Medtronic plc (Medtronic (MDT)) just wrapped up its fiscal year with a fourth-quarter revenue beat that has at least one analyst thinking the market is missing the story. The medical device giant reported revenue of $9.81 billion, up 9.9% year over year and ahead of the $9.64 billion consensus. Adjusted earnings came in at $1.55 per share, a penny above estimates.
The real headline, though, might be the organic growth number: 6.6%. That's not just a one-quarter blip. BTIG analyst Ryan Zimmerman upgraded Medtronic from Neutral to Buy on Wednesday, slapping a $90 price target on the stock. His reasoning? The market isn't giving Medtronic enough credit for what it's delivering.
"MDT has demonstrated consistent MSD organic growth in the past several quarters, and the trajectory is improving," Zimmerman wrote. He added that Medtronic trades at a discount to peers despite offering a combination of earnings durability and income that the market has yet to fully recognize. "MDT trades at a discount to peers in a market where income and durability are underappreciated."
The growth is coming from multiple places. Cardiovascular revenue jumped 13.8% year over year to $3.80 billion, with organic growth of 10.1%. That was driven by high-teens growth in Cardiac Rhythm & Heart Failure and modest gains in Structural Heart & Aortic and Coronary & Peripheral Vascular. The Diabetes business also contributed to the beat, though the company didn't break out those numbers in detail.
Zimmerman sees the growth becoming broader across segments. Previously underperforming businesses are improving, M&A activity is picking up, and new products are starting to contribute more meaningfully. That's a recipe for sustained momentum, not just a one-off quarter.
Leerink Partners is also bullish, even if its price target came down. Analyst Mike Kratky lowered the target from $117 to $104, reflecting a broader re-rating of large-cap MedTech valuations. But he kept his Outperform rating and highlighted Medtronic as one of his Top Picks for 2026. He sees an attractive setup at current levels, with ongoing commercial execution providing ample opportunities for upside both near-term and longer-term.
Medtronic shares were up 4.3% at $81.30 on Thursday afternoon. That's still well below the $90 BTIG target and even further from Leerink's $104. If the analysts are right, the market may be pricing in too much pessimism for a company that's quietly accelerating its organic growth and broadening its revenue base.
