Q1 2026 Medtronic PLC Earnings Call Transcript
Key Points
- Medtronic PLC (MDT) reported consistent mid-single-digit revenue growth, with EPS exceeding guidance.
- The cardiovascular segment showed strong performance, with nearly 50% growth in cardiac ablation solutions driven by innovative product rollouts.
- The company raised its EPS guidance for the full year, reflecting confidence in continued financial acceleration.
- Medtronic PLC (MDT) is poised for growth in the second half of the fiscal year, with several product launches and market expansions planned.
- The planned separation of the diabetes business is expected to be EPS accretive and improve operating margins, enhancing shareholder value.
- Neuroscience growth was below trend due to specialty therapies, though improvements are expected in subsequent quarters.
- The Medsurge segment grew only 2%, aligning with expectations but indicating slower growth compared to other segments.
- The diabetes segment faced challenges in the US market, with growth primarily driven by international sales.
- Gross margin decreased by 80 basis points year-over-year, impacted by business mix and manufacturing ramp-up costs.
- Tariffs are expected to have a negative impact of approximately $185 million for fiscal '26, though this is an improvement from previous estimates.
Hello, everyone and thanks for joining us today for our fiscal 26th first quarter video earnings webcast.
I'm Ryan Weispfenning, Vice President and Head of Medtronic Investor Relations.
Joining me here today are Geoff Martha, Chairman and Chief Executive Officer; and Thierry Pieton, Chief Financial Officer. Geoff and Thierry will provide comments on the results of our first quarter, which ended on July 25, 2025, and our outlook for the remainder of fiscal year '26.
After our prepared remarks, we'll take questions from the sell side analysts that cover the company. Today's program should last about an hour. Earlier this morning, we issued a press release discussing our results and containing several financial schedules. We also posted an earnings presentation that provides additional details on our performance. The presentation can be accessed in our earnings press release or on our website at Investor Relations medtronic.com. During today's program, many of the statements we make may be considered
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