Q2 2026 Medtronic PLC Earnings Call Transcript
Key Points
- Medtronic PLC (MDT) delivered a strong second quarter with both revenue and EPS exceeding expectations.
- The company raised its revenue growth and EPS guidance for the full year, indicating confidence in continued performance.
- Significant growth was driven by the cardiac ablations business, with a 71% increase, showcasing strong market momentum.
- Medtronic PLC (MDT) is capitalizing on enterprise growth drivers such as PFA for Afib, simplicity for hypertension, and Alta Viva for incontinence.
- The company is strategically increasing OpEx investments to support revenue growth momentum while still delivering outsized EPS growth relative to guidance.
- The company faces a 40% decline in its cryo business, with 90% of remaining cryo revenue coming from markets outside the US.
- Business mix, particularly from cardiac ablation and diabetes, represented an 80 basis point headwind to gross margin.
- Tariffs are expected to impact COGS by approximately $185 million for the fiscal year.
- The diabetes business in the US experienced a decline in new orders of new sensors, impacting growth.
- The company anticipates a couple of hundred basis points decline in Q3 margins due to tariffs and business mix impacts.
Hello, everyone, and thanks for joining Earnings Webcast. I'm Ryan Weis Benning, Vice President and head of Medtronic Investor Relations.
Joining me here today are Jeff Martha, Chairman and Chief Executive Officer, and Terry Pieton, Chief Financial Officer. Jeff and Turri will provide comments on the results of our second quarter, which ended on October 24, 2025, and our outlook for the remainder of fiscal year '26. After our prepared remarks, we'll take questions from the cell site 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 forward-looking statements, and actual
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