MDT Medtronic plc

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Medtronic reports first quarter fiscal 2027 results; delivers broad-based portfolio performance and raises fiscal 2027 guidance

Tuesday, September 1, 2026 · 6:45 AM ET Canada Newswire

Strength across the company's largest franchises, new growth platforms, and recent portfolio investments support the long-term growth trajectory

GALWAY, Ireland, Sept. 1, 2026 /CNW/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced financial results for its first quarter (Q1) of fiscal year 2027 (FY27), which ended July 31, 2026.

Key Highlights

  • Revenue of $9.8 billion, increased 13.7% as reported and 13.7% organic, roughly 200 basis points above guidance midpoint
  • GAAP diluted EPS of $1.14; non-GAAP diluted EPS of $1.45, ahead of guidance
  • Raising FY27 organic revenue growth guidance 50 basis points to 7.25% to 7.75%, and FY27 diluted non-GAAP EPS guidance to the new range of $5.94 to $6.00
  • Cardiovascular grew 18.9%, led by 15% growth in Cardiac Rhythm Management and 88% growth in Cardiac Ablation Solutions
  • Announced expanded CE Mark indication for Affera™ Mapping and Ablation System and Sphere-9™ Catheter for treatment of ventricular arrhythmias
  • Announces strategic investment in Pi-Cardia, a pioneer in leaflet modification technology
  • Neuroscience grew 9.3%, driven by 13% growth in Cranial and Spinal Technologies, including low-20s growth in enabling technology; Altaviva meaningfully contributed to 15% growth in Pelvic Health
  • Medical Surgical reported strong performance, up 10.2%, led by 9% growth in Surgical and 14% growth in Acute Care & Monitoring
  • Announces strategic partnership with Cornerstone Robotics to further expand global access to robotic-assisted surgery
  • Announced FDA clearance for Touch Surgery™ Aide next generation computing platform 
  • Completed acquisitions of Scientia Vascular and SPR Therapeutics, Inc.

"We are off to a strong start in fiscal 2027. What gives us confidence is not simply the strength of the quarter, but importantly, the breadth of performance across our businesses and the increasing contributions from newer growth platforms," said Geoff Martha, Medtronic chairman and chief executive officer. "Our execution, alongside our innovation engine, positions us to serve more patients and deliver durable growth. The strength of our portfolio and pipeline gives us confidence in the opportunities ahead."

Financial Results
Medtronic reported Q1 worldwide revenue of $9.756 billion, an increase of 13.7% as reported and 13.7% on an organic basis. The Q1 FY27 organic revenue growth comparison excludes:

  • Other revenue of $29 million in the current year versus $72 million in the prior year
  • Revenue from the Dutch Obesity Clinic (NOK) divestiture with no revenue in the current year and $17 million in the prior year
  • Scientia revenue of $14 million (closed June 12) and SPR Therapeutics revenue of $5 million in the current year (closed July 16)
  • Foreign exchange benefit of $57 million on the remaining net sales

Results were impacted by the extra fiscal week, which occurred in Medtronic's first quarter of FY27. The company estimates the impact of the extra week benefited Q1 organic growth by approximately $570 million. 

Q1 revenue included:

  • Cardiovascular Portfolio revenue of $3.927 billion increased 19.5% as reported and 18.9% organic, with high-20s increase in Electrophysiology Therapies, high-single digit increase in Interventional Cardiology Therapies, high-single digit increase in CardioVascular Surgery, and low-double digit increase in Peripheral Vascular Health, all on an organic basis
  • Neuroscience Portfolio revenue of $2.678 billion increased 10.3% reported and 9.3% organic, with low-double digit increase in Cranial & Spinal Technologies, high-single digit increase in Specialty Therapies, and low-single digit increase in Neuromodulation, all on an organic basis
  • Medical Surgical Portfolio revenue of $2.279 billion increased 10.0% as reported and 10.2% organic, with high-single digit increase in Surgical & Endoscopy, and mid-teens increase in Acute Care & Monitoring, all on an organic basis
  • Diabetes business revenue of $843 million increased 16.9% as reported and 14.9% organic1

Q1 GAAP operating profit and operating margin were $1.764 billion and 18.1%, respectively, an increase of 22.1% and 120 basis points, respectively. As detailed in the financial schedules included at the end of the release, Q1 non-GAAP operating profit and operating margin were $2.316 billion and 23.7%, respectively, an increase of 14.9% and 10 basis points, respectively.

