Medtronic: How will MDT set up a new year

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Medtronic: How will MDT set up a new year

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Medtronic

How will MDT set up a new year

Maintain Rating: BUY | PO: 110.00 USD | Price: 78.60 USD

MDT reporting FQ4 June 3 and giving initial FY27 guide 26 May 2026

MDT will report FQ4 results on June 3 and provide initial FY27 guidance. A strong Q4 Equity

finish of 6%+ with CAS, RDN, and TAVR beating expects could help drive confidence in

however MDT decides to guide. We think most investors are prepared for a FY27 guide Travis Steed Research Analyst

in the range of 5-5.5%+ (ex selling days) and around $6 in EPS (including days). BofAS

+1 404 607 3251

The revenue growth guide dilemma / debate travis.steed@bofa.com Stephanie Elghazi

MDT has talked about ex days it can accelerate growth in FY27 (so a 5.5%+). We don’t Research Analyst

see MDT backing away from thinking it can still see a path for accelerating growth. The BofASstephanie.elghazi@bofa.com

question is does MDT include that acceleration in the guide or not. We think a guide of Gracia Mahoney

5.5%+ gives MDT an ability to stick to its commitment. However, investors likely don’t Research Analyst

see upside unless there’s something thesis changing in FQ4 (i.e., RDN inflecting). BofASgracia.mahoney@bofa.com

Investors will likely see more upside in FY27 if MDT guides closer to 5% but MDT’s Enjia Cao

messaging becomes more important on making sure investors see it as conservative and Research Analyst

BofAS

not a negative change vs 3 months ago (i.e., TAVR share loss worse/CAS decel faster). enjia.cao@bofa.com

The EPS message for high single digit EPS growth (~$6) AidanResearchLaheyAnalyst

Investors (and us) have interpreted MDT’s message on FY27 EPS to mean something in BofASaidan.lahey@bofa.com

the low $6 (HSD growth off FQ3 guide).