Medtronic Posts 9.9% Q4 Revenue Rise and Raises Dividend 72¢
MDT•Medtronic reported Q4 revenue of $9.81 billion, up 9.9% year-over-year, with adjusted EPS of $1.55 and annual revenue reaching $36.4 billion, the highest growth in a decade. Cardiovascular sales rose 13.8% to $3.8 billion and Diabetes jumped 15.0%, while operating margins contracted 230 basis points; dividend raised to $0.72 and FY27 EPS guided $5.90-$6.00.
1. Q4 and Annual Revenues
Medtronic reported Q4 revenue of $9.81 billion, marking a 9.9% increase from the prior year, and delivered adjusted EPS of $1.55. Total fiscal 2026 revenue reached $36.4 billion, its strongest annual growth in a decade at an 8.4% year-over-year advance.
2. Segment Performance
The Cardiovascular business generated $3.8 billion in Q4 revenue, up 13.8%, and totaled $13.98 billion for fiscal 2026, a 12% annual rise driven in part by the PulseSelect PFA system. The Diabetes segment grew 15.0% in Q4, while Neuroscience and MedSurg lines reported annual revenues of $10.3 billion (+4.5%) and $8.8 billion (+4.9%), respectively.
3. Margin Pressure and Dividend Hike
Operating margins contracted by 230 basis points in Q4 due to a MiniMed Blackstone payment and tariffs, weighing on profitability despite stronger volumes. The board approved a quarterly dividend increase to $0.72 per share, reflecting confidence in cash flow generation.
4. FY27 Guidance and Outlook
For fiscal 2027, Medtronic forecasts organic revenue growth of 6.75%–7.25% and EPS between $5.90 and $6.00. While slightly below some estimates, the outlook incorporates continued investment in high-growth platforms and disciplined cost management.
