Did Medtronic's (MDT) Raised Guidance and Acquisition Focus Just Reshape Its Investment Narrative?

• On November 18, 2025, Medtronic plc raised its earnings and revenue guidance for fiscal years 2026 and 2027, following stronger-than-expected quarterly sales and net income growth, and outlined intentions to pursue tuck-in acquisitions, particularly in higher-growth segments like Cardiology and Neuroscience.
• Earlier in November, Minze Health announced a three-year agreement with Medtronic to commercialize the Minze Diary Pod across EMEA, enhancing patient data collection and clinician support for Overactive Bladder management as part of the SNM therapy pathway.
• We'll examine how Medtronic's improved future guidance and expansion focus could shape its investment outlook going forward.

These 12 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

Medtronic Investment Narrative Recap

To be a Medtronic shareholder today, you need to believe that its renewed growth focus and strong demand for advanced medical technologies can overcome business mix challenges and underperformance in select segments. The recent guidance raise signals improvements ahead, but continued gross margin pressure and execution risks in core areas like CAS and Diabetes remain the most important near-term catalyst and risk, respectively; these updates may temper, but don’t materially change, the margin story for now.

Among recent announcements, the upward revision in earnings and revenue guidance for both fiscal 2026 and 2027 stands out as most relevant. This move, backed by stronger-than-expected quarterly results and an active M&A posture, directs attention squarely to Medtronic’s aim to accelerate revenue and profitability, particularly in faster-growing segments where margin headwinds have been a concern.

But don’t forget, despite this renewed optimism, investors should keep a close eye on ongoing margin pressures and the risk that...

Read the full narrative on Medtronic (it's free!)

Medtronic's outlook anticipates $40.0 billion in revenue and $6.3 billion in earnings by 2028. This projection is based on an annual revenue growth rate of 5.4% and an earnings increase of $1.6 billion from the current $4.7 billion.

Uncover how Medtronic's forecasts yield a $109.82 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Ten individual fair value estimates from the Simply Wall St Community span US$82.66 to US$109.82 per share. While margin pressures are top of mind following Medtronic’s recent guidance, consider how broad investor perspectives can inform your view of the company’s long-term trajectory.

Explore 10 other fair value estimates on Medtronic - why the stock might be worth 22% less than the current price!

Build Your Own Medtronic Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Medtronic research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Medtronic's overall financial health at a glance.

Looking For Alternative Opportunities?

Every day counts. These free picks are already gaining attention. See them before the crowd does:

• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• Rare earth metals are the new gold rush. Find out which 35 stocks are leading the charge.
• AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com