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In the latest close session, Medtronic (MDT - Free Report) was down 1.13% at $82.35. The stock fell short of the S&P 500, which registered a gain of 0.89% for the day. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq added 1.29%.
Shares of the medical device company have appreciated by 5.07% over the course of the past month, outperforming the Medical sector's gain of 4.77%, and the S&P 500's loss of 0.63%.
Analysts and investors alike will be keeping a close eye on the performance of Medtronic in its upcoming earnings disclosure. The company's earnings report is set to go public on September 1, 2026. The company is forecasted to report an EPS of $1.39, showcasing a 10.32% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $9.48 billion, reflecting a 10.53% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.94 per share and a revenue of $38.66 billion, indicating changes of +7.41% and +6.33%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Medtronic. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Currently, Medtronic is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Medtronic is currently trading at a Forward P/E ratio of 14.01. This represents a discount compared to its industry average Forward P/E of 19.35.
Also, we should mention that MDT has a PEG ratio of 2.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Products was holding an average PEG ratio of 1.75 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 167, finds itself in the bottom 33% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MDT in the coming trading sessions, be sure to utilize Zacks.com.
Andra AP fonden lowered its stake in Medtronic PLC (NYSE:MDT – Free Report) by 3.9% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 253,329 shares of the medical technology company’s stock after selling 10,400 shares during the quarter. Andra AP fonden’s holdings in Medtronic were worth $21,951,000 at the end of the most recent quarter.
Several other large investors have also recently made changes to their positions in MDT. Madison Asset Management LLC lifted its stake in Medtronic by 25.0% during the 1st quarter. Madison Asset Management LLC now owns 244,000 shares of the medical technology company’s stock worth $21,143,000 after acquiring an additional 48,784 shares in the last quarter. Convergence Investment Partners LLC grew its position in Medtronic by 82.8% in the 1st quarter. Convergence Investment Partners LLC now owns 46,789 shares of the medical technology company’s stock valued at $4,054,000 after acquiring an additional 21,196 shares in the last quarter. Commerzbank Aktiengesellschaft FI increased its stake in Medtronic by 9.0% during the first quarter. Commerzbank Aktiengesellschaft FI now owns 46,929 shares of the medical technology company’s stock worth $4,066,000 after purchasing an additional 3,879 shares during the period. Florida Financial Advisors LLC lifted its position in shares of Medtronic by 16.2% during the first quarter. Florida Financial Advisors LLC now owns 3,328 shares of the medical technology company’s stock worth $288,000 after purchasing an additional 465 shares in the last quarter. Finally, Leith Wheeler Investment Counsel Ltd. boosted its stake in shares of Medtronic by 1.4% in the first quarter. Leith Wheeler Investment Counsel Ltd. now owns 323,384 shares of the medical technology company’s stock valued at $28,021,000 after purchasing an additional 4,540 shares during the period. 82.06% of the stock is currently owned by institutional investors and hedge funds.
Medtronic Stock Up 0.1% Medtronic stock opened at $83.29 on Tuesday. Medtronic PLC has a 1-year low of $73.31 and a 1-year high of $106.33. The company has a debt-to-equity ratio of 0.52, a current ratio of 2.13 and a quick ratio of 1.62. The stock has a market cap of $106.61 billion, a PE ratio of 22.33, a P/E/G ratio of 2.23 and a beta of 0.56. The stock’s fifty day moving average is $79.68 and its two-hundred day moving average is $87.84.
Medtronic (NYSE:MDT – Get Free Report) last announced its quarterly earnings results on Wednesday, June 3rd. The medical technology company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.54 by $0.01. Medtronic had a return on equity of 14.51% and a net margin of 13.20%.The company had revenue of $9.81 billion during the quarter, compared to the consensus estimate of $9.62 billion. During the same period in the previous year, the business earned $1.62 EPS. Medtronic’s revenue for the quarter was up 9.9% on a year-over-year basis. Medtronic has set its FY 2027 guidance at 5.900-6.000 EPS. On average, sell-side analysts expect that Medtronic PLC will post 5.94 EPS for the current fiscal year.
Medtronic Increases Dividend The business also recently announced a quarterly dividend, which was paid on Friday, July 17th. Stockholders of record on Friday, June 26th were issued a $0.72 dividend. This represents a $2.88 annualized dividend and a dividend yield of 3.5%. The ex-dividend date was Friday, June 26th. This is a positive change from Medtronic’s previous quarterly dividend of $0.71. Medtronic’s dividend payout ratio (DPR) is currently 77.21%.
Insider Activity In related news, EVP Harry Skip Kiil sold 4,189 shares of the stock in a transaction on Monday, June 8th. The shares were sold at an average price of $80.44, for a total value of $336,963.16. Following the transaction, the executive vice president directly owned 37,227 shares of the company’s stock, valued at $2,994,539.88. This trade represents a 10.11% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.26% of the company’s stock.
Wall Street Analyst Weigh In Several brokerages recently weighed in on MDT. Barclays upped their target price on shares of Medtronic from $118.00 to $120.00 and gave the stock an “overweight” rating in a research note on Wednesday, April 1st. Royal Bank Of Canada restated an “outperform” rating and issued a $118.00 price target on shares of Medtronic in a research note on Thursday, June 4th. Argus cut their price objective on Medtronic from $125.00 to $115.00 and set a “buy” rating on the stock in a research report on Monday, April 6th. The Goldman Sachs Group reduced their price objective on Medtronic from $84.00 to $83.00 and set a “neutral” rating on the stock in a research note on Thursday, June 4th. Finally, Piper Sandler reiterated a “neutral” rating and issued a $85.00 target price on shares of Medtronic in a report on Tuesday, June 16th. Seventeen analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Medtronic has a consensus rating of “Moderate Buy” and a consensus target price of $98.21.
Read Our Latest Research Report on Medtronic
Medtronic Company Profile (Free Report)
Medtronic plc is a global medical technology company that develops and manufactures a broad range of therapeutic devices and health care solutions. Headquartered legally in Ireland with principal operational offices in the United States, the company markets products to hospitals, physicians and health systems worldwide and has grown from its founding in 1949 into one of the largest medical-device manufacturers serving global health-care markets.
Medtronic’s offerings span several clinical areas, including cardiac rhythm and heart failure (pacemakers, implantable cardioverter‑defibrillators and related cardiac therapies), minimally invasive and surgical technologies (laparoscopic and advanced energy devices, visualization systems and surgical innovations), restorative therapies (spine and orthopedics, neuromodulation and neurovascular treatments) and diabetes management (insulin-delivery systems and glucose monitoring solutions).
See Also Five stocks we like better than Medtronic The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding MDT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Medtronic PLC (NYSE:MDT – Free Report).
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Advanced compute power, built on NVIDIA infrastructure, enables real-time decision support during the procedure
FDA-cleared Instrument Exit Point (IEP), the first real-time AI application for robotic procedures from Medtronic, advances a precise, predictable, and personalized future for surgery
, /PRNewswire/ -- Medtronic (NYSE: MDT), a global leader in healthcare technology, is presenting an early look at its next-generation compute platform for the operating room. Touch Surgery™ Aide — an AI-native surgical computing platform that powers the Touch Surgery™ ecosystem — enables real-time artificial intelligence during procedures. Touch Surgery™ Aide will be shared at the Society of Robotic Surgery (SRS) 2026 Annual Meeting in Florida, July 23-26.
Touch Surgery(TM) Aide and the Touch Surgery(TM) ecosystem
Hugo(TM) Robotic Assisted Surgery system console and Touch Surgery(TM) ecosystem with the next-generation compute platform Touch Surgery(TM) Aide Built on years of experience, the Touch Surgery™ ecosystem brings insight to surgery, in more than 1,500 operating rooms worldwide. It connects the entire surgical journey: bridging pre-operative planning and training, intra-operative tele-mentoring and tele-proctoring, and AI-powered post-operative insight, simplifying workflows and extending access beyond individual ORs.
Touch Surgery™ Aide expands the Touch Surgery™ ecosystem with next-generation computing capabilities, enabling multimodal AI-driven support during surgery. This provides surgeons with access to actionable insights during procedures, supports case review, and helps inform continuous improvement in clinical decision-making.
"Real-time AI marks a new frontier for healthcare — it is a fundamental evolution in how surgery is supported, moving from technology that assists the surgeon's hand to technology that helps teams work smarter, move faster, and deliver greater impact in the moment," said Jim Peichel, Chief Technology Officer at Medtronic.
Touch Surgery™ Aide incorporates NVIDIA's accelerated computing infrastructure, leveraging the company's Holoscan, CUDA, and TensorRT to deliver AI-powered insights in the moment, supporting surgical decision-making when it matters most. Touch Surgery™ Aide combines computer vision, multimodal AI, and accelerated inference to process surgical video and procedural context in real time. This enables multiple AI applications to run simultaneously during a live procedure, processing and acting on surgical data in the moment. It brings intelligent, increasingly automated support in the OR, and is designed to continuously learn and evolve.
Medtronic's first real-time AI application for robotic surgery
Instrument Exit Point (IEP) is an AI application that runs on Touch Surgery™ Aide, for use with the Hugo™ robotic-assisted surgery (RAS) system. It received U.S. Food and Drug Administration (FDA) clearance.
Using computer vision, IEP provides a visual notification when select instruments move beyond the visible field of view during a robotic procedure. As the first real-time AI application to run on Touch Surgery™ Aide, IEP represents an early step in bringing AI-enabled support into robotic surgery, with the platform designed to support expansion into laparoscopic surgery over time.
Medtronic continues to progress the capabilities of the Hugo™ robotic-assisted surgery (RAS) system. In December 2025, the Hugo™ RAS system received FDA clearance for use in urologic surgical procedures, bringing a versatile robotic-assisted platform to U.S. surgeons and health systems. In June 2026, Medtronic announced 510(k) submissions to expand the use of the Hugo™ RAS system into general and gynecologic specialties in the U.S. The Hugo™ RAS system continues to have a growing global impact and has been used in tens of thousands of procedures across more than 35 countries in six continents.
Transforming the future of surgery
This is an early step in a broader effort to bring AI into more of what happens in the operating room. Over time, Medtronic expects the platform to support a growing range of real-time AI applications, connect with other Medtronic technologies in the OR, and turn the data from every case into insight for surgical teams and the hospitals they work in.
"Surgery is on the cusp of a generational shift, powered by AI and advanced compute," said George Murgatroyd, General Manager & Vice President, Digital Technologies within the Surgical business at Medtronic. "The Touch Surgery™ ecosystem, powered by Touch Surgery™ Aide, establishes a platform for a new generation of embedded connectivity, seamlessly integrating advanced capabilities into surgical workflows and reinforcing Medtronic's commitment to delivering the best possible care, for every patient, anywhere."
About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic, visit www.Medtronic.com and follow Medtronic on LinkedIn.
Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic's periodic reports on file with the Securities and Exchange Commission. Actual results may differ materially from anticipated results.
Decker Wealth Management LLC bought a new position in shares of Medtronic PLC (NYSE:MDT – Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 58,614 shares of the medical technology company’s stock, valued at approximately $5,079,000.
Other hedge funds have also recently bought and sold shares of the company. Lodestone Wealth Management LLC acquired a new position in Medtronic during the fourth quarter valued at approximately $27,000. Anfield Capital Management LLC increased its position in shares of Medtronic by 410.7% in the fourth quarter. Anfield Capital Management LLC now owns 286 shares of the medical technology company’s stock worth $27,000 after acquiring an additional 230 shares in the last quarter. Monetary Solutions Ltd acquired a new stake in shares of Medtronic in the fourth quarter worth $27,000. Acumen Wealth Advisors LLC purchased a new position in shares of Medtronic in the 4th quarter valued at $29,000. Finally, Imprint Wealth LLC purchased a new position in shares of Medtronic in the 3rd quarter valued at $31,000. Hedge funds and other institutional investors own 82.06% of the company’s stock.
Wall Street Analyst Weigh In MDT has been the subject of a number of research reports. Rothschild & Co Redburn decreased their price target on shares of Medtronic from $111.00 to $106.00 and set a “buy” rating for the company in a research report on Friday, June 5th. Argus cut their price objective on Medtronic from $125.00 to $115.00 and set a “buy” rating on the stock in a research report on Monday, April 6th. Barclays boosted their price objective on Medtronic from $118.00 to $120.00 and gave the stock an “overweight” rating in a research note on Wednesday, April 1st. TD Cowen decreased their target price on Medtronic from $119.00 to $100.00 and set a “buy” rating for the company in a research report on Friday, July 10th. Finally, Stifel Nicolaus set a $80.00 target price on Medtronic in a research report on Wednesday, June 3rd. Seventeen equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $98.21.
Get Our Latest Stock Report on MDT
Insider Buying and Selling at Medtronic In other news, EVP Harry Skip Kiil sold 4,189 shares of the firm’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $80.44, for a total transaction of $336,963.16. Following the completion of the sale, the executive vice president directly owned 37,227 shares in the company, valued at $2,994,539.88. This trade represents a 10.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.26% of the stock is owned by corporate insiders.
Medtronic Price Performance Shares of MDT stock opened at $83.20 on Monday. The company has a market capitalization of $106.50 billion, a PE ratio of 22.30, a price-to-earnings-growth ratio of 2.23 and a beta of 0.56. The firm has a fifty day simple moving average of $79.50 and a 200-day simple moving average of $87.94. The company has a current ratio of 2.13, a quick ratio of 1.62 and a debt-to-equity ratio of 0.52. Medtronic PLC has a twelve month low of $73.31 and a twelve month high of $106.33.
