Medtronic (NYSE: MDT) had a good Tuesday. The medical device giant beat Wall Street's first-quarter expectations, raised its full-year outlook, and then went on a spending spree that could reshape its robotics and structural heart businesses. Shares rose 1.65% to $92.15 on the news.
Medtronic's $780 Million Shopping Spree: Robots, Heart Valves, and a Raised Outlook
MarketDash
Medtronic (NYSE: MDT) shares rose after beating Q1 estimates and raising its FY27 forecast, while the company announced two major strategic investments in robotics and structural heart.
Get Medtronic Alerts
Weekly insights + SMS alerts
Earnings Beat Estimates
For its fiscal first quarter of 2027, Medtronic reported adjusted earnings of $1.45 per share, comfortably ahead of the $1.39 consensus. Revenue came in at $9.756 billion, up 13.7% year over year and above the $9.545 billion analysts were looking for. That said, an extra fiscal week contributed about $570 million to organic growth, so the underlying pace is a bit more modest.
On a GAAP basis, earnings jumped 40.7% to $1.14 per share. The company generated $1.79 billion in operating cash flow and $1.29 billion in free cash flow, giving it plenty of firepower for the deals announced later in the day.
Portfolio Delivers Broad Growth
Growth was broad-based across Medtronic's four main segments. Cardiovascular sales led the way, up 19.5% (18.9% organic) to $3.927 billion. Within that, Cardiac Rhythm Management grew 15%, while Cardiac Ablation Solutions absolutely exploded with an 88% surge.
Neuroscience revenue rose 10.3% (9.3% organic) to $2.678 billion, helped by 13% growth in Cranial and Spinal Technologies and low-20s growth in enabling technology. The company also highlighted 15% growth in Pelvic Health, driven by its Altaviva system.
Medical Surgical sales increased 10% (10.2% organic) to $2.279 billion, with Surgical up 9% and Acute Care & Monitoring up 14%. Diabetes revenue grew 16.9% (14.9% organic) to $843 million.
Medtronic Raises Fiscal 2027 Outlook
Given the strong quarter, management lifted its full-year adjusted earnings guidance to $5.94-$6.00 per share, up from the previous $5.90-$6.00 range. The new midpoint of $5.97 is just above the $5.95 consensus. The company also raised its organic revenue growth forecast to 7.25%-7.75%, from 6.75%-7.25% previously.
For the second quarter, Medtronic expects adjusted earnings of $1.32-$1.34 per share. The midpoint of $1.33 is a penny below the consensus of $1.34, which might give some investors pause, but the full-year raise suggests management sees momentum building.
Medtronic Expands Robotics Business
Beyond the numbers, Medtronic announced two strategic investments that show where it's placing its bets. The first is an approximately $700 million investment in Cornerstone Robotics, a company that makes the Sentire Surgical System. The deal gives Medtronic rights to distribute Sentire in select markets outside the U.S. where it has regulatory approval, which currently includes China, the European Union, and Singapore.
Medtronic plans to offer Sentire alongside its own Hugo robotic-assisted surgery system. This is a smart move: instead of going it alone in every market, Medtronic is leveraging Cornerstone's technology to expand its robotics footprint, particularly in Asia and Europe where Hugo may not be as established.
Expanding Structural Heart Capabilities
The second deal is smaller but potentially transformative. Medtronic agreed to invest up to $80 million in Pi-Cardia, a company with an FDA-cleared device called ShortCut that supports complex valve-in-valve transcatheter aortic valve replacement (TAVR) procedures. Medtronic expects to become the exclusive global distributor of ShortCut starting in 2027.
The agreement also includes an option for Medtronic to acquire Pi-Cardia outright once certain milestones are met. The estimated upfront acquisition price could reach $210 million, plus potential earn-out payments. This gives Medtronic a path to full ownership if things go well.
All told, Medtronic is committing up to $780 million across these two deals, plus a potential $210 million acquisition down the road. That's a significant investment, but it's backed by strong cash flow and a raised outlook. For investors, the message is clear: Medtronic isn't just talking about growth, it's paying for it.
More News
Stock Market Today: S&P 500, Dow Futures Slide as Trump Declares Iran 'Totally Defeated', Brent Tops $92 — CBRS, PXS, PANW, DELL in Focus
Treasury Yields Hit 4.8%: The Bond Market's Message to Washington
Broadcom Stock Dips Ahead of Earnings as VMware AI Push Takes Center Stage
Global Bond Rout Hits Tech Stocks: 5 Nasdaq Names Drop Over 5%
Trump's Venezuela Oil Deal: A Refining Reality Check
NVIDIA's New Move: Getting Paid Even When You Don't Buy Its Chips
Trump Jr.-Linked Firm Leads $1B Polymarket Round, Valuing Platform at $21B
Trump Expands Drug Pricing Deals With 9 Pharma Companies, Bringing Total to 26 — RFK Jr. Details 'Very, Very Emotional' Conversations With President
Get Medtronic Alerts
Real-time alerts on price moves, news, and trading opportunities.
Join 20,000+ investors. No spam, ever.
Featured Articles
View all newsStock Market Today: S&P 500, Dow Futures Slide as Trump Declares Iran 'Totally Defeated', Brent Tops $92 — CBRS, PXS, PANW, DELL in Focus
By MarketDash
September 1, 2026
Treasury Yields Hit 4.8%: The Bond Market's Message to Washington
By MarketDash
September 1, 2026
Broadcom Stock Dips Ahead of Earnings as VMware AI Push Takes Center Stage
By MarketDash
September 1, 2026
Global Bond Rout Hits Tech Stocks: 5 Nasdaq Names Drop Over 5%
By MarketDash
September 1, 2026
Trump's Venezuela Oil Deal: A Refining Reality Check
By MarketDash
September 1, 2026
NVIDIA's New Move: Getting Paid Even When You Don't Buy Its Chips
By MarketDash
September 1, 2026
Trump Jr.-Linked Firm Leads $1B Polymarket Round, Valuing Platform at $21B
By MarketDash
September 1, 2026
Trump Expands Drug Pricing Deals With 9 Pharma Companies, Bringing Total to 26 — RFK Jr. Details 'Very, Very Emotional' Conversations With President
By MarketDash
September 1, 2026