Medtronic reports strong third quarter fiscal 2026 results with highest enterprise revenue growth in 10 quarters

Rhea-AI Summary

Medtronic (NYSE: MDT) reported Q3 FY26 revenue of $9.017 billion, up 8.7% as reported and 6.0% organic, with GAAP diluted EPS of $0.89 and non-GAAP diluted EPS of $1.36.

Notable drivers: Cardiac Ablation Solutions +80% (U.S. +137%), Diabetes organic +8.3%, CE Mark for Sphere-360, U.S. FDA clearances for Hugo robotic surgery and Stealth AXiS, and two M&A deals (CathWorks, Anteris). Company reiterated FY26 organic revenue ~5.5% and non-GAAP EPS guidance of $5.62–$5.66 (tariff impact ~$185M).

Positive

• Q3 revenue $9.017 billion
• Organic revenue growth +6.0% in Q3
• Cardiac Ablation revenue +80% (U.S. +137%)
• Non-GAAP diluted EPS $1.36 in Q3
• Reiterated FY26 organic growth ~5.5% and EPS $5.62–$5.66

Negative

• GAAP diluted EPS $0.89 versus non-GAAP $1.36
• GAAP operating margin 16.2% versus non-GAAP 24.1%
• Potential tariff headwind ~$185 million for FY26

Key Figures

Q3 FY26 revenue: $9.017 billion Cardiovascular revenue: $3.457 billion Q3 GAAP EPS: $0.89 +5 more

8 metrics

Q3 FY26 revenue $9.017 billion Worldwide Q3 FY26 revenue, up 8.7% reported, 6.0% organic

Cardiovascular revenue $3.457 billion Q3 Cardiovascular Portfolio, 13.8% reported and 10.6% organic growth

Q3 GAAP EPS $0.89 Q3 FY26 GAAP diluted earnings per share

Q3 non-GAAP EPS $1.36 Q3 FY26 non-GAAP diluted EPS, three cents ahead of guidance midpoint

Q3 GAAP operating margin 16.2% Q3 FY26 GAAP operating margin on $1.464 billion profit

Q3 non-GAAP operating margin 24.1% Q3 FY26 non-GAAP operating margin on $2.177 billion profit

FY26 EPS guidance $5.62–$5.66 Reiterated diluted non-GAAP EPS guidance including ~$185M tariff impact

Cardiac Ablation growth 80% YoY Q3 Cardiac Ablation Solutions revenue growth; 137% growth in U.S.

Market Reality Check

Price: $99.49 Vol: Volume 10,354,527 is at 1...

normal vol

$99.49 Last Close

Volume Volume 10,354,527 is at 1.12x the 20-day average of 9,242,799, indicating modestly elevated trading activity ahead of earnings. normal

Technical Shares at $99.49 are trading above the 200-day MA of $93.40, sitting 6.43% below the $106.33 52-week high and 25.07% above the $79.55 52-week low.

Peers on Argus

Medtronic’s pre-news move of -1.38% occurred while key medical device peers were...

Medtronic’s pre-news move of -1.38% occurred while key medical device peers were mostly modestly lower: SYK -0.99%, BSX -0.12%, EW -0.98%, PHG -0.03%, with ZBH +1.46%. Combined with the momentum scanner showing no peers in the same-direction move, this points to stock-specific dynamics rather than a broad sector rotation.

Historical Context

5 past events · Latest: Feb 13 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 13	Regulatory clearance	Positive	-1.4%	FDA clearance of Stealth AXiS unified spine surgery platform.
Feb 11	Earnings scheduling	Neutral	-0.3%	Announcement of Q3 FY26 earnings release date and webcast details.
Feb 03	Acquisition intent	Positive	+0.5%	Plan to acquire CathWorks to expand AI-driven coronary physiology tools.
Feb 02	FDA/coverage wins	Positive	-0.2%	Medicare access and new FDA clearances expanding MiniMed 780G use.
Jan 23	CE Mark & IDE	Positive	-0.5%	CE Mark and first U.S. IDE cases for Sphere-360 PFA catheter.

Pattern Detected

Recent positive clinical, regulatory, and M&A updates have often seen flat-to-negative next-day reactions, with only one of the last five news events aligning positively with price.

Recent Company History

Over the last few weeks, Medtronic has reported a series of constructive updates. On Jan 23, Affera’s Sphere-360 PFA catheter achieved CE Mark and initiated U.S. IDE cases, followed by expanded U.S. Diabetes clearances and Medicare access on Feb 2. The company then announced its intent to acquire CathWorks for up to $585 million on Feb 3, and secured FDA clearance for the Stealth AXiS spine platform on Feb 13. Despite these milestones, share reactions were mostly slightly negative, indicating a pattern of muted or contrarian responses to positive news.

Market Pulse Summary

This announcement highlights Medtronic’s strongest enterprise revenue growth in 10 quarters, with Q3...

