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Investing.com -- Medtronic plc shares gained 3.5% after the healthcare technology giant topped Wall Street expectations for its first quarter and raised its full-year earnings guidance, marking its eleventh consecutive quarter of mid-single digit organic revenue growth.
The company reported adjusted earnings per share of $1.26 for the quarter ended July 25, exceeding analyst estimates of $1.23. Revenue reached $8.6 billion, comfortably beating the consensus forecast of $8.38 billion and representing an 8.4% increase as reported and 4.8% organic growth YoY.
Following the strong performance, Medtronic (NYSE:MDT) raised its fiscal 2026 earnings guidance to between $5.60 and $5.66 per share, up from its previous range of $5.50 to $5.60 and above analyst expectations of $5.55. The company maintained its full-year organic revenue growth forecast of approximately 5%.
"We delivered another consistent quarter of mid-single digit organic revenue growth, with broad strength from several innovative product categories, including Pulsed Field Ablation, Transcatheter Valves, Neuromodulation, Diabetes, and Leadless Pacing," said Geoff Martha, Medtronic chairman and chief executive officer.
The company’s Cardiac Ablation Solutions business was a standout performer, with revenue increasing nearly 50% globally and 72% in the U.S., driven by strong demand for its pulsed field ablation products. The Diabetes business also showed robust growth, with revenue increasing 11.5% as reported and 7.9% on an organic basis.
Medtronic’s Cardiovascular Portfolio led segment performance with 9.3% reported growth and 7.0% organic growth. The company’s operating margin on a GAAP basis improved by 70 basis points to 16.8%.
The earnings release coincided with Medtronic’s announcement that it had appointed two new independent directors to its board following discussions with Elliott Investment Management, which has become one of the company’s largest investors.