Medtronic reports 13.7% organic revenue growth in fiscal 2027 Q1
Medtronic plc reported first-quarter fiscal 2027 organic revenue growth of 13.7%, a figure that includes an estimated 670-basis-point benefit from an extra selling week. Management stated that excluding this calendar benefit, the quarter delivered the company's best performance in nearly eight years, excluding pandemic-related periods. The medical device manufacturer, which has a market capitalization of $120.53 billion, achieved this result while maintaining a Zacks Rank #3 Hold rating.
Medtronic plc reported first-quarter fiscal 2027 organic revenue growth of 13.7%, a figure that includes an estimated 670-basis-point benefit from an extra selling week. Management stated that excluding this calendar benefit, the quarter delivered the company's best performance in nearly eight years, excluding pandemic-related periods. The medical device manufacturer, which has a market capitalization of $120.53 billion, achieved this result while maintaining a Zacks Rank #3 Hold rating.
Cardiac ablation emerged as the primary growth driver during the period. The company's Cardiac Arrhythmia Solutions (CAS) segment increased 88% worldwide, driven by the expanded adoption of the Affera and Sphere-9 systems. Medtronic also completed the acquisitions of Scientia Vascular and SPR Therapeutics. The company expects these two entities to contribute more than $150 million in inorganic revenue during fiscal 2027. Both acquired firms operate in markets with annual growth rates exceeding 20%.
The Hypertension business continues to gain momentum following the final Medicare National Coverage Determination for the Symplicity Spyral renal denervation franchise. At the end of fiscal 2026, average weekly procedures had doubled compared to pre-decision levels, and the franchise annualized at approximately $100 million. In the first quarter of fiscal 2027, management noted progress in market development and hospital adoption. The SPYRAL AFFIRM clinical trial was accepted as a late-breaker for the Transcatheter Cardiovascular Therapeutics conference in fall 2026. Medtronic plans to launch a transradial catheter in the second half of fiscal 2027 to facilitate integration into interventional workflows.
The Medical Surgical segment saw organic revenue rise 10.2% in the first quarter of fiscal 2027, compared with 2.9% growth in fiscal 2026. The Surgical and Endoscopy sub-segment increased 9%, supported by Advanced Energy, Wound Management, and Endoscopy. The Hugo surgical robot contributed significantly to this growth, with management projecting that it will exceed 50,000 completed procedures by the end of fiscal 2027. Touch Surgery is currently utilized in more than 1,500 operating rooms globally. An agreement with Pi-Cardia is expected to contribute to growth and margins beginning in fiscal 2028.
Despite strong operational results, Medtronic faces macroeconomic headwinds. The company's fiscal 2027 guidance assumes a revenue drag of $50 million to $150 million from foreign exchange movements, with an expected earnings per share impact ranging from neutral to a 1% benefit. Tariffs had only a slight negative effect on margins in the first quarter, largely offset by refunds. Product mix was unfavorable by 50 basis points, primarily due to the Diabetes and CAS segments. The Zacks Consensus Estimate for Medtronic's fiscal 2027 earnings per share has increased by 1 cent to $5.98 over the past 30 days. The consensus estimate for fiscal 2027 revenue stands at $38.97 billion, representing a 7.2% increase from the prior year.