Analysis

This announcement highlights Medtronic’s strongest enterprise revenue growth in 10 quarters, with Q3 FY26 revenue of $9.017 billion, 6.0% organic growth, and non-GAAP EPS of $1.36, ahead of guidance. Cardiovascular and Diabetes posted double-digit reported growth, and FY26 organic revenue and EPS guidance were reiterated despite an expected $185 million tariff impact. In context of recent clearances and M&A activity, investors may focus on sustainability of high-growth franchises, execution on new technologies, and consistency between future quarters and this outlook.

Key Terms

gaap, non-gaap, ce mark, pivotal trial, +4 more

8 terms

gaap financial

"GAAP diluted EPS of $0.89; non-GAAP diluted EPS of $1.36"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

non-gaap financial

"GAAP diluted EPS of $0.89; non-GAAP diluted EPS of $1.36"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

ce mark regulatory

"Secured CE Mark for Sphere-360™ and initiated U.S. pivotal trial"

A CE mark is a regulatory stamp placed on products to show they meet the European Union’s basic safety, health and environmental rules and can be sold in the European Economic Area. For investors it matters because the mark unlocks market access, affects how quickly a product can generate revenue, and signals regulatory risk and potential compliance costs—think of it as a passport that lets a product enter a large market.

pivotal trial medical

"Secured CE Mark for Sphere-360™ and initiated U.S. pivotal trial"

A pivotal trial is a key test of a new medicine or treatment to see if it works and is safe enough to be approved by health authorities. It's like a final exam for a new product, and passing it is essential for bringing the treatment to the public.

fda clearance regulatory

"Secured U.S. FDA clearance for Hugo™ robotic-assisted surgery"

FDA clearance is the U.S. Food and Drug Administration’s official permission to market certain medical devices or diagnostic tests after reviewing evidence that they are as safe and effective as similar products already on the market. For investors, it’s like a product passing a required safety inspection — it reduces regulatory uncertainty, speeds commercial rollout, and can directly affect sales prospects, valuation, and partnership opportunities.

ide regulatory

"Horizon 360 IDE pivotal trial on Jan 23, 2026."

An IDE (Investigational Device Exemption) is a regulatory permission that allows a company to test an unapproved medical device in human clinical trials to gather safety and effectiveness data. Think of it as a temporary road permit for a new product: getting the IDE moves a technology from concept toward approval and market access, which can reduce uncertainty and increase value for investors, while delays or denials raise development risk and potential costs.

eps financial

"GAAP diluted EPS of $0.89; non-GAAP diluted EPS of $1.36"

Earnings per share (EPS) measures how much profit a company makes for each outstanding share of its stock by dividing the company’s profit after expenses by the number of shares. It matters to investors because it shows how much of the company’s “pie” each share represents—higher EPS usually signals greater profitability per share, helps compare companies of different sizes, and influences stock valuations and investor decisions.

operating margin financial

"Q3 GAAP operating profit and operating margin were $1.464 billion and 16.2%"

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

AI-generated analysis. Not financial advice.

Cardiovascular portfolio up 11% year-over-year; Cardiac Ablation Solutions grew 80% on strength of pulsed field ablation portfolio

GALWAY, Ireland, Feb. 17, 2026 /PRNewswire/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced financial results for its third quarter (Q3) of fiscal year 2026 (FY26), which ended January 23, 2026.

Q3 Key Highlights

• Revenue of $9.0 billion, increased 8.7% as reported and 6.0% organic, 50 basis points ahead of Q3 guidance
• GAAP diluted EPS of $0.89; non-GAAP diluted EPS of $1.36, three cents ahead of Q3 guidance mid-point
• Company reiterates FY26 organic revenue growth and EPS guidance
• Cardiac Ablation Solutions revenue increased 80%, including 137% in the U.S., on strength of pulsed field ablation (PFA) portfolio
• Secured CE Mark for Sphere-360™ and initiated U.S. pivotal trial
• Secured U.S. FDA clearance for Hugo™ robotic-assisted surgery; first cases completed this month
• Secured U.S. FDA clearance for Stealth AXiS™ Surgical System for spinal procedures
• Diabetes revenue increased 8.3% led by double-digit strength in International markets
• Executing M&A strategy with two key transactions in the quarter: CathWorks in Coronary and Renal Denervation and Anteris in Structural Heart

"Q3 marks another strong quarter, delivering 6% organic revenue growth, ahead of guidance, demonstrating the strength of our portfolio," said Geoff Martha, Medtronic chairman and chief executive officer. "By unlocking new markets and investing in high-growth opportunities, we are accelerating performance across the company. Our innovation pipeline and portfolio breadth give us confidence in our ability to sustain long-term growth. It's an exciting time for Medtronic."

