Medtronic's Fiscal Q2 2026 Performance: Cardiovascular Momentum Poised to Drive Upside

Medtronic is preparing to unveil its second-quarter fiscal 2026 financial results on November 18 ahead of market open. The MedTech powerhouse delivered earnings per share of $1.26 in its most recent quarter, surpassing analyst consensus by 2.44%. Over the past four consecutive quarters, the company has consistently exceeded expectations, with an average beat margin of 2.20%.

Revenue and Earnings Outlook

For the fiscal second quarter, Wall Street is anticipating Medtronic revenues of $8.86 billion, representing a 5.4% year-over-year expansion. The consensus EPS projection stands at $1.31, implying 4% growth compared to the prior-year period. Notably, earnings estimates have remained stable throughout the past 60-day window.

Cardiovascular Unit Poised for Acceleration

The Cardiovascular segment represents the primary growth catalyst entering this earnings cycle. Robust momentum across the entire portfolio is anticipated to persist, particularly within the Cardiac Ablation Solutions business. Both domestic and international markets are expected to demonstrate accelerating adoption of the PulseSelect and Affera Sphere-9 pulsed field ablation systems. Strategic initiatives including supply chain optimization and mapper recruitment expansion are projected to facilitate entry into fresh accounts while deepening penetration within existing relationships.

Structural Heart offerings, especially the Evolut FX+ transcatheter aortic valve replacement device, are forecast to continue gaining ground across multiple regions, including Japan. Recent competitive market dynamics may benefit Medtronic by opening pathways to capture incremental international share. Premium Cardiac Rhythm Management products—encompassing the AURORA EV-ICD, Micra leadless pacemaker platform, and 3830 conduction system pacing lead—should sustain their positive trajectory. The Zacks Consensus Estimate projects Cardiovascular revenues will expand 8.4% year over year.

Neuroscience Division: Expanding Therapeutic Options

Within Neuroscience, strong commercial execution is anticipated in Cranial & Spinal Technologies, underpinned by AiBLE spine technology ecosystem uptake. Core Spine and Neurosurgery operations are expected to contribute meaningfully.

The Neuromodulation portfolio should benefit from robust U.S. sales momentum in Pain Stimulation and the Inceptiv closed-loop spinal cord stimulator platform, which provides clinicians with compelling value propositions relative to spinal cord stimulator cost considerations in the marketplace. BrainSense Adaptive DBS technology continues expanding adoption among Parkinson’s patients, supporting Brain Modulation revenue growth. September brought FDA clearance for the Altaviva device, an implantable tibial neuromodulation therapy for urge urinary incontinence management.

Specialty Therapies encountered headwinds in Q1 from China tender pricing and the Pipeline Vantage neurovascular recall; however, management has flagged normalization in Q2. Zacks estimates peg Neuroscience revenue growth at 1.5% year over year.

Medical Surgical and Diabetes Contribution

The Medical Surgical segment should see strong customer demand for LigaSure vessel sealing technology, translating to Advanced Energy share gains. Growth drivers include ProGrip self-gripping mesh adoption and expanded deployment of the AI-enhanced Touch Surgery ecosystem. Consensus projects 5.4% year-over-year revenue growth for this division.

Diabetes experienced robust momentum, with the MiniMed 780G automated insulin delivery system and Simplera Sync CGM sensor showing strong international penetration. Guardian 4 CGM sensors and Extended Infusion Sets continue gaining traction. Two pivotal FDA approvals during the quarter—SmartGuard algorithm clearance as an interoperable automated glycemic controller compatible with Abbott’s Instinct sensor, and MiniMed 780G approval for adults with insulin-requiring type 2 diabetes—are expected to support top-line performance. The planned spinoff of Diabetes operations into MiniMed as an independent entity represents a strategic repositioning toward high-margin categories including pulsed field ablation and renal denervation. Consensus forecasts 9.2% year-over-year Diabetes revenue growth.

Investment Outlook

Medtronic carries an Earnings Surprise Probability of 0.00% and maintains a Zacks Rank #3 (Hold) rating. The combination of modest earnings surprise probability and neutral ranking suggests a balanced risk-reward positioning heading into the earnings announcement.