Medtronic Plc

Strong Q3 momentum; beats guidance; maintains FY26 EPS outlook - Revenue: $9.0B, +8.7% reported / +6% organic (told as above guidance by ~50 bps). - Organic growth acceleration vs prior quarter (~+50 bps) and was the highest Medtronic growth in 10 quarters. - Adjusted gross margin 64.9% (ahead of expectations); adjusted operating margin 24.1%. - Adjusted EPS $1.36, $0.03 above guidance midpoint. - FY26 guidance reiterated: organic revenue ~+5.5%; EPS $5.62–$5.66 (unchanged despite EPS beat in Q3).

Cardiac Ablation Solutions (CAS) is the key upside; PFA is outperforming - CAS growth: +80% YoY; PFA accounts for ~80% of CAS revenue growth. - PFA demand acceleration: PFA grew nearly +200% worldwide in the quarter. - Share & market signals: management claims +4 points of share in a $13B+ market; Sphere-9 versatility (persistent + paroxysmal; multiple use cases) supports sustained demand. - Commercial penetration: 50–60% of cases now use both PFA and RF with a single catheter; Medtronic is building an installed base (leading indicator for future growth/margin). - Strategic goal: “double CAS revenue” and reach $2B trailing CAS revenue by 1H FY27 (this is a major investor “checkpoint”).

Other growth drivers emerging (but still execution/ramp dependent) - CRM: grew +5% (CRM is ~15% of total company revenue); drivers include Micra, 3830 CSP, and strong Aurora EV-ICD growth (+70%+). - Neuroscience / Spine (CST): grew +3% overall but management expects pipeline to start impacting Q4. - Stealth AXiS FDA clearance for spinal procedures (new platform integrating AI planning + robotics/navigation); expected to contribute from Q4. - Hypertension (RDN / Symplicity): positioned as a multi-year growth driver; management highlights leading indicators (new accounts/physicians, DTC campaign with 50x website visits vs prior quarter). - Overactive bladder (tibial stimulation / Altaviva): early traction with physician training efforts; expected to ramp into FY26/FY27. - Surgical (Hugo robot): FDA clearance for urologic procedures; first installations and first cases completed quickly (e.g., Cleveland Clinic). Touch Surgery installations +20% sequentially and >1,000 globally.