Financial Results
Medtronic reported Q3 worldwide revenue of $9.017 billion, an increase of 8.7% as reported and 6.0% on an organic basis. The organic revenue growth comparison excludes:

• Other revenue of $32 million in the current year and $32 million in the prior year
• Revenue from the Dutch Obesity Clinic (NOK) divestiture with no revenue in the current year and $15 million in the prior year
• Foreign exchange benefit of $242 million on the remaining segments

Q3 revenue by segment included:

• Cardiovascular Portfolio revenue of $3.457 billion, an increase of 13.8% as reported and 10.6% organic, with high-teens increase in Cardiac Rhythm & Heart Failure, low-single digit increase in Structural Heart & Aortic, and mid-single digit increase in Coronary & Peripheral Vascular, all on an organic basis
• Neuroscience Portfolio revenue of $2.558 billion, an increase of 4.1% reported and 2.5% organic, with mid-single digit increase in Neuromodulation, mid-single digit increase in Cranial & Spinal Technologies, and flat result in Specialty Therapies, all on an organic basis
• Medical Surgical Portfolio revenue of $2.173 billion, an increase of 4.9% as reported and 2.7% organic, with low-single digit increase in Surgical & Endoscopy, and high-single digit increase in Acute Care & Monitoring, all on an organic basis
• Diabetes business revenue of $796 million, an increase of 14.8% as reported and 8.3% organic

Q3 GAAP operating profit and operating margin were $1.464 billion and 16.2%, respectively. As detailed in the financial schedules included at the end of the release, Q3 non-GAAP operating profit and operating margin were $2.177 billion and 24.1%, respectively.

Q3 GAAP net income and diluted earnings per share (EPS) were $1.143 billion and $0.89, respectively. As detailed in the financial schedules included at the end of this release, Q3 non-GAAP net income and non-GAAP diluted EPS were $1.750 billion and $1.36, respectively.

Guidance
The company reiterates its FY26 organic revenue growth of approximately 5.5% and diluted non-GAAP EPS guidance of $5.62 to $5.66. This includes a potential impact from tariffs of approximately $185 million, unchanged from the prior guidance. Excluding the potential impact from tariffs, this guidance represents FY26 diluted non-GAAP EPS growth of approximately 4.5%.

"This quarter, we again delivered accelerated growth while investing decisively in our future," said Thierry Piéton, Medtronic chief financial officer. "We continued to invest in R&D to strengthen our innovation pipeline, funded significant growth opportunities while driving G&A leverage, and we executed on our M&A and venture strategy with two key transactions in the quarter. Bottom line, we are executing on our roadmap and positioning the business for sustainable growth."

Video Webcast Information
Medtronic will host a video webcast today, February 17, at 8:00 a.m. EST (7:00 a.m. CST) to provide information about its business for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Quarterly Earnings icon at investorrelations.medtronic.com, and this earnings release will be archived at news.medtronic.com. Within 24 hours of the webcast, a replay of the webcast and transcript of the company's prepared remarks will be available by clicking on the Past Events and Presentations link under the News & Events drop-down at investorrelations.medtronic.com.

Financial Schedules and Earnings Presentation
The third quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Quarterly Earnings link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the earnings presentation, click here.

About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE: MDT), visit www.Medtronic.com and follow on LinkedIn.

FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, changing global trade policies, material acquisition and divestiture transactions, general economic conditions, and other risks and uncertainties described in the company's periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company. In some cases, you can identify these statements by forward-looking words or expressions, such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "looking ahead," "may," "plan," "possible," "potential," "project," "should," "going to," "will," and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this press release, including to reflect future events or circumstances.

NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including adjusted net income, adjusted diluted EPS, and organic revenue, which are considered "non-GAAP" financial measures under applicable SEC rules and regulations. References to quarterly or annual figures increasing, decreasing or remaining flat are in comparison to fiscal year 2025, and references to sequential changes are in comparison to the prior fiscal quarter. Unless stated otherwise, quarterly and annual rates and ranges are given on an organic basis.

Medtronic management believes that non-GAAP financial measures provide information useful to investors in understanding the company's underlying operational performance and trends and to facilitate comparisons with the performance of other companies in the med tech industry. Non-GAAP net income and diluted EPS exclude the effect of certain charges or gains that contribute to or reduce earnings but that result from transactions or events that management believes may or may not recur with similar materiality or impact to operations in future periods (Non-GAAP Adjustments). Medtronic generally uses non-GAAP financial measures to facilitate management's review of the operational performance of the company and as a basis for strategic planning. Non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies. Management strongly encourages investors to review the company's consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial schedules accompanying this press release.

Medtronic calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic revenue growth guidance excludes the impact of foreign currency fluctuations, as well as significant acquisitions, divestitures, or other significant discrete items. Forward-looking diluted non-GAAP EPS guidance also excludes other potential charges or gains that would be recorded as Non-GAAP Adjustments to earnings during the fiscal year. Medtronic does not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of recognition of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.