Q1 GAAP net income and diluted earnings per share (EPS) were $1.470 billion and $1.14, respectively, representing increases of 41.4% and 40.7%, respectively. As detailed in the financial schedules included at the end of this release, Q1 non-GAAP net income and non-GAAP diluted EPS were $1.860 billion and $1.45 respectively, representing increases of 14.4% and 15.1%, respectively. 

Guidance
The company today raised its FY27 organic revenue growth and EPS guidance. The company raised its FY27 organic revenue growth guidance to 7.25% to 7.75%, an increase from the prior guidance of 6.75% to 7.25%. The company also raised its FY27 diluted non-GAAP EPS guidance to the new range of $5.94 to $6.00 versus the prior $5.90 to $6.00. This guidance includes an estimated neutral to 1% accretive impact from foreign currency exchange based on recent rates.

"We continue to make targeted investments in innovation, portfolio development, and commercial execution that will support sustainable long-term value creation," said Thierry Piéton, Medtronic chief financial officer. "The combination of strong operating performance and disciplined financial management drove revenue and adjusted EPS ahead of expectations, enabling us to raise our fiscal 2027 guidance."

Video Webcast Information
Medtronic will host a video webcast today, September 1, at 7:45 a.m. EST (6:45 a.m. CST) to provide information about its business for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Quarterly Earnings icon at investorrelations.medtronic.com, and this earnings release will be archived at news.medtronic.com. Within 24 hours of the webcast, a replay of the webcast and transcript of the company's prepared remarks will be available by clicking on the Past Events and Presentations link under the News & Events drop-down at investorrelations.medtronic.com.

Financial Schedules and Earnings Presentation
The first quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Quarterly Earnings link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the earnings presentation, click here.

About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission -- to alleviate pain, restore health, and extend life -- unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE: MDT), visit www.Medtronic.com and follow on LinkedIn.

FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, changing global trade policies, material acquisition and divestiture transactions, general economic conditions, and other risks and uncertainties described in the company's periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company. In some cases, you can identify these statements by forward-looking words or expressions, such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "looking ahead," "may," "plan," "possible," "potential," "project," "should," "going to," "will," and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this press release, including to reflect future events or circumstances.

NON-GAAP FINANCIAL MEASURES
This press release contains guidance and financial measures, including adjusted net income, adjusted diluted EPS, and organic revenue, which are considered "non-GAAP" financial measures under applicable SEC rules and regulations. Certain information in this press release also includes calculations or figures that have been prepared internally and have not been reviewed or audited by our independent registered public accounting firm. Use of different methods for preparing, calculating or presenting information may lead to differences and such differences may be material.

Medtronic management believes that non-GAAP financial measures provide information useful to investors in understanding the company's underlying operational performance and trends and to facilitate comparisons with the performance of other companies in the med tech industry. Non-GAAP net income and diluted EPS exclude the effect of certain charges or gains that contribute to or reduce earnings but that result from transactions or events that management believes may or may not recur with similar materiality or impact to operations in future periods (Non-GAAP Adjustments). Medtronic generally uses non-GAAP financial measures to facilitate management's review of the operational performance of the company and as a basis for strategic planning. Non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies. Management strongly encourages investors to review the company's consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial schedules accompanying this press release.

Medtronic calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic revenue growth guidance excludes the impact of foreign currency fluctuations, revenue in the current and prior year reported as "Other", as well as significant acquisitions, divestitures, or other significant discrete items. Forward-looking diluted non-GAAP EPS guidance also excludes other potential charges or gains that would be recorded as Non-GAAP Adjustments to earnings during the fiscal year. Medtronic does not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of recognition of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.

