MDT US S&P 500Russell 1000 Earnings call
Medtronic (MDT) · Q2 2026 results and valuation
Share price: $101.61 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q1 2027 · published 1 Sep 2026 and 3 Jun 2026
Net income turned to a profit from a loss last quarter, guidance raised. Management sounded restrained, though noticeably more positive answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
Turned profit
Net income vs Q1 2026
Guidance raised
Net income 1.47B vs -3.56B
Revenue −0.5%
2 · How management spoke
Restrained
Less upbeat than 79% of company calls
Answers to analysts: very upbeat, and more positive than the script.
Similar to last call.
3 · What stood out
Medtronic raised its fiscal 2027 organic revenue growth guidance to 7.25% following strong first-quarter results.
Valuation
Is Medtronic undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-04-24), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 5.2% growth a year (3-year revenue growth), the model's fair value is $56.04 a share — the stock trades 81% above it. Today's price assumes 12.0% growth a year.
Current price
$101.61
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+12.0% for 10 yrs
Fair value / share
$56.04
Buy below
$42.03
Price vs fair value
Overvalued 81%
Price vs buy-below price
Overvalued 142%
Management expects
Revenue +7.25% · from the Q2 2026 report: “MDT raised its fiscal 2027 organic revenue growth guidance to 7.25% after strong first-quarter results, signaling higher expected sales ahead.”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
-
Guidance
For the second quarter, Medtronic expects EPS in the range of $1.32 to $1.34, which includes a roughly neutral impact from foreign exchange at recent rates.
-
Guidance ↑
MDT raised its fiscal 2027 organic revenue growth guidance to 7.25% after strong first-quarter results, signaling higher expected sales ahead.
Source quote
“On the top line, we are pleased with the strong performance in the first quarter, and are raising our fiscal year '27 organic revenue growth guidance to 7.25%...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.
Sentences that drove the tone
“With a differentiated platform, a growing installed base, expanding indications and a strong innovation pipeline, we are well positioned to treat more patients to continue to gain share and further...”
“We've made that switch to allocating our capital to the highest growth opportunities in med tech, the highest growth, but also where we have confidence that they're going to be...”
“And then here we go today, announcing an inorganic investment, again, doubling down on these high-growth spaces where we believe we have a right to win and putting together winning...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)
| Metric | Q2 2026period end 2026-07-31 | Q1 2026period end 2026-04-24 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 9.76B | 9.81B | −0.5% | 8.58B | +13.7% |
| Gross profit | 6.34B | — | 5.58B | +13.7% | |
| Operating income | 1.76B | 1.87B | −5.8% | 1.45B | +22.1% |
| Net income | 1.47B | -3.56B | Turned profit | 1.04B | +41.3% |
| EPS | 1.14 | 0.97 | +17.5% | 0.81 | +40.7% |
| P/E today 21.7 | 21.0 | 22.3 | −1.3 | 25.7 | −4.7 |
Topics
Most discussed now
- New Medtronic has got confidence and conviction, but there's no arrogance as my college hockey coach used to say, head on a...
- Medtronic's 3 largest businesses, CRM, CST and Surgical, all delivered strong results this quarter.
- Medtronic's strategic and operational focus is translating into stronger commercial performance and greater consistency.
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Faded since Q1 2026
- Fading Cardiac Pacing Therapies delivered mid-single-digit growth, driven by mid-teens in Micra and high teens in the SelectSecure 3830 lead for...
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- Fading On top of Medtronic has got meaningful innovation in almost every segment out there.
- Fading Staying in the Cardiovascular portfolio, Medtronic expects to continue to see some strong lift coming from Ardian.
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K