Why Medtronic (MDT) Is Up 5.7% After Strong Q2 Results and Upgraded Guidance

• Medtronic recently reported second quarter fiscal 2026 results, posting revenues of US$8.96 billion and net income of US$1.37 billion, both up from the prior year, and raised its full-year guidance following strong growth in Cardiovascular and Cardiac Ablation Solutions along with several key U.S. FDA approvals.
• This performance was underpinned by very large growth in the Pulsed Field Ablation business and expanded product approvals, highlighting Medtronic's focus on innovation and therapeutic advancements.
• We'll explore how the impressive Cardiac Ablation Solutions growth and upgraded guidance may reshape Medtronic's investment narrative going forward.

We've found 18 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Medtronic Investment Narrative Recap

To invest in Medtronic, you need to believe in its ability to capture expanding demand for advanced medical devices, driven by breakthroughs in cardiovascular care and robust procedure volumes. The recent Q2 results, which beat expectations and prompted raised guidance, further solidify momentum in Cardiac Ablation Solutions, a key short-term catalyst, yet execution risks around manufacturing ramp and product mix, especially in CAS and Diabetes, remain the biggest headwinds and warrant continued attention. If gross margin pressures persist or operational hiccups in high-growth franchises surface, this could limit the earnings uplift investors expect.

A recent announcement particularly relevant to ongoing business momentum is the FDA approval of the Altaviva device for urge urinary incontinence. This underlines Medtronic’s ability to expand its therapeutic reach through innovation and regulatory achievements, supporting sustained procedure volumes, and may reinforce confidence in its upgraded performance outlook.

However, investors should be aware that if margin pressure intensifies or product ramp challenges are not resolved, then...

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

Medtronic's narrative projects $40.0 billion revenue and $6.3 billion earnings by 2028. This requires 5.4% yearly revenue growth and a $1.6 billion increase in earnings from $4.7 billion today.

Uncover how Medtronic's forecasts yield a $101.13 fair value, in line with its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community cluster between US$82.66 and US$101.13, with viewpoints near both ends of the range. While many are optimistic about recent innovation-driven growth, potential margin pressures could complicate performance, see what other investors are considering as you weigh the outlook.

Explore 7 other fair value estimates on Medtronic - why the stock might be worth as much as $101.13!

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 3 key rewards and 1 important warning sign 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.

Ready For A Different Approach?

The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

• These 11 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.
• Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.
• Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.

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