FINANCIAL COMPARISONS
References to quarterly or annual figures increasing, decreasing, or remaining flat are in comparison to fiscal year 2026, and references to sequential changes are in comparison to the prior fiscal quarter. Unless stated otherwise, quarterly and annual rates and ranges are given on an organic basis. References to organic revenue growth exclude the impact of foreign currency, first quarter revenue in the current and prior year reported as "Other", as well as significant acquisitions, divestitures, or other significant discrete items. 

TRANSACTION DETAILS
The separation of our Diabetes business has involved and is expected to be completed through a series of capital markets transactions, which may include a spin-off, split-off, offering, or combination thereof. While a split-off is the company's current preferred separation structure, a final decision has not been reached at this time.

Contacts:
Justin Paquette 
Public Relations
+1-612-271-7935

Ingrid Goldberg
Investor Relations
+1-763-505-2696

____________________________________

1

The Diabetes results presented here may not correspond to the same financial statement information presented by MiniMed Group, Inc. (MiniMed) due to MiniMed's financials being prepared on a carve out basis through the date of the company's initial public offering (IPO) and on a standalone basis post IPO. 

 

MEDTRONIC PLC

WORLDWIDE REVENUE(1)

(Unaudited)



FIRST QUARTER(2)


REPORTED




ORGANIC

(in millions)

FY27


FY26


Growth


Currency
Impact(7)


FY27(8)


FY26(8)


Growth

Cardiovascular(3)

$     3,927


$     3,285


19.5 %


$         21


$     3,906


$     3,285


18.9 %

Electrophysiology Therapies

2,218


1,712


29.5


8


2,210


1,712


29.1

Interventional Cardiology Therapies

894


834


7.2


6


889


834


6.5

CardioVascular Surgery

477


436


9.3


5


472


436


8.1

Peripheral Vascular Health

338


302


11.6


2


336


302


11.0

Neuroscience(3)

2,678


2,427


10.3


6


2,653


2,427


9.3

Cranial & Spinal Technologies

1,365


1,211


12.8


(2)


1,367


1,211


12.9

Specialty Therapies

774


702


10.2


6


754


702


7.4

Neuromodulation(3)

539


514


4.7


2


531


514


3.3

Medical Surgical(3)

2,279


2,073


10.0


15


2,265


2,056


10.2

Surgical & Endoscopy(3)

1,740


1,601


8.7


14


1,726


1,584


9.0

Acute Care & Monitoring

539


471


14.4


1


538


471


14.2

Total Reportable Segments

8,884


7,785


14.1


43


8,823


7,768


13.6

Diabetes(4)

843


721


16.9


14


829


721


14.9

Other(5)

29


72


NM(6)


--


--


--


--

TOTAL

$     9,756


$     8,578


13.7 %


$         57


$     9,652


$     8,489


13.7 %


See description of non-GAAP financial measures contained in the press release dated September 1, 2026.

(1)

The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

(2)

Fiscal year 2027 is a 53-week fiscal year, with the extra week occurring in the first fiscal month of the first quarter and included in reported first quarter results. While it is difficult to calculate the impact of the extra week, the Company estimates the extra week benefited first quarter organic growth by approximately $570 million.

(3)

In fiscal year 2027, the Cardiovascular Portfolio divisions transitioned from Cardiac Rhythm & Heart Failure, Structural Heart & Aortic, and Coronary & Peripheral Vascular to Electrophysiology Therapies, Interventional Cardiology Therapies, CardioVascular Surgery, and Peripheral Vascular Health. Additionally, there was a product line that moved from the Medical Surgical Portfolio in the Surgical & Endoscopy division to the Neuroscience Portfolio in the Neuromodulation division. Prior year net sales has been recast to conform to the current year presentation.

(4)

The Diabetes results presented here may not correspond to the same financial statement information presented by MiniMed Group, Inc. (MiniMed). The Diabetes Business as reported by Medtronic is prepared on a different basis than standalone Medtronic due to MiniMed's financials being prepared on a carve out basis through the date of the company's initial public offering (IPO) and on a standalone basis post IPO.