Contacts:
Justin Paquette 
Public Relations
+1-612-271-7935

Ingrid Goldberg
Investor Relations
+1-763-505-2696

 

MEDTRONIC PLC WORLD WIDE REVENUE(1) (Unaudited)
	THIRD QUARTER															YEAR-TO-DATE
	REPORTED								ORGANIC							REPORTED								ORGANIC
(in millions)	FY26		FY25		Growth		Currency Impact(4)		FY26(5)		FY25(5)		Growth			FY26		FY25		Growth		Currency Impact(4)		FY26(6)		FY25(6)		Growth
Cardiovascular	$     3,457		$  3,037		13.8 %		$         99		$     3,359		$     3,037		10.6 %			$   10,179		$     9,145		11.3 %		$        213		$     9,966		$     9,145		9.0 %
Cardiac Rhythm & Heart Failure	1,856		1,545		20.1		48		1,808		1,545		17.0			5,394		4,659		15.8		107		5,287		4,659		13.5
Structural Heart & Aortic	929		874		6.3		32		897		874		2.6			2,814		2,610		7.8		71		2,743		2,610		5.1
Coronary & Peripheral Vascular	672		618		8.8		18		654		618		5.9			1,971		1,876		5.0		35		1,935		1,876		3.1
Neuroscience	2,558		2,458		4.1		38		2,520		2,458		2.5			7,536		7,226		4.3		81		7,455		7,226		3.2
Cranial & Spinal Technologies	1,310		1,250		4.8		13		1,296		1,250		3.7			3,819		3,632		5.1		31		3,788		3,632		4.3
Specialty Therapies	746		732		1.9		15		731		732		(0.2)			2,191		2,181		0.4		28		2,163		2,181		(0.8)
Neuromodulation	503		476		5.8		10		493		476		3.6			1,527		1,413		8.1		22		1,504		1,413		6.5
Medical Surgical	2,173		2,072		4.9		61		2,112		2,057		2.7			6,428		6,196		3.7		128		6,295		6,164		2.1
Surgical & Endoscopy	1,654		1,596		3.6		51		1,603		1,581		1.4			4,945		4,790		3.2		106		4,834		4,758		1.6
Acute Care & Monitoring	519		476		9.1		10		509		476		7.0			1,483		1,406		5.5		22		1,461		1,406		3.9
Diabetes	796		694		14.8		44		751		694		8.3			2,274		2,027		12.2		90		2,184		2,027		7.8
Total Reportable Segments	8,985		8,260		8.8		242		8,743		8,245		6.0			26,417		24,593		7.4		512		25,901		24,562		5.4
Other(2)	32		32		3.0		—		—		—		—			140		17		NM(3)		4		—		—		—
TOTAL	$     9,017		$  8,292		8.7 %		$        243		$     8,743		$     8,245		6.0 %			$   26,557		$   24,610		7.9 %		$        516		$   25,901		$   24,562		5.4 %

See description of non-GAAP financial measures contained in the press release dated February 17, 2026.
(1)	The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(2)	Includes the historical operations and ongoing transition agreements from businesses the Company has exited or divested, and for the year-to-date figures, adjustments to the Company's Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(3)	Not meaningful (NM).
(4)	The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.
(5)	The three months ended January 23, 2026 excludes $275 million of revenue adjustments, including $32 million of inorganic revenue for the transition activity noted in (2) and $242 million of favorable currency impact on the remaining segments. The three months ended January 24, 2025 excludes $47 million of revenue adjustments, including $32 million of inorganic revenue related to the transition activity noted in (2) and $15 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division.
(6)	The nine months ended January 23, 2026 excludes $656 million of revenue adjustments, including $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (2), $101 million of inorganic revenue for the transition activity noted in (2), $5 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division, and $512 million of favorable currency impact on the remaining segments. The nine months ended January 24, 2025 excludes $48 million of revenue adjustments, including $90 million of incremental Italian payback accruals further described in note (2), $106 million of inorganic revenue related to the transition activity noted in (2), and $31 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division.

 

MEDTRONIC PLC U.S. REVENUE(1)(2) (Unaudited)
	THIRD QUARTER													YEAR-TO-DATE
	REPORTED						ORGANIC							REPORTED						ORGANIC
(in millions)	FY26		FY25		Growth		FY26		FY25		Growth			FY26		FY25		Growth		FY26		FY25		Growth
Cardiovascular	$     1,589		$     1,405		13.1 %		$     1,589		$     1,405		13.1 %			$     4,660		$     4,242		9.9 %		$     4,660		$     4,242		9.9 %
Cardiac Rhythm & Heart Failure	953		775		23.0		953		775		23.0			2,708		2,309		17.3		2,708		2,309		17.3
Structural Heart & Aortic	367		372		(1.4)		367		372		(1.4)			1,128		1,129		—		1,128		1,129		—
Coronary & Peripheral Vascular	269		258		4.2		269		258		4.2			824		804		2.5		824		804		2.5
Neuroscience	1,709		1,689		1.2		1,709		1,689		1.2			5,063		4,931		2.7		5,063		4,931		2.7
Cranial & Spinal Technologies	977		943		3.6		977		943		3.6			2,833		2,724		4.0		2,833		2,724		4.0
Specialty Therapies	402		419		(4.0)		402		419		(4.0)			1,204		1,235		(2.5)		1,204		1,235		(2.5)
Neuromodulation	330		327		1.1		330		327		1.1			1,026		972		5.6		1,026		972		5.6
Medical Surgical	929		893		4.1		929		893		4.1			2,756		2,718		1.4		2,756		2,718		1.4
Surgical & Endoscopy	634		623		1.7		634		623		1.7			1,920		1,928		(0.4)		1,920		1,928		(0.4)
Acute Care & Monitoring	295		269		9.5		295		269		9.5			836		790		5.8		836		790		5.8
Diabetes	248		236		4.9		248		236		4.9			695		683		1.7		695		683		1.7
Total Reportable Segments	4,475		4,223		6.0		4,475		4,223		6.0			13,174		12,573		4.8		13,174		12,573		4.8
Other(3)	18		15		23.4		—		—		—			60		51		16.8		—		—		—
TOTAL	$     4,493		$     4,237		6.0 %		$     4,475		$     4,223		6.0 %			$   13,234		$   12,624		4.8 %		$   13,174		$   12,573		4.8 %

