Sept 1 (Reuters) – Medtronic raised the lower end of its fiscal 2027 profit forecast and revenue growth outlook on Tuesday, banking on strong demand for its heart devices used in complex cardiovascular procedures.
Shares of the Ireland-based company were up 9.2% in premarket trading.
Investor expectations for medical device makers have remained high in recent quarters, boosted by robust demand for surgical procedures, greater device adoption by physicians and advances in technology.
The company raised the lower end of its fiscal 2027 adjusted per share profit forecast to $5.94 from $5.90, keeping the upper end at $6. Analysts on average expect $5.95, according to data compiled by LSEG.
Medtronic now expects annual organic revenue growth between 7.25% and 7.75%, up from the 6.75% to 7.25% growth it projected previously.
The forecast includes the diabetes business and Medtronic will update the outlook should its full separation occur prior to the end of the fiscal year, it said.
Joining peers Abbott and Boston Scientific, Medtronic also beat Wall Street estimates for quarterly profit and revenue. All its segments surpassed expectations.
Revenue for the first quarter came in at $9.76 billion, compared with estimates of $9.55 billion.
Medtronic separately said it would invest $80 million in heart valve repair device maker Pi-Cardia, with an option to acquire it for $210 million. It also invested $700 million in Cornerstone Robotics, gaining rights to distribute the firm’s surgical device in some markets outside the U.S.
Sales in the company’s cardiovascular segment – its largest – jumped 19.5% to $3.93 billion during the quarter, powered by strong demand for its pulsed field ablation portfolio – used to treat irregular heart rhythms – which saw 88% growth.
Growth in the quarter was also boosted by about $570 million due to an extra week, said Medtronic.
On an adjusted basis, it reported quarterly profit of $1.45 per share, compared with estimates of $1.39.
(Reporting by Padmanabhan Ananthan and Puyaan Singh in Bengaluru; Editing by Devika Syamnath)
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