Medtronic delivered non-GAAP EPS of $1.36 (beating the $1.34 consensus by $0.02) on revenue of $9.017 billion (+8.7% YoY), surpassing the $8.91B estimate by ~$110M. The Cardiovascular portfolio surged 13.8%, led by 80% growth in Cardiac Ablation Solutions. Despite the earnings beat, shares fell ~3.2% to $96.39 in regular trading on February 17, as the company reiterated (rather than raised) its full-year guidance.
About Medtronic plc
Medtronic plc (NYSE: MDT) is the world’s largest pure-play medical technology company, headquartered in Galway, Ireland, and originally founded in 1949 in Minneapolis, Minnesota. The company develops and manufactures devices and therapies for over 70 health conditions — spanning cardiac devices, surgical robotics, insulin pumps, neuromodulation systems, spinal implants, and patient monitoring solutions.
As of mid-February 2026, Medtronic carries a market capitalization of approximately $127.7 billion, trades at a P/E ratio of ~26.8, and offers a forward dividend yield of ~2.9% ($2.84 annualized). The company employs over 95,000 people across more than 150 countries. With a debt-to-equity ratio of 0.57, a current ratio of 2.42, and a beta of 0.71, Medtronic maintains a conservative financial profile characteristic of blue-chip healthcare firms
Top Financial Highlights
- Total Revenue: $9.017 billion, up 8.7% as reported and 6.0% on an organic basis — 50 basis points ahead of Q3 guidance.
- GAAP Diluted EPS: $0.89, versus $1.01 in the year-ago quarter.
- Non-GAAP Diluted EPS: $1.36, three cents above Q3 guidance mid-point; beating the analyst consensus of $1.34 by $0.02.
- GAAP Net Income: $1.143 billion, compared to $1.294 billion in Q3 FY25.
- Non-GAAP Net Income: $1.750 billion.
- GAAP Operating Profit: $1.464 billion with a 16.2% operating margin.
- Non-GAAP Operating Profit: $2.177 billion with a 24.1% operating margin.
- Adjusted Gross Margin: 64.9%.
- Cardiovascular Portfolio: $3.457 billion (+13.8% reported, +10.6% organic), with Cardiac Ablation Solutions up 80% (137% in the U.S.) on pulsed field ablation strength.
- Neuroscience Portfolio: $2.558 billion (+4.1% reported, +2.5% organic)
- Medical Surgical Portfolio: $2.173 billion (+4.9% reported, +2.7% organic).
- Diabetes Business: $796 million (+14.8% reported, +8.3% organic), led by double-digit international growth.
- YTD Operating Cash Flow: $4.757 billion (nine months ended Jan 23, 2026) versus $4.516 billion in the prior-year period.
- Cash and Cash Equivalents: $1.147 billion as of January 23, 2026.
- FY26 Guidance Reiterated: Organic revenue growth of ~5.5%; non-GAAP diluted EPS of $5.62–$5.66 (includes ~$185M potential tariff impact).
(Image Source: medtronic.com)
Beat or Miss?
| Metric | Reported | Analyst Estimate | Difference |
| Revenue | $9.017B | $8.91B | +$110M (+1.2% beat) |
| Non-GAAP EPS | $1.36 | $1.34 | +$0.02 (+1.5% beat) |
| GAAP EPS | $0.89 | N/A | Down from $1.01 YoY |
| Organic Revenue Growth | 6.00% | ~5.5% guidance | +50 bps above guidance |
| FY26 EPS Guidance | $5.62–$5.66 | $5.65 consensus | Essentially in line |
| FY26 Revenue Guidance | ~5.5% organic growth | $36.04B consensus | Reiterated, not raised |
Medtronic delivered a double beat on both revenue and earnings. Revenue exceeded expectations by approximately $110 million, driven primarily by outsized performance in the Cardiac Rhythm & Heart Failure division and Acute Care & Monitoring. The EPS beat of $0.03 versus guidance mid-point was largely attributable to stronger-than-expected revenue, partially offset by a ~100 basis point higher-than-forecast adjusted tax rate of 17.3%.
What Leadership Is Saying?
“Q3 marks another strong quarter, delivering 6% organic revenue growth, ahead of guidance, demonstrating the strength of our portfolio. By unlocking new markets and investing in high-growth opportunities, we are accelerating performance across the company. Our innovation pipeline and portfolio breadth give us confidence in our ability to sustain long-term growth. It’s an exciting time for Medtronic.” – CEO — Geoff Martha (Chairman & Chief Executive Officer)
“This quarter, we again delivered accelerated growth while investing decisively in our future. We continued to invest in R&D to strengthen our innovation pipeline, funded significant growth opportunities while driving G&A leverage, and we executed on our M&A and venture strategy with two key transactions in the quarter. Bottom line, we are executing on our roadmap and positioning the business for sustainable growth.” – CFO — Thierry Piéton (Chief Financial Officer)
Additionally, during the earnings call, Piéton noted: “Our adjusted operating profit was $2.2 billion, resulting in an adjusted operating margin of 24.1%, ahead of expectations again. All in all, adjusted EPS was $1.36, 3 cents above the midpoint of our guidance range.” He also indicated the company is targeting high single-digit EPS growth in fiscal 2027.
