Medtronic Plc (MDT) had a good day at the office on Tuesday, reporting third-quarter fiscal 2026 results that sailed past Wall Street's expectations. The medical device giant posted $9.02 billion in revenue, comfortably ahead of the $8.91 billion consensus estimate. That represents an 8.7% jump from last year, with organic growth clocking in at a solid 6%.

On the earnings side, adjusted profits hit $1.36 per share, topping expectations of $1.33. Not a blowout beat, but in this market, investors will take what they can get.

The Winners: Hearts and Diabetes

The real story here is where the growth came from. Medtronic's Cardiovascular Portfolio absolutely crushed it, pulling in $3.457 billion in revenue—a 13.8% increase as reported and 10.6% organic growth. Within that portfolio, Cardiac Rhythm & Heart Failure grew at a high-teens clip, Structural Heart & Aortic edged up in the low-single digits, and Coronary & Peripheral Vascular grew mid-single digits, all on an organic basis.

Meanwhile, the Diabetes business continues its hot streak with $796 million in revenue, up 14.8% as reported and 8.3% organic. That's the kind of performance that gets management excited about the future.

"Q3 marks another strong quarter, delivering 6% organic revenue growth, ahead of guidance, demonstrating the strength of our portfolio," said Geoff Martha, Medtronic's chairman and CEO.

The Rest of the Portfolio

Other divisions put up respectable but less exciting numbers. The Neuroscience Portfolio brought in $2.558 billion, up 4.1% as reported and 2.5% organic. Within that segment, Neuromodulation grew mid-single digits, Cranial & Spinal Technologies also increased mid-single digits, while Specialty Therapies stayed flat on an organic basis.

The Medical Surgical Portfolio generated $2.173 billion in revenue, a 4.9% reported increase and 2.7% organic growth. Surgical & Endoscopy crept up in the low-single digits, while Acute Care & Monitoring posted a high-single digit increase, both on an organic basis.

Looking Ahead

Medtronic isn't changing its tune for fiscal 2026. The company reaffirmed its outlook for approximately 5.5% organic revenue growth and adjusted earnings per share between $5.62 and $5.66.

There's still that tariff cloud hanging overhead—the guidance bakes in a potential $185 million hit from tariffs, unchanged from previous guidance. Strip out that tariff impact, and the company is looking at adjusted EPS growth of roughly 4.5% for the year.

"This quarter, we again delivered accelerated growth while investing decisively in our future," said Thierry Piéton, Medtronic's CFO. "We continued to invest in R&D to strengthen our innovation pipeline, funded significant growth opportunities while driving G&A leverage, and we executed on our M&A and venture strategy with two key transactions in the quarter. Bottom line, we are executing on our roadmap and positioning the business for sustainable growth."

Making Moves

Speaking of that M&A strategy, Medtronic announced in February that it's exercising its option to acquire CathWorks, a privately held Israeli medical device company. The deal is valued at up to $585 million, with additional undisclosed earn-out payments possible after closing. It's a bet on AI-powered heart care that fits neatly into the company's cardiovascular growth story.

Despite the solid quarter, Medtronic shares slipped 2.84% to $96.66 at the time of publication on Tuesday. Sometimes even beating expectations isn't enough for Mr. Market.