(5)

Includes the historical operations and ongoing transition agreements from businesses the Company has exited or divested, and adjustments to the Company's Italian payback accruals resulting from the June 30, 2025 Legislative Decree published by the Italian Government for years 2015 to 2018.

(6)

Not meaningful (NM).

(7)

The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.

(8)

The three months ended July 31, 2026 excludes $104 million of revenue adjustments, including $29 million of inorganic revenue for the transition activity noted in (5), $14 million of inorganic revenue related to the Scientia Vascular (Scientia) acquisition in the Specialty Therapies division, $5 million of inorganic revenue related to the SPR Therapeutics, Inc. (SPR) acquisition in the Neuromodulation division, and $57 million of favorable currency impact on the remaining net sales. The three months ended July 25, 2025 excludes $89 million of revenue adjustments, including $33 million of inorganic revenue for the transition activity noted in (5), $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (5), and $17 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division.

 

MEDTRONIC PLC

U.S. REVENUE(1)(2)

(Unaudited)



FIRST QUARTER(3)


REPORTED


ORGANIC

(in millions)

FY27


FY26


Growth


FY27(7)


FY26(7)


Growth

Cardiovascular(4)

$     1,853


$     1,479


25.3 %


$     1,853


$     1,479


25.3 %

Electrophysiology Therapies

1,177


834


41.2


1,177


834


41.2

Interventional Cardiology Therapies

294


296


(0.8)


294


296


(0.8)

CardioVascular Surgery

186


170


9.6


186


170


9.6

Peripheral Vascular Health

196


180


9.2


196


180


9.2

Neuroscience

1,813


1,624


11.7


1,795


1,624


10.5

Cranial & Spinal Technologies

1,016


890


14.1


1,016


890


14.1

Specialty Therapies

447


393


13.8


434


393


10.4

Neuromodulation

350


341


2.6


345


341


1.2

Medical Surgical

982


884


11.1


982


884


11.1

Surgical & Endoscopy

671


622


7.9


671


622


7.9

Acute Care & Monitoring

311


263


18.5


311


263


18.5

Total Reportable Segments

4,649


3,988


16.6


4,630


3,988


16.1

Diabetes(5)

240


217


10.6


240


217


10.6

Other(6)

17


20


(12.1)


--


--


--

TOTAL

$     4,906


$     4,224


16.1 %


$     4,870


$     4,205


15.8 %


See description of non-GAAP financial measures contained in the press release dated September 1, 2026.

(1)

U.S. includes the United States and U.S. territories.

(2)

The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

(3)

Fiscal year 2027 is a 53-week fiscal year, with the extra week occurring in the first fiscal month of the first quarter and included in reported first quarter results.

(4)

In fiscal year 2027, the Cardiovascular Portfolio divisions transitioned from Cardiac Rhythm & Heart Failure, Structural Heart & Aortic, and Coronary & Peripheral Vascular to Electrophysiology Therapies, Interventional Cardiology Therapies, CardioVascular Surgery, and Peripheral Vascular Health. Prior year net sales has been recast to conform to the current year presentation.

(5)

The Diabetes results presented here may not correspond to the same financial statement information presented by MiniMed Group, Inc. (MiniMed). The Diabetes Business as reported by Medtronic is prepared on a different basis than standalone Medtronic due to MiniMed's financials being prepared on a carve out basis through the date of the company's initial public offering (IPO) and on a standalone basis post IPO.

(6)

Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested.

(7)

The three months ended July 31, 2026 excludes $36 million of revenue adjustments, including $17 million of inorganic revenue for the transition activity noted in (6), $14 million of inorganic revenue related to the Scientia acquisition in the Specialty Therapies division, and $5 million of inorganic revenue related to the SPR acquisition in the Neuromodulation division. The three months ended July 25, 2025 excludes $20 million of revenue adjustments, including $20 million of inorganic revenue for the transition activity noted in (6).

