Shares of Medtronic surged 7.4% to $79.20 in pre-market trading on June 3 after the medical-device giant delivered fiscal Q4 results that beat on revenue and capped its strongest year of sales growth since 2016. The jump breaks a week-long slide that had pushed the stock below $74, but investors now face a pointed question: is the rally pricing in a growth story that management's own forecasts suggest will slow?
• A $9.8 Billion Quarter That Beat the Street on Sales
Revenue came in at $9.81 billion, topping the $9.61 billion consensus estimate by 2.0% and representing a 9.9% increase year-over-year.
Non-GAAP diluted EPS of $1.55 came in ahead of the company's own guidance.
For the full fiscal year, Medtronic posted worldwide revenue of $36.4 billion, up 8.4% as reported and 5.8% organically — the kind of top-line acceleration that had eluded this company for years.
• Heart Treatments Are Driving the Turnaround
Cardiac Ablation Solutions — procedures that correct irregular heartbeats — grew 78% globally, including 124% U.S. growth, capturing an additional 8 points of U.S. market share.
The broader Cardiovascular segment led overall performance with $3.80 billion in revenue, up 10.1% year-over-year. This single business line now accounts for roughly 39% of quarterly sales, making Medtronic's growth story increasingly dependent on its cardiac franchise.
• Next Year's Profit Guidance Leaves Wall Street Wanting More
For fiscal 2027, Medtronic guided organic revenue growth of 6.75%–7.25%, but its non-GAAP EPS range of $5.90–$6.00 came in below the $6.06 expected by analysts.
That EPS range implies growth of just 6.7%–8.5%, and the outlook already bakes in headwinds from tariffs, higher interest costs, and increased acquisition spending. In other words, revenue momentum is real, but margins face pressure.
• A 49-Year Dividend Streak Sweetens the Deal
Medtronic raised its quarterly dividend to $0.72 per share, or $2.88 annually.
This marks the 49th consecutive year of dividend increases — a streak that anchors the stock for income-focused investors and yields roughly 3.6% at today's price. That income cushion may matter if earnings growth disappoints next year.
The bottom line: Medtronic's cardiac business is firing on all cylinders, but a stock up 7% on a day when profit guidance missed expectations is a bet that revenue growth will eventually pull earnings higher. Shareholders should watch whether margin expansion follows — or whether today's pop becomes the high-water mark.