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Investing.com - Medtronic , Inc. (NYSE:MDT) maintained its Neutral rating from BTIG following the company’s fiscal first-quarter 2026 results that exceeded analyst expectations. The medical device maker reported revenue of $8.578 billion, representing 8.4% year-over-year growth and 4.8% organic growth, surpassing both BTIG and consensus estimates. According to InvestingPro data, the stock is trading near its 52-week high of $96.25, with a market capitalization of $115.26 billion. InvestingPro analysis suggests the stock is currently slightly undervalued.
The company posted adjusted earnings per share of $1.26, a 2% year-over-year increase, which topped the $1.23 expected by both BTIG and consensus forecasts. Segment performance showed strength in Diabetes, Cardiac & Vascular, and Medical-Surgical divisions, while Neuroscience results came in slightly below expectations.
Medtronic maintained its fiscal year 2026 organic growth guidance at 5.0% but raised its adjusted EPS forecast to a range of $5.60 to $5.66, up from the previous $5.50 to $5.60, citing reduced tariff headwinds of approximately $185 million versus the earlier estimate of $275 million. InvestingPro subscribers can access additional insights, including 8 more ProTips and a comprehensive Pro Research Report, which provides detailed analysis of Medtronic’s financial health, currently rated as "GOOD" by InvestingPro’s proprietary scoring system.
Gross margins declined approximately 80 basis points year-over-year but were about 20 basis points above consensus, while operating margins fell roughly 80 basis points year-over-year and were slightly below consensus expectations by approximately 10 basis points.
The company also disclosed engagement with an activist shareholder pushing for improved top-line performance and operational enhancements, though BTIG noted investor skepticism about whether activist involvement can drive the necessary changes to improve Medtronic’s share performance at its current valuation of approximately 16.0 times next-twelve-months earnings.
In other recent news, Medtronic has reported its fiscal first-quarter 2026 earnings, surpassing Wall Street expectations. The company achieved an adjusted earnings per share of $1.26, exceeding the forecasted $1.23, and recorded revenue of €8.6 billion, surpassing the anticipated €8.38 billion. Following these results, Stifel raised its price target for Medtronic to $90 from $87, citing growth catalysts, although it maintained a Hold rating. Evercore ISI also increased its price target to $107 from $106, maintaining an Outperform rating. TD Cowen reiterated its Buy rating with a $106 price target after Medtronic reported adjusted revenue of $8.54 billion, with organic growth of 4.8%. The company’s performance was marked by a 3.5% growth in the US and 6.1% internationally. Despite these positive earnings, Medtronic’s stock experienced a decline in the market.
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