 

MEDTRONIC PLC

INTERNATIONAL REVENUE(1)

(Unaudited)



FIRST QUARTER(2)


REPORTED




ORGANIC

(in millions)

FY27


FY26


Growth


Currency
Impact(7)


FY27(8)


FY26(8)


Growth

Cardiovascular(3)

$     2,074


$     1,806


14.8 %


$         21


$     2,053


$     1,806


13.7 %

Electrophysiology Therapies

1,041


878


18.5


8


1,033


878


17.6

Interventional Cardiology Therapies

601


538


11.6


6


595


538


10.5

CardioVascular Surgery

291


266


9.2


5


285


266


7.2

Peripheral Vascular Health

142


123


15.3


2


140


123


13.7

Neuroscience(3)

864


803


7.6


6


858


803


6.8

Cranial & Spinal Technologies

349


320


9.0


(2)


351


320


9.5

Specialty Therapies

326


309


5.6


6


321


309


3.7

Neuromodulation(3)

189


174


8.9


2


186


174


7.4

Medical Surgical(3)

1,297


1,188


9.2


15


1,282


1,171


9.5

Surgical & Endoscopy(3)

1,070


980


9.2


14


1,055


963


9.6

Acute Care & Monitoring

228


209


9.2


1


227


209


8.8

Total Reportable Segments

4,236


3,797


11.5


43


4,193


3,780


10.9

Diabetes(4)

603


504


19.6


14


589


504


16.8

Other(5)

12


53


NM(6)


--


--


--


--

TOTAL

$     4,850


$     4,354


11.4 %


$         57


$     4,782


$     4,284


11.6 %


See description of non-GAAP financial measures contained in the press release dated September 1, 2026.

(1)

The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

(2)

Fiscal year 2027 is a 53-week fiscal year, with the extra week occurring in the first fiscal month of the first quarter and included in reported first quarter results.

(3)

In fiscal year 2027, the Cardiovascular Portfolio divisions transitioned from Cardiac Rhythm & Heart Failure, Structural Heart & Aortic, and Coronary & Peripheral Vascular to Electrophysiology Therapies, Interventional Cardiology Therapies, CardioVascular Surgery, and Peripheral Vascular Health. Additionally, there was a product line that moved from the Medical Surgical Portfolio in the Surgical & Endoscopy division to the Neuroscience Portfolio in the Neuromodulation division. Prior year net sales has been recast to conform to the current year presentation.

(4)

The Diabetes results presented here may not correspond to the same financial statement information presented by MiniMed Group, Inc. (MiniMed). The Diabetes Business as reported by Medtronic is prepared on a different basis than standalone Medtronic due to MiniMed's financials being prepared on a carve out basis through the date of the company's initial public offering (IPO) and on a standalone basis post IPO.

(5)

Includes the historical operations and ongoing transition agreements from businesses the Company has exited or divested, and adjustments to the Company's Italian payback accruals resulting from the June 30, 2025 Legislative Decree published by the Italian Government for years 2015 to 2018.

(6)

Not meaningful (NM).

(7)

The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.

(8)

The three months ended July 31, 2026 excludes $68 million of revenue adjustments, including $12 million of inorganic revenue for the transition activity noted in (5) and $57 million of favorable currency impact on the remaining net sales. The three months ended July 25, 2025 excludes $70 million of revenue adjustments, including $14 million of inorganic revenue related to the transition activity noted in (5), $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (5), and $17 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division.

 

MEDTRONIC PLC

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) 



Three months ended

(in millions, except per share data)

July 31, 2026


July 25, 2025

Net sales

$              9,756


$              8,578

Costs and expenses:




Cost of products sold, excluding amortization of intangible assets

3,416


3,001

Research and development expense

771


726

Selling, general, and administrative expense

3,198


2,806

Amortization of intangible assets

412


459

Restructuring charges, net

72


45

Certain litigation charges, net

--


27

Other operating expense (income), net

123


70

Operating profit

1,764


1,445

Other non-operating expense (income), net

(190)


(33)

Interest expense, net

186


176

Income before income taxes

1,769


1,302

Income tax provision

289


255

Net income

1,479


1,047

Net income attributable to noncontrolling interests

(9)


(7)

Net income attributable to Medtronic

$              1,470


$              1,040

Basic earnings per share

$                1.15


$                0.81

Diluted earnings per share

$                1.14


$                0.81

Basic weighted average shares outstanding

1,279.8


1,281.6

Diluted weighted average shares outstanding

1,285.1


1,287.1


The data in the schedule above has been intentionally rounded to the nearest million.

