Medtronic PLC (MDT) Q3 2026 Earnings Call Highlights: Strong Cardiovascular Growth and …

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Wed, February 18, 2026 at 4:00 AM GMT+9 4 min read

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MDT

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**Revenue:** $9 billion, 8.7% reported growth, 6% organic growth.

**Cardiovascular Revenue Growth:** 11% year-over-year, 13% growth in the US.

**CAS Growth:** 80% year-over-year, with PFA accounting for 80% of that revenue.

**Cardiac Rhythm Management Revenue:** 15% of total revenue, 5% growth.

**Peripheral Vascular Health Growth:** High-single-digit growth.

**Structural Heart Growth:** Low-single-digits.

**Neuroscience Portfolio Growth:** 3% growth.

**Cranial and Spinal Technologies Growth:** Mid-single-digit growth, 8% growth in Core Spine.

**MedSearch Portfolio Growth:** 3% growth.

**Diabetes Business Growth:** 15% reported, over 8% organic growth.

**Adjusted Gross Margin:** 64.9%.

**Adjusted Operating Profit:** $2.2 billion, 24.1% adjusted operating margin.

**Adjusted EPS:** $1.36, $0.03 above guidance midpoint.

**Fiscal '26 EPS Guidance:** $5.62 to $5.66.

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Release Date: February 17, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Medtronic PLC (NYSE:MDT) reported an 11% year-over-year revenue growth in its cardiovascular portfolio, marking the strongest growth in a decade, excluding COVID comparisons.

The company achieved FDA clearance for its Hugo robotic system for urologic surgical procedures, with initial installations and cases completed at Cleveland Clinic.

Medtronic PLC (NYSE:MDT) is seeing strong patient outcomes and interest in its Symplicity Spyral for hypertension, with a significant increase in website visits due to its Go Beyond campaign.

The Altaviva device for urge urinary incontinence is gaining early interest and feedback, with a focus on disciplined execution to convert early traction into procedures.

The Stealth AXiS Surgical System for spinal procedures received FDA clearance, integrating AI-powered planning, robotics, and navigation, which is expected to drive growth in the neuroscience business.

Negative Points

The neuroscience portfolio grew only 3%, which was below expectations, although the company anticipates pipeline contributions to growth in the next quarter.

Structural Heart growth was softer, with low-single-digit growth, partly due to competitive pressure in the US.

The company faces ongoing challenges in China due to volume-based procurement, impacting growth in certain businesses.

Medtronic PLC (NYSE:MDT) anticipates a tariff impact of approximately $185 million for fiscal year '26, which will affect gross margins.

The diabetes business, while showing growth, is in the early stages of manufacturing ramp-up, impacting the mix and gross margins.

 






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Q & A Highlights

Q: Can you discuss the accelerating revenue growth for next year and the commitment to high single-digit earnings growth? A: Geoffrey Martha, CEO, explained that the growth is driven by strong performance in CAS, Symplicity for hypertension, and Altaviva for overactive bladder. Thierry Pieton, CFO, added that the EPS growth is supported by improved gross margins, separation of the diabetes business, and continued investment in R&D and M&A. They are confident in achieving high single-digit EPS growth for FY27 despite some headwinds like tariffs and temporary dilution from the diabetes separation.

Q: How should we monitor the progress of Ardian and Altaviva as growth accelerators? A: Geoffrey Martha, CEO, mentioned that they are seeing strong leading indicators such as training over 500 physicians for Altaviva and opening over 200 new accounts for Ardian. They plan to provide more concrete goalposts as these launches mature.

Q: What are your thoughts on the EP market growth and CAS growth going forward? A: Geoffrey Martha, CEO, stated that they expect the EP market to grow at least in the high-teens in FY27. Medtronic is well-positioned with its portfolio of catheters and mapping, and they anticipate sustaining CAS growth in Q4 and beyond.

Q: How do you view capital allocation and M&A strategy, especially with recent deals like CathWorks and Anteris? A: Geoffrey Martha, CEO, emphasized their commitment to accelerating M&A with a focus on tuck-in deals and close adjacencies to existing businesses. They plan to invest in several venture and tuck-in opportunities across their portfolio, prioritizing high-growth areas.

Q: Can you elaborate on the market development for renal denervation and Symplicity? A: Geoffrey Martha, CEO, highlighted the strong consumer demand with a significant increase in website visits. They are building referral pathways, hiring market development personnel, and focusing on health economics and coding. The foundational elements like FDA approval and reimbursement are in place, and they plan to build the Symplicity brand further.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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