Medtronic (NYSE:MDT – Get Free Report) last released its quarterly earnings results on Wednesday, June 3rd. The medical technology company reported $1.55 earnings per share for the quarter, beating analysts’ consensus estimates of $1.54 by $0.01. Medtronic had a net margin of 13.20% and a return on equity of 14.51%. The business had revenue of $9.81 billion during the quarter, compared to analyst estimates of $9.62 billion. During the same period last year, the business earned $1.62 EPS. The business’s revenue was up 9.9% on a year-over-year basis. Medtronic has set its FY 2027 guidance at 5.900-6.000 EPS. Equities research analysts anticipate that Medtronic PLC will post 5.94 earnings per share for the current fiscal year.
Medtronic Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Friday, July 17th. Shareholders of record on Friday, June 26th were given a $0.72 dividend. This represents a $2.88 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date of this dividend was Friday, June 26th. This is an increase from Medtronic’s previous quarterly dividend of $0.71. Medtronic’s dividend payout ratio is currently 77.21%.
About Medtronic (Free Report)
Medtronic plc is a global medical technology company that develops and manufactures a broad range of therapeutic devices and health care solutions. Headquartered legally in Ireland with principal operational offices in the United States, the company markets products to hospitals, physicians and health systems worldwide and has grown from its founding in 1949 into one of the largest medical-device manufacturers serving global health-care markets.
Medtronic’s offerings span several clinical areas, including cardiac rhythm and heart failure (pacemakers, implantable cardioverter‑defibrillators and related cardiac therapies), minimally invasive and surgical technologies (laparoscopic and advanced energy devices, visualization systems and surgical innovations), restorative therapies (spine and orthopedics, neuromodulation and neurovascular treatments) and diabetes management (insulin-delivery systems and glucose monitoring solutions).
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, /PRNewswire/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced that it will report financial results on Tuesday, September 1, 2026, for its first quarter of fiscal year 2027, which ends on Friday, July 31, 2026.
A news release containing summary financial information will be issued at 5:45 a.m. Central Time (CT) and will be available at https://news.medtronic.com. A video webcast to discuss results will begin at 6:45 a.m. CT and can be accessed at https://investorrelations.medtronic.com. Within 24 hours of the video webcast, a replay and transcript of the prepared remarks will be available by clicking on the Events link at https://investorrelations.medtronic.com. About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE: MDT), visit www.Medtronic.com and follow Medtronic on LinkedIn.
Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic's periodic reports on file with the Securities and Exchange Commission. Actual results may differ materially from anticipated results.
Contacts:
Justin Paquette
Public Relations
+1-612-271-7935
Ingrid Goldberg
Investor Relations
+1-763-505-2696
Allspring Global Investments Holdings LLC cut its stake in Medtronic PLC (NYSE:MDT – Free Report) by 16.8% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 885,098 shares of the medical technology company’s stock after selling 178,782 shares during the quarter. Allspring Global Investments Holdings LLC owned approximately 0.07% of Medtronic worth $76,172,000 at the end of the most recent reporting period.
A number of other institutional investors have also recently modified their holdings of the business. Brighton Jones LLC lifted its stake in shares of Medtronic by 1,368.0% in the 4th quarter. Brighton Jones LLC now owns 39,989 shares of the medical technology company’s stock valued at $3,194,000 after purchasing an additional 37,265 shares during the last quarter. Sivia Capital Partners LLC boosted its stake in Medtronic by 9.6% during the second quarter. Sivia Capital Partners LLC now owns 4,356 shares of the medical technology company’s stock worth $380,000 after buying an additional 381 shares during the period. Jump Financial LLC acquired a new stake in shares of Medtronic during the second quarter valued at about $299,000. Main Street Financial Solutions LLC raised its stake in shares of Medtronic by 28.9% in the 2nd quarter. Main Street Financial Solutions LLC now owns 14,356 shares of the medical technology company’s stock valued at $1,251,000 after acquiring an additional 3,218 shares during the period. Finally, HUB Investment Partners LLC raised its stake in shares of Medtronic by 21.3% in the 2nd quarter. HUB Investment Partners LLC now owns 19,226 shares of the medical technology company’s stock valued at $1,676,000 after acquiring an additional 3,376 shares during the period. 82.06% of the stock is currently owned by institutional investors and hedge funds.
Insiders Place Their Bets In other Medtronic news, EVP Harry Skip Kiil sold 4,189 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $80.44, for a total value of $336,963.16. Following the completion of the transaction, the executive vice president owned 37,227 shares in the company, valued at approximately $2,994,539.88. This represents a 10.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.26% of the stock is owned by corporate insiders.
Medtronic Price Performance Shares of MDT opened at $83.20 on Friday. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.62 and a current ratio of 2.13. Medtronic PLC has a fifty-two week low of $73.31 and a fifty-two week high of $106.33. The firm has a 50-day simple moving average of $79.50 and a 200-day simple moving average of $87.99. The company has a market capitalization of $106.50 billion, a price-to-earnings ratio of 22.30, a price-to-earnings-growth ratio of 2.24 and a beta of 0.56.
Medtronic (NYSE:MDT – Get Free Report) last issued its quarterly earnings results on Wednesday, June 3rd. The medical technology company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.54 by $0.01. Medtronic had a return on equity of 14.51% and a net margin of 13.20%.The firm had revenue of $9.81 billion for the quarter, compared to analysts’ expectations of $9.62 billion. During the same quarter in the previous year, the firm posted $1.62 EPS. The firm’s revenue for the quarter was up 9.9% on a year-over-year basis. Medtronic has set its FY 2027 guidance at 5.900-6.000 EPS. On average, equities research analysts anticipate that Medtronic PLC will post 5.94 earnings per share for the current year.
Medtronic Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, July 17th. Stockholders of record on Friday, June 26th were paid a dividend of $0.72 per share. This is a positive change from Medtronic’s previous quarterly dividend of $0.71. The ex-dividend date of this dividend was Friday, June 26th. This represents a $2.88 dividend on an annualized basis and a dividend yield of 3.5%. Medtronic’s dividend payout ratio (DPR) is currently 77.21%.
Wall Street Analysts Forecast Growth A number of research firms recently weighed in on MDT. Stifel Nicolaus set a $80.00 price objective on shares of Medtronic in a research report on Wednesday, June 3rd. Weiss Ratings cut Medtronic from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday, May 21st. Citigroup lowered their price target on Medtronic from $117.00 to $110.00 and set a “buy” rating for the company in a research report on Tuesday, April 7th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $118.00 price objective on shares of Medtronic in a research note on Thursday, June 4th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $101.00 price objective on shares of Medtronic in a report on Wednesday, June 17th. Seventeen equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat.com, Medtronic currently has a consensus rating of “Moderate Buy” and an average price target of $98.21.
View Our Latest Stock Analysis on MDT
Medtronic Company Profile (Free Report)
Medtronic plc is a global medical technology company that develops and manufactures a broad range of therapeutic devices and health care solutions. Headquartered legally in Ireland with principal operational offices in the United States, the company markets products to hospitals, physicians and health systems worldwide and has grown from its founding in 1949 into one of the largest medical-device manufacturers serving global health-care markets.
Medtronic’s offerings span several clinical areas, including cardiac rhythm and heart failure (pacemakers, implantable cardioverter‑defibrillators and related cardiac therapies), minimally invasive and surgical technologies (laparoscopic and advanced energy devices, visualization systems and surgical innovations), restorative therapies (spine and orthopedics, neuromodulation and neurovascular treatments) and diabetes management (insulin-delivery systems and glucose monitoring solutions).
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Acquisition adds category-defining SPRINT® PNS technology to Medtronic's pain therapy portfolio—the broadest in the industry.¹
, /PRNewswire/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced it has completed its acquisition of SPR Therapeutics, Inc. (SPR), a privately held medical technology company and recognized leader in short-term, percutaneous peripheral nerve stimulation (PNS) therapies for chronic and acute pain management. The acquisition is valued at $650 million, consisting of an upfront cash payment.
Chronic pain affects nearly 50 million U.S. adults2, and for some, it can significantly impact their mobility, sleep quality, work performance, and overall quality of life. PNS is a form of neuromodulation that delivers mild electrical stimulation near targeted peripheral nerves to help reduce pain. As a non-opioid and non-surgical therapy, PNS can expand pain management treatment options, support earlier intervention in the care continuum, and help create additional opportunities for individualized patient care.
SPR's FDA-cleared SPRINT® PNS System is a short-term therapy designed to provide pain relief using a 60-day, minimally invasive treatment approach that does not require a permanent implant. SPRINT® is supported by a growing body of clinical research, including multiple prospective clinical studies, case series, and multi-center randomized controlled trials. Pooled results from 13 studies show that 60% of patients achieved meaningful pain relief (≥50% reduction in pain intensity) at the end of the 60-day treatment completion, with responders experiencing an average 76% reduction in pain intensity. Across all patients, there was a 56% reduction in pain intensity.3
"Medtronic is committed to expanding access to innovative therapies that can meaningfully improve patient lives," said Domenico De Paolis, Interim President of the Neuromodulation Operating Unit, part of the Medtronic Neuroscience Portfolio. "The addition of SPRINT® extends our ability to serve patients across the continuum of pain care and broadens patient access to a minimally invasive treatment option to address both chronic and acute pain."
"At SPR, our mission has always been to help people living with pain reclaim their lives," said Maria Bennett, President, Founder, and Chief Executive Officer of SPR. "We are proud of the impact our team has made in advancing innovative therapies that offer meaningful pain relief. Joining Medtronic enables us to build on that foundation, expand access to our technology, and serve more patients living with pain."
This acquisition reflects Medtronic's continued focus on strategic deals that strengthen its leadership across core businesses. It is expected to be minimally dilutive to Medtronic adjusted EPS in FY27 and neutral to accretive thereafter. The company remains committed to pursuing high-growth opportunities that complement its portfolio and enhance therapy options for physicians and hospital partners.
About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission – to alleviate pain, restore health, and extend life – unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic, visit medtronic.com and follow us on LinkedIn.
About SPR
SPR is a medical technology company focused on advancing minimally invasive therapies for the treatment of pain. Its SPRINT® PNS System is designed to deliver short-term peripheral nerve stimulation therapy for sustained pain relief of up to three months following treatment and is supported by a growing body of clinical evidence and expanding reimbursement coverage. For more information on SPR Therapeutics, visit sprpainrelief.com and follow SPR on LinkedIn.
Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic's periodic reports on file with the U.S. Securities and Exchange Commission. Actual results may differ materially from anticipated results.
Medtronic Contacts:
Justin Paquette
Ingrid Goldberg
Public Relations
Investor Relations
+1-612-271-7935
[email protected]
References
Medtronic SCS Value Summary FY25; Lo Bianco, G., et al. (2025). Barriers to neuromodulation. J Anesth Analg Crit Care, 5(1):3. Lucas JW, Sohi I. Chronic pain and high-impact chronic pain in U.S. adults, 2023. NCHS Data Brief, no 518. Hyattsville, MD: National Center for Health Statistics. 2024. DOI: https://dx.doi.org/10.15620/cdc/169630. SPR SPRINT® PNS System Indications for Use. SPR Pain Relief. Accessed July 2, 2026. https://www.sprpainrelief.com/indications SOURCE Medtronic plc
Medtronic (MDT - Free Report) ended the recent trading session at $83.87, demonstrating a +1.8% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.42%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.29%.
Shares of the medical device company witnessed a gain of 2.56% over the previous month, trailing the performance of the Medical sector with its gain of 5.6%, and outperforming the S&P 500's gain of 2.2%.
Investors will be eagerly watching for the performance of Medtronic in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.39, showcasing a 10.32% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $9.48 billion, reflecting a 10.53% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.94 per share and revenue of $38.66 billion, indicating changes of +7.41% and +6.33%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Medtronic. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Medtronic presently features a Zacks Rank of #4 (Sell).
Looking at valuation, Medtronic is presently trading at a Forward P/E ratio of 13.87. This denotes a discount relative to the industry average Forward P/E of 18.63.
Meanwhile, MDT's PEG ratio is currently 2.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Products stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 186, placing it within the bottom 25% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
I initiate coverage on Medtronic, highlighting its status as a leading medtech name with premium margins. MDT offers an attractive diversification opportunity, combining consistent performance with accelerated revenue growth. The stock trades at undervalued levels, supporting a long-term bullish thesis and a defensive investment approach.
Medtronic plc is rated buy with a $92 price target, reflecting conservative fiscal 2027 guidance and resilient growth platforms. Fiscal 2026 delivered $36.4B in revenue, the strongest growth in a decade, led by Cardiovascular and ablation solutions outpacing market rates. Guidance for fiscal 2027 excludes potential catalysts—MiniMed separation, tariff refunds, and Blackstone payment relief—implying room for upside surprises.
Medtronic is a dividend aristocrat with a near-decade high yield, making it an attractive long-term income opportunity. The company is experiencing strong revenue growth, driven by its leading positions in cardiovascular and neuroscience medical devices. While current free cash flow payout ratios are sustainable, investors should monitor future dividend growth rates closely.
Maximizing dividend income isn't all about chasing high yields. A company must have a healthy, growing business to generate the profits needed to pay dividends and raise them over time. A high dividend yield can even be a red flag, a trap that ultimately costs investors more than they bargained for.
Fortunately, there are some fantastic high-yield dividend stocks out there. That's especially true in healthcare. It's an evergreen industry, and an enormous one; in the United States, healthcare spending in 2025 reached $5.7 trillion.
