Why did Medtronic raise its FY26 guidance?

Management cited outperformance in the first half of the year and confidence in revenue growth acceleration in the back half. Organic revenue growth guidance moved up to about 5.5% from about 5.0%, and the non-GAAP EPS range was narrowed upward to $5.62–$5.66 from $5.60–$5.66.

What is driving growth in the business?

The main driver is the pulsed field ablation (PFA) franchise for atrial fibrillation, with Cardiac Ablation Solutions revenue up 71%. Other growth drivers named by management include the Symplicity renal denervation procedure for hypertension following a favorable CMS coverage decision, the Hugo robotic surgery system, and the Altaviva device for urge urinary incontinence.

Is there margin pressure or a risk to profitability?

Yes. Non-GAAP operating margin declined 20 basis points to 24.1% as the company increased R&D and sales and marketing spending to support growth programs. The FY26 EPS outlook still includes a potential tariff impact of about $185 million, unchanged from the prior guidance.

Which segments are lagging?

Medical Surgical grew only 1.3% organically, and Specialty Therapies in Neuroscience was flat. Coronary & Peripheral Vascular grew just 0.8% organically. Surgical & Endoscopy and Acute Care & Monitoring each grew low single digits.

What do the GAAP and non-GAAP results differ on?

GAAP diluted EPS was $1.07 versus non-GAAP diluted EPS of $1.36. The gap is mainly amortization of intangible assets ($463 million in the quarter) and smaller restructuring and minority investment adjustments. Both measures rose 8% year over year.

MDT 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed November 18, 2025. Cited figures are marked; the original filing is the authoritative source.

Medtronic reported fiscal Q2 2026 results (quarter ended October 24, 2025) that beat both revenue and EPS expectations, and the company raised its full-year FY26 guidance.

Revenue was $8.96 billion^a, up 6.6% as reported and 5.5% organic, about 75 basis points above the guidance midpoint. GAAP diluted EPS was $1.07 (up 8%), and non-GAAP diluted EPS was $1.36 (up 8%), also ahead of guidance. Growth was led by the Cardiovascular portfolio (up 9.3% organic), with Cardiac Ablation Solutions revenue up 71% on pulsed field ablation (PFA) strength, including 128% growth in the U.S. FY26 guidance was raised to approximately 5.5% organic revenue growth (from about 5.0%) and to non-GAAP diluted EPS of $5.62 to $5.66 (from $5.60 to $5.66).

The EPS range still includes an unchanged potential tariff impact of about $185 million^b. The company also highlighted regulatory and commercial milestones, including a broad CMS National Coverage Determination for the Symplicity renal denervation procedure, FDA approval of the Altaviva urge urinary incontinence device, and clearances for the MiniMed 780G system. Management said it expects revenue growth to accelerate in the second half of the year, while it stepped up R&D and sales and marketing investment.

For investors, the key points are a beat-and-raise quarter driven by PFA and Cardiovascular strength, with the Neuroscience and Medical Surgical segments growing more slowly. Margin pressure is visible: non-GAAP operating margin fell 20 basis points to 24.1%^c as spending increased.

Operating cash flow and free cash flow were modestly higher year to date. This filing is an 8-K furnishing the earnings press release under Item 2.02, so the financial information is unaudited.

02—Key points

Key Highlights

Q2 FY26 revenue of $8.961 billion, up 6.6% reported and 5.5% organic, about 75 bps above the guidance midpoint
Cardiac Ablation Solutions revenue up 71% (128% in the U.S.), driven by the pulsed field ablation (PFA) portfolio
Cardiovascular Portfolio revenue of $3.436 billion, up 9.3% organic, with Cardiac Rhythm & Heart Failure up mid-teens organically
FY26 organic revenue growth guidance raised to approximately 5.5% from approximately 5.0%
FY26 non-GAAP diluted EPS guidance narrowed to $5.62–$5.66 from $5.60–$5.66; the low end was raised and the tariff impact of about $185 million is unchanged
Q2 non-GAAP diluted EPS of $1.36 (up 8%) and GAAP diluted EPS of $1.07 (up 8%), both above guidance
Non-GAAP operating margin of 24.1%, down 20 bps, as R&D and sales and marketing investment increased; Neuroscience organic growth slowed to 3.9%

03—Questions

Frequently Asked Questions

Why did Medtronic raise its FY26 guidance?
Management cited outperformance in the first half of the year and confidence in revenue growth acceleration in the back half. Organic revenue growth guidance moved up to about 5.5% from about 5.0%, and the non-GAAP EPS range was narrowed upward to $5.62–$5.66 from $5.60–$5.66.
What is driving growth in the business?
The main driver is the pulsed field ablation (PFA) franchise for atrial fibrillation, with Cardiac Ablation Solutions revenue up 71%. Other growth drivers named by management include the Symplicity renal denervation procedure for hypertension following a favorable CMS coverage decision, the Hugo robotic surgery system, and the Altaviva device for urge urinary incontinence.
Is there margin pressure or a risk to profitability?
Yes. Non-GAAP operating margin declined 20 basis points to 24.1% as the company increased R&D and sales and marketing spending to support growth programs. The FY26 EPS outlook still includes a potential tariff impact of about $185 million, unchanged from the prior guidance.
Which segments are lagging?
Medical Surgical grew only 1.3% organically, and Specialty Therapies in Neuroscience was flat. Coronary & Peripheral Vascular grew just 0.8% organically. Surgical & Endoscopy and Acute Care & Monitoring each grew low single digits.
What do the GAAP and non-GAAP results differ on?
GAAP diluted EPS was $1.07 versus non-GAAP diluted EPS of $1.36. The gap is mainly amortization of intangible assets ($463 million in the quarter) and smaller restructuring and minority investment adjustments. Both measures rose 8% year over year.

04—Continue

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