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% as reported and 6.0% organic year-over-year, exceeding guidance by 50 basis points, driven by strong end markets, innovation pipeline, and operational improvements.

• 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.

• Four generational growth drivers—PFA platform, Symplicity Spyral, Altaviva, and Hugo surgical robot—target large, under-penetrated markets with billion-dollar potential.

• Significant progress in innovation, regulatory milestones, and commercial launches across multiple business segments, including FDA clearances for Hugo and Stealth AXIS.

• Executed strategic M&A transactions: CathWorks and Anteris, strengthening digital and structural heart portfolios.

Financial highlights

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

• Adjusted EPS was $1.36, $0.03 above guidance midpoint; GAAP EPS was $0.89, down 12% year-over-year.

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

• Cardiovascular portfolio grew 10.6% organic, led by 80% growth in Cardiac Ablation Solutions; Diabetes up 8.3% organic, driven by international and new product launches.

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

Outlook and guidance

• FY26 organic revenue growth guidance reiterated at approximately 5.5%, with Q4 growth expected similar to Q3.

• FY26 EPS guidance maintained at $5.62–$5.66; high single-digit EPS growth expected for FY27, with growth acceleration excluding the extra week in FY27.

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

• FY26 revenue guidance raised to $36.1B–$36.2B.