Historical Performance
Medtronic Q3 FY26 vs. Q3 FY25
| Category | Q3 FY26 | Q3 FY25 | Change (%) |
| Total Revenue | $9.017B | $8.292B | +8.7% |
| GAAP Net Income | $1.143B | $1.294B | −11.7% |
| Non-GAAP Net Income | $1.750B | N/A (est. ~$1.79B*) | ~flat |
| GAAP EPS | $0.89 | $1.01 | −11.9% |
| Non-GAAP EPS | $1.36 | $1.39 | −2.2% |
| GAAP Operating Margin | 16.20% | 19.90% | −370 bps |
| Non-GAAP Operating Margin | 24.10% | ~25.3% | −~120 bps |
| Cost of Products Sold | $3.261B | $2.779B | +17.3% |
| R&D Expense | $722M | $675M | +7.0% |
| SG&A Expense | $2.956B | $2.717B | +8.8% |
| Cardiovascular Revenue | $3.457B | $3.037B | +13.8% |
| Diabetes Revenue | $796M | $693M | +14.8% |
Note: While revenue grew strongly at 8.7%, GAAP net income declined 11.7% YoY due to higher amortization of intangible assets ($441M vs $416M), increased restructuring charges ($77M vs $43M), and higher litigation charges ($62M vs $22M). On a non-GAAP basis, EPS declined 2.2% as margin compression from cost increases and acquisition-related spending offset the top-line growth.
Competitor YoY Comparison
The table below compares the most recently reported quarterly results for Medtronic’s key MedTech competitors. Note that Medtronic operates on a fiscal year ending in late April, while competitors report on a calendar-year basis; the periods shown represent each company’s most recent quarter as of February 2026.
| Company (Quarter) | Revenue | YoY Revenue Growth | Adj. EPS | YoY EPS Change | Adj. Operating Margin |
| Medtronic (Q3 FY26, ended Jan ’26) | $9.017B | +8.7% reported / +6.0% organic | $1.36 | −2.2% | 24.1% |
| Boston Scientific (Q4 CY25, ended Dec ’25) | $5.286B | +15.9% reported / +12.7% organic | $0.80 | 14.30% | 27.3% |
| Stryker (Q4 CY25, ended Dec ’25) | $7.17B | +11.4% reported / +11.0% organic | $4.47 | 11.50% | 30.2% |
| Abbott (Q4 CY25, ended Dec ’25) | $11.46B | +4.4% reported / +3.8% organic (ex-COVID) | $1.50 (adj.) | 11.90% | 23.3% |
- Boston Scientific continues to be the fastest-growing large-cap MedTech name, posting 12.7% organic growth in Q4 2025 and guiding for 10–11% organic growth in 2026. Its electrophysiology segment grew 35% in Q4, directly competing with Medtronic’s Cardiac Ablation portfolio.
- Stryker delivered the highest adjusted operating margin (30.2%) among the group and maintained double-digit organic growth (11.0%), driven by its Mako robotic surgical platform and strong capital equipment demand. FY2026 guidance calls for 8.0–9.5% organic growth.
- Abbott posted the slowest growth at 4.4% reported, weighed down by declining diagnostics and nutrition segments, though its Medical Devices division grew 10.4% organically. Abbott guides for 6.5–7.5% organic sales growth in 2026.
- Medtronic’s 6.0% organic growth represents a meaningful acceleration from its historical mid-single-digit pace, though it still trails Boston Scientific and Stryker. The margin differential — particularly versus Stryker’s 30.2% — highlights an ongoing profitability gap.
How the Market Reacted?
Despite beating both top-line and bottom-line expectations, Medtronic shares fell approximately 3.2% on Tuesday, February 17, 2026, closing at $96.39 — down $3.19 from the prior session’s close of $99.58. In pre-market trading, the stock had dropped as much as 3.51% to around $96. The sell-off appears driven by investor disappointment that Medtronic merely reiterated its full-year FY26 guidance rather than raising it, despite the strong Q3 beat.
Additionally, the full-year non-GAAP EPS guidance of $5.62–$5.66 falls short of the broader consensus estimate of approximately $6.12 cited by some analysts, reflecting the anticipated ~$185 million drag from tariffs. The muted stock reaction also comes in the context of MDT shares having rallied approximately 22% over the prior 12 months, suggesting some positive earnings momentum may have already been priced in.
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