Medtronic Eyes M&A Deals To Augment Portfolio After Q2 Earnings Beat Estimates

• CEO Geoff Martha noted that while the company is looking to make deals in its high-growth segments, such as cardiology and neuroscience, deals within other segments cannot be ruled out.
• For the second quarter, Medtronic reported revenue of $9 billion, up 6.6%, driven by strong growth in the cardiovascular and neuroscience segments.
• The company also raised its fiscal year 2026 annual guidance and now expects adjusted earnings per share in the range $5.62 to $5.66.

Medtronic CEO Geoff Martha on Tuesday said the company is now looking to enter tuck-in merger-and-acquisition deals in its higher-growth segments after its second-quarter earnings beat Wall Street expectations.

Martha said in a post-earnings call with analysts that the company is not afraid to make investments to get companies that are close to market or just on the market. “...early stage or close to market would be ideal..,” he noted.  

Martha also noted that while the company is looking to make deals in its high-growth segments, such as cardiology and neuroscience, deals within other segments cannot be ruled out.

Q2 Earnings

For the second quarter, Medtronic reported revenue of $9 billion, up 6.6%, driven by strong growth in the cardiovascular and neuroscience segments. The company noted that it witnessed the strongest cardiovascular revenue growth in over a decade in the quarter, excluding the pandemic. Cardiovascular portfolio revenue rose 10.8% to $3.436 billion in the quarter.

Adjusted and diluted earnings in the quarter came in at $1.36 per share, up from $1.31 expected by analysts, according to data from Fiscal AI.

The company also raised its fiscal year 2026 annual guidance and now expects adjusted earnings per share in the range $5.62 to $5.66, up from its prior guidance of $5.60 to $5.66. The company also expects FY26 organic revenue growth of about 5.5%, up from its previous guidance of about 5%.

"We delivered a strong second quarter, with both revenue and EPS beating expectations. Overall, procedure volumes and our end markets are robust, and we're executing well across the business. Looking ahead, we are positioned for even greater acceleration of revenue growth in the back half of the year and beyond…,” Martha said.

How Did Stocktwits Users React?

MDT shares traded 6% higher at the time of writing. On Stocktwits, retail sentiment around MDT jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume rose from ‘high’ to ‘extremely high’ levels.

A Stocktwits user expressed hope that the stock would eventually hit new all-time highs.

MDT stock is up by 27% this year and by 16% over the past 12 months. 

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