 

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS(1)

(Unaudited) 



Three months ended July 31, 2026

(in millions, except per share data)

Net
Sales


Cost of
Products
Sold


Gross
Margin
Percent


Operating
Profit


Operating
Profit
Percent


Income
Before
Income
Taxes


Net Income
attributable
to
Medtronic


Diluted
EPS


Effective
Tax Rate

GAAP

$  9,756


$   3,416


65.0 %


$     1,764


18.1 %


$    1,769


$       1,470


$     1.14


16.4 %

Non-GAAP Adjustments:


















Amortization of intangible assets

--


--


--


412


4.2


412


337


0.26


18.2

Restructuring and associated costs(2)

--


(8)


0.1


89


0.9


89


70


0.05


21.2

Acquisition and divestiture-related items(3)

--


(11)


0.1


50


0.5


50


41


0.03


18.2

(Gain)/loss on minority investments(4)

--


--


--


--


--


(64)


(64)


(0.05)


(0.1)

Certain tax adjustments, net(5)

--


--


--


--


--


--


5


--


--

Non-GAAP

$  9,756


$   3,396


65.2 %


$     2,316


23.7 %


$    2,257


$       1,860


$     1.45


17.2 %

Currency impact

(57)


(21)


--


(27)


(0.1)






(0.02)



Currency Adjusted

$  9,699


$   3,375


65.2 %


$     2,290


23.6 %






$     1.43






















Three months ended July 25, 2025

(in millions, except per share data)

Net
Sales


Cost of
Products
Sold


Gross
Margin
Percent


Operating
Profit


Operating
Profit
Percent


Income
Before
Income
Taxes


Net Income
attributable
to
Medtronic


Diluted
EPS


Effective
Tax Rate

GAAP

$  8,578


$   3,001


65.0 %


$     1,445


16.8 %


$    1,302


$       1,040


$     0.81


19.6 %

Non-GAAP Adjustments:


















Amortization of intangible assets(6)

--


--


--


459


5.5


459


374


0.29


18.5

Restructuring and associated costs(2)

--


(16)


0.1


67


0.8


67


51


0.04


22.4

Acquisition and divestiture-related items(3)

--


(7)


--


58


0.7


58


48


0.04


17.2

Certain litigation charges, net

--


--


--


27


0.3


27


21


0.02


22.2

(Gain)/loss on minority investments(4)

--


--


--


--


--


113


107


0.08


6.2

Other(7)

(39)


--


(0.2)


(39)


(0.5)


(39)


(30)


(0.02)


20.5

Certain tax adjustments, net(5)

--


--


--


--


--


--


16


0.01


--

Non-GAAP

$  8,539


$   2,979


65.1 %


$     2,016


23.6 %


$    1,987


$       1,626


$     1.26


17.8 %


See description of non-GAAP financial measures contained in the press release dated September 1, 2026.

(1)

The data in this schedule has been intentionally rounded to the nearest million or $0.01 for EPS figures, and, therefore, may not sum.

(2)

The charges primarily relate to employee termination benefits, facility related and contract termination costs, and asset write offs.

(3)

The charges primarily include business combination costs, changes in fair value of contingent consideration, and exit of business-related charges. Exit of business-related charges primarily relate to the impending separation of the Diabetes Business and costs associated with the Company's June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.  

(4)

We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.

(5)

The net charges for the three months ended July 31, 2026 and July 25, 2025, primarily relate to amortization of previously established deferred tax assets arising from previous intercompany intellectual property transactions. The net charges for the three months ended July 31, 2026, were partially offset by the release of reserves for uncertain tax positions on prior period intercompany transactions.

