Medtronic FY2026: Sales Up 8.4% to $36.4B, Every Segment Loses Margin
Balance sheet, income statement and segment figures are taken from Medtronic plc's Form 10-K for the fiscal year ended April 24, 2026, filed with the SEC on June 18, 2026, and from the company's XBRL exhibits to that filing. Figures explicitly attributed to management — tariff dollar amounts, fiscal 2027 guidance, organic growth rates and product-line growth percentages — come from Medtronic's fourth-quarter and full-year fiscal 2026 earnings release and conference call of June 3, 2026, and are labelled as such where used. Medtronic's fiscal year ends on the last Friday in April. All dollar figures are U.S. dollars. Medtronic reports both GAAP and non-GAAP measures; every figure below is GAAP unless explicitly labelled otherwise.
Medtronic's fiscal 2026 revenue rose 8.4% to $36,364 million — the fastest growth in the three years presented in this filing, and what the company's June 3 earnings release headlined as its highest annual revenue growth in 10 years. That headline needs one immediate qualifier: management put organic growth at 5.8%, so roughly a third of the reported growth came from currency and acquisitions rather than underlying demand.
Almost none of the acceleration reached the bottom line. Net income attributable to Medtronic grew just 3.0% to $4,801 million and diluted EPS 3.3% to $3.73, because the effective tax rate normalized from 16.6% to 21.2% and because the operating businesses themselves gave up margin: aggregate operating profit across the three reportable segments grew only 4.9% on 7.6% segment revenue growth, a compression of approximately 69 basis points. The growth is real and it is concentrated in one place — cardiac ablation, where the Cardiac Rhythm & Heart Failure division added $1,112 million of revenue in a single year — but it is being purchased with gross margin. Management sized the fiscal 2026 tariff bill at roughly $185 million and guided fiscal 2027 to approximately $250 million, an increase of about $65 million that it expects to cut roughly 20 basis points from gross margin year over year.