These three healthcare stocks will pay you generously to hold them, and have the stability and growth to own them for the long haul. While AbbVie (ABBV +0.82%) tops this list, you don't want to miss the other two.
Image source: The Motley Fool.
The pharmaceutical industry is a major driver of the broader healthcare sector, and AbbVie is one of its top players. The company boasts an impressive portfolio spanning immunology, oncology, neuroscience, eye care, and aesthetics. AbbVie has increased its dividend for at least 50 consecutive years, dating back to its years as part of Abbott Laboratories. This impressive feat makes the stock a Dividend King.
AbbVie has proven capable of replenishing its drug portfolio as patents expire. It faced a significant threat when Humira lost patent exclusivity, but has continued to grow thanks to smart acquisitions and the success of newer drugs such as Skyrizi and Rinvoq. As a result, Wall Street analysts expect AbbVie to grow earnings by an average of 12% to 13% annually over the next three to five years.
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Investors get an initial yield of 2.5% at AbbVie's current share price. Plus, the dividend is only 48% of the company's estimated 2026 earnings, so there's plenty of financial cushion in case the business sees an unexpected downturn. AbbVie is a textbook example of what long-term dividend investors should look for.
2. Medtronic Medical devices are arguably just as crucial to healthcare as pharmaceuticals. Medtronic (MDT +1.69%) is one of the world's leading health technology companies, with over 41,000 active patent matters and 174 active clinical trials. It divides its business into three segments: cardiovascular, medical/surgical, and neuroscience. That said, the sheer breadth of its product portfolio has made Medtronic a very steady business for decades.
Medtronic has increased its dividend for 49 consecutive years, so it should soon join AbbVie as a Dividend King. There's plenty of room to raise the dividend, as the payout ratio is only 48% of 2026 earnings estimates. That doesn't even factor in the 5% to 6% annualized earnings growth analysts anticipate over the long term.
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There could be upside to Medtronic's growth if it successfully establishes itself in robotics-assisted surgery. It could challenge the industry leader, Intuitive Surgical, with its new Hugo system over the coming years. Overall, Medtronic is the type of dividend investment that allows you to sleep well at night. The added upside of its Hugo system is an intriguing wildcard.
3. Bristol Myers Squibb This list will circle back to the pharmaceutical industry with Bristol Myers Squibb (BMY +2.88%). BMS specializes in treatments across healthcare's most lucrative fields, including cardiovascular, hematology, immunology, neuroscience, and oncology. Shares currently yield 4.3%, offering investors tantalizing income for their portfolios from the jump.
But Bristol Myers Squibb is also riskier. Several of its key drugs will lose revenue to generic competition as their patents expire over the next few years. This situation, referred to as a patent cliff, creates a massive hole in sales that BMS will have to fill. Fortunately, the company's developmental pipeline is loaded. Management hopes to bring 10 new medicines to market by the end of the decade.
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Wall Street is currently worried about growth. Analysts currently see earnings shrinking at an annualized rate of 1% over the long term. That could change with a blockbuster drug or two. Bristol Myers Squibb will have plenty of swings at bat as its pipeline matures over the next three to four years. In the meantime, the dividend is only 40% of 2026 earnings estimates, so there's a big cushion there. Priced at just 9 times forward earnings, the stock could look like a bargain in hindsight.
It has been about a month since the last earnings report for Medtronic (MDT - Free Report) . Shares have added about 1.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Medtronic due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Medtronic's Q4 Earnings & Revenues Top EstimatesMedtronic plc posted fourth-quarter fiscal 2026 adjusted earnings of $1.55 per share, down 4.3% from the year-ago quarter but above the Zacks Consensus Estimate by 0.6%.
For the full-year fiscal 2026, adjusted earnings per share was $5.53, up 0.7% year over year. The figure missed the Zacks Consensus Estimate by 0.2%.
Revenue rose 9.9% year over year to $9.81 billion and beat the consensus by 1.5%. The upside came as procedure-driven demand stayed firm across key franchises. Cardiac Ablation Solutions revenue surged 78% globally, including 124% growth in the United States, while multiple portfolios delivered healthy gains.
Full-year worldwide revenues totaled $36.4 billion, up 8.4% year over year. The top line marginally surpassed the Zacks Consensus Estimate by 0.6%.
MDT’s Portfolio Mix Tilted Toward Cardiovascular
Cardiovascular generated $3.80 billion in the quarter, underscoring the importance of the company’s largest portfolio to overall momentum. Neuroscience contributed $2.75 billion, and Medical Surgical added $2.39 billion, reflecting steady demand across hospital-based therapy areas.
Diabetes produced $837 million of revenue and remained a meaningful growth lever alongside the broader portfolios. The mix shows Medtronic’s exposure to both large, recurring procedural categories and faster-moving product cycles in areas like diabetes management.
MDT’s Geographic Split Favored International Growth
U.S. revenue increased 7.1% year over year to $4.87 billion, supported by gains across major portfolios and continued procedure volume resilience.
International revenue advanced 12.8% to $4.94 billion. The overseas outperformance was broad-based and included a notable lift in Diabetes internationally, reinforcing how global scale can amplify Medtronic’s reported results when demand is healthy.
Medtronic’s Adjusted Margins Mixed in the Quarter
On an adjusted basis, Medtronic posted gross margin of 65.4% in fourth-quarter fiscal 2026, up 30 basis points year over year, reflecting a modest improvement in profitability at the product level.
However, operating leverage moved the other way. The adjusted operating margin fell to 25.5%, down 230 basis points from the prior-year quarter, as the company absorbed notable headwinds, including margin impacts tied to the MiniMed Blackstone payment and tariffs.
Medtronic’s Cash Generation Supports Returns and Investment
Operating cash flow totaled $7.33 billion in fiscal 2026, providing the financial flexibility to fund both portfolio investment and shareholder distributions. Free cash flow was $5.43 billion for the year, equal to 76% free cash flow conversion from adjusted net earnings.
Medtronic also returned $4.2 billion to shareholders in fiscal 2026 and ended the year with $9.2 billion in cash and investments.
Medtronic’s FY27 Guidance and Shareholder Returns
Looking ahead, the company guided for fiscal 2027 organic revenue growth of 6.75% to 7.25% and adjusted earnings of $5.90 to $6.00 per share. The outlook bakes in the benefit of a 53rd week, additional M&A and a full-year contribution from the Diabetes business, while also considering tariffs, interest and tax expense. The Zacks Consensus Estimate projects fiscal 2027 revenues of $38.39 billion, up 6.1% from fiscal 2026 levels, while earnings per share is expected to rise 9.7% to $6.08.
Medtronic also increased its quarterly dividend to $0.72 per share, implying an annual rate of $2.88 and marking its 49th consecutive year of dividend increases.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM ScoresCurrently, Medtronic has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Medtronic has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
On June 30, 2026, Medtronic PLC (MDT) shares fell 3.3% today, bringing the current price to $78.23. The stock has traded between $73.31 and $106.33 over the pas
Medtronic (MDT - Free Report) ended the recent trading session at $78.23, demonstrating a -3.34% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.79%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 1.52%.
Shares of the medical device company witnessed a gain of 9.39% over the previous month, beating the performance of the Medical sector with its gain of 7.53%, and the S&P 500's loss of 1.82%.
Analysts and investors alike will be keeping a close eye on the performance of Medtronic in its upcoming earnings disclosure. On that day, Medtronic is projected to report earnings of $1.39 per share, which would represent year-over-year growth of 10.32%. Simultaneously, our latest consensus estimate expects the revenue to be $9.48 billion, showing a 10.53% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.94 per share and a revenue of $38.66 billion, representing changes of +7.41% and +6.33%, respectively, from the prior year.
Any recent changes to analyst estimates for Medtronic should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.22% decrease. Medtronic is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Medtronic has a Forward P/E ratio of 13.62 right now. Its industry sports an average Forward P/E of 18.39, so one might conclude that Medtronic is trading at a discount comparatively.
It is also worth noting that MDT currently has a PEG ratio of 2.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Medical - Products industry was having an average PEG ratio of 1.65.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Key Takeaways Globus Medical outpaced Medtronic in share gains and analyst price target upside over the past year. GMED posted strong Spine and Trauma growth, stayed debt-free and continued investing in R&D and new product. MDT expanded robotics and digital surgery, increased its dividend and returned $4.2 billion to shareholders. Over the past year, shares of Globus Medical (GMED - Free Report) and Medtronic (MDT - Free Report) have gained 46.1% and 7.6%, respectively, significantly outperforming the industry’s 9.6% decline. U.S. medical stocks offer strong structural growth prospects driven by an aging global population, rising chronic disease prevalence and rapid technological integration.
Given these positives, Globus Medical posted revenue growth of 27% year over year in the first quarter. Medtronic experienced 9.9% year-over-year revenue growth in the fiscal fourth quarter.
It is time for investors to assess whether this momentum can extend through 2026. Let’s find out.
Image Source: Zacks Investment Research
The Case for GMEDGlobus Medical is taking share in Musculoskeletal Solutions, supported by broad-based growth across its core categories. In the first quarter of 2026, U.S. Spine marked its third straight quarter of 10% growth, with double-digit growth cited across standard fixation, minimally invasive surgery pedicle screws, expandable transforaminal lumbar interbody fusion, anteriorlumbar interbody fusion, posterior cervical and cervical plating.
International Spine also grew 16.4% in the first quarter. Trauma revenues increased 30.4%, aided by continued adoption of the core trauma line and the Precice limb lengthening portfolio, with ANTHEM Elbow continuing to exceed expectations.
The company continues to invest in R&D and product cadence as core part of its competitive positioning. In the first quarter of 2026, R&D expenses were 4.8% of sales, with management expecting it to be 5-6% of net sales for the full year, with spend ramping methodically through the year as product efforts progress.
Its early FDA 510(k) clearances for patient-specific lumbar spacers and rods reinforced its roadmap of linking planning software, enabling technologies and implants into one workflow. This launch activity complements the broader post-merger strategy of compressing development timelines and keeping the portfolio fresh across spine and orthopedics.
Globus Medical ended the first quarter of 2026 with $560.9 million of cash and cash equivalents and $68.9 million of short-term marketable securities. The company remains debt-free, which preserves the capacity to fund R&D, sales-force investments and manufacturing expansion without relying on external financing. Liquidity is also being replenished internally, with $202.4 million of operating cash flow generated in the quarter. This supports continued capital spending and buybacks alongside ongoing integration work.
The Case for MDTWithin Medtronic’s Medical Surgical portfolio, growth is supported by Hugo robotic-assisted surgery, Touch Surgery, Endoscopy and Acute Care & Monitoring. Surgical & Endoscopy rose 3.5% organically in the fourth quarter, with Hugo contributing as procedure volumes expanded globally.
Acute Care & Monitoring grew 10.5% organically in the fourth quarter, driven by Nellcor pulse oximetry, respiratory and airway products, and perioperative offerings. Management expects MedSurg growth to normalize in fiscal 2027, but the portfolio enters the year with broader robotics and digital capabilities.
Also, the company submitted Hugo to the FDA for general surgery and gynecologic indications, as well as for the LigaSure RAS vessel sealer. It received FDA clearance for ProGrip Advanced, a mesh optimized for robotic-assisted ventral hernia repair. Touch Surgery installations exceeded 1,400 and increased more than 30% sequentially, adding a digital layer to the robotics ecosystem.
Medtronic exited fiscal 2026 with $9.2 billion in cash and investments compared with $8.38 billion at the end of the fiscal third quarter. On the debt side, the company issued $1.75 billion of long-term debt and repaid $2.93 billion during fiscal 2026, while current debt obligations increased $9 million on a net basis.
Medtronic returned $4.2 billion to shareholders in fiscal 2026 and raised its quarterly dividend to $0.72 per share for the first quarter of fiscal 2027, marking the 49th consecutive year of dividend increases. The balance sheet position gives the company room to support tuck-in deals in coronary, neurovascular, neuromodulation and EP imaging while maintaining shareholder returns.
Valuation: GMED vs. MDTGlobus Medical currently trades at a forward, one-year, price-to-sales (P/S) of 3.55X, higher than its median. Medtronic’s 2.67X P/S sits below its median. Additionally, Globus Medical trades expensive than Medtronic.
Image Source: Zacks Investment Research
Short Term Price Target Favors GMED Over MDTGMED: Based on short-term price targets offered by 12 analysts, the average price target of $109.83 represents an increase of 29.75% from the last closing price.
Image Source: Zacks Investment Research
MDT: Based on short-term price targets offered by 25 analysts, the average price target of $96.96 represents an increase of 20.42% from the last closing price.
Image Source: Zacks Investment Research
End NoteBoth Globus Medical and Medtronic are well positioned to benefit from long-term growth trends in musculoskeletal and medical technology markets, but they offer different investment profiles.
Globus Medical stands out for its strong execution in Spine and Trauma, robust product innovation pipeline, debt-free balance sheet and disciplined investment in R&D, positioning it as a higher-growth company. Meanwhile, Medtronic benefits from greater scale and a diversified portfolio, supported by expanding robotic-assisted surgery capabilities, digital surgery platforms and a long track record of shareholder returns through dividends and capital allocation.
For investors, Globus Medical, currently carrying a Zacks Rank #2 (Buy), appears to be the stronger choice, given that it has outperformed Medtronic over the past year. However, for investors seeking a more discounted entry, Medtronic, carrying a Zacks Rank #4 (Sell) at present, may offer deeper value but with meaningfully higher risk. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Whether you believe there's a bubble in tech or are just worried about rising valuations in the stock market, there's ample reason to want to reduce risk right now. By diversifying into dividend stocks with stable businesses, you can make your portfolio less vulnerable in the event of a market crash or correction in the near future.
