Medtronic (MDT) Up 1.5% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Medtronic (MDT). Shares have added about 1.5% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Medtronic due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.Medtronic Q1 Earnings Top EstimatesMedtronic reported first-quarter fiscal 2026 adjusted earnings per share of $1.26, which rose 2.4% from the year-ago quarter’s figure and beat the Zacks Consensus Estimate by 2.4%.Without certain one-time adjustments — including amortization, restructuring and associated costs, certain litigation charges and acquisition-related costs, among others — GAAP earnings per share was 81 cents, reflecting a 1.3% improvement from the year-ago quarter’s reported figure.RevenuesWorldwide revenues in the reported quarter totaled $8.58 billion, up 8.3% year over year on a reported basis and 4.8% organically. The top line surpassed the Zacks Consensus Estimate by 2.5%.Segmental AnalysisThe company reports revenues under four major segments — Cardiovascular, Medical Surgical, Neuroscience and Diabetes.In the fiscal first quarter, Cardiovascular revenues increased 7% organically to $3.23 billion. Within this, Cardiac Rhythm & Heart Failure sales totaled $1.71 billion, up 9.1% year over year organically. Revenues from Structural Heart & Aortic rose 6.1% organically to $930 million. Coronary & Peripheral Vascular revenues grew 2.9% organically to $643 million.In the Medical Surgical portfolio, worldwide sales totaled $2.08 billion, up 2.4% year over year organically. While Surgical & Endoscopy revenues edged up 2.3% organically to $1.61 billion, Acute Care & Monitoring revenues increased 2.6% to $471 million.In Neuroscience, worldwide revenues of $2.42 billion were up 3.1% year over year organically. Cranial & Spinal Technologies sales amounted to $1.21 billion, up 4.5% year over year organically. Specialty Therapies revenues totaled $702 million, down 2.7% year over year organically. Neuromodulation revenues grew 8.6% organically to $504 million.Revenues in the Diabetes group rose 7.9% organically to $721 million.Margin PerformanceGross margin in the reported quarter contracted 10 basis points (bps) to 65% due to an 8.7% rise in the cost of revenues.Research and development expenses rose 7.4% year over year to $726 million. Selling, general and administrative expenses rose 5.7% to $2.81 billion.Adjusted operating margin expanded 81 bps year over year to 23.8%.Fiscal 2026 OutlookFor (full) fiscal 2026, Medtronic still projects organic revenue growth of 5%. The organic revenue growth guidance excludes the impact of foreign currency and revenues related to certain businesses reported as Other. Including Other revenues and the impact of foreign currency exchange, if recent foreign currency exchange rates hold, fiscal 26 revenue growth on a reported basis would now be in the range of 6.5-6.8% (earlier 4.8-5.1%).The Zacks Consensus Estimate for fiscal 2026 worldwide revenues is pegged at $35.29 billion, implying 5.2% growth from the year-ago reported figure.Full-year adjusted earnings per share is now expected to be in the range of $5.60-$5.66 (earlier $5.50-$5.60). The Zacks Consensus Estimate for the year’s adjusted earnings is pegged at $5.55 per share.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.VGM ScoresCurrently, Medtronic has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Medtronic has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerMedtronic belongs to the Zacks Medical - Products industry. Another stock from the same industry, QuidelOrtho (QDEL), has gained 9.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.QuidelOrtho reported revenues of $613.9 million in the last reported quarter, representing a year-over-year change of -3.6%. EPS of $0.12 for the same period compares with -$0.07 a year ago.For the current quarter, QuidelOrtho is expected to post earnings of $0.62 per share, indicating a change of -27.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for QuidelOrtho. Also, the stock has a VGM Score of C.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Medtronic PLC (MDT): Free Stock Analysis Report QuidelOrtho Corporation (QDEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks