Key facts
- Medtronic reported Q4 revenue of $9.81 billion, exceeding estimates.
- Q4 adjusted EPS was $1.55, surpassing the consensus estimate.
- Full-year organic revenue growth of 5.8% was the company's best in a decade.
- FY27 adjusted EPS guidance of $5.90-$6.00 missed the analyst estimate.
- Medtronic raised its quarterly dividend to $0.72 per share.
- Mizuho and Needham lowered their stock price targets for Medtronic.
Medtronic plc reported fourth-quarter fiscal year 2026 revenue of $9.81 billion, surpassing Wall Street's estimate of $9.63 billion. Adjusted earnings per share (EPS) of $1.55 also edged past the consensus estimate of $1.54. The company achieved its strongest full-year organic revenue growth in a decade, at 5.8%, reaching $36.4 billion for FY26. However, Medtronic's fiscal year 2027 adjusted EPS guidance of $5.90–$6.00 fell short of analysts' $6.06 estimate. Management flagged expected tariff headwinds of approximately $300 million for FY27. The cardiovascular segment was a key driver, with revenue rising 13.8% to $3.8 billion. Medtronic also raised its quarterly dividend to $0.72 per share, a 1.4% increase. Separately, Mizuho lowered its stock price target for Medtronic to $100 due to valuation concerns. Needham has also lowered its stock price target for Medtronic to $101, based on peer multiples analysis. Medtronic projects 6.75%-7.25% organic revenue growth for fiscal year 2027, factoring in a $250 million tariff impact. BTIG has upgraded Medtronic based on its performance in FY26 Q4, which exceeded expectations.