Medtronic stock jumps on strong Q1 2027 earnings and raised guidance

Published on 09/01/2026 at 16:27 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Medtronic stock is gaining after the healthcare technology group reported double-digit revenue growth in its first quarter of fiscal 2027 and lifted its full-year outlook, signaling accelerating momentum in its devices portfolio.

Geometrisches Bauhaus-Poster mit bunten Formen und dem Schriftzug MEDTECH — Medtronic plc (ISIN IE00BTN1Y115) Bauhaus-Poster präsentiert geometrische Formen mit dem Sektor-Schriftzug MEDTECH prominent, Illustration mit AI erstellt.

Medtronic plc (ISIN IE00BTN1Y115) stock is in demand after the healthcare technology group reported a strong first quarter of fiscal 2027, with revenue rising 13.7 percent year over year to about USD 9.76 billion and adjusted diluted EPS climbing to USD 1.45 as of the quarter ended July 31, 2026, according to the company’s earnings release dated September 1, 2026.

Double-digit growth and margin gains in Q1 2027

According to Medtronic’s first quarter fiscal 2027 results, worldwide revenue reached USD 9.756 billion for the quarter ended July 31, 2026, an increase of 13.7 percent both as reported and on an organic basis versus Q1 fiscal 2026.

The company reported GAAP operating profit of USD 1.764 billion in Q1 fiscal 2027, corresponding to an operating margin of 18.1 percent, up 120 basis points compared with the prior-year quarter, while non-GAAP operating profit came in at USD 2.316 billion for a margin of 23.7 percent, an increase of 10 basis points year over year, according to the same release.

GAAP net income for Q1 fiscal 2027 was USD 1.470 billion and GAAP diluted EPS stood at USD 1.14, representing year-over-year increases of 41.4 percent and 40.7 percent respectively versus Q1 fiscal 2026, while non-GAAP net income reached USD 1.860 billion and non-GAAP diluted EPS USD 1.45, up 14.4 percent and 15.1 percent respectively over the prior-year period.

Guidance raised as analysts highlight upside

Medtronic is coupling the strong quarter with a more ambitious outlook. Based on the Q1 performance, management raised its fiscal 2027 organic revenue growth guidance to a range of 7.25 percent to 7.75 percent, up from the previous band of 6.75 percent to 7.25 percent, as detailed in an earnings call transcript published by Investing.com.

The company also lifted its full-year adjusted diluted EPS guidance for fiscal 2027 to a range of USD 5.94 to USD 6.00, with the midpoint of USD 5.97 sitting slightly above a consensus level of USD 5.95 mentioned in market commentary, underscoring that the new guidance reflects confidence in sustained earnings growth following the strong Q1 delivery.

For the second quarter of fiscal 2027, Medtronic expects organic revenue growth of about 6 percent and adjusted EPS in a range of USD 1.32 to USD 1.34, according to the same call summary, providing investors with a more granular near-term trajectory for both top line and profitability.

Market observers note that the Q1 revenue of USD 9.756 billion exceeded analyst expectations of about USD 9.55 billion, and that the adjusted EPS of USD 1.45 was around USD 0.06 above a consensus estimate of USD 1.39, according to a live news report summarizing the Q1 beat and guidance increase.

Stock reaction and valuation context

The earnings beat and higher guidance translated directly into a positive market reaction. Medtronic shares were reported trading in pre-market sessions at levels around USD 92.90 to USD 94.94, up between roughly 2.5 percent and 4.7 percent from a prior close of about USD 90.65 as of late August 2026, according to market data snapshots cited by Investing.com’s Q1 FY27 coverage.

Further intraday data indicates that Medtronic shares recently traded around USD 95.06, showing a daily gain of 4.81 percent and a 20-day performance of about 7.56 percent, with trading volume approximately 1.74 times the 20-day average, according to a report from Financial News.

From a valuation perspective, some models suggest the stock remains below estimated intrinsic value even after the earnings-related move. For instance, a GF Value indication recently placed Medtronic’s intrinsic value at about USD 100.66 per share versus a spot price of roughly USD 90.65, implying an undervaluation of around 9.9 percent as of data compiled on September 1, 2026, according to analysis shared on GuruFocus.

For investors, the combination of mid-single-digit to high-single-digit expected organic revenue growth, rising margins, and a valuation signal that still suggests some upside relative to intrinsic value measures is an important backdrop when weighing Medtronic’s stock after the Q1 fiscal 2027 report.

Device portfolio as a driver of growth

Medtronic’s broad-based device portfolio remains central to its growth story. The company highlighted strong demand in cardiovascular and other core therapeutic areas in its fiscal 2027 Q1 commentary, with revenue gains supported by new product launches and ongoing adoption of advanced technologies across its segments.

Within its cardiovascular portfolio, heart device demand was singled out as a key factor supporting guidance revisions for the fiscal year, reflecting both volume growth and an improving mix, according to a Reuters-based summary cited in regional financial media, which noted that the outlook increase was partly attributed to a robust pipeline of devices for heart rhythm and structural heart interventions.

Other segments such as medical surgical and neuroscience also contributed to the 13.7 percent organic revenue growth, illustrating that Medtronic’s performance in the quarter was not dependent on a single line of business but instead reflected broad-based portfolio strength.

Medtronic technology in everyday care

One representative product area for Medtronic is its implantable cardiac devices, which play a central role in managing arrhythmias and other heart rhythm disorders. These devices generate recurring revenue through both hardware and associated services and can benefit from continuous innovation in battery life, connectivity, and monitoring capabilities.

In everyday clinical practice, such devices are used to help patients maintain stable heart rhythms, reduce the risk of severe events, and enable physicians to monitor patients remotely. For Medtronic, advancements in these technologies contribute to its ability to sustain growth, reinforce relationships with providers, and expand into adjacent applications as digital and data elements become more embedded in device platforms.

Medtronic stock and investor takeaway

Medtronic stock, listed on the New York Stock Exchange under the ticker MDT, recently traded around USD 95.25 as of early trading on September 1, 2026, representing a gain of about 5.08 percent versus the prior close and positioning the shares meaningfully above levels near USD 90.65 observed at the end of August 2026, according to price data compiled by Finviz.