Medtronic began its FY27 fiscal year with strong performance, as its revenue in the first fiscal quarter rose 13.7% year over year to $9.8 billion. Growth was driven by double-digit performance in the cardiovascular and medical surgical businesses, prompting the company to raise its organic revenue growth outlook for the full fiscal year.
Adjusted net income was $1.86 billion, compared with $1.63 billion in the first quarter of FY26. According to a note written by J.P. Morgan analyst Robbie Marcus for investors, the company’s sales exceeded Wall Street consensus estimates by approximately $220 million.
Cardiac Solutions Lead Results
The cardiovascular segment generated revenue of $3.93 billion, an increase of approximately 20% year over year, making it one of the quarter’s main growth drivers. The cardiac ablation solutions unit performed particularly strongly, with revenue growing 88% globally and 139% in the United States.
Medtronic attributed this performance to strong demand for the Affera Sphere 9 catheter designed for pulsed field ablation, or PFA. The company said it gained nine percentage points of market share in the U.S. PFA market. This comes as growth at Boston Scientific, one of the largest companies competing in this field, slowed, contributing to the company lowering its outlook twice during the current year, according to the source.
Fiscal-Year Outlook Raised
Based on the strong start to the year, Medtronic raised its annual organic revenue growth outlook range to between 7.25% and 7.75%, compared with the previous range of 6.75% to 7.25% that the company announced during its fourth-quarter earnings call in June.
CEO Geoff Martha told investors that the results strengthened the company’s confidence in the durability of its businesses. At the same time, CFO Thierry Piéton noted that quarterly comparisons would become more challenging, despite the company expecting a good second quarter.
What Is Changing in Practice?
The figures show that competition in pulsed field cardiac ablation devices has become an influential factor in medical-device companies’ results, rather than merely an emerging market within Medtronic’s portfolio. However, the source does not provide details on the revenue or profitability specifically attributable to the Affera Sphere 9 catheter, nor does it specify how much the new market share contributed to earnings. Therefore, these results alone cannot be used to assess the sustainability of the competitive advantage.
Update on the Hugo Robot
Medtronic also provided an update on the Hugo soft-tissue robot, which received clearance from the U.S. Food and Drug Administration at the end of last year. The system competes in the soft-tissue robotic surgery market, which is seeing additional competitors enter, but remains dominated by Intuitive.
The company expects the Hugo robot to have been used in more than 50,000 procedures and the number of installed units to reach 250 by the end of its fiscal year. When it received FDA clearance, the system was authorized for use in urological surgeries, while Medtronic said in June that it had submitted applications for additional use indications in general and gynecological procedures. According to the information available, these applications remain part of an effort to expand the system’s uses and are not newly announced approvals.