See description of non-GAAP financial measures contained in the press release dated February 17, 2026.
(1)	U.S. includes the United States and U.S. territories.
(2)	The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(3)	Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested.

 

MEDTRONIC PLC INTERNATIONAL REVENUE(1) (Unaudited)
	THIRD QUARTER															YEAR-TO-DATE
	REPORTED								ORGANIC							REPORTED								ORGANIC
(in millions)	FY26		FY25		Growth		Currency Impact(4)		FY26(5)		FY25(5)		Growth			FY26		FY25		Growth		Currency Impact(4)		FY26(6)		FY25(6)		Growth
Cardiovascular	$     1,868		$     1,632		14.5 %		$         99		$     1,770		$     1,632		8.5 %			$     5,519		$     4,904		12.5 %		$        213		$     5,306		$     4,904		8.2 %
Cardiac Rhythm & Heart Failure	903		770		17.3		48		855		770		11.0			2,686		2,350		14.3		107		2,580		2,350		9.8
Structural Heart & Aortic	562		502		12.0		32		530		502		5.5			1,686		1,482		13.8		71		1,615		1,482		9.0
Coronary & Peripheral Vascular	403		360		12.2		18		385		360		7.1			1,146		1,072		6.9		35		1,111		1,072		3.6
Neuroscience	849		769		10.4		38		811		769		5.4			2,474		2,295		7.8		81		2,392		2,295		4.2
Cranial & Spinal Technologies	333		307		8.4		13		320		307		4.1			985		907		8.6		31		955		907		5.2
Specialty Therapies	343		313		9.7		15		328		313		5.0			987		947		4.3		28		959		947		1.3
Neuromodulation	173		149		16.0		10		163		149		9.1			501		441		13.5		22		478		441		8.4
Medical Surgical	1,244		1,180		5.5		61		1,183		1,165		1.6			3,671		3,478		5.6		128		3,539		3,447		2.7
Surgical & Endoscopy	1,020		973		4.8		51		969		958		1.1			3,024		2,862		5.7		106		2,914		2,831		2.9
Acute Care & Monitoring	224		206		8.5		10		214		206		3.8			647		616		5.0		22		625		616		1.4
Diabetes	548		457		19.8		44		504		457		10.1			1,579		1,344		17.5		90		1,489		1,344		10.9
Total Reportable Segments	4,510		4,038		11.7		242		4,267		4,023		6.1			13,243		12,020		10.2		512		12,726		11,989		6.2
Other(2)	14		17		(14.6)		—		—		—		—			80		(35)		NM(3)		4		—		—		—
TOTAL	$     4,524		$     4,055		11.6 %		$        243		$     4,267		$     4,023		6.1 %			$   13,323		$   11,986		11.2 %		$        516		$   12,726		$   11,989		6.2 %

See description of non-GAAP financial measures contained in the press release dated February 17, 2026.
(1)	The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(2)	Includes the historical operations and ongoing transition agreements from businesses the Company has exited or divested, and for the year-to-date figures, adjustments to the Company's Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(3)	Not meaningful (NM).
(4)	The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.
(5)	The three months ended January 23, 2026 excludes $257 million of revenue adjustments, including $14 million of inorganic revenue for the transition activity noted in (2) and $242 million of favorable currency impact on the remaining segments. The three months ended January 24, 2025 excludes $32 million of revenue adjustments, including $17 million of inorganic revenue related to the transition activity noted in (2) and $15 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division.
(6)	The nine months ended January 23, 2026 excludes $597 million of revenue adjustments, including $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (2), $41 million of inorganic revenue for the transition activity noted in (2), $5 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division, and $512 million of favorable currency impact on the remaining segments. The nine months ended January 24, 2025 excludes $3 million of revenue adjustments, including $90 million of incremental Italian payback accruals further described in note (2), $55 million of inorganic revenue related to the transition activity noted in (2), and $31 million of inorganic revenue related to a sale of business in the Surgical and Endoscopy division.

