A Look at Medtronic’s (MDT) Valuation After Strong Earnings and Raised Guidance

Medtronic (NYSE:MDT) just posted financial results that outpaced last year in both revenue and earnings, giving investors something to talk about. The company also raised its earnings guidance for 2026 and outlined optimistic projections for 2027.

See our latest analysis for Medtronic.

Medtronic’s upbeat earnings and raised guidance haven’t gone unnoticed, with the stock climbing steadily. The 30-day share price return sits at 14.8% and year-to-date gains are now over 31%. Recent enthusiasm has also lifted its one-year total shareholder return to 25.7%, signaling that momentum is building as investors respond to Medtronic’s robust results, expansion plans, and strategic moves into high-growth medical technology segments.

If Medtronic’s growth story has you looking for what’s next in healthcare, it’s a great moment to discover See the full list for free.

The big question now is whether Medtronic’s strong run leaves more opportunity on the table for new investors, or if future growth expectations are already fully reflected in the current share price.

Most Popular Narrative: 4.1% Undervalued

With Medtronic’s last close at $105.33 and the most-followed narrative estimating a fair value at $109.82, analysts appear to see modest upside from here. This reflects growing confidence in the company’s new product launches, recovery in key segments, and the durability of its innovation-led strategy.

The company’s expanding product pipeline and robust R&D investment set the stage for more durable and sustainable performance. New product momentum was noted as especially promising.

Read the complete narrative.

What do analysts see that could push Medtronic higher? Analysts point to a handful of aggressive assumptions about future growth and profitability, based on expectations that could surprise both bulls and bears. Click in to see exactly what they’re betting on for the next three years.

Result: Fair Value of $109.82 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent margin pressure or slower than expected adoption of new products could challenge the optimistic outlook and alter Medtronic's growth trajectory.

Find out about the key risks to this Medtronic narrative.

Another View: What Do Multiples Tell Us?

To challenge the fair value perspective, let’s look at how Medtronic is priced compared to industry standards. Its price-to-earnings ratio is 28.3x, which is not only below the peer average of 48.1x but also slightly below the Medical Equipment industry average of 28.9x. Our fair ratio analysis points to a level of 32x, suggesting the market could still re-rate Medtronic higher if optimism grows. Yet, with ratios this close, the risk of sudden revaluation is very real. Could a shift in sentiment trigger sharper moves up or down?

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Medtronic for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 921 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Medtronic Narrative

If you see things differently or want to dig deeper into the numbers, you can easily shape your own perspective in just a few minutes. Do it your way

A great starting point for your Medtronic research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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