While no investment is entirely free of risk, three dividend stocks that can be great options today are Medtronic (MDT +1.72%), Realty Income (O +1.57%), and ExxonMobil (XOM +0.91%). Here's why these low-volatility stocks can be a good option for reducing your exposure to the stock market's potentially wild swings.
Image source: Getty Images.
Medtronic Medtronic is a leading device maker in the healthcare industry, benefiting from an ongoing need for its products. Healthcare is essential, and demand will remain strong regardless of economic cycles or market volatility. Medtronic's products are used worldwide to treat many conditions.
That stability is evident in its top line, which has been steadily growing. The company did have a particularly strong performance in its most recent fiscal year (which ended on April 24), marking its best annual revenue growth in a decade. But at 8%, it wasn't exactly a terribly high rate of growth. It does, however, underscore the fairly consistent and mild level of growth it typically generates on a yearly basis.
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That consistency is what makes Medtronic an appealing stock to own. It has averaged a beta of 0.60, which is well below 1.0 (which would indicate a stock moves in unison with the market). It also pays a fairly high dividend that yields 3.6%; the S&P 500 average is just 1.1%. And with the stock trading at just 13 times its estimated future earnings, based on analyst estimates, it's a fairly cheap buy right now.
Realty Income A top real estate investment trust (REIT) such as Realty Income can also make for a dependable dividend stock to buy and hold. Its business has grown faster than Medtronic's over the years by adding to its portfolio of properties, enabling it to grow revenue more quickly. In 2025, the company's top line rose by 9%, to $5.7 billion.
And as it adds to its portfolio, it gains a new baseline for recurring revenue. By focusing on a diverse mix of tenants, the REIT isn't too vulnerable to any one company, which is why it can be a suitable option for risk-averse investors. Its beta is 0.73, indicating that it's a bit more volatile than Medtronic, but still fairly stable overall.
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The big appeal about REITs is their consistency, reliability, and, of course, dividend income. Realty Income currently yields 5.2%, which is the highest payout on this list. The company has also been routinely increasing its dividend, making it highly likely that the dividend income you collect from the stock will rise significantly in the future.
ExxonMobil Oil and gas stocks can also make for good investments if you want to reduce risk. And what better option than to consider one of the iconic leaders in the space -- ExxonMobil. The oil and gas giant is known for being a stable income stock, having raised its dividend for decades.
It yields 2.9% today, and that would be a fair bit higher if not for the stock's 26% surge over the past year, as investors have pivoted to oil and gas stocks amid the war in Iran, which has pushed oil prices higher. Exxon's beta is the lowest on this list at just 0.15, indicating that whatever moves the broader market makes are likely to have a limited impact on its share price.
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When the S&P 500 crashed by 19% in 2022, Exxon's stock soared by 80%. That might not happen if there's another downturn, but it's an example of why it can be a good investment if you want to diversify your portfolio and collect some excellent dividend income along the way.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Medtronic (MDT - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Medtronic currently has an average brokerage recommendation (ABR) of 1.97, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.97 approximates between Strong Buy and Buy.
Of the 29 recommendations that derive the current ABR, 14 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 48.3% and 6.9% of all recommendations.
Brokerage Recommendation Trends for MDT
Check price target & stock forecast for Medtronic here>>>
The ABR suggests buying Medtronic, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in MDT?In terms of earnings estimate revisions for Medtronic, the Zacks Consensus Estimate for the current year has declined 2.2% over the past month to $5.94.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Medtronic. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Medtronic with a grain of salt.
Amid the largest IPO in history, which we recently witnessed, and the booming artificial intelligence industry that continues to show highly attractive prospects, there remain serious economic and geopolitical tensions that could eventually significantly cool much of the excitement on Wall Street. Inflation is on the rise, some economists continue to warn that a recession may be coming, and although the United States and Iran seem to be working toward a deal, it remains hard to predict how that situation will evolve.
In the current environment, it is a good idea to consider investing in dividend stocks. They may not be particularly "exciting" choices right now, but solid dividend payers can help stabilize a portfolio in case the going gets rough and smooth out market losses in a downturn. With that said, let's consider two excellent dividend stocks that are worth investing in right now: Pfizer (PFE 1.44%) and Medtronic (MDT +1.72%). Both healthcare leaders could deliver competitive returns through the next decade.
Image source: Getty Images.
1. Pfizer Pfizer has not performed well in recent years due to poor financial results and upcoming patent cliffs, notably for its anticoagulant Eliquis, one of its best-selling drugs. It will lose patent exclusivity by the end of the decade. However, the company is developing new products that could help it overcome these challenges. Pfizer has significantly expanded its pipeline in recent years, partly thanks to acquisitions, and now boasts a deep portfolio of investigational medicines.
The most promising might be in oncology and weight loss. In the latter therapeutic area, Pfizer is developing an anti-obesity medicine, MET-097i, which it hopes will be highly differentiated from current market leaders, thanks to its better safety profile and long-acting properties.
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In oncology, Pfizer is working on highly promising cancer medicines, including PF'4404, which could challenge the current leader in the cancer drug market, Keytruda, across several niches. Of course, Pfizer has plenty of attractive candidates beyond those, and for what it's worth, some of the company's newer launches have already started contributing meaningfully to its financial results. That's the case with Abrysvo, a vaccine for the respiratory syncytial virus.
Pfizer should overcome recent challenges thanks to its deep pipeline. Meanwhile, the company offers a highly attractive forward yield of 6.8% and has not suspended its dividend program despite the significant challenges it has encountered of late. Pfizer could continue rewarding its shareholders with payout increases over the next decade while bouncing back and delivering much better returns.
2. Medtronic Medtronic's shares recently fell after earnings (for the fourth quarter of its fiscal year 2026, ending April 24), as the company's guidance missed Wall Street's estimates. The medical device specialist could face a challenging next few years as it navigates tariffs and other macroeconomic factors that might increase its costs and squeeze its profits and margins. However, Medtronic remains an attractive long-term dividend stock. The company's vast lineup across multiple therapeutic areas allows it to generate consistent revenue, and it also has several opportunities that will eventually help boost sales growth.
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Last year, Medtronic finally received U.S. clearance for its Hugo robotic-assisted surgery (RAS) system for urologic procedures. This milestone will help it tap into the attractive and underpenetrated RAS market. It will take some time for Medtronic to ramp Hugo sales, but it should eventually become a meaningful growth driver, especially as it earns additional indications. Medtronic should also succeed in finding additional growth avenues, and, over the long run, the company will benefit from secular tailwinds -- such as an aging population -- that will drive increased demand for its products.
Finally, Medtronic has an exceptional dividend track record. The company offers a juicy forward yield of 3.63%, and it has increased its payouts for 48 consecutive years. This long streak is likely to continue for the foreseeable future, making Medtronic a great pick for income seekers.
Investing in dividend stocks is a great way to earn superior returns over the long run. How do we know that? According to some research, most of the S&P 500's returns over the past several decades can be attributed to reinvested dividends and compounding. This fact makes a strong case for dividend investing. However, buying shares in just any old company that happens to pay dividends isn't the way to go: They aren't all created equal. With that said, let's consider three excellent dividend stocks that are worth investors' hard-earned cash: Bristol Myers Squibb (BMY 1.44%), Merck (MRK 2.79%), and Medtronic (MDT +0.22%). Here's why these three income stocks are worth sticking with for the long term.
Image source: Getty Images.
1. Bristol Myers Squibb Bristol Myers is a leading pharmaceutical company with a deep portfolio of medicines spanning many therapeutic areas, particularly oncology. The drugmaker typically generates decent revenue and earnings, although it has encountered challenges in recent years due to patent cliffs. Bristol Myers is bouncing back, though. Newer approvals are helping push sales in the right direction. The company's first-quarter revenue climbed by 3% year over year to $11.5 billion.
Bristol Myers' growth portfolio -- composed of newer medicines that won't encounter patent cliffs anytime soon -- posted even stronger growth. Its sales were $6.2 billion, 12% higher than the year-ago period. These newer medicines should account for a larger percentage of Bristol Myers' top line within a few years and lift sales growth even higher. And while there are other patent cliffs on the horizon -- particularly that of Bristol Myers' anticoagulant, Eliquis -- the drugmaker has a deep pipeline of promising candidates that should help it overcome them.
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In fact, one of Bristol Myers' most exciting pipeline assets is a potential successor to Eliquis called milvexian. Bristol Myers thinks this medicine has multibillion-dollar potential, partly because it could avoid one key drawback of traditional anticoagulants: Bleeding risk. Bristol Myers has plenty of other candidates beyond this one. Over the long run, it should succeed in developing newer and better products while growing its sales and earnings at a decent clip.
Lastly, Bristol Myers has an attractive dividend program, with a forward yield of 4.4%. It has increased its payouts by 65.8% over the past decade. All good reasons why Bristol Myers is an attractive blue chip dividend stock to buy and hold for a long time.
2. Merck Merck has also faced challenges in recent years, particularly with one of its growth franchises -- HPV vaccines Gardasil and Gardasil 9 -- whose sales haven't been strong due to weak demand in some Asian regions. Many investors also fear that other drugmakers are coming to take Merck's crown in the cancer drug market. The company reigns supreme thanks to Keytruda, the world's best-selling cancer medicine, but several "Keytruda killers" are in development and could hit the market within a few years.
At any rate, Keytruda itself will lose patent exclusivity by the end of the decade. Is Merck still worth considering, given all these factors? My view is that it is. Here are three reasons why. First, the company has received approval for a newer, subcutaneous version of Keytruda, called Keytruda Qlex, that is much faster to administer than the original intravenous version while remaining as effective. Keytruda Qlex should extend the franchise's patent exclusivity into the next decade.
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Second, while Merck will face increased competition, it has worked hard to diversify its lineup and decrease its reliance on Keytruda. Some of the company's newer products already have an annual revenue run rate of over $1 billion. Winrevair, a medicine for pulmonary arterial hypertension first approved in 2024, generated $525 million in revenue in the first quarter, up 88% year over year. Merck's Capvaxive, a pneumonia vaccine, is performing well, too.
Third, just like any self-respecting pharmaceutical giant, Merck also has a deep pipeline that should lead to brand-new approvals and label expansions. The company has expanded its pipeline in recent years through acquisitions and now boasts exciting programs, including a highly promising influenza medicine that could address an unmet need in that area. Finally, Merck offers an attractive forward dividend yield of 3%.
The drugmaker has increased its payouts by 93.8% over the past decade. Merck should continue paying -- and raising -- its dividends for a long time, making it a good pick for income seekers.
3. Medtronic Medtronic has struggled to grow revenue at a pace satisfactory to the market in recent years. The company's profits and margins have also often disappointed. However, the medical device specialist has made significant progress in addressing its issues. Medtronic announced it would spin off its diabetes care division -- which had been a drag on operating margins -- into a stand-alone, publicly traded company.
It has also launched products that are meaningfully impacting top-line growth, and others that eventually will. Medtronic PFA (Pulse Field Ablation) franchise -- devices that use a novel technology to treat a heart problem -- has been a bright spot in recent quarters.
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Further, Medtronic earned approval for the Hugo system, a robotic-assisted surgery (RAS) device, last year. It will allow the company to compete with the leader in this niche, Intuitive Surgical. The RAS market is arguably underpenetrated, and although Medtronic may not take the top spot away from Intuitive Surgical -- the latter has a two-decade lead -- it could still meaningfully contribute to top-line growth.
Meanwhile, thanks to a large product portfolio and regular approvals, Medtronic generates consistent revenue and earnings. That's how it has maintained such a strong dividend program. Medtronic has increased its payouts for an impressive 48 consecutive years. The company also offers a forward yield of 3.6%. Medtronic should continue rewarding investors with regular payout increases for a long time.
Investors in Medtronic plc (MDT - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the June 18, 2026 $50.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Medtronic share, but what is the fundamental picture for the company? Currently, Medtronic is a Zacks Rank #4 (Sell) in the Medical - Products Industry that ranks in the Bottom 32% of our Zacks Industry Rank. Over the last 60 days, two analysts have increased their estimates for the current quarter, while two have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from $1.37 per share to $1.39 per share in the same time period.
Given the way analysts feel about Medtronic right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
For an investor in their 50s or 60s who is finished chasing trends, Medtronic (NYSE:MDT | MDT Price Prediction) is a stock worth owning for decades because it pairs inelastic demand for medical devices with a 49th consecutive year of dividend increases. A $2,500 stake at the current $80.33 share price buys roughly 31 shares of a business engineered to keep paying you while the rest of the market cycles through manias.
Pillar 1: A Durable, Diversified Franchise Medtronic is a diversified medical device juggernaut organized into four portfolios: Cardiovascular, Neuroscience, Medical Surgical, and Diabetes. That breadth matters because no single product cycle can sink the company. In fiscal 2026, revenue reached $36.36 billion, up 8.43% year over year, which CEO Geoff Martha called the “strongest annual top-line growth Medtronic has delivered in 10 years.” Cardiovascular alone produced $3.80 billion in Q4, with Cardiac Ablation Solutions growing 78% globally and capturing 8 additional points of U.S. market share. Pacemakers, spinal implants, insulin pumps and surgical navigation systems train surgeons on Medtronic’s proprietary ecosystems, creating switching costs that compound over decades alongside an aging global population that will keep filling cath labs and operating rooms.
