Medtronic Posts Record FY2026 as CAS Surges and MiniMed Spins Off

Transcript intelligence

What changed

Q4 revenue of $9.8B beat consensus estimates of $9.6B by 1.9%, and EPS of $1.55 narrowly topped the $1.54 estimate. The stock surged 6.4% on the session — a 5.7 percentage point excess move over the benchmark — with volume at 1.85x the baseline, and continued to drift higher by 6.7% in subsequent sessions. CAS, which grew 80% YoY in Q3, now annualizes above $2B with 78% global growth, signaling sustained momentum at a larger base. The most notable strategic shift: the MiniMed diabetes spin-off, described in Q3 as planned for end of calendar 2026, has now been completed via IPO. Management also expanded its M&A footprint beyond the Q3 CathWorks and Anteris deals, adding Scientia, SPR Therapeutics, Beluga Medical, and CardioACC. On guidance, the company moved from maintaining FY26 targets with qualitative FY27 commentary to explicitly raising FY27 guidance with specific quantitative ranges.

Guidance delta

Prior quarter (Q3 FY26): Guidance maintained — FY26 organic revenue growth ~5.5%, EPS $5.62–$5.66, with FY27 characterized qualitatively as 'high-single-digit EPS growth.' Current quarter (Q4 FY26): Guidance raised — FY27 organic revenue growth of 6.75–7.25%, EPS $5.90–$6.00. The shift from a qualitative FY27 outlook to a specific, raised quantitative range signals growing confidence that the diversified growth platform can outperform even as tariff exposure steps up to an estimated $250M for FY27 (from ~$185M in FY26).

Key takeaways

• FY2026 full-year revenue of $36.4B was Medtronic's strongest top-line in 10 years, with Q4 revenue up 9.9% YoY to $9.8B.
• CAS annualized above $2B with 78% global growth, cementing it as the company's premier growth engine.
• FY27 guidance was raised to 6.75–7.25% organic revenue growth and EPS of $5.90–$6.00, replacing the prior quarter's qualitative FY27 framing.
• The MiniMed diabetes business completed its IPO and spin-off, simplifying the portfolio toward higher-margin growth platforms.
• Accelerated M&A — CathWorks, Scientia, SPR Therapeutics, Beluga Medical, CardioACC — broadens the pipeline across cardiovascular, neurovascular, and neuromodulation.
• The stock gained 6.4% on the session with 6.7% continued upward drift, reflecting strong market reception.

Management priorities

• Scale Hugo robotics into General Surgery and Gynecology, expanding beyond urology
• Launch the U.S. VT pivotal trial for Symplicity renal denervation in H1 FY27
• Roll out Prism-2 mapping software globally and expand the ICE catheter portfolio
• Integrate and commercialize recent acquisitions (CathWorks FFRangio, Scientia neurovascular guidewires, SPR PNS therapies)
• Continue global rollout of Altaviva and increase Stealth AXiS consumable sales
• Support the separated MiniMed business through the FY27 guidance transition period