DUBLIN (dpa-AFX) - Medical devices maker Medtronic plc (MDT) reported Tuesday that net profit for the first quarter grew from last year, driven by improved margins and double-digit net sales growth across all four operating businesses. The company also raised its guidance for the full-year 2027 as results came in ahead of the company's guidance.
For the first quarter, the company reported net income attributable to Medtronic of $1.47 billion or $1.14 per share, up from $1.04 billion or $0.81 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter was $1.45 per share, compared to $1.26 per share in the year-ago quarter.
Net sales for the quarter grew 13.7 percent to $9.76 billion from $8.58 billion in the same quarter last year. Organic revenue grew 13.7 percent.
Results were impacted by the extra fiscal week, which occurred in the first quarter of fiscal 2027. The company estimates the impact of the extra week benefited organic growth by approximately $570 million.
Cardiovascular business revenue grew 19.5 percent to $3.93 billion, Neuroscience business revenue increased 10.3 percent to $2.68 billion, Medical Surgical business reported strong performance, with revenues up 10.0 percent to $2.28 billion, and Diabetes business revenue of $843 million increased 16.9 percent from last year.
Operating margin for the quarter improved 130 basis points to 18.1 percent from last year's 16.8 percent.
'The combination of strong operating performance and disciplined financial management drove revenue and adjusted EPS ahead of expectations, enabling us to raise our fiscal 2027 guidance,' said Thierry Pieton, Medtronic chief financial officer.
Looking ahead to fiscal 2027, the company now projects adjusted earnings in a range of $5.94 to $6.00 per share on organic revenue growth of 7.25 to 7.75 percent. Previously, the company expected adjusted earnings in the range of $5.90 to $6.00 per share on organic revenue growth of 6.75 to 7.25 percent.
Separately, the company announced a strategic partnership with Cornerstone Robotics, an innovative surgical robotics company, with approximately $700 million investment including rights to distribute Cornerstone Robotics' Sentire surgical system in select markets outside the U.S. where the system is market approved.
Further, the company also announced a strategic investment of up to $80 million in Pi-Cardia Ltd., a leaflet modification technologies company for structural heart disease. The agreement also includes an option for Medtronic to acquire Pi-Cardia upon achievement of predefined milestones for an estimated upfront acquisition price of up to $210 million, plus additional potential earn-out payments post-acquisition.
In Tuesday's pre-market trading, MDT is trading on the NYSE at $93.28, up $2.60 or 2.87 percent.
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