Medtronic Lifts Outlook, Invests Over $700 Million in Heart Tech & Robotics — Update

By Connor Hart

Medtronic raised its outlook for the year after posting higher fiscal first-quarter profit and sales, driven by broad-based demand and contributions from newer growth platforms.

The medical-device maker also announced two separate investments totaling about $780 million, one supporting a heart-technology company and the other a surgical-robotics company.

Medtronic Chief Financial Officer Thierry Piéton said strong operating performance and disciplined financial management drove adjusted per-share earnings and revenue higher during the recent quarter, giving the company confidence to raise its outlook.

Shares recently rose 6.5% to $96.50 in premarket trading.

The company now expects full-year adjusted earnings of $5.94 to $6 a share, raising the low-end of guidance by 4 cents. Revenue is now projected to grow 7.25% to 7.75% on an organic basis, up from a prior forecast of 6.75% to 7.25%.

The new outlook came as Medtronic reported net income of $1.47 billion, or $1.14 a share, up from $1.04 billion, or 81 cents a share, in last year's comparable quarter.

Stripping out one-time items, earnings were $1.45 a share. Analysts polled by FactSet expected adjusted earnings of $1.39 a share.

Net sales climbed 14% to $9.76 billion, topping Wall Street models for $9.55 billion. On an organic basis, sales also rose 14%.

Cardiovascular sales jumped 20% to $3.93 billion, making the unit Medtronic's largest top-line contributor. Sales across the company's neuroscience arm rose 10% to $2.68 billion, while sales across its medical-surgical business gained 10% to $2.28 billion.

Separately, Medtronic on Tuesday said it will invest roughly $700 million in Cornerstone Robotics in exchange for the right to distribute its Sentire surgery system in select international markets.

Along with Medtronic's own Hugo robotic-assisted surgery system, the two platforms will expand access, offering surgeons and health systems more choice and flexible solutions, the company said.

Medtronic also agreed to invest up to $80 million in Pi-Cardia, whose ShortCut device is the first FDA-cleared leaflet modification technology designed to enable valve-in-valve, transcatheter aortic valve replacement procedures in patients at risk of coronary obstruction

The agreement also includes an option for Medtronic to acquire Pi-Cardia upon achievement of predefined milestones for an estimated upfront acquisition price of up to $210 million, the companies said.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

September 01, 2026 07:52 ET (11:52 GMT)