Medtronic said fourth-quarter revenue rose to $9.807 billion, up 9.9% from a year earlier and 6.6% on an organic basis, as the company posted its strongest annual top-line growth in 10 years.
Fourth-quarter adjusted earnings per share came in at $1.55, down 4.3% from the prior year, while GAAP diluted EPS rose 17.1% to $0.96. Net income increased 17.6% to $1.243 billion.
By division in the quarter, cardiovascular revenue climbed 13.8% to $3.797 billion, with 10.1% organic growth. Neuroscience revenue increased 5.0% to $2.751 billion, while medical surgical rose 8.0% to $2.388 billion. Diabetes revenue advanced 15.0% to $837 million.
For the full fiscal year, revenue increased 8.4% to $36.364 billion, or 5.8% on an organic basis. Adjusted revenue was $36.325 billion. GAAP diluted EPS rose 3.3% to $3.73, while adjusted diluted EPS increased 0.7% to $5.53.
Full-year operating profit increased 8.6% to $6.467 billion. Adjusted operating profit rose 2.4% to $8.856 billion. Operating margin was flat at 17.8% on a GAAP basis, while adjusted operating margin declined 130 basis points to 24.4%.
Cash from operations increased 4.1% to $7.330 billion, and free cash flow rose 4.6% to $5.426 billion. Medtronic ended the year with $9.2 billion in cash and investments.
The company raised its quarterly dividend to $0.72 per share from the prior level, implying an annual payout of $2.88. That marks the 49th consecutive year of dividend increases.
For fiscal 2027, Medtronic is guiding to organic revenue growth of 6.75% to 7.25% and adjusted diluted EPS of $5.90 to $6.00, up 6.7% to 8.5% from fiscal 2026. The market has reacted to these announcements by moving the company's shares 5.25% to a price of $77.62. For more information, read the company's full 8-K submission here.
