Medtronic has reported revenues of around $9.8bn in Q1 of fiscal year 2027 (FY27) driven by double-digit growth across its key business segments, prompting the company to raise its FY27 outlook.
With Q1 performance corresponding to year-over-year (YoY) growth of 13.7%, the medtech giant now expects organic revenue growth for FY27 to land in the 7.25% to 7.75% range, up from 6.75% to 7.25% previously, and with earnings anticipated to come in at $5.94-$6 per share versus $5.90-$6 previously.
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Medtronic’s cardiovascular business was its top performer in Q1, with worldwide revenues of around $3.9bn indicative of a YoY growth margin of 19.5%. Within the segment, electrophysiology therapies (EPT), a sub-segment that includes Medtronic’s cardiac ablation solutions (CAS) such as its PulseSelect pulsed-field ablation (PFA) system and Affera mapping system, drew in the lion’s share of revenue for the broader segment at around $2.2bn, equating to YoY growth of 29.5%.
In the US, meanwhile, EPT grew by 41.2% YoY, with revenues of around $1.2bn. According to Medtronic’s CFO, Thierry Pieton, in Q1, CAS delivered “88% growth” globally and was “up 139%” in the US.
During an investor call, Pieton said: “While we are gaining share rapidly in CAS, this business is still in the early stages of its trajectory. In Q2, we expect to outpace the market by more than 3x, with growth rates moderating over the remainder of the fiscal year as we lap increasingly strong comps.”
Medtronic’s PulseSelect was the first PFA system to be approved by the US Food and Drug Administration in December 2023. PFA is a technology used to treat atrial fibrillation (AFib), a common condition that causes irregular heart arrhythmias and can lead to stroke and heart failure.
While the PFA market remains far from crowded, with Boston Scientific, Johnson and Johnson (J&J) and Abbott currently the only other major medtech players with FDA-approved systems, it is highly competitive given its vast addressable patient population. Research indicates that over 37 million people live with AFib worldwide, with this figure predicted to more than double by 2050.
According to a GlobalData market model, J&J’s Varipulse PFA system held the largest US market share at 47% in 2025, followed by Boston Scientific’s Farapulse PFA system in second place with a market share of 31.6%, and Medtronic in third place at 13%.
Coming in behind its cardiovascular business, Medtronic’s neuroscience and medsurg segments were its second and third top-performing areas in Q1. Neuroscience achieved revenues of around $2.7bn, with MedSurg coming in at around $2.3bn, denoting YoY upticks of 10.3% and 10%, respectively.
In a research note, William Blair analysts commented: “We believe the quarter further supports the narrative that Medtronic’s growth profile is improving, and the company is still in the early to middle stages of multiple large revenue opportunities.”
Medtronic’s positive Q1 FY27 results follow the release of its FY26 results in June. With revenue of $36.4bn, the company said the sum reflected its highest annual growth achieved in 10 years.
Following the release of its Q1 financials ahead of market open on 1 September, Medtronic’s shares on the New York Stock Exchange (NYSE) rose by around 4% at market open before falling to a close of $92.04 at the close of trading, reflecting an uptick of around 1.5% versus the previous day. Medtronic has a market cap of $117.81bn.
Reflecting on its Q1 performance, Medtronic’s CEO, Geoff Martha, said: “We are off to a strong start in fiscal 2027. What gives us confidence is not simply the strength of the quarter, but importantly, the breadth of performance across our businesses and the increasing contributions from newer growth platforms.”
