dividends and buybacks in quarter: The company paid $921 million in dividends and repurchased $267 million of ordinary shares, compared with $910 million and $123 million a year earlier. Source
• Acquisitions and year-end cash: Acquisitions, net of cash acquired, were $1.162 billion; cash and cash equivalents ended the quarter at $1.691 billion. Source

Strategy, innovation and partnerships

• Touch Surgery Aide clearance announced: The company announced FDA clearance for the Touch Surgery Aide next generation computing platform. Source
• Growth platforms cited as contributors: The CEO pointed to the breadth of performance across businesses and to increasing contributions from newer growth platforms. Source
• Investment in innovation and pipeline: The CFO described targeted investments in innovation, portfolio development and commercial execution. Source

Reporting basis and comparability

• Other revenue fell to $29 million: Other revenue was $29 million, against $72 million a year earlier, and is excluded from organic growth along with the Italian payback accrual adjustments it includes. Source
• Product line moved to Neuroscience: A product line moved from the Surgical & Endoscopy division to the Neuromodulation division; prior year net sales were recast to match. Source
• Organic growth definition: Organic growth excludes currency, Other revenue, significant acquisitions and divestitures, and other significant discrete items. Source

Coming up, as management said on 1 September 2026

• Diabetes separation decision pending: A final decision on the Diabetes separation structure has not been reached; split-off is the current preferred structure. Source

Figures management reported

Risks management discussed

• External: The Diabetes separation may be completed through a spin-off, split-off, offering or combination of these, and the final structure is not yet set. Source

Earlier plans management reported on

• Ahead: Non-GAAP diluted EPS of $1.45 was reported as ahead of guidance. Source
• Ahead: The CFO said revenue and adjusted EPS came in ahead of expectations, enabling the FY27 guidance raise. Source

Other quarters

• Q4 FY2026 earnings call
• Q3 FY2026 earnings call
• Q2 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.