 

MEDTRONIC PLC CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
	Three months ended				Nine months ended
(in millions, except per share data)	January 23, 2026		January 24, 2025		January 23, 2026		January 24, 2025
Net sales	$              9,017		$              8,292		$           26,557		$           24,610
Costs and expenses:
Cost of products sold, excluding amortization of intangible assets	3,261		2,779		9,323		8,485
Research and development expense	722		675		2,202		2,048
Selling, general, and administrative expense	2,956		2,717		8,727		8,129
Amortization of intangible assets	441		416		1,364		1,243
Restructuring charges, net	77		43		131		120
Certain litigation charges, net	62		22		89		104
Other operating expense (income), net	35		(5)		126		(38)
Operating profit	1,464		1,646		4,594		4,519
Other non-operating income, net	(121)		(72)		(247)		(403)
Interest expense, net	181		179		539		555
Income before income taxes	1,404		1,540		4,302		4,367
Income tax provision	254		237		724		737
Net income	1,150		1,303		3,578		3,630
Net income attributable to noncontrolling interests	(6)		(9)		(21)		(24)
Net income attributable to Medtronic	$              1,143		$              1,294		$             3,557		$             3,606
Basic earnings per share	$                0.89		$                1.01		$               2.77		$               2.80
Diluted earnings per share	$                0.89		$                1.01		$               2.76		$               2.79
Basic weighted average shares outstanding	1,282.6		1,282.4		1,282.1		1,286.7
Diluted weighted average shares outstanding	1,289.5		1,286.2		1,288.2		1,290.6

The data in the schedule above has been intentionally rounded to the nearest million.

 

MEDTRONIC PLC GAAP TO NON-GAAP RECONCILIATIONS(1) (Unaudited)
	Three months ended January 23, 2026
(in millions, except per share data)	Net Sales		Cost of Products Sold		Gross Margin Percent		Operating Profit		Operating Profit Percent		Income Before Income Taxes		Net Income attributable to Medtronic		Diluted EPS		Effective Tax Rate
GAAP	$  9,017		$   3,261		63.8 %		$     1,464		16.2 %		$    1,404		$       1,143		$     0.89		18.1 %
Non-GAAP Adjustments:
Amortization of intangible assets(2)	—		—		—		441		4.9		441		360		0.28		18.4
Restructuring and associated costs(3)	—		(89)		1.0		172		1.9		172		141		0.11		18.0
Acquisition and divestiture-related items(4)	—		(6)		0.1		38		0.4		38		33		0.03		13.2
Certain litigation charges, net	—		—		—		62		0.7		62		52		0.04		16.1
(Gain)/loss on minority investments(5)	—		—		—		—		—		8		7		0.01		12.5
Certain tax adjustments, net	—		—		—		—		—		—		14		0.01		—
Non-GAAP	$  9,017		$   3,166		64.9 %		$     2,177		24.1 %		$    2,125		$       1,750		$     1.36		17.3 %
Currency impact	(243)		(52)		(0.4)		(67)		(0.1)						(0.04)
Currency Adjusted	$  8,775		$   3,114		64.5 %		$     2,110		24.0 %						$     1.32
	Three months ended January 24, 2025
(in millions, except per share data)	Net Sales		Cost of Products Sold		Gross Margin Percent		Operating Profit		Operating Profit Percent		Income Before Income Taxes		Net Income attributable to Medtronic		Diluted EPS		Effective Tax Rate
GAAP	$  8,292		$   2,779		66.5 %		$     1,646		19.9 %		$    1,540		$       1,294		$     1.01		15.4 %
Non-GAAP Adjustments:
Amortization of intangible assets	—		—		—		416		5.0		416		339		0.26		18.5
Restructuring and associated costs(3)	—		(4)		—		46		0.6		46		37		0.03		19.6
Acquisition and divestiture-related items(4)	—		(1)		—		28		0.3		28		23		0.02		17.9
Certain litigation charges, net	—		—		—		22		0.3		22		18		0.01		22.7
(Gain)/loss on minority investments(5)	—		—		—		—		—		68		52		0.04		22.1
Medical device regulations(6)	—		(8)		0.1		11		0.1		11		9		0.01		18.2
Certain tax adjustments, net	—		—		—		—		—		—		15		0.01		—
Non-GAAP	$  8,292		$   2,766		66.6 %		$     2,169		26.2 %		$    2,130		$       1,787		$     1.39		15.7 %

See description of non-GAAP financial measures contained in the press release dated February 17, 2026.
(1)	The data in this schedule has been intentionally rounded to the nearest million or $0.01 for EPS figures, and, therefore, may not sum.
(2)	The Company recognized $30 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio.
(3)	The charges primarily relate to employee termination benefits, facility related and contract termination costs, and asset write offs.
(4)	The charges primarily include business combination costs, changes in fair value of contingent consideration, exit of business-related charges, and gains related to certain business or asset sales. Exit of business-related charges primarily relate to the impending separation of the Diabetes business. For the three months ended January 23, 2026, charges also include costs associated with the Company's June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.
(5)	We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.
(6)	The charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs.

