Medtronic Secures Class I Billing Codes as Analysts Turn Bullish Ahead of 2028 Rollout

AMA grants Class I billing codes to Medtronic's Symplicity Spyral and Altaviva, effective January 2028, as FDA fast-tracks its IN.PACT BTK catheter.

Medtronic has cleared one of the more stubborn hurdles facing any new medical device: winning durable reimbursement. The American Medical Association has granted Class I billing codes to two of the company's flagship therapy platforms — the Symplicity Spyral system for hypertension and the Altaviva system for urge incontinence. The designations, confirmed Thursday, replace the interim Class III codes that had governed both products and take effect in January 2028.

That shift matters more than the calendar suggests. Class III codes typically force insurers into case-by-case reviews, slowing adoption and leaving physicians uncertain about payment. Class I status embeds fixed reimbursement standards into routine clinical practice, a transition the industry treats as a prerequisite for commercial scale in novel device categories.

FDA Fast-Tracks Below-the-Knee Catheter

Fresh regulatory momentum arrived midweek, when the FDA handed Medtronic breakthrough therapy designation for IN.PACT BTK, an investigational drug-coated balloon catheter. The device, coated with paclitaxel, targets vascular lesions below the knee. Breakthrough status is designed to compress the approval timeline, and Medtronic is preparing a global registration study — the randomized IN.PACT BTK DELTA trial — that will enroll roughly 400 patients with below-knee arterial narrowing.

Wall Street Zen Upgrades to Buy

Sentiment on the equity shifted over the weekend, with Wall Street Zen lifting its rating from Hold to Buy on Sunday. The upgrade lands after a string of quarterly results that have kept the company on track, at a moment when defensive healthcare names are drawing renewed interest.

Shares finished the prior session in European trading at EUR 76.72, giving Medtronic a market value of EUR 98.13 billion. The stock slipped 0.3% on Friday, closing at the same EUR 76.72 level.

Revenue Growth at a Decade High

The improved mood rests on hard numbers. Medtronic posted 8.4% revenue growth in fiscal 2026 — its strongest in ten years — and carried that momentum into the first quarter of fiscal 2027, when sales climbed nearly 14%. The quarterly report released September 1 beat expectations, with revenue of USD 9.76 billion and adjusted earnings per share of USD 1.45. Management is guiding for full-year fiscal 2027 EPS of USD 5.94 to USD 6.00.

New platforms such as the Hugo surgical robotics system are expected to contribute. The broader medtech sector also retains appeal as interest rates stay elevated and bond yields fluctuate, since procedures and treatments are largely insulated from economic cycles.

Cardiovascular Restructuring and Santa Rosa Closure

Running alongside the expansion is a push to streamline operations. Medtronic plans to reorganize its cardiovascular business into two separate units, according to media reports. As part of that effort, its Santa Rosa, California site — which traces back to a 1998 acquisition — is slated to close within two years, with roughly 370 positions expected to be cut by spring 2027.

The operational and regulatory wins come during a broader strategic overhaul. Medtronic is advancing the spinoff of its MiniMed diabetes unit, set in motion just over three weeks ago; the share price has shed 2.2% since then. Management is steering the company toward higher-margin core segments in heart and vascular medicine.

Dividend Streak Reaches 49 Years

For income-focused investors, the payout remains a fixture. Medtronic has raised its dividend for 49 consecutive years. The next quarterly distribution, payable October 16, goes to shareholders of record as of the September 25 date. The payout stands at USD 0.72 per share, equivalent to an annualized USD 2.88.

Investors now have a clear set of markers to watch: how quickly the company executes its restructuring, whether the MiniMed separation stays on schedule, and how the 2028 reimbursement shift translates into real-world adoption.