Medtronic has reported total revenue of $9bn in Q3 of fiscal year 2026 (FY26), led by the strongest growth the company has recorded in its cardiovascular portfolio in the past decade.
With revenue for the quarter indicative of a year-over-year (YoY) rise of 8.7%, Medtronic has reiterated FY26 revenue growth on an organic basis of approximately 5.5%, with earnings anticipated to fall in the $5.62-$5.66 range.
In a research note, William Blair analyst Brandon Vasquez highlighted that fiscal third-quarter sales beat Wall Street estimates by 1%, demonstrating “another step in the right direction” regarding the rollout of Medtronic’s key growth drivers.
The medtech giant’s cardiovascular portfolio, which includes the PulseSelect pulsed-field ablation (PFA) system, achieved revenue of $3.46bn in Q3, corresponding to a YoY uptick of 13.8%. Medtronic’s finance chief, Thierry Pieton, highlighted during a conference call that the portfolio’s cardiac ablation segment (CAS) grew 80% YoY, with PFA accounting for 80% of this revenue.
Commenting on Medtronic’s overall cardiovascular performance, Pieton said: “This represents the strongest growth we have seen in cardiovascular in the last ten years, excluding Covid comps.”
Beyond CAS, Pieton added that the remainder of the cardiovascular portfolio delivered combined mid-single-digit growth, stating that cardiac rhythm management also had a strong quarter, with the product line contributing 15% of total revenue among the portfolio and growing by “a healthy 5%”.
Performance in the quarter beat analysts’ average estimate of $8.91bn, according to data compiled by the London Stock Exchange Group (LSEG) and seen by Reuters. Despite this, the medtech giant’s stock dipped by 3.6%, down from a pre-announcement market close price on 13 February of $99.49 to a 17 February market open price of $95.88. Medtronic has a market cap of $123.6bn.
Elsewhere across the business, Medtronic’s neuroscience portfolio grew by 4.1% YoY to $2.56bn. Pieton conceded that growth in the portfolio was “a little below” expectations in Q3 yet noted that the segment features one of Medtronic’s broadest pipelines, which is expected to “begin impacting growth” in Q4.
Medtronic gained US Food and Drug Administration (FDA) approval for Altaviva in September 2025, an implantable tibial nerve stimulation (ITNS) system that delivers neuromodulation via a small device positioned above the tibial nerve to provide treatment for patients suffering from urge urinary incontinence (UUI). During the recent J.P. Morgan Healthcare Conference in San Francisco, Medtronic CEO Geoff Martha asserted that Altaviva represented a billion-dollar market opportunity.
