Needham Capital has elevated its view of Medtronic, moving the medical device maker from Hold to Buy on the expectation that a broad product rollout across several sizable markets will lift top-line momentum and sharpen operational execution over the coming years.
The brokerage firm quantified the potential contribution from new devices, saying new products alone could add in excess of 1% to the company’s aggregate revenue growth. Using its fiscal 2026 revenue projection of $36 billion, Needham calculated that Medtronic would require about $360 million in additional annual sales to meet that 1% threshold, a level it considers attainable by the end of 2026.
Needham pointed to a set of specific launches it views as critical demand drivers. The firm highlighted Medtronic’s pulsed field ablation technologies, including Affera, which are making inroads in the approximately $13 billion electrophysiology market. It also noted the company’s plans to scale its Symplicity Spyral renal denervation system following finalization of Medicare coverage, addressing a U.S. market Needham estimates near $6 billion.
Regulatory progress in robotics also featured in the firm’s assessment. FDA approval for urological surgery using the Hugo robotic system opens Medtronic to the estimated $7 billion U.S. soft-tissue robotics market. Needham added that other recent introductions, such as the AltaViva tibial nerve stimulation device, should support growth across multiple business lines.
Beyond product cadence, Needham cited activist investor involvement and governance changes as factors likely to strengthen execution. The firm referenced Elliott Management’s participation, the appointment of new board members, and the formation of board committees focused on growth strategy and operating performance. Management has slated an investor day in 2026, according to Needham.
Medtronic is also pursuing structural moves that the brokerage believes are accretive. The company is advancing a separation of its diabetes business, targeted for completion by the end of 2026 and expected to be accretive to earnings. Needham sees room for further portfolio adjustments, including potential divestitures and selective small acquisitions of faster-growing businesses, after a recent agreement to acquire CathWorks for up to $585 million.
On valuation, Needham indicated that stronger organic growth consistent with its outlook could justify a higher multiple for the shares. The firm’s upgrade reflects a combination of product-led revenue upside and governance changes aimed at improving profitability and operational focus.