Pillar 2: Income You Can Set and Forget The forever case rests heavily on cash returned to shareholders. The board declared a $0.72 quarterly dividend on June 3, 2026, implying $2.88 annually and a yield of roughly 3.52%. That payout is funded by $5.43 billion in free cash flow and $7.33 billion in operating cash flow, with another $1.035 billion spent on buybacks in fiscal 2026. The quarterly dividend has climbed from roughly $0.04 in 1999 to $0.71 in early 2026, with the latest bump making it 49 straight years of increases. That is dividend aristocrat territory, and it is exactly the kind of compounding a retirement portfolio is built around.
Pillar 3: Built to Survive Market Cycles Procedure volumes for cardiac ablation, pacemakers, spinal fusion and diabetes management are largely non-discretionary. People do not postpone life-saving devices because the S&P 500 is in a drawdown. That defensiveness shows up in a beta of 0.597 and in four consecutive quarterly EPS beats. Management guided fiscal 2027 to organic revenue growth of 6.75% to 7.25% and non-GAAP EPS of $5.90 to $6.00. Shares trade at a forward multiple of roughly 14x, an attractive entry for a business this defensive.
The One Scenario Where It Lags In a low-rate, risk-on rally led by speculative growth names, Medtronic will trail. Margin pressure is also real: Q4 non-GAAP operating margin compressed 230 basis points to 25.5%, hit by the MiniMed Blackstone payment and a roughly $185 million tariff headwind. The 20-year case rests on demographics, switching costs and a dividend that has grown through every recession since the 1970s.
For long-term income investors, the thesis rests on reinvested dividends and a multi-decade holding horizon rather than short-term trading.
Key Takeaways MDT reported Q4 revenues of $9.81 billion, up 9.9%, and topped earnings and sales estimates.MDT's Cardiac Ablation Solutions revenues surged 78% globally, including 124% growth in the United States.Medtronic guided FY27 organic revenue growth of 6.75%-7.25% and raised its quarterly dividend. Medtronic plc (MDT - Free Report) posted fourth-quarter fiscal 2026 adjusted earnings of $1.55 per share, down 4.3% from the year-ago quarter but above the Zacks Consensus Estimate by 0.58%.
For full-year fiscal 2026, adjusted EPS was $5.53, up 0.7% year over year. The figure missed the Zacks Consensus Estimate by 0.2%.
Revenue rose 9.9% year over year to $9.81 billion and beat the consensus mark by 1.48%. The upside came as procedure-driven demand stayed firm across key franchises. Cardiac Ablation Solutions revenues surged 78% globally, including 124% growth in the United States, while multiple portfolios delivered healthy gains.
Full-year worldwide revenues totaled $36.4 billion, up 8.4% year over year. The top line marginally surpassed the Zacks Consensus Estimate by 0.6%.
Following the announcement today, MDT shares rose nearly 2% in the pre-market trading.
MDT’s Portfolio Mix Banks on CardiovascularCardiovascular generated $3.80 billion in the quarter, underscoring the importance of the company’s largest portfolio to overall momentum. Neuroscience contributed $2.75 billion, and Medical Surgical added $2.39 billion, reflecting steady demand across hospital-based therapy areas.
Diabetes produced $837 million of revenues and remained a meaningful growth lever alongside the broader portfolios. The mix shows Medtronic’s exposure to both large, recurring procedural categories and faster-moving product cycles in areas like diabetes management.
MDT’s Geographic Split Favors International GrowthU.S. revenues increased 7.1% year over year to $4.87 billion, supported by gains across major portfolios and continued procedure volume resilience.
International revenues advanced 12.8% to $4.94 billion. The overseas outperformance was broad-based and included a notable lift in Diabetes internationally, reinforcing how global scale can amplify Medtronic’s reported results when demand is healthy.
Medtronic’s Adjusted Margins Appear MixedOn an adjusted basis, Medtronic posted a gross margin of 65.4% in fourth-quarter fiscal 2026, up 30 basis points year over year, reflecting a modest improvement in profitability at the product level.
However, operating leverage moved the other way. The adjusted operating margin fell to 25.5%, down 230 basis points from the prior-year quarter, as the company absorbed notable headwinds, including margin impacts tied to the MiniMed Blackstone payment and tariffs.
Medtronic’s Cash Generation Supports Returns and InvestmentOperating cash flow totaled $7.33 billion in fiscal 2026, providing the financial flexibility to fund both portfolio investment and shareholder distributions. Free cash flow was $5.43 billion for the year, equal to 76% free cash flow conversion from adjusted net earnings.
Medtronic also returned $4.2 billion to shareholders in fiscal 2026 and ended the year with $9.2 billion in cash and investments.
Medtronic’s FY27 Guidance and Shareholder ReturnsMDT guided for fiscal 2027 organic revenue growth of 6.75% to 7.25% and adjusted earnings of $5.90 to $6.00 per share. The outlook reflects the benefits of a 53rd week, additional M&A and a full-year contribution from the Diabetes business while also considering tariffs, interest and tax expense. The Zacks Consensus Estimate expects fiscal 2027 revenues of $38.39 billion, up 6.1% from the fiscal 2026 levels, while EPS is expected to rise 9.7% to $6.08.
Medtronic also increased its quarterly dividend to $0.72 per share, implying an annual rate of $2.88 and marking its 49th consecutive year of dividend increases.
Our Take on MDTMedtronic exited the fourth quarter of fiscal 2026 with earnings and revenue beat.The company highlighted share gains and product traction in several cardiovascular franchises. The company cited continued strength in Cardiac Pacing Therapies and Defibrillation Solutions, including momentum in Micra and the U.S. launch of OmniaSecure. However, the contraction of the adjusted operating margin in the quarter is discouraging.
On the innovation front, management pointed to a U.S. FDA submission for Hugo robotic-assisted surgery in general surgery and gynecology, along with FDA clearance for ProGrip Advanced and regulatory wins for the Stealth AXiS Surgical System. Medtronic also executed a tuck-in activity, including the completed CathWorks acquisition in Coronary and Renal Denervation, and plans to acquire Scientia Vascular and SPR Therapeutics, complemented by select venture investments.
MDT’s Zacks Rank & Key PicksMedtronic currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Align Technology (ALGN - Free Report) . Intuitive Surgical (ISRG - Free Report) and Integra LifeSciences (IART - Free Report) .
Align Technology, currently sporting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 adjusted EPS of $2.58, which surpassed the Zacks Consensus Estimate by 14.41%. Revenues of $1.04 billion beat the Zacks Consensus Estimate by 1.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ALGN has an estimated long-term earnings growth rate of 10.3% compared with the industry’s 9.5% growth. The company beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.
Intuitive Surgical,carrying a Zacks Rank #2 (Buy) at present, posted a first-quarter 2026 adjusted EPS of $2.50, exceeding the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.
ISRG has a long-term earnings growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Integra LifeSciences,carrying a Zacks Rank #2 at present, posted a first-quarter 2026 adjusted EPS of 54 cents, exceeding the Zacks Consensus Estimate by 32.78%. Revenues of $391.9 million outperformed the Zacks Consensus Estimate by 2.7%.
IART has an earnings yield of 15.4% against the industry’s negative 1.9% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.8%.
Medtronic MDT shares are on the rise following a robust fiscal Q4 performance and an optimistic FY27 growth forecast. Although the company's full-year EPS guidance of $5.90-$6.00 falls short of the $6.05 consensus, Q4 adjusted EPS of $1.55 and revenue of $9.81 billion exceeded FactSet expectations. Management anticipates organic revenue growth of 6.75%-7.25% for FY27, driven by advancements in cardiac ablation, renal denervation, robotics, and other emerging sectors. However, the earnings outlook is cautious due to factors such as tariff pressures, M&A dilution, the upcoming MiniMed separation, and complexities arising from an extra week in the fiscal calendar.
Cardiac Ablation: This segment saw remarkable growth, with a 78% increase globally and a 124% rise in the U.S. during Q4. The business is on track to achieve $2 billion in trailing revenue by Q1 FY27 as Affera adoption expands. Margins: The adjusted gross margin improved to 65.4%, up 30 basis points year-over-year, despite an 80-basis point hit from tariffs amounting to $74 million. Effective pricing and cost reduction strategies offset inflation, but the adjusted operating margin decreased by 230 basis points to 25.5%, reflecting tariff pressures and costs related to MiniMed. Portfolio Depth: Growth was widespread across various franchises: Cardiovascular rose by 10.1% organically, Medical Surgical increased by 5.1%, Acute Care & Monitoring grew in low double digits, Endoscopy saw high single-digit growth, and Diabetes reported a 15% increase (8.1% organic). Neuroscience experienced a softer growth rate of 3% organically. Pipeline/Commercial Milestones: MDT has introduced same-day support for its growth initiatives, including Hugo robotic surgery filings for U.S. general and gynecologic applications and new investments in the Affera electrophysiology ecosystem. What to Watch: Structural Heart sales were flat, and U.S. TAVR demand remained weak, although management noted that weekly U.S. procedure volumes have stabilized recently. Investors should monitor the normalization of MedSurg growth, the easing of tariff headwinds in the latter half of the year, and the timeline and structure of the MiniMed separation, which is expected to remain consolidated throughout FY27. The key takeaway is that while MDT's recent quarter was solid, the focus is on the credibility of its growth strategy moving forward. Management is now highlighting active contributions from segments like CAS, Symplicity, Hugo, and Altaviva. The FY27 organic growth guidance indicates a broader portfolio acceleration. Investors are keen to see if MDT can maintain growth above historical levels while also improving margins through operational efficiencies. The conservative EPS guidance presents a challenge, as it raises concerns about the impact of tariff pressures and complexities from the MiniMed separation on overall revenue growth. Continued strength in CAS, stabilization in Structural Heart, and margin improvements in the second half could enhance market sentiment, while over-reliance on a few growth platforms could dampen it.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Medtronic (MDT 0.27%) stock jumped 5.3% through 1:25 p.m. ET Wednesday after it "beat by a penny" on fiscal Q4 2026 earnings this morning, and beat on revenue as well.
Heading into the report, analysts predicted Medtronic would earn $1.54 per share on sales just over $9.6 billion. In fact, earnings were $1.55 per share, and sales reached $9.8 billion.
Image source: Getty Images.
Medtronic Q4 earnings Sales at the Ireland-domiciled medical equipment-maker surged 9.9% year over year, of which 6.6% was organic growth and the rest from acquisitions, leading to the company's "highest annual revenue growth in 10 years." Earnings under generally accepted accounting principles (GAAP) weren't quite as good as the "$1.55" noted above. But at $0.96 per share, earnings still grew 17% -- nearly twice as fast as sales.
For the full year, sales grew 8.4% to $36.4 billion, while earnings were up only 3.3%. So while the full year performance wasn't quite as impressive as the final quarter, growth in both sales and earnings accelerated substantially in that final quarter.
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What's next for Medtronic? Turning to guidance, Medtronic forecasts about 7% organic sales growth for the coming year, a bit slower than we saw in both Q4 and in the annual result.
Management didn't give GAAP earnings guidance, but noted that non-GAAP profits should range from $5.90 to $6.00 in fiscal 2027, which works out to better than 7% earnings growth at the midpoint. That's twice the income growth the company had in fiscal 2026.
I still have my doubts that Medtronic deserves to trade at more than a 20-times price-to-earnings ratio on only mid-single-digit growth. But at least it is growing. Add a 3.8% dividend yield, and the stock's arguably not too overpriced today.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Medtronic. The Motley Fool has a disclosure policy.
Medtronic PLC (MDT) Q4 2026 Earnings Call Highlights: Record Revenue Growth and Strategic Innovations Medtronic PLC (MDT) reports its strongest top-line performance in a decade, driven by significant growth in Cardiac Ablation Solutions and strategic investments. Summary
Revenue: $9.8 billion in Q4, up 9.9% reported and 6.6% organically; $36.4 billion for FY26, up 8.4% reported and 5.8% organically.Adjusted EPS: $1.55 for Q4 and $5.53 for FY26.Cardiac Ablation Solutions (CAS) Growth: 78% worldwide growth in Q4; 145% global growth in PFA.Symplicity Revenue: Annualizing at $100 million.Gross Margin: 65.4% in Q4, up 30 basis points year over year.Free Cash Flow: $5.4 billion for FY26.Cash and Investments: $9.2 billion at year-end.Cardiovascular Revenue Growth: 10% in Q4, led by 14% in the US and 7% internationally.Neuroscience Revenue Growth: 3% globally in Q4, driven by 6% in international markets.Medical Surgical Revenue Growth: 5% globally in Q4, including 8% in the US.Diabetes Business Growth: 15% reported growth or 8.1% organic in Q4.Adjusted Operating Margin: 25.5% in Q4.Fiscal Year '27 Guidance: Organic revenue growth of 6.75% to 7.25%; EPS of $5.90 to $6.00.
Release Date: June 03, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Medtronic PLC MDT reported a strong revenue growth of 9.9% on a reported basis and 6.6% organically for Q4, marking the strongest top-line performance in 10 years.The Cardiac Ablation Solutions (CAS) segment delivered outstanding growth with a 78% increase worldwide and gained 8 points of US market share.The company made significant progress in its high-growth platforms, including Symplicity Spyral for hypertension, which is now annualizing at $100 million.Medtronic PLC (MDT) is investing heavily in innovation and M&A, with targeted investments in ICE catheter technology and other high-growth segments.The company successfully completed the MiniMed IPO, establishing it as a standalone publicly traded company, and reported strong growth in its diabetes business with 15% reported growth. Negative Points The structural heart segment experienced flat performance, with a slowdown in the US due to low-risk data impacting the TAVR business.Tariffs impacted the business by $74 million, representing an 80 basis points headwind, and are expected to continue affecting gross margins.The diabetes business, while growing, is structurally less profitable, posing challenges for capital allocation within Medtronic PLC (MDT).Despite strong growth in CAS, there are concerns about its potential slowdown and its impact on overall company growth.The company faces ongoing challenges in China due to VBP (Volume-Based Procurement), although it remains a growth market. Q & A Highlights Q: Can you discuss the guidance for fiscal '27, particularly in light of concerns about CAS slowing down?
