Medtronic (MDT) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue reached $9.8B, up 13.7% year-over-year, exceeding guidance and marking the strongest quarterly performance in nearly 8 years excluding COVID impacts, with broad-based growth across all major businesses and significant contributions from new platforms and recent acquisitions.

• Non-GAAP diluted EPS was $1.45, up 15.1% year-over-year and ahead of guidance; GAAP diluted EPS was $1.14, up 40.7%, driven by higher net sales and investment gains.

• Strategic M&A activity included acquisitions of Scientia Vascular and SPR Therapeutics, and partnerships with Cornerstone Robotics and Pi-Cardia to expand robotics and structural heart portfolios.

• Raised FY27 guidance for both organic revenue growth and non-GAAP EPS following strong Q1 results and innovation momentum.

• Operating cash flow increased to $1.8B, up $0.7B year-over-year, reflecting higher sales and lower tax and litigation payments.

Financial highlights

• Q1 FY27 revenue was $9.8B, up 13.7% year-over-year on both reported and organic bases, with U.S. growth at nearly 16% and international at 12%.

• Adjusted operating profit was $2.3B, up 15% year-over-year; adjusted operating margin was 23.7%, up 10 bps; GAAP operating profit was $1.76B (18.1% margin).

• Adjusted gross margin was 65.2%, up 10 bps year-over-year; GAAP gross margin was 65%.

• Net income attributable to shareholders was $1.47B GAAP (up 41.4%); non-GAAP net income was $1.86B (up 14.4%).

• Free cash flow for Q1 was $1.29B, more than double the prior year period.

Outlook and guidance

• FY27 organic revenue growth guidance raised to 7.25%-7.75% (up 50 bps); Q2 organic revenue growth expected at ~6%.

• FY27 non-GAAP EPS guidance increased to $5.94-$6.00; Q2 EPS expected at $1.32-$1.34.

• Guidance includes an estimated neutral to 1% FX impact and incorporates M&A, tariffs, and an extra selling week.

• The planned separation of the Diabetes Business is expected to be completed within the fiscal year.

• Macroeconomic and geopolitical risks, including trade policy changes and inflation, may impact future results.