Medtronic plc Q3 FY2026 earnings call

• Q3 marks 6% organic revenue growth, highest in 10 quarters. - Four generational growth drivers: PFA platform for AFib, Symplicity Spyral for hypertension, Altaviva for urinary incontinence, Hugo surgical robot. - CAS grew 80% y-o-y, PFA grew nearly 200% worldwide. - Symplicity for hypertension has strong patient outcomes and growing clinical data. - Hugo robot received FDA clearance for urologic surgical procedures, first installations and cases completed. - Neuroscience business secured FDA clearance for Stealth AXiS Surgical System for spinal procedures. - MedSurg portfolio saw growth in Endoscopy and Acute Care & Monitoring. - MiniMed Diabetes business had double-digit strength in international markets and acceleration in US.

Cardiovascular portfolio: 11% organic revenue growth year-over-year, 13% growth in US. CAS grew 80% y-o-y, PFA accounting for 80% of that revenue. Cardiac Rhythm Management grew 5%, contributing 15% of total revenue. Peripheral Vascular Health posted high single-digit growth. Structural Heart grew low single digits. Neuroscience portfolio grew 3%. MedSurg portfolio grew 3% ahead of expectations. Surgical business grew 1%. MiniMed Diabetes business delivered over 8% organic growth.

• Reiterates fiscal '26 organic revenue growth guidance of approximately 5.5%, expects Q4 revenue growth similar to Q3. - Maintains fiscal '26 EPS guidance in range of $5.62 to $5.66. - Anticipates high single-digit EPS growth in fiscal year '27, with factors like accelerated growth, margin expansion, and investment in growth areas.

• Structural Heart business Q3 softer as expected, with competitive pressure in US. - Neurovascular challenged over last quarters due to China VBP and Vantage recall.

Q: Travis Steed at Bank of America asked about accelerating revenue growth next year and growing earnings, high single digits.

A: Geoffrey Martha and Thierry Pieton discussed CAS growth, other growth drivers like Symplicity, Altaviva, CST, Neurovascular, and EPS growth factors.

Q: Vijay Kumar at Evercore asked about progress tracking for RDN and Altaviva.

A: Geoffrey Martha talked about leading indicators like physician training and account opening.

Q: Larry Biegelsen at Wells Fargo asked about EP market growth and CAS growth going forward.

A: Geoffrey Martha discussed market growth and CAS positioning.

Q: Patrick Wood at Morgan Stanley asked about capital allocation and M&A.

A: Geoffrey Martha talked about focused M&A on tuck-in deals.

Q: Robert Marcus from JPMorgan asked about fiscal '27 guidance and EPS growth drivers.

A: Thierry Pieton discussed EPS growth drivers and guidance.

Q: Matthew Taylor at Jefferies asked about CAS capital allocation and TAVR.

A: Geoffrey Martha and Thierry Pieton commented on CAS mix and TAVR investment.

Q: Christopher Pasquale at Nephron asked about Hugo's timeline.

A: Geoffrey Martha talked about Hugo's growth and installations.

Q: Danielle Antalffy at UBS asked about renal denervation market development.

A: Geoffrey Martha discussed consumer demand and market building.

Q: Joanne Wuensch at Citi asked about Stealth AXiS.

A: Geoffrey Martha talked about Stealth AXiS's workflow and market impact