Medtronic told investors at the Wells Fargo 21st Annual Healthcare Conference on Tuesday, September 8, 2026, that growth is broadening across its portfolio, with cardiac ablation, hypertension treatment and a faster pace of acquisitions supporting the outlook. Chief Executive Geoff Martha and Chief Financial Officer Thierry Piéton outlined the company's first-quarter fiscal 2025 results, capital allocation plans and product milestones during the session moderated by Wells Fargo analyst Larry Biegelsen.
Medtronic reported first-quarter revenue growth of 13.7%, helped by an extra week in the quarter. Organic revenue growth was about 7% after adjusting for the calendar effect. Cardiac rhythm management grew 15% as reported, or 9% after the extra-week adjustment. China accounted for about 5% to 6% of revenue, down from a historical range of 6% to 7%.
Under its long-range plan, Medtronic projects mid-single-digit top-line growth, about 6% at the midpoint, and high-single-digit earnings per share growth. The company said fiscal 2028 will include one fewer week than fiscal 2027, creating a mechanical headwind. Medtronic remains committed to separating its MiniMed diabetes unit before the end of fiscal 2027 and plans an investor day in December at the IRCAD surgical training facility in Charlotte, North Carolina, its first such event in six years.
Capital allocation has shifted toward a more aggressive acquisition strategy. Management said the company's annual M&A run rate has accelerated from a historical level of about $400 million to $500 million to $2.7 billion to $2.8 billion over the past 12 months. Free cash flow conversion is approaching 80%. Medtronic also described a $700 million investment and distribution agreement with Cornerstone for the Sentire robotic platform, giving it rights in 50 countries outside the United States. Recent deals cited included Scientia for neurovascular access, Pi-Cardia for valve procedures and valve devices, and Anteris for balloon-expanding valves.
Cardiac ablation was a key growth driver. The business grew 88% and is now a $2 billion business, with management expecting it to grow more than 2.5 times the market rate in fiscal 2027, when the market is expected to grow in the mid-teens, or about 15%. Sphere-9 remains the main workhorse, while Sphere-360 has launched in Europe and completed U.S. clinical trial enrollment, requiring 12 months of follow-up before submission. A ventricular tachycardia indication was added in Europe in the first quarter, and a U.S. filing is being pursued. Capital equipment install base grew 40% in the fourth quarter and 35% sequentially in the first quarter.
Symplicity, Medtronic's renal denervation treatment for hypertension, is positioned as a multi-billion-dollar opportunity. Real-world data showed blood pressure reductions of about 18 points. A Category I CPT code decision is expected in September, with implementation coming in 2028. The company plans direct-to-consumer marketing in select U.S. cities in the fall.
Other product lines also showed progress. Altaviva for overactive bladder grew 15% as reported, or 9% underlying, and is placed just under the skin above the fascia without requiring anesthesia or imaging. Hugo robotic-assisted surgery reached 50,000 cumulative procedures and 250 installed units worldwide, with 99% uptime in the United States. GI Genius, an AI colonoscopy tool, is being used to address a historical polyp miss rate of 25% to 50% in leading U.S. centers. The spine business is about 80% U.S.-focused and benefits from Stealth AXiS navigation and robotic assistance.
Medtronic's payer mix is roughly two-thirds Medicare, 25% commercial and less than 10% Medicaid. Management said exposure to Affordable Care Act-related programs is less than 1% of global revenue, linked to the acute nature of its business. The company has maintained dividend payments for 50 consecutive years and currently yields 3.06%. Its market capitalization was $118.56 billion, with a price-to-earnings ratio of 22.8 and a GREAT financial health rating on InvestingPro. Analyst consensus price targets suggest roughly 13% upside from current levels.
