Medtronic (MDT) Q3 2026 earnings summary

Executive summary

• Achieved highest revenue growth in 10 quarters, with Q3 FY26 revenue of $9.0 billion, up 8.7% reported and 6.0% organic year-over-year, exceeding guidance by 50 basis points, driven by strong end markets and innovation pipeline.

• Non-GAAP diluted EPS was $1.36, three cents above guidance midpoint; GAAP diluted EPS was $0.89, down 11.9% year-over-year due to higher costs from tariffs and restructuring.

• Strong performance in Cardiovascular (up 11% YoY, Cardiac Ablation Solutions up 80%), CRM, and Diabetes (up 8.3% organic), with significant share gains and new product launches.

• Four generational growth drivers—PFA platform for AFib, Symplicity Spyral for hypertension, Altaviva for urge urinary incontinence, and Hugo surgical robot—are positioned to each deliver over $1 billion in revenue.

• Significant progress in expanding installed base and launching new products, including FDA and CE Mark clearances for key platforms and first U.S. installations for Hugo robot.

Financial highlights

• Q3 FY26 revenue reached $9.0B (+8.7% reported, +6.0% organic YoY), with adjusted operating profit of $2.2B (24.1% margin) and adjusted EPS of $1.36.

• GAAP net income was $1.15B–$1.143B, down from prior year; non-GAAP net income was $1.75B.

• Gross margin was 64.9% (non-GAAP), 63.8% (GAAP), both down year-over-year due to tariffs and higher costs.

• Free cash flow for nine months was $3.34B, up from $3.12B year-over-year.

• Cost of products sold increased to 36.2% of net sales, mainly due to tariffs and asset write-offs.

Outlook and guidance

• FY26 organic revenue growth guidance reiterated at approximately 5.5%; Q4 expected to match Q3 at around 6%.

• FY26 adjusted EPS guidance maintained at $5.62–$5.66; revenue guidance raised to $36.1B–$36.2B.

• High single-digit EPS growth expected for FY27, with growth acceleration excluding the benefit of an extra week in FY27.

• Guidance includes a $185M tariff impact in FY26; excluding tariffs, EPS growth expected at ~4.5%.

• Management expects continued growth across all segments, with ongoing product launches and regulatory approvals anticipated.