Medtronic (Medtronic (MDT)) shares rose Wednesday after the medical device maker reported fourth-quarter revenue that topped Wall Street expectations, powered by strong growth in its Cardiovascular and Diabetes businesses. The stock was up 5.21% at $77.59 in afternoon trading.

Earnings Beat Expectations

Adjusted 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%.

Adjusted operating profit rose 0.6% from a year earlier to $2.50 billion. Adjusted operating margin was 25.5%, down 230 basis points year over year, reflecting a 160-basis-point impact from the MiniMed Blackstone payment and an 80-basis-point impact from tariffs.

The company also increased its quarterly dividend to 72 cents per share, or $2.88 annually, marking its 49th consecutive year of dividend growth. The dividend will be paid on July 17, 2026, to shareholders of record as of June 26, 2026.

Cardiovascular And Diabetes Lead Growth

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.

Neuroscience revenue increased 5.0% to $2.75 billion, while Medical Surgical revenue climbed 8.0% to $2.39 billion. Both segments posted organic growth across their key businesses.

Diabetes revenue rose 15.0% to $837 million, or 8.1% organically, making it one of the company's fastest-growing segments during the quarter.

Fiscal 2027 Outlook

For fiscal 2027, Medtronic forecast adjusted earnings of $5.90 to $6.00 per share, below analysts' expectations of $6.06 per share.

The guidance includes the impact of a 53rd week, increased merger-and-acquisition activity, tariffs, interest and tax changes, Diabetes consolidation and an estimated foreign-exchange benefit of 0% to 1%.

The company expects organic revenue growth of 6.75% to 7.25%, including the 53rd week and a full-year contribution from its Diabetes business.

Additional Developments

Separately, Medtronic disclosed investments in two privately held companies developing intracardiac echocardiography catheter technologies. Financial terms were not disclosed.

The company also submitted 510(k) applications to expand the U.S. indications for its Hugo robotic-assisted surgery system.