(6)

The Company recognized $45 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio.

(7)

Reflects adjustments to the Company's Italian payback accruals resulting from the June 30, 2025 Legislative Decree published by the Italian government for years 2015 to 2018.

 

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS(1)

(Unaudited) 



Three months ended July 31, 2026

(in millions)

Net Sales


SG&A
Expense


SG&A
Expense as
a % of Net
Sales


R&D
Expense


R&D
Expense
as a % of
Net Sales


Other
Operating
Expense
(Income),
net


Other
Operating
Exp./(Inc.),
net as a % of
Net Sales


Other Non-
Operating
Expense
(Income), net

GAAP

$      9,756


$     3,198


32.8 %


$       771


7.9 %


$         123


1.3 %


$          (190)

Non-GAAP Adjustments:
















Restructuring and associated costs(2)

--


(10)


(0.1)


--


--


--


--


--

Acquisition and divestiture-related items(3)

--


(26)


(0.3)


--


--


(13)


(0.1)


--

(Gain)/loss on minority investments(4)

--


--


--


--


--


--


--


64

Non-GAAP

$      9,756


$     3,162


32.4 %


$       771


7.9 %


$         110


1.1 %


$          (127)


See description of non-GAAP financial measures contained in the press release dated September 1, 2026.

(1)

The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.

(2)

The charges primarily relate to employee termination benefits, facility related and contract termination costs, and asset write offs.

(3)

The charges primarily include business combination costs, changes in fair value of contingent consideration, and exit of business-related charges. Exit of business-related charges primarily relate to the impending separation of the Diabetes Business and costs associated with the Company's June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.

(4)

We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.

 

MEDTRONIC PLC

GAAP TO NON-GAAP RECONCILIATIONS(1)

(Unaudited)



Three months ended

(in millions)

July 31, 2026


July 25, 2025

Net cash provided by operating activities

$                      1,793


$                      1,088

Additions to property, plant, and equipment

(503)


(504)

Free Cash Flow(2)

$                      1,290


$                        584


See description of non-GAAP financial measures contained in the press release dated September 1, 2026.

(1)

The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.

(2)

Free cash flow represents operating cash flows less property, plant, and equipment additions.

 

MEDTRONIC PLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



Three months ended

(in millions)

July 31, 2026


July 25, 2025

Operating Activities:




Net income

$                1,479


$                1,047

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

729


748

Provision for credit losses

25


28

Deferred income taxes

127


167

Stock-based compensation

125


86

Other, net

(29)


159

Change in operating assets and liabilities, net of acquisitions and divestitures:




Accounts receivable, net

224


288

Inventories

(240)


(373)

Accounts payable and accrued liabilities

(531)


(598)

Other operating assets and liabilities

(118)


(464)

Net cash provided by operating activities

1,793


1,088

Investing Activities:




Acquisitions, net of cash acquired

(1,162)


--

Additions to property, plant, and equipment

(503)


(504)

Purchases of investments

(2,190)


(2,100)

Sales and maturities of investments

2,209


2,010

Other investing activities, net

26


(125)

Net cash used in investing activities

(1,619)


(719)

Financing Activities:




Change in current debt obligations, net

812


649

Payments on long-term debt

--


(1,162)

Dividends to shareholders

(921)


(910)

Issuance of ordinary shares

20


95

Repurchase of ordinary shares

(267)


(123)

Other financing activities, net

13


70

Net cash used in financing activities

(343)


(1,381)

Effect of exchange rate changes on cash and cash equivalents

(89)


67

Net change in cash and cash equivalents

(258)


(945)

Cash and cash equivalents at beginning of period

1,949


2,218

Cash and cash equivalents at end of period

$                1,691


$                1,273





Supplemental Cash Flow Information




Cash paid for:




  Income taxes

$                   199


$                   402

  Interest

83


81


The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/medtronic-reports-first-quarter-fiscal-2027-results-delivers-broad-based-portfolio-performance-and-raises-fiscal-2027-guidance-302865648.html

SOURCE Medtronic plc

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