A: Geoff Martha, Chairman & CEO, clarified that the impact of CAS on growth will be similar next year to this year, with the market expected to grow mid to high 10s and Medtronic growing at more than twice that rate. Thierry Pieton, CFO, added that cardiovascular performance should align with fiscal '26, with strong momentum in CAS, CRM, and Ardian, and prudent guidance for structural heart.
Q: What are your expectations for the TAVR business in fiscal '27, given the Evolut data?
A: Geoff Martha noted that the TAVR business has stabilized after a slowdown due to low-risk data, primarily affecting the U.S. market. Medtronic is heavily investing in this business, with new leadership and investments in DASI software, Mitral, and Tricuspid, indicating confidence in future growth.
Q: How does Hugo factor into the surgical growth and when will it contribute positively to margins and EPS?
A: Geoff Martha highlighted that Hugo contributed to Q4 results and is receiving positive feedback. The company has submitted for new indications and is seeing increased procedure volumes and utilization. The Touch Surgery platform is also expanding, enhancing Medtronic's surgical offerings.
Q: What is the outlook for gross margins in fiscal '27, considering tariffs and potential Minimed separation?
A: Thierry Pieton explained that gross margins are expected to be flat to slightly up, excluding tariffs. The impact of tariffs will be felt in the first half, but pricing and cost efficiencies should offset business mix impacts. The potential separation of Minimed could provide a lift to gross margins.
Q: How is the China franchise expected to perform in fiscal '27, considering past VBP headwinds?
A: Geoff Martha stated that China remains a growth market for Medtronic, with VBP challenges largely behind them. The company has managed to increase procedure volumes and reduce costs, maintaining profitability and growth in line with corporate averages.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways MDT's call framed FY26 as strongest revenue growth in a decade, with more platforms contributing.MDT guided FY27 organic revenue growth of 6.75-7.25% and non-GAAP EPS of $5.90-$6.00.MDT baked in $250M tariffs, flat gross margin ex-tariffs, and said TAVR volumes stabilized recently. Medtronic plc (MDT - Free Report) used its fourth-quarter earnings call to press a forward-looking message rather than dwell on the quarter itself. Management framed fiscal 2026 as a turning point, with the strongest annual revenue growth in a decade and a broader set of growth platforms beginning to contribute.
That tone mattered because fiscal 2027 guidance kept growth expectations elevated even as investors pressed on structural heart, tariffs, margins and the pending Diabetes separation. The company’s answers suggested confidence in both portfolio depth and execution.
Medtronic Leans on Its Growth EnginesChairman and CEO Geoff Martha centered the call on a handful of businesses he said are building durable momentum. Cardiac Ablation Solutions remained the clearest example, with 78% growth in the quarter, while newer platforms such as Symplicity, Hugo, Altaviva and Stealth AXiS also received outsized attention.
Martha argued the company is still in the early innings with Affera, pointing to a 40% sequential increase in the U.S. installed base and continued expansion of the electrophysiology ecosystem. He also highlighted growing procedure volumes for Hugo and stronger physician uptake for Altaviva.
That framing helped explain why the quarter’s financial beats were treated more as validation than the main story. Adjusted earnings of $1.55 per share beat the Zacks Consensus Estimate of $1.54 by 0.58%, while revenues of $9.81 billion topped the $9.66 billion estimate by 1.48%.
MDT Guidance Keeps the Bar HighChief financial officer Thierry Piéton guided to fiscal 2027 organic revenue growth of 6.75% to 7.25% and non-GAAP earnings per share of $5.90 to $6.00. The setup includes the extra selling week, continued consolidation of the Diabetes business and added contributions from recently announced deals.
Piéton said first-quarter organic revenue growth should run about 11.5% to 12%, with 500 to 600 basis points coming from the additional week. First-quarter adjusted earnings are expected at $1.38 to $1.40.
The outlook also carried explicit assumptions on headwinds. Management embedded about $250 million of tariff impact, roughly 2% dilution from M&A, higher interest and tax expense, and a roughly 1-point headwind from fuel and transportation costs tied to conflict in the Middle East.
Medtronic Uses M&A to Sharpen FocusManagement spent meaningful time on capital deployment, underscoring that Medtronic is using tuck-in acquisitions, venture investments and partnerships to deepen positions in faster-growing markets. In the quarter, the company closed the CathWorks acquisition and announced plans to acquire Scientia Vascular and SPR Therapeutics.
Martha described those moves as tightly aligned with a strategy of reinforcing leadership positions and expanding into adjacent markets where the company already has scale. He also pointed to investments in ICE catheter technologies and Pulnovo Medical, plus the ViaVerte distribution agreement with Merit Medical.
That message was paired with continued emphasis on portfolio focus. Management reiterated that the Diabetes separation is about strategic fit and capital allocation, not a lack of confidence in MiniMed’s outlook.
MDT Faces Questions on TAVR and MarginsAnalyst questions quickly turned to areas of investor concern. A Wells Fargo analyst asked about TAVR after attention on long-term Evolut data, and Martha acknowledged that U.S. performance had softened, though he said weekly procedure volumes had stabilized over the last eight to 10 weeks.
Piéton said that stabilization is what Medtronic built into fiscal 2027 guidance. The response was notably measured, with management neither dismissing the issue nor suggesting a rapid rebound.
Margin questions were similarly direct. Piéton said gross margin should be roughly flat excluding tariffs, with pricing and cost savings offsetting mix pressure. He added that the second half should look better than the first, helped by lapping tariff effects and improving mix in Cardiac Ablation Solutions.
Medtronic Sees Broader Strength Beyond CASOne of the more important messages from the call was that management wants investors to see growth as wider than one franchise. Piéton said Cardiovascular should perform in fiscal 2027 broadly in line with fiscal 2026, with Cardiac Rhythm Management and renal denervation adding support alongside CAS.
He was even more explicit on Neuroscience, where he said every franchise is positioned to accelerate. Stealth AXiS, Neurovascular innovation and Altaviva were all cited as contributors, while Martha also praised the underlying strength of CST, Surgery and CRM.
That breadth matters because it addresses the concern that Medtronic’s recent acceleration could narrow as CAS matures. Management’s position was that CAS remains powerful, but the next year should also benefit from several businesses moving higher at once.
MDT Enters FY27 With Confident ToneThe overall tone of the call was assertive but disciplined. Management repeatedly returned to execution, portfolio quality and innovation cadence rather than relying on macro relief or one-time factors to support the fiscal 2027 story.
Martha also used the session to emphasize leadership transition planning in Neuroscience and to reinforce that Medtronic views medtech demand as structurally resilient. The takeaway from the call was a company trying to show that fiscal 2026 momentum is broad enough to carry forward.
Zacks Signals on MDTMDT currently carries a Zacks Rank #4 (Sell), along with a Value Score of B, Growth Score of D, Momentum Score of A and VGM Score of B. In Zacks terms, the rank remains the primary signal, while the Style Scores are meant to refine stock selection within that framework. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stronger Momentum and VGM profiles point to favorable style characteristics, but the Zacks Rank #4 tempers that setup. As with any post-earnings period, the rank can change as analysts revise estimates after the reported results and updated guidance.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$73.31▼
$106.33Dividend Yield3.60%
P/E Ratio21.48
Price Target$99.00
Medtronic's NYSE: MDT primary catalyst as mid-year approaches is that headwinds are not impairing results as much as feared. Rising costs, margin compression, and general uncertainty linked to macroeconomic headwinds were reflected in the company's June 3 earnings results, but the results were inherently strong and expected to remain so.
The impact on share prices will be a rise, as the market is deeply oversold and ripe for a rebound. The only question is how high the stock price might go, and the signs suggest a 25% upside is easy.
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Medtronic is trading within a long-term range, with critical resistance near $95. The $95 level is more than 25% above the critical support level, at which MDT stock trades as of early June. While lower prices remain a possibility, the response to MDT’s fiscal Q4 2026 earnings report suggests a bottom is in place, and the rebound has begun.
Analysts and Institutions Reflect Confidence in MDT Capital ReturnAnalyst trends also indicate that a 25% stock price increase is an easy target. Trends leading into the release were mixed, with numerous price target reductions, but the data reveal they simply trimmed targets, rather than making drastic price changes. The net result is that while consensus fell incrementally, it still forecasts a robust 20% upside and the potential for fresh highs. The likely outcome is that the Q4 results will trigger renewed confidence in the company’s ability to generate cash flow, which is significant to this story.
Medtronic Dividend PaymentsDividend Yield3.60%
Annual Dividend$2.88
Dividend Increase Track Record49 Years
Annualized 5-Year Dividend Growth4.13%
Dividend Payout Ratio77.21%
Next Dividend PaymentJul. 17
MDT Dividend History
Medtronic is a known dividend grower on track to be crowned Dividend King. Q4 results included the 49th consecutive distribution increase, worth about 1.4% to investors, putting it on track for inclusion in more indexes and enhanced institutional ownership, a catalyst for share prices. As it stands, the yield is about 3.5%, with shares at the low end of the trading range and only 50% of the earnings outlook. The likely outcome is that Medtronic sustains growth over time, both in the business and in the dividend, although the pace may never be robust.
Institutions signal confidence in the dividend and the company’s intrinsic value, owning more than 80% of the stock. Index-related holdings are high, but the ownership base is broad, and the group is accumulating. MarketBeat data reveals six consecutive quarters of bullish behavior, including Q2 2026 so far. The likely outcome from this vector is that buying activity continues to accumulate as institutions take advantage of the value-to-yield combination. Trading at 13X this year’s earnings outlook, the stock is cheap compared to the S&P 500, provides nearly four times the yield of the S&P 500 Index Tracking ETF NYSEARCA: SPY, and provides low-beta exposure to physical AI and the Internet of Things.
Medtronic’s Portfolio Stands TallMedtronic had a good quarter with revenue rising by 9.9% to over $9.8 billion. The top line came in 200 basis points (bps) better than expected, underpinned by strength in all segments. Cardiovascular led with a 10.1% gain, driven by Cardiac Ablation Solutions' 78% increase, while diabetic care grew by 8.1%, medical-surgical by 5.1%, and neuroscience by 3%.
Margin news was mixed, but the market feared the worst, as evidenced by the downtrend in revisions leading into the release. Adjusted diluted earnings declined 4.3% to $1.55, offset by a 65-basis-point outperformance and sufficient cash flow and earnings to sustain balance sheet health.
Guidance is another factor pointing to a robust increase in stock price. The company’s initial guidance for fiscal 2027 includes 7% organic revenue growth and slightly faster earnings growth. The bad news is that both targets were slightly below the consensus forecast, but, again, the market was fearing worse.
This year’s catalysts include the MiniMedNASDAQ: MMED spin-off. The initial IPO has been completed, with the final step expected later this year. In it, Medtronic will enable existing shareholders to exchange shares for MMED shares, effectively canceling one in favor of the other. The net result will be the distribution of the remaining 80% of MMED and a reduction in MDT shares. The move is also expected to drive higher net margins while enabling more focused companies to execute their strategies effectively.
Medtronic’s risks remain unchanged. While traditional recall and competition risk are omnipresent for the industry, it also faces tariff threats and a rising need for cybersecurity. AI changed the game in cybersecurity, introducing new challenges such as data poisoning. Incorrect, incoherent, and otherwise malicious data has a devastating impact on AI models and agentic-influenced health outcomes.
Should You Invest $1,000 in Medtronic Right Now?Before you consider Medtronic, you'll want to hear this.
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Earnings Beat ExpectationsAdjusted earnings came in at $1.55 per share, slightly above analysts’ estimates of $1.54 per share.
Revenue increased 9.9% year over year to $9.81 billion, topping the consensus estimate of $9.64 billion. Organic revenue growth was 6.6%.
Cardiovascular revenue rose 13.8% year over year to $3.80 billion, or 10.1% organically, driven by high-teens growth in Cardiac Rhythm & Heart Failure and modest gains in Structural Heart & Aortic and Coronary & Peripheral Vascular.
BTIG Upgrades MedtronicBTIG upgraded Medtronic from Neutral to Buy, with a price forecast of $90. Analyst Ryan Zimmerman on Wednesday wrote, “MDT has demonstrated consistent MSD organic growth in the past several quarters, and the trajectory is improving.”
Zimmerman said Medtronic trades at a discount to peers despite offering a combination of earnings durability and income that the market has yet to fully recognize. BTIG added that underlying organic growth is accelerating and sustaining at a higher level.
“MDT trades at a discount to peers in a market where income and durability are underappreciated,” the analyst said.
Revenue growth is becoming broader across segments as previously underperforming businesses improve, M&A activity increases, and new products contribute more meaningfully throughout the year.
Leerink Sees Attractive Setup Despite Lower Price ForecastLeerink Partners lowered the price forecast from $117 to $104 for Medtronic to reflect a re-rating of large-cap MedTech valuations more broadly.
Analyst Mike Kratky highlights MDT as one of the Top Picks for 2026 and sees an attractive setup for the stock at current levels.
