Medtronic fiscal 2026 revenue hits decade-high as cardiovascular strength and restructuring shift the setup
A fiscal 2026 revenue print of $36.4 billion puts Medtronic (NYSE: MDT) in focus. The 8.4% gain, with 5.8% organic growth, was the company's strongest top-line result in ten years, and the cardiovascular segment drove it, posting 9.3% organic expansion while accounting for more than 38% of enterprise revenue. Guidance for fiscal 2027 targets 7.25% to 7.75% organic growth, above the company's historical average of roughly 5%.
Key takeaways
- Medtronic reported fiscal 2026 revenue of $36.4 billion, an 8.4% gain and 5.8% organic growth, its strongest top-line result in ten years.
- The cardiovascular segment led with 9.3% organic growth and made up more than 38% of enterprise revenue.
- Medtronic guided fiscal 2027 organic growth to 7.25%-7.75%, above its historical average of roughly 5%.
- Free cash flow reached $5.43 billion in fiscal 2026, up 4.6%, with $3.64 billion paid in dividends and a 49-year streak of payout increases.
- At $92, MDT trades at 18 times next year's estimated earnings, below the S&P 500's 21 times forward earnings.
A fiscal 2026 revenue print of $36.4 billion puts Medtronic (NYSE: MDT) in focus. The 8.4% gain, with 5.8% organic growth, was the company's strongest top-line result in ten years, and the cardiovascular segment drove it, posting 9.3% organic expansion while accounting for more than 38% of enterprise revenue. Guidance for fiscal 2027 targets 7.25% to 7.75% organic growth, above the company's historical average of roughly 5%.
Behind the print: restructuring and capacity
Over the past year, Medtronic pruned its workforce, overhauled its cardiovascular operations, announced the closure of its Santa Rosa campus, and spun off its diabetes business as a separately listed company, MiniMed (NASDAQ: MMED). The restructuring was aimed at freeing cash to fund dividends while expanding the cardiovascular and neuroscience portfolios. It worked on the cash side: free cash flow reached $5.43 billion in fiscal 2026, a 4.6% increase, and $3.64 billion of that went to dividends. The forward yield is 3.1%. Forty-nine consecutive years of payout increases put the company one year from Dividend King status.
The five-year backdrop tells the harder story. The stock declined more than 30% under the weight of supply chain constraints, quality control problems, rising costs, and competitive pressure. All four segments expanded organically in fiscal 2026: cardiovascular, neuroscience, medical surgical, and diabetes.
The valuation setup
At $92, MDT shares trade at 18 times next year's estimated earnings. The S&P 500 trades at 21 times forward earnings. Analysts expect earnings per share to grow at a 14% compound annual rate from fiscal 2026 through fiscal 2029 and reported revenue at a 5% compound annual rate over the same period. Both are analyst estimates, not company guidance.
What to watch: fiscal 2027 organic growth landing in the 7.25%-7.75% band. Beyond that, whether the cardiovascular segment sustains the 9.3% organic growth rate it posted in fiscal 2026.
Related reading
Filed by the newsroom of MarketPR on September 4, 2026. Source: finance.yahoo.com. Indicative figures are not investment advice.