Q3 2026 Medtronic PLC Earnings Call Transcript
Key Points
- Medtronic PLC (MDT) reported an 11% year-over-year revenue growth in its cardiovascular portfolio, marking the strongest growth in a decade, excluding COVID comparisons.
- The company achieved FDA clearance for its Hugo robotic system for urologic surgical procedures, with initial installations and cases completed at Cleveland Clinic.
- Medtronic PLC (MDT) is seeing strong patient outcomes and interest in its Symplicity Spyral for hypertension, with a significant increase in website visits due to its Go Beyond campaign.
- The Altaviva device for urge urinary incontinence is gaining early interest and feedback, with a focus on disciplined execution to convert early traction into procedures.
- The Stealth AXiS Surgical System for spinal procedures received FDA clearance, integrating AI-powered planning, robotics, and navigation, which is expected to drive growth in the neuroscience business.
- The neuroscience portfolio grew only 3%, which was below expectations, although the company anticipates pipeline contributions to growth in the next quarter.
- Structural Heart growth was softer, with low-single-digit growth, partly due to competitive pressure in the US.
- The company faces ongoing challenges in China due to volume-based procurement, impacting growth in certain businesses.
- Medtronic PLC (MDT) anticipates a tariff impact of approximately $185 million for fiscal year '26, which will affect gross margins.
- The diabetes business, while showing growth, is in the early stages of manufacturing ramp-up, impacting the mix and gross margins.
(audio in progress)
And we look forward to bringing this unique catheter to the US. Beyond CAS, we're also making (technical difficulty) material progress with Symplicity Spyral for hypertension and Altaviva for urge urinary incontinence.
Symplicity delivers a one-time, durable, minimally invasive treatment for hypertension and represents one of our largest growth drivers. Now this is going to be a contributor for years to come, given the 18 million US patients with uncontrolled hypertension. We're seeing strong patient outcomes in the field, and the already in value proposition, it resonates with both physicians and patients. We're seeing strong patient outcomes in the field, and the [RD] in value proposition, it resonates with both physicians and patients.
Now we've got strong and growing clinical data, a broad label, and expanding reimbursement all in hand. Look, we've built the foundation. Now we're focused on growing this new segment and transforming the hypertension treatment
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