Analyst Kratky reiterates the Outperform rating encouraged by Medtronic’s ongoing commercial execution and sees ample opportunities for additional upside for the stock on both a near-term and longer-term basis.
MDT Price Action: Medtronic shares were up 4.30% at $81.30 at the time of publication on Thursday, according to Benzinga Pro data.
Photo by JHVEPhoto via Shutterstock
Market News and Data brought to you by Benzinga APIs
Dividend stocks that raise their payouts routinely can be money-making machines for investors. You effectively get an increase in your dividend income from these investments by doing nothing, simply holding on.
Three solid dividend-growth stocks that also pay high yields are Lowe's (LOW 0.12%), Medtronic (MDT 0.27%), and UnitedHealth Group (UNH +0.73%). They recently raised their payouts, again. Here's a look at how much they raised their dividend payments and how much the stocks are yielding right now.
Image source: Getty Images.
Lowe's Last week, home improvement giant Lowe's announced that it would be increasing its dividend by 4%, to $1.25 per quarter. The company has an excellent track record for paying dividends going back to 1961, and it has been raising its payout for decades. With the new dividend rate, the stock now yields a solid 2.4%, which is more than double the S&P 500 average of just around 1%.
The stock has been struggling this year, and it's down 14% thus far, as consumers have been cutting back on discretionary spending. But this can be a fantastic stock to own because while spending on home repairs and renovations may not be necessary in the short term, they are essential and inevitable expenses for homeowners in the long run.
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Meanwhile, with the stock trading at a lower price, now can be an ideal time to start a position in this solid retail stock. Lowe's currently trades at a forward price-to-earnings (P/E) multiple of 16 (based on analyst estimates), which is far less than the S&P 500 average of 22.
Medtronic Another great place to invest for the long run is in medical devices, which are crucial for the healthcare sector. Medtronic is a big player in that area of healthcare, as its technologies are used to help people with 70 different health conditions. The company recently reported its year-end numbers, and for fiscal 2026 (which ended on April 24), Medtronic reported its best annual revenue growth in a decade. Its top line came in at $36.4 billion, which was an increase of 8.4% from the previous year.
The company also announced it would be increasing its dividend by one cent, to $0.72. While it's a minor increase, it represents the 49th consecutive year that it has raised its payout, showcasing to investors what a quality dividend stock it is to own. Although its rate increase wasn't significant, Medtronic already pays a fairly high yield of 3.5%.
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This year, the stock has fallen by 15%, and it's another attractive option for income investors, as its forward P/E is only 12.
UnitedHealth Group Health insurance giant UnitedHealth Group also recently announced an increase to its dividend. For the second quarter, its quarterly dividend will be $2.32 per share, which is an increase of 5% from the $2.21 it was previously paying. That's the highest rate of increase on this list. And with the new payout, the healthcare stock now yields 2.3%. It's another solid above-average payout for investors.
UnitedHealth has been generous with dividend increases in the past, and in five years, its quarterly dividend has risen by 60%, which averages out to a compounded annual growth rate of right around 10%. That's a healthy rate of increase, which is crucial to offset the effects of inflation chipping away at dividend income over time.
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The company has been generating better results recently, giving investors confidence that its business is going in a more positive direction as it's getting a better handle on medical expenses, which in the past led to worse-than-expected results. But in the first quarter, the company beat expectations, and its medical benefits ratio, which is a key metric for health insurers, came down.
The stock has risen by 20% this year, but with a poor performance in recent years, it's still a fairly reasonably priced option for dividend investors, as it's trading at a forward P/E of 21.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Medtronic (MDT - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Medtronic currently has an average brokerage recommendation (ABR) of 1.97, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 29 brokerage firms. An ABR of 1.97 approximates between Strong Buy and Buy.
Of the 29 recommendations that derive the current ABR, 14 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 48.3% and 6.9% of all recommendations.
Brokerage Recommendation Trends for MDT
Check price target & stock forecast for Medtronic here>>>
While the ABR calls for buying Medtronic, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in MDT?Looking at the earnings estimate revisions for Medtronic, the Zacks Consensus Estimate for the current year has declined 2.4% over the past month to $6.01.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Medtronic. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Medtronic with a grain of salt.
Medtronic (MDT 0.27%) is one of the world's largest medical technology companies, but it spent years on the outside looking in at the robotic-assisted surgery market. That officially changed in December 2025, when the U.S. Food and Drug Administration (FDA) approved its Hugo robotic-assisted surgery platform for urologic procedures.
A couple of months later, doctors at the Cleveland Clinic successfully used it for the first time. The FDA's approval indicates use for prostatectomy, nephrectomy, and cystectomy procedures. Hospitals perform approximately 230,000 of these annually in the United States.
Image source: Getty Images.
The approval was a shot across the bow at Intuitive Surgical, which pioneered the industry with its da Vinci system and now dominates the market. Now the real work begins, as Medtronic fights for its share of a market that researchers estimate could grow from $13.8 billion last year to $63.7 billion by 2035.
Can Medtronic finally establish itself as a successful challenger and unlock the potential of this fast-growing market? Here's why it could have an uphill battle -- and why that's not as bad as it sounds.
Intuitive Surgical's head start truly matters Medtronic's FDA approval for Hugo comes roughly 26 years after Intuitive Surgical got its first approval for the da Vinci system, its flagship robotic-assisted surgery platform.
Intuitive Surgical was one of the only games in town for many years, allowing the company to amass a massive user base. Today there are 11,395 da Vinci systems installed in hospitals worldwide, and they have performed millions of procedures. Hospitals spend up front on the system, then invest money for years in supplies, parts, and maintenance. Each hospital's staff also requires extensive training to use the platform. Those monetary costs and the learning curve make switching difficult.
As Intuitive Surgical installs more systems, it further cements its position as the market leader. Medtronic's Hugo is still only approved for urologic procedures, while the da Vinci system performs urologic, gynecologic, and general surgery procedures. While Medtronic just applied to expand Hugo to gynecologic and general surgeries in the U.S., that happened only days ago.
Medtronic may struggle to sell Hugo against the da Vinci system until it has the approvals to perform all the procedures that the da Vinci can. Intuitive Surgical continues to place systems, including 431 in the first quarter of 2026 alone. The gap in installed bases is widening, and Medtronic probably won't change that in the foreseeable future.
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Why there's hope for Medtronic yet Medtronic can still enjoy tremendous success with Hugo, even if it's not a market leader.
Hugo is only getting started in the United States, but the system is already available in more than 35 countries. Hospitals worldwide have performed tens of thousands of procedures with Hugo to date, and Medtronic CEO Geoff Martha disclosed on the company's recent earnings call (for the fourth quarter of its fiscal 2026, which ended April 24) that procedure volumes are growing two to three times as fast as the market. It's fast growth on small numbers, but it is promising.
Those numbers could grow for years to come. Robotic-assisted procedures account for just 5% of the world's surgeries at this point, so there's still a lot of the eventual market up for grabs. Medtronic probably won't overtake Intuitive Surgical, but it can grow alongside it.
Remember, Medtronic is a diversified healthcare giant with sprawling product portfolios across its cardiovascular, neuroscience, and medical-surgical segments. It's hardly an underdog, and still much larger than Intuitive Surgical. Analysts estimate that Medtronic will generate $38.8 billion in total revenue this fiscal year, more than triple Intuitive Surgical's $11.7 billion in revenue.
No, Medtronic may not challenge Intuitive Surgical's dominance in surgical robotics, but it doesn't need to. Simply having a presence and growing alongside the robotics-assisted surgery market can be a win for one of the world's top healthcare stocks.
Investing in healthcare hasn't been all that exciting an option for investors in recent years. But over the long term, it can lead to significant returns. Healthcare is not only essential but a growing part of the economy. Companies that are key to the sector's long-term growth can make for excellent investments.
The stock that may be the best one to buy in healthcare today is Medtronic (MDT 0.27%). The medical device maker's business has been taking off. And when you combine its financials and long-term growth opportunities with its valuation and dividend income, it may be the ultimate healthcare stock to own right now.
Image source: Getty Images.
Medtronic reports best growth in a decade Last week, Medtronic posted its year-end numbers for fiscal 2026 (which ended April 24). The results were impressive, with the healthcare company boasting of the highest growth rate it achieved in 10 years. While sales didn't double or triple, they rose by 8.4% for the full year. That's high for a business that in recent years has struggled to grow its top line. Management credits the results to "disciplined execution across our portfolio and continued operational rigor." Meanwhile, it still expects to generate more growth in the long run, particularly as it makes more investments in its pipeline.
The company's products and therapies help treat 70 different health conditions. And with a presence in over 150 countries, this is a vast and diversified business to invest in, giving you exposure to opportunities in healthcare that expand beyond just the U.S. market.
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A low valuation and high yield sweeten the deal for investors Single-digit growth may not be enough to convince you of a reason to invest in Medtronic, but what could tip the scales is what else you get with the stock. The most enticing may be the high yield, because at 3.5%, Medtronic offers a payout that's more than three times what you'd get with the average S&P 500 stock that pays just 1%. The dividend has also been growing, and with the recent increase, Medtronic's streak extends to 49 years, making it highly probable that the recurring income you receive from the stock will rise higher in the future.
Another appealing reason to own the stock is for its low valuation; currently, Medtronic's stock is trading at a forward price-to-earnings multiple of 14, based on analyst estimates of its future earnings. That's a modest price tag for a solid business that's profitable and growing at a decent pace.
Between the yield, the dividend income, and the strong results, Medtronic may be one of the best bargains in the market right now. Although the stock is down 15% this year, as a long-term investment, it may be a no-brainer buy.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MDT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
The artificial intelligence (AI) boom has defined the stock market since early 2023. AI and other technology stocks have been the big winners more often than not over that time, but the AI trade won't work forever. Eventually, the market will zig and zag as it tends to, and new stocks in other industries will have their moment.
Nobody knows when that time may come, which is why it's so important for long-term investors to diversify their portfolios. A portfolio of 50 or so high-quality companies across all the market sectors can build serious wealth over time and endure the market's inevitable unpredictability. That could mean adding some dividend stocks from non-tech sectors to balance things out.
Here are five blue chip dividend stocks to consider buying and holding in case the AI trade ends.
Image source: Getty Images.
1. Realty Income Real estate is a classic income-generating investment. Realty Income (O +1.23%) is a leading real estate investment trust (REIT) that acquires and leases real estate and distributes most of its cash profits to investors as dividends. Realty Income specializes in retail properties, such as restaurants and convenience stores, but has expanded into other property types in recent years, including casinos and industrial properties.
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Realty Income pays a monthly dividend, which is somewhat uncommon, and the company has increased the payout for more than 30 consecutive years. Raising dividends during recessions and the COVID-19 pandemic speaks to the company's resilient rental income streams. The stock currently yields 5.3%, and that dividend can do wonders over time when investors reinvest it for more shares.
2. McDonald's Investors won't find a more iconic franchise business than McDonald's (MCD +0.01%). The world's largest restaurant chain has more than 45,000 locations in more than 100 countries, which generate steady revenue for the company through royalties and franchise fees each location pays. Consumers tend to associate the brand with value, so McDonald's tends to hold up better than most restaurants during recessions.
McDonald's continues to pay and increase its dividend to shareholders. Now with 49 consecutive annual dividend hikes, McDonald's is on the cusp of becoming a Dividend King, a company with at least five decades of uninterrupted dividend growth. Investors looking for a simple business that continues to churn out steady growth should take a close look here.
3. Clorox Home products are one of the most underrated but consistent market segments. The Clorox Company (CLX 1.51%) is among a handful of companies that sell some of the most trusted consumer brands, including Clorox, Purell, Glad, Hidden Valley Ranch, Burt's Bees, Brita, and Kingsford. These are products people tend to buy and use regardless of the economy, and they tend to buy these brands because they know them.
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Clorox's current dividend growth streak sits at 48 years, making it another soon-to-be Dividend King. Since the pandemic, Clorox has struggled with high costs and a cybersecurity breach. The stock price has tumbled, and the dividend yield is up to 5.2%. But Clorox still earns enough to cover its dividend, and the recent Gojo acquisition (Purell) should boost earnings growth.
4. Home Depot Housing is one of the U.S. economy's prominent consumer markets, which has helped make Home Depot (HD +0.73%) one of the world's most successful retailers. People tend to invest in their homes, and that includes the maintenance and upkeep virtually every house needs. Home Depot stores blanket the United States, which has helped the company adapt to e-commerce by using its stores as a distribution network.
Home Depot returns much of its cash profits to shareholders through dividends and stock buybacks, a formula that has produced life-changing total investment returns over its lifetime. The stock is down right now due to a slow housing market and consumers struggling with rising living expenses. While housing may fluctuate, it's arguably an evergreen market. Investors should look into buying the stock on its current dip.
5. Medtronic Healthcare is another forever market. People always need care, and there's an ongoing pursuit of newer and better ways to treat patients. Medtronic (MDT 0.27%) is one of the world's leading healthcare companies, with a broad range of medical products and equipment across cardiovascular, neuroscience, and general surgery applications. Medtronic's decades of success have made the stock a soon-to-be Dividend King, poised for its 50th consecutive annual dividend increase next year.
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The company recently spun off its diabetes business segment as MiniMed to reignite growth and entered the robotics-assisted surgery market in the U.S. after its Hugo platform received FDA approval in December 2025. Shares offer a starting dividend yield of 3.5% and trade at less than 14 times 2026 earnings estimates. Analyst estimates of 6% to 7% annualized earnings growth over the coming years make Medtronic a bargain at this price.
