TD Cowen reiterates Buy rating on Medtronic stock after earnings beat

Published 19/08/2025, 14:24
TD Cowen reiterates Buy rating on Medtronic stock after earnings beat

Investing.com - TD Cowen has maintained its Buy rating and $106.00 price target on Medtronic , Inc. (NYSE:MDT), a $118.65 billion medical technology leader, following its fiscal first quarter 2026 results. According to InvestingPro data, the stock is trading near its 52-week high with a solid 3.06% dividend yield.

Medtronic reported adjusted revenue of $8.54 billion with underlying organic growth of 4.8%, exceeding the consensus target of $8.38 billion. By region, organic sales growth in the US was 3.5%, while international growth reached 6.1%. The company’s overall revenue growth of 3.62% and robust gross margin of 65.39% underscore its market strength. InvestingPro subscribers can access 8 additional key insights about Medtronic’s financial health and growth prospects.

The company posted non-GAAP earnings per share of $1.26, surpassing both the Street estimate of $1.23 and the top end of its guidance range of $1.22-$1.24. Non-GAAP gross margin came in at 65.1%, slightly above consensus expectations of 64.9%.

Medtronic outperformed sales targets in three of its four divisions, with Cardiovascular revenue totaling $3.29 billion (up 7.0% organically), Medical (TASE:BLWV) Surgical sales reaching $2.08 billion (up 2.4% organically), and Diabetes sales hitting $721 million (up 7.9% organically).

Neuroscience was the only segment to fall short of expectations, with revenue of $2.42 billion just below the $2.43 billion Street estimate, though still reflecting 3.1% organic sales growth.

In other recent news, Medtronic PLC (BVMF:MDTC34) reported its first-quarter fiscal 2026 earnings, surpassing Wall Street expectations. The company achieved an adjusted earnings per share (EPS) of $1.26, exceeding the forecasted $1.23. Revenue also outperformed projections, reaching €8.6 billion compared to the anticipated €8.38 billion. Despite these positive financial results, the company’s stock experienced a decline in premarket trading. The stock closed at $87.97, down from its previous close of $92.81. These developments come amidst a backdrop of fluctuating market conditions. Investors and analysts continue to monitor Medtronic’s performance closely.

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