Stock Markets February 17, 2026

Medtronic Tops Estimates as Strong Demand for Heart Devices and Glucose Monitors Lifts Results

Cardiovascular sales and continuous glucose monitoring fuel better-than-expected quarterly profit while fiscal 2026 guidance is unchanged

By Derek Hwang MDT
Medtronic Tops Estimates as Strong Demand for Heart Devices and Glucose Monitors Lifts Results
MDT

Medtronic reported third-quarter results that exceeded analyst expectations, driven by robust sales of heart therapies including pulsed field ablation systems and transcatheter aortic valve replacement devices, and continued uptake of continuous glucose monitoring. The company left its fiscal 2026 adjusted EPS forecast unchanged at $5.62 to $5.66.

Key Points

  • Medtronic beat third-quarter revenue and adjusted EPS estimates, reporting $9.02 billion in revenue and $1.36 adjusted EPS versus estimates of $8.91 billion and $1.33 respectively - impacts healthcare and investor markets.
  • Cardiovascular sales rose 13.8% to $3.46 billion, driven by adoption of pulsed field ablation and transcatheter aortic valve replacement devices - impacts medical device and hospital procedure sectors.
  • The company left its fiscal 2026 adjusted EPS guidance unchanged at $5.62 to $5.66, signaling management confidence in forward earnings - impacts equity valuation and analyst coverage.

Medtronic posted third-quarter results that outperformed Wall Street forecasts, supported by elevated demand for its cardiac interventions and diabetes monitoring products. The company reported adjusted earnings and revenue that marginally surpassed analyst estimates as adoption of several minimally invasive heart technologies accelerated.

Revenue for the quarter reached $9.02 billion, topping the $8.91 billion estimate compiled by LSEG. On an adjusted basis, Medtronic reported quarterly profit of $1.36 per share, ahead of the $1.33 per share consensus. Management left its fiscal 2026 adjusted earnings-per-share outlook unchanged at a range of $5.62 to $5.66.

Medtronic cited strong uptake of its pulsed field ablation systems and transcatheter aortic valve replacement devices as primary growth drivers. Those two minimally invasive technologies have been rapidly adopted and were important contributors to the quarter. Within the company, the cardiovascular segment, which represents almost 40% of total sales, delivered a 13.8% year-over-year increase in sales to $3.46 billion, led by demand for the pulsed field ablation portfolio.

The pulsed field ablation technology uses high-energy electric pulses to destroy targeted heart tissue to help reduce the frequency of abnormal heart rhythms, supporting its role in Medtronic's cardiovascular sales expansion.

In diabetes care, Medtronic competes with Abbott and Dexcom in the market for continuous glucose monitoring. That market has grown as patients increasingly adopt finger prick-free technologies to track glucose levels, and demand for convenient monitoring contributed to the company's results.

Industry-wide dynamics also supported medtech performance in the quarter. Health insurers reporting higher medical loss ratios have been interpreted as an indication that patients are undergoing more procedures. Broader market optimism has been aided by wider physician adoption of newer technologies and ongoing advances in device capabilities.

For context among large competitors, healthcare conglomerate Johnson & Johnson reported a 7.5% year-over-year increase in its medtech sales in the same reported quarter, driven by strength in its electrophysiology segment that includes heart devices.


The quarterly results also included a promotional note directing readers to a Fair Value calculator that claims to use a mix of 17 industry valuation models for additional analysis of Medtronic and other stocks.

Risks

  • Ongoing reliance on adoption of specific minimally invasive cardiac technologies exposes Medtronic to execution and competitive risks in the medtech sector.
  • Competition in continuous glucose monitoring from other players such as Abbott and Dexcom could pressure growth rates in diabetes care.
  • Changes in procedure volumes or payer dynamics could alter demand trends; higher medical loss ratios are an indicator of more procedures now but do not guarantee sustained growth across all product lines.

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