Medtronic Plc

Q1 results beat expectations (strong start to fiscal ’27): Revenue was $9.8B, up 13.7% YoY (also 13.7% organic). Adjusted EPS $1.45 was ahead of the guidance/Street midpoint. Organic growth was boosted by an extra selling week estimated at ~$570M (about 670 bps of organic growth). Core “real” demand strength appears broad-based across end markets.

Demand breadth + major franchise performance (what’s “good”): - Cardiac Rhythm Management (CRM): +15% worldwide, with 80 bps global share gains; conduction system pacing added >200 bps share to CRM. - Cranial & Spinal Technologies (CST): +13% (U.S. +14%, international +10%). Stealth AXiS meaningfully outperformed in its first full/early launch period. - Surgical: +9%, supported by Hugo progress and the “ecosystem” strategy (Touch Surgery + AI-enabled capabilities). - Pelvic Health: +15%, with Altaviva procedures doubling sequentially—early but gaining traction.

Big acceleration engines (opportunities): Cardiac Ablation + EP + robotics: - Cardiac Ablation Solutions (CAS): +88% worldwide; Sphere-9 gained +9 points U.S. share; achieved > $2B trailing-12-month revenue commitment ahead of schedule. Management expects CAS to grow >2.5x the market rate for the fiscal year; however they explicitly flag it remains early in its trajectory and growth rates may moderate later as comps get harder. - Electrophysiology (EPT overall): +29% (U.S. +41%, international +18%). - Robotics: Hugo is expected to surpass 50,000 completed procedures by fiscal year-end with procedure growth >2x market rate; Touch Surgery is in 1,500+ operating rooms, and “Touch Surgery Aide” adds 300x computing power (future AI capability platform).