"We grew 71%, which is a strong acceleration from last quarter's nearly 50% CAS growth. This is the highest growth rate of any company in this large and fast-growing space."
— Geoffrey Martha
03Detailed Report
MDT
Company MDT
Period
Q2 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 22, 2026
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Executive Summary
Medtronic delivered a strong QQ2 2026 performance, marking continued momentum across key enterprise growth drivers. Reported revenue of $8.961 billion rose 13.2% year over year (organic growth ~5.5%), with gross margin of 60.3% and adjusted EPS of $1.36, surpassing the midpoint of guidance. Management attributed much of the quarterly acceleration to the rapid expansion of the PFA-based cardiac ablation franchise, led by Ferra mapping and Sphere 9 technologies, which drove 71% year-over-year growth in PFA and doubled the installed mapping-system base in the quarter. The company also highlighted significant progress in high-growth adjacencies, including Simplicity for hypertension and Altaviva for pelvic health, supported by a broad Medicare NCD and accelerating payer coverage in the commercial channel. These developments underpin Medtronic’s plan to accelerate revenue growth into the back half of FY2026 and into FY2027, even as near-term margins face mix-related headwinds from CAS (cardiac ablation) and diabetes ramp, plus tariff headwinds. Management lifted full-year revenue guidance to around 5.5% organic growth and reiterated a path to high-single-digit EPS growth in FY2027, funded by discipline on SG&A, selective R&D acceleration, and ongoing margin optimization. The following analysis synthesizes quantified results with management commentary to provide an actionable investor view of MDT’s earnings power, balance sheet health, competitive positioning, and forward trajectory.
Key Performance Indicators
Revenue
Increasing
8.96B
QoQ: 4.46% | YoY: 13.22%
Gross Profit
Increasing
5.41B
60.32% margin
QoQ: 9.28% | YoY: 14.71%
Operating Income
Increasing
1.69B
QoQ: 16.61% | YoY: 31.85%
Net Income
Increasing
1.37B
QoQ: 32.12% | YoY: 31.86%
EPS
Increasing
1.07
QoQ: 32.10% | YoY: 32.10%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $8.961B, up 13.22% YoY; QoQ +4.46% (organic revenue growth ~5.5% in QQ2 2026).
- Gross profit: $5.405B; gross margin 60.3% (gross profit ratio 0.603).
- Operating income: $1.685B; operating margin 18.80% (0.188).
- Net income: $1.374B; net margin 15.33%.
- EPS: $1.07 reported; diluted $1.06; adjusted EPS $1.36 (+8% YoY).
- R&D expense: $0.754B (as % of revenue: 8.4%); SG&A: $2.966B (32.7% of revenue).
- EBITDA: $2.366B; EBITDA margin 26.40% (EBITDA ratio 0.264).
- Balance sheet snapshot (approximate as reported): cash and cash equivalents around $2.01B; net cash position near -$2.01B (per reported balance data).
- Guidance highlights: FY2026 revenue growth ~5.5% (organic); FX tailwind $0.625–0.725B; tariffs headwind ~$0.185B; adjusted operating profit growth ~5%–7% ex tariffs; FY2026 EPS guidance raised to $5.62–$5.66; Q3 EPS guidance $1.32–$1.34; long‑term EPS growth target in FY2027 is high single digits.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
8.96B
13.22%
4.46%
Gross Profit
5.41B
14.71%
9.28%
Operating Income
1.69B
31.85%
16.61%
Net Income
1.37B
31.86%
32.12%
EPS
1.07
32.10%
32.10%
Key Financial Ratios
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