(Reuters) -Medical device maker Medtronic topped Wall Street estimates for second-quarter profit and revenue on Tuesday, driven by strong demand for its heart disease and diabetes devices, sending its shares up nearly 4% before the bell.
Investor expectations for medical device makers have remained high in recent quarters, boosted by robust demand for surgical procedures, particularly among older adults, greater physician adoption and advances in technology.
Sales in Medtronic’s cardiovascular segment jumped 10.8% to $3.44 billion during the period, powered by its pulsed field ablation portfolio used to treat irregular heart rhythms.
Pulsed field ablation is a newer heart procedure used to treat an irregular heartbeat called atrial fibrillation. It can be done more quickly than standard methods and lowers the chance of damage to nearby organs and tissues.
Medtronic, which is in the process of separating its diabetes business, housing insulin pumps and other wearable devices, reported a 10.3% rise in sales from this segment.
Peers Boston Scientific and Edwards Lifesciences also beat quarterly expectations last month, buoyed by resilient demand for heart devices.
Medtronic reported quarterly adjusted earnings per share of $1.36, beating analysts’ estimate of $1.31, according to data compiled by LSEG. Revenue was $8.96 billion, also above expectations of $8.87 billion.
“Overall, procedure volumes and our end markets are robust,” CEO Geoff Martha said in a statement, adding that the company was well positioned for even greater acceleration of revenue growth in the back half of the year and beyond.
The company raised the lower end of its fiscal 2026 adjusted per-share profit forecast to $5.62 from $5.60, while keeping the top end unchanged at $5.66. This includes a potential hit of about $185 million from tariffs, unchanged from its prior expectation.
It also increased its full-year organic revenue growth forecast to about 5.5%, from around 5% projected earlier.
(Reporting by Kamal Choudhury and Christy Santhosh in Bengaluru; Editing by Shilpi Majumdar)
