TLDR
- Medtronic Q4 revenue hit $9.7 billion, up 9.9% year-over-year — its strongest annual top-line growth in a decade
- Stock trades at 13.5x forward earnings, a discount to its 10-year average of 16x and peers like Abbott and Stryker
- Cardiac Ablation Solutions revenue surged 78% worldwide and 124% in the U.S., grabbing market share from Boston Scientific
- The Hugo robotic surgery system is priced ~40% below Intuitive Surgical’s da Vinci, targeting a market projected to exceed $54 billion
- Analysts at TD Cowen and RBC have price targets of $119 and $118 respectively, implying over 50% upside from current levels
Medtronic (MDT) stock has had a rough few years. The medical-device giant built a reputation for disappointing investors, and the stock reflects that. But something has changed.
The company’s fourth-quarter fiscal 2026 results, reported June 3, came in ahead of estimates. Revenue rose 9.9% year-over-year to $9.7 billion. That pushed full-year growth to 8.4% — the best annual top-line performance in 10 years.
MDT currently trades around $78, down from a 52-week high of $106.33. At 13.5 times forward earnings and a 3.7% dividend yield, the stock looks cheap relative to where it has historically traded and compared to peers.
The stock’s 10-year average forward P/E is close to 16. Peers like Abbott, Boston Scientific, Johnson & Johnson, and Stryker trade at a price-to-sales ratio of roughly 4. Medtronic’s sits at 2.8.
RBC Capital Markets analyst Shagun Singh has an Outperform rating and a $118 price target. TD Cowen reiterated a Buy with a $119 target. Both point to the same thing: Medtronic is at the beginning of a major product cycle.
Cardiac Ablation Is the Real Story
The cardiovascular segment is the standout. It makes up about 39% of total sales and grew 10% year-over-year to $3.8 billion last quarter.
Inside that number, Cardiac Ablation Solutions (CAS) is growing fast. Revenue jumped 78% worldwide and 124% in the U.S. The business is growing at twice the market rate and has gained eight percentage points of market share.
That share is coming at the expense of Boston Scientific, which cited lost PFA market share as a reason for cutting its full-year outlook. Boston Scientific stock is down 51% year to date.
Medtronic’s edge here is that it’s the only company with two FDA-approved pulsed field ablation platforms: PulseSelect and the Affera System. Affera combines PFA and radio-frequency energy with integrated cardiac mapping. CEO Geoff Martha said the U.S. installed base grew 40% sequentially last quarter.
Hugo and the Surgical Robotics Opportunity
Beyond cardiology, Medtronic’s Hugo robotic-assisted surgery system is one of the more interesting long-term plays in the portfolio.
Hugo received FDA clearance for urology in 2025. The company has filed for general surgery and gynecology indications. The device is priced roughly 40% below Intuitive Surgical’s da Vinci system.
Robotic procedures account for less than 5% of all surgeries today. The global market is projected to grow to more than $54 billion over the next decade.
In neuroscience, fourth-quarter revenue was up 5%. Medtronic also received FDA clearance this year for a new Stealth AXiS Spine application for brain surgery, expanding its AiBLE surgical platform.
On the renal side, Needham reiterated a Buy rating and $101 price target this week, citing Symplicity Spyral sales annualizing at $100 million. Medicare coverage began in October 2025.
For fiscal 2027, Medtronic is guiding for organic revenue growth of 6.75% to 7.25% and adjusted EPS of $5.90 to $6.00, up about 8% from last year’s $5.53.
The company has raised its dividend for 49 consecutive years. The current quarterly dividend is $0.72 per share.
🚨 Our JUNE Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for June, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
