By Padmanabhan Ananthan and Christy Santhosh
June 3 (Reuters) – Medtronic beat Wall Street estimates for fourth-quarter revenue and adjusted profit on Wednesday, buoyed by steady demand for its heart devices used in complex cardiac procedures, sending its shares up nearly 5%.
The company also said it has invested in two privately held firms, California-based Beluga Medical and Shenzhen-based CardioACC, which develop heart-imaging catheter technologies, to expand its cardiac portfolio.
The medical device maker has been focusing on smaller acquisitions, buying companies such as SPR Therapeutics, CathWorks and Scientia Vascular to strengthen its portfolio, while it works through the separation of its diabetes business.
CEO Geoff Martha told Reuters that Medtronic’s recent deals are expected to contribute to revenue in fiscal 2027 with a greater impact anticipated in subsequent years.
Currently, Medtronic’s outlook for 2027 accounts for its diabetes business. The company said it would revise its forecast if the diabetes business is separated before the end of the year.
CFO Thierry Pieton said the company was “not under pressure to separate before a certain deadline”, noting that current medtech market conditions are weak.
“Overall, we are encouraged by Medtronic’s growth initiatives,” led by its cardiac ablation and electrophysiology business, said RBC Capital Markets analyst Shagun Singh, adding that the company’s renal denervation treatment for high blood pressure “remains underappreciated”.
Medtronic’s revenue for the fourth quarter ended April 24 came in at $9.81 billion, beating estimates of $9.63 billion, according to data compiled by LSEG.
On an adjusted basis, it reported quarterly profit of $1.55 per share, compared to analysts’ average estimate of $1.54 per share.
The company forecast adjusted annual profit in the range of $5.90 to $6 per share for fiscal 2027, below the $6.06 per share analysts had penciled in, according to data compiled by LSEG.
The company expects a tariff impact of $250 million in fiscal 2027.
(Reporting by Padmanabhan Ananthan and Christy Santhosh in Bengaluru; Editing by Diti Pujara)
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