 

MEDTRONIC PLC GAAP TO NON-GAAP RECONCILIATIONS(1) (Unaudited)
	Nine months ended January 23, 2026
(in millions, except per share data)	Net Sales		Cost of Products Sold		Gross Margin Percent		Operating Profit		Operating Profit Percent		Income Before Income Taxes		Net Income attributable to Medtronic		Diluted EPS		Effective Tax Rate
GAAP	$ 26,557		$   9,323		64.9 %		$     4,594		17.3 %		$    4,302		$         3,557		$     2.76		16.8 %
Non-GAAP Adjustments:
Amortization of intangible assets(2)	—		—		—		1,364		5.2		1,364		1,110		0.86		18.6
Restructuring and associated costs(3)	—		(105)		0.4		251		1.0		251		202		0.16		19.5
Acquisition and divestiture-related items(4)	—		(21)		—		96		0.4		96		73		0.06		24.0
Certain litigation charges, net	—		—		—		89		0.3		89		73		0.06		19.1
(Gain)/loss on minority investments(5)	—		—		—		—		—		145		137		0.11		5.5
Other(6)	(39)		—		—		(39)		(0.1)		(39)		(30)		(0.02)		20.5
Certain tax adjustments, net(7)	—		—		—		—		—		—		—		—		—
Non-GAAP	$ 26,518		$   9,197		65.3 %		$     6,356		24.0 %		$    6,209		$         5,122		$     3.98		17.2 %
Currency impact	(513)		(48)		(0.5)		(170)		(0.2)						(0.10)
Currency Adjusted	$ 26,005		$   9,149		64.8 %		$     6,185		23.8 %						$     3.88
	Nine months ended January 24, 2025
(in millions, except per share data)	Net Sales		Cost of Products Sold		Gross Margin Percent		Operating Profit		Operating Profit Percent		Income Before Income Taxes		Net Income attributable to Medtronic		Diluted EPS		Effective Tax Rate
GAAP	$ 24,610		$   8,485		65.5 %		$     4,519		18.4 %		$    4,367		$         3,606		$     2.79		16.9 %
Non-GAAP Adjustments:
Amortization of intangible assets	—		—		—		1,243		4.9		1,243		1,017		0.79		18.3
Restructuring and associated costs(3)	—		(24)		0.1		154		0.6		154		124		0.10		19.5
Acquisition and divestiture-related items(4)	—		(17)		—		15		0.1		15		3		—		73.3
Certain litigation charges, net	—		—		—		104		0.4		104		86		0.07		17.3
(Gain)/loss on minority investments(5)	—		—		—		—		—		41		14		0.01		61.0
Medical device regulations(8)	—		(27)		0.1		38		0.2		38		30		0.02		21.1
Other(6)	90		—		0.2		90		0.4		90		70		0.05		22.2
Certain tax adjustments, net(7)	—		—		—		—		—		—		49		0.04		—
Non-GAAP	$ 24,700		$   8,417		65.9 %		$     6,162		24.9 %		$    6,051		$         4,999		$     3.87		17.0 %

See description of non-GAAP financial measures contained in the press release dated February 17, 2026.
(1)	The data in this schedule has been intentionally rounded to the nearest million or $0.01 for EPS figures, and, therefore, may not sum.
(2)	The Company recognized $121 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio.
(3)	The charges primarily relate to employee termination benefits, facility related and contract termination costs, and asset write offs.
(4)	The charges primarily include business combination costs, changes in fair value of contingent consideration, exit of business-related charges, and gains related to certain business or asset sales. Exit of business-related charges primarily relate to the impending separation of the Diabetes business and costs associated with the Company's June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.
(5)	We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.
(6)	Reflects adjustments to the Company's Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(7)	The charges for the nine months ended January 23, 2026 primarily includes a tax benefit recognized due to a change in interest accrued on uncertain tax positions, offset by amortization of previously established deferred tax assets arising from intercompany intellectual property transactions. The charges for the nine months ended January 24, 2025 primarily includes amortization of previously established deferred tax assets arising from intercompany intellectual property transactions.
(8)	The charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs.

 

MEDTRONIC PLC GAAP TO NON-GAAP RECONCILIATIONS(1) (Unaudited)
	Three months ended January 23, 2026
(in millions)	Net Sales		SG&A Expense		SG&A Expense as a % of Net Sales		R&D Expense		R&D Expense as a % of Net Sales		Other Operating (Income) Expense, net		Other Operating (Inc.)/Exp., net as a % of Net Sales		Other Non- Operating Income, net
GAAP	$      9,017		$     2,956		32.8 %		$       722		8.0 %		$           35		0.4 %		$          (121)
Non-GAAP Adjustments:
Restructuring and associated costs(2)	—		(6)		(0.1)		—		—		—		—		—
Acquisition and divestiture-related items(3)	—		(35)		(0.4)		—		—		3		—		—
(Gain)/loss on minority investments(4)	—		—		—		—		—		—		—		(8)
Non-GAAP	$      9,017		$     2,914		32.3 %		$       722		8.0 %		$           38		0.4 %		$          (130)
	Nine months ended January 23, 2026
(in millions)	Net Sales		SG&A Expense		SG&A Expense as a % of Net Sales		R&D Expense		R&D Expense as a % of Net Sales		Other Operating (Income) Expense, net		Other Operating (Inc.)/Exp., net as a % of Net Sales		Other Non- Operating Income, net
GAAP	$    26,557		$     8,727		32.9 %		$    2,202		8.3 %		$         126		0.5 %		$          (247)
Non-GAAP Adjustments:
Restructuring and associated costs(2)	—		(15)		—		—		—		—		—		—
Acquisition and divestiture-related items(3)	—		(96)		(0.3)		—		—		21		0.1		—
Other(5)	(39)		—		—		—		—		—		—		—
(Gain)/loss on minority investments(4)	—		—		—		—		—		—		—		(145)
Non-GAAP	$    26,518		$     8,616		32.5 %		$    2,202		8.3 %		$         147		0.6 %		$          (392)