Key Takeaways MDT enters fiscal 2027 with 6.75%-7.25% organic growth guidance and EPS between $5.9 and $6.00.MDT trades at 13.7x forward earnings, below peers and its own 5-year median of 15.8x.Cardiac Ablation Solutions grew 78% worldwide, while tariffs add about $250M cost headwind for MDT. Medtronic plc (MDT - Free Report) enters fiscal 2027 with guidance calling for continued organic growth and modest adjusted earnings expansion. At roughly the mid-teens on forward earnings and with a 3.5% dividend yield, the setup can appeal to investors seeking steadier medical-device exposure.
The long-term stance is Neutral because progress in growth platforms is being weighed against near-term headwinds. Tariffs, fuel and transportation costs, mix drag, currency exposure and competition remain the main checks on upside.
MDT Setup: Guidance Points Up, but Risks PersistFor fiscal 2027, Medtronic guided for organic revenue growth of 6.75% to 7.25% and adjusted earnings per share of $5.90 to $6.00. The outlook includes a 53rd week and a full-year contribution from the Diabetes business while separation plans remain on track.
Consensus expectations call for fiscal 2027 revenue of $38.62 billion and earnings per share of $5.96. With guidance and consensus close, the decision hinges on whether execution can hold up as costs and mix pressure the model.
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Medtronic Valuation vs Peers and Its Own HistoryMDT trades at 13.7 times forward 12-month earnings versus 15.5 times for the Zacks sub-industry, 19.9 times for the Zacks sector and 21.5 times for the S&P 500. The discount suggests investors want clearer margin traction before paying up.
Over the past five years, the stock has traded between 12.1 times and 22.9 times, with a median of 15.8 times. The $86 price target assumes 14.4 times forward earnings, implying only modest multiple support.
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MDT What’s Working: CAS, CRM, and Procedure DemandProcedure-driven demand has been resilient. Fourth-quarter fiscal 2026 revenue rose 9.9% year over year to $9.81 billion and topped expectations as volumes stayed firm.
Cardiac Ablation Solutions is the clearest growth driver, with sales up 78% worldwide and 124% in the United States, supported by Affera and Sphere-9 adoption. Cardiac Rhythm Management grew in the mid-single digits, supported by Micra, Aurora EV-ICD and OmniaSecure, keeping cardiovascular momentum constructive.
Medtronic What’s Not: Mix, Coronary, and U.S. VariabilityStructural Heart has been uneven in the United States. The category was flat in the fourth quarter, and softer U.S. performance contributed to the variability in the outlook.
Coronary declined, and stents fell into the low double digits due to multi-region pricing declines. Medical Surgical also faces bariatric and advanced stapling weakness tied to the shift toward robotic surgery, which can pressure mix and leverage.
MDT Margin and Cost Headwinds to UnderwriteFourth-quarter fiscal 2026 margins were mixed. Adjusted gross margin improved 30 basis points to 65.4%, but adjusted operating margin fell 230 basis points to 25.5% amid notable headwinds, including tariffs.
For fiscal 2027, management expects about $250 million of tariff impact to cost of goods sold, up $65 million year over year, plus roughly a one-point earnings drag from higher fuel and transportation costs. Gross margin is expected to decline about 20 basis points, including tariffs, making “can growth outpace cost drag” the key question.
Medtronic Balance Sheet and Shareholder Returns MatterMedtronic ended fiscal 2026 with $9.2 billion in cash and investments. It issued $1.75 billion of long-term debt and repaid $2.93 billion, and generated $7.33 billion of operating cash flow and $5.43 billion of free cash flow.
The company returned $4.2 billion to shareholders in fiscal 2026 and raised the quarterly dividend to $0.72 for the first quarter of fiscal 2027, marking the 49th consecutive year of dividend increases. That capacity supports both tuck-in deals and ongoing returns.
MDT Short-Term Signal: What the Rank ImpliesMDT carries a Zacks Rank #4 (Sell), with Style Scores of Value: C, Growth: D, Momentum: C and VGM: C. The signal points to weaker near-term sentiment and revision dynamics despite longer-cycle product catalysts.
Investors may see the platform story, but the short-term signal suggests the market wants proof that margins and weaker categories are improving before rewarding the stock.
Medtronic Decision Framework: Who MDT Fits NowMDT may suit investors prioritizing income and steadier medical-device exposure with identifiable growth platforms, including Cardiac Ablation Solutions, Symplicity Spyral, Hugo robotic-assisted surgery and Neuroscience innovations such as Stealth AXiS and Neuroguard.
The tradeoff is that tariffs, currency sensitivity, competition, and mix and coronary pressures may limit near-term valuation upside. Investors weighing alternatives may also compare Abbott Laboratories (ABT - Free Report) and Stryker Corporation (SYK - Free Report) as different ways to gain procedure-driven exposure. For MDT, patience may be required until costs and mix stabilize.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways MDT's CAS grew 78% globally and 124% in the U.S., gaining share and scaling rapidly toward $2B annualized.Medtronic's Hugo drives surgical robotics growth with rising procedures and expanding digital workflow.MDT Symplicity procedures doubled after reimbursement clarity, now annualizing at $100M sustained BP drops. Medtronic plc (MDT - Free Report) is lining up its next product cycle around platforms that can compound across procedure-driven markets.Cardiac ablation is scaling quickly, robotic-assisted surgery is building an ecosystem, and hypertension therapy is moving into broader commercialization.
These are multi-year opportunities, but the near-term backdrop still matters. Medtronic carries a Zacks Rank #4 (Sell), as tariffs, pricing and currency exposure can limit upside even when execution stays solid.
MDT Three Trends Driving the Next Product CycleMedtronic’s Cardiac Ablation Solutions (CAS) is the sharpest growth lever today, supported by the Affera mapping system and Sphere-9 dual-energy catheter. Robotics is the second pillar, with Hugo procedure growth paired with a digital workflow layer through Touch Surgery. Hypertension is the third, with Symplicity Spyral moving from limited adoption to broader access after reimbursement clarity.
Medtronic’s Cardiac Ablation Scaling FastCAS sales grew 78% worldwide in the fourth quarter, including 124% U.S. growth. Management said CAS gained 8 U.S. share points and is annualizing at more than $2 billion, with a goal of reaching $2 billion on a trailing basis in the first quarter of fiscal 2027.
The pipeline is advancing alongside geographic expansion. Sphere-9 launched in Japan, the FDA approved a U.S. ventricular tachycardia pivotal trial, and the Sphere-360 U.S. pivotal study is enrolling after the CE Mark in Europe. Medtronic also highlighted investments in intracardiac echocardiography catheter technologies that deepen exposure to electrophysiology imaging.
MDT Robotics: Hugo and the Digital LayerIn Medical Surgical, Hugo is contributing as global procedure volumes expand, supporting Surgical and Endoscopy performance and broadening Medtronic’s robotics footprint. The near-term question is whether utilization continues to rise as tooling and indications expand.
Medtronic also submitted Hugo to the FDA for general surgery and gynecologic indications and filed the LigaSure robotic-assisted surgery vessel sealer. It received FDA clearance for ProGrip Advanced, a mesh optimized for robotic-assisted ventral hernia repair. Touch Surgery adds the digital layer, with installations above 1,400 and up more than 30% sequentially.
In context, Intuitive Surgical, Inc. (ISRG - Free Report) remains a key benchmark for ecosystem-driven adoption in robotics, while Stryker Corporation (SYK - Free Report) highlights how procedure-centric portfolios can sustain demand when workflows shift. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Medtronic Hypertension Therapy Moves into a New PhaseSymplicity Spyral is changing the commercial outlook for hypertension therapy. The final Medicare National Coverage Determination expanded access, and management said average weekly procedures doubled after reimbursement clarity. Symplicity is now annualizing at $100 million.
Long-term data in more than 2,000 patients showed sustained mean systolic blood pressure reductions of 13.3 millimeters of mercury in ambulatory settings and 18.1 millimeters of mercury in office settings at three years. Medtronic estimates roughly 18 million U.S. people live with uncontrolled hypertension despite multiple medications. Management views renal denervation as a potential multi-billion-dollar opportunity over time.
MDT Neuroscience Adds Breadth Through New PlatformsIn Neuroscience, Medtronic’s Stealth AXiS secured the FDA clearance for spine, cranial and ear, nose and throat indications, plus CE Mark for spine and cranial indications, which expands the platform’s contribution to AiBLE.
Hemorrhagic products advanced 11% with Neuroguard and Artisse adoption, while Altaviva is gaining traction with active implanters up threefold sequentially. Management expects Neuroscience to accelerate in fiscal 2027, supported by Stealth AXiS pull-through, Neuroguard, MMA, Altaviva and tuck-in additions including SPR Therapeutics and ViaVerte that expand chronic pain and basivertebral nerve ablation exposure.
Medtronic’s Near-Term Variable: Diabetes TransitionThe Diabetes business completed the MiniMed initial public offering during fiscal 2026, establishing MiniMed as a standalone, publicly traded company, while Medtronic continues to include Diabetes in fiscal 2027 guidance until separation.
MiniMed Flex was cleared ahead of schedule, and MiniMed Fit is on track for U.S. FDA submission by fall 2026.
MDT What Could Disrupt These TrendsManagement expects approximately $250 million of tariff impact to cost of goods sold in fiscal 2027, plus an earnings-per-share drag from higher fuel and transportation costs tied to the geopolitical environment.
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In addition, fiscal 2027 guidance assumes a neutral to $100 million revenue drag from foreign exchange. Competitive pressure is visible in uneven U.S. Structural Heart performance and pricing weakness in coronary products, with stents falling into the low double digits due to multi-region pricing declines.
Medtronic’s Key Milestones Investors Should WatchIn ablation, investors should monitor sustained CAS share gains, continued progress in the U.S. ventricular tachycardia pivotal trial, and execution in the Sphere-360 U.S. pivotal study.
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In robotics, the key markers are Hugo utilization and procedure volumes, plus progress on FDA filings and related tooling. In hypertension, Symplicity procedure momentum post-coverage clarity is the signal. In Neuroscience, look for pull-through from Stealth AXiS and continued gains from Neuroguard and Altaviva. Across all platforms, costs and pricing pressures must stay manageable for the growth narrative to translate into stronger investor appetite.
Acquisition delivers simplicity and access, supporting physicians across the full procedural workflow
, /PRNewswire/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced it has completed its acquisition of Scientia Vascular, a privately-held medical device company in Salt Lake City. The acquisition is valued at $550 million, subject to customary adjustments, with potential undisclosed earn-out and milestone payments post-acquisition.
Scientia has developed best-in-class access products that enable simplicity and access for physicians treating complex neurovascular conditions. Scientia's portfolio of guidewires and catheters can be seamlessly integrated with Medtronic's existing suite of neurovascular products, strengthening the company's ability to support physicians across the full procedural workflow.
"Since its founding, Scientia has been driven by a commitment to improving patients' lives and supporting the physicians who care for them," said Rick Randall, CEO of Scientia. "Joining Medtronic is an exciting next step for our team, as their Mission closely aligns with the values that have guided Scientia from the beginning. With Medtronic's global scale, we look forward to bringing this technology to more physicians and reaching more patients around the world."
"The addition of Scientia's access technologies strengthens our ability to simplify complex neurovascular procedures and support physicians with more seamless solutions," said Linnea Burman, senior vice president and president of Medtronic's Neurovascular business, part of the Neuroscience Portfolio at Medtronic. "By bringing together highly complementary technologies, we are building a more integrated platform that will help advance the future of neurovascular care and enable physicians to treat more patients with greater efficiency and confidence."
In stroke treatment, every second matters. With each second of restricted blood flow, the brain loses millions of brain cells. Today, stroke is the third leading cause of death and leading cause of disability worldwide.
Unlike vessels in many other parts of the body, cerebral vasculature is highly complex and tortuous, creating significant challenges for physicians attempting to reach the site of an occlusion or aneurysm. Difficult access can delay therapy delivery and impact procedural success.
Scientia's novel access platform is designed to address these challenges by improving navigability through complex anatomy and simplifying neurovascular procedures. By enabling faster and more reliable access, these technologies improve procedural efficiency.
This acquisition reflects Medtronic's continued focus on strategic deals that strengthen its leadership across core businesses. The company remains committed to pursuing high-growth opportunities that complement its portfolio and enhance value for physicians and hospital partners.
Financial Impact
This acquisition is expected to be minimally dilutive to Medtronic adjusted EPS in FY27 and accretive thereafter.
About Scientia Vascular
Scientia is a private company operating in Salt Lake City, with approximately 310 employees. Under founder and chief technology officer John Lippert, the company has developed best-in-class access products that enable simplicity and access for physicians treating complex neurovascular conditions. Scientia's portfolio of guidewires and catheters can be seamlessly integrated with Medtronic's existing suite of neurovascular products, strengthening the company's ability to support physicians across the full procedural workflow.
About the Neurovascular Business at Medtronic
Medtronic helped create the neurovascular market – introducing innovations like liquid embolic, stent retrievers, and flow diverters. Today, with products covering multiple conditions and disease states, we work to eliminate the burden of stroke and other neurovascular diseases globally by transforming care, one breakthrough at a time. Together with our partners, including physicians, hospitals, governments and patients, we're expanding into new disease states and stages of care. Our unwavering focus on better outcomes fuels our drive to deliver life-changing therapies and transform the future of care for patients worldwide. For more information, follow Medtronic Neurovascular on LinkedIn.
About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic, visit www.Medtronic.com and follow Medtronic on LinkedIn.
Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic's periodic reports on file with the Securities and Exchange Commission. Actual results may differ materially from anticipated results.