See description of non-GAAP financial measures contained in the press release dated February 17, 2026.
(1)	The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.
(2)	The charges primarily relate to employee termination benefits, facility related and contract termination costs, and asset write offs.
(3)	The charges primarily include business combination costs, changes in fair value of contingent consideration, exit of business-related charges, and gains related to certain business or asset sales. Exit of business-related charges primarily relate to the impending separation of the Diabetes business and costs associated with the Company's June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.
(4)	We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.
(5)	Reflects adjustments to the Company's Italian payback accruals resulting from the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.

 

MEDTRONIC PLC GAAP TO NON-GAAP RECONCILIATIONS(1) (Unaudited)
	Nine months ended
(in millions)	January 23, 2026		January 24, 2025
Net cash provided by operating activities	$                      4,757		$                      4,516
Additions to property, plant, and equipment	(1,416)		(1,400)
Free Cash Flow(2)	$                      3,341		$                      3,116

See description of non-GAAP financial measures contained in the press release dated February 17, 2026.
(1)	The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.
(2)	Free cash flow represents operating cash flows less property, plant, and equipment additions.

 

MEDTRONIC PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Nine months ended
(in millions)	January 23, 2026		January 24, 2025
Operating Activities:
Net income	$                3,578		$                3,630
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,242		2,021
Provision for credit losses	102		96
Deferred income taxes	59		(81)
Stock-based compensation	362		340
Other, net	280		14
Change in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable, net	87		(184)
Inventories	(803)		(478)
Accounts payable and accrued liabilities	(77)		(157)
Other operating assets and liabilities	(1,074)		(685)
Net cash provided by operating activities	4,757		4,516
Investing Activities:
Acquisitions, net of cash acquired	—		(98)
Additions to property, plant, and equipment	(1,416)		(1,400)
Purchases of investments	(6,572)		(6,093)
Sales and maturities of investments	5,982		6,255
Other investing activities, net	(10)		(111)
Net cash used in investing activities	(2,017)		(1,447)
Financing Activities:
Change in current debt obligations, net	173		(1,070)
Issuance of long-term debt	1,747		3,209
Payments on long-term debt	(2,930)		—
Dividends to shareholders	(2,731)		(2,692)
Issuance of ordinary shares	419		400
Repurchase of ordinary shares	(600)		(2,961)
Other financing activities, net	60		96
Net cash used in financing activities	(3,863)		(3,018)
Effect of exchange rate changes on cash and cash equivalents	52		(95)
Net change in cash and cash equivalents	(1,072)		(44)
Cash and cash equivalents at beginning of period	2,218		1,284
Cash and cash equivalents at end of period	$                1,147		$                1,240
Supplemental Cash Flow Information
Cash paid for:
Income taxes	$                1,598		$                1,515
Interest	573		567

The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.

 

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SOURCE Medtronic plc

FAQ

What were Medtronic (MDT) Q3 FY26 revenue and growth figures?

Medtronic reported Q3 FY26 revenue of $9.017 billion, up 8.7% as reported and 6.0% organic. According to the company, the quarter exceeded guidance by 50 basis points on organic growth, driven by strength across cardiovascular and diabetes businesses.

Why did Medtronic's Cardiac Ablation Solutions grow 80% in Q3 for MDT?

Cardiac Ablation Solutions grew 80% in Q3, led by the pulsed field ablation portfolio and a 137% U.S. increase. According to the company, adoption of PFA products and strong U.S. demand were primary contributors to the surge.

What FY26 guidance did Medtronic (MDT) reaffirm on February 17, 2026?

Medtronic reiterated FY26 organic revenue growth of approximately 5.5% and non-GAAP diluted EPS guidance of $5.62–$5.66. According to the company, that outlook includes a potential tariff impact of about $185 million.

What M&A transactions did Medtronic (MDT) complete in Q3 FY26 and their focus areas?

Medtronic executed two transactions in the quarter: CathWorks in coronary and renal denervation, and Anteris in structural heart. According to the company, these deals align with its strategy to expand coronary, renal denervation, and structural heart capabilities.

Which regulatory clearances did Medtronic (MDT) announce in Q3 FY26?

Medtronic secured CE Mark for Sphere-360 and U.S. FDA clearances for Hugo robotic-assisted surgery and Stealth AXiS surgical system. According to the company, the Hugo clearance has led to initial U.S. cases this month.