Medtronic PLC (NYSE:MDT) stock rose 0.53% (As on February 18, 11:24:04 AM UTC-4, Source: Google Finance) after the company reported third quarter fiscal 2026 results that exceeded analyst expectations. The Cardiovascular Portfolio was a standout performer, with revenue increasing 13.8% as reported and 10.6% organically to $3.46 billion. Particularly impressive was the Cardiac Ablation Solutions business, which saw an 80% increase globally and 137% growth in the U.S., driven by strong performance of its pulsed field ablation portfolio. Cardiac Rhythm & Heart Failure sales totaled $1.86 billion, up 17% year over year organically. Revenues from Structural Heart & Aortic rose 2.6% organically to $929 million. Coronary & Peripheral Vascular revenues grew 5.9% organically to $672 million. Other segments also showed growth, with the Neuroscience Portfolio increasing 4.1% as reported to $2.56 billion, Medical Surgical Portfolio rising 4.9% to $2.17 billion, and the Diabetes business growing 14.8% to $796 million. While Surgical & Endoscopy revenues edged up 1.4% organically to $1.65 billion, Acute Care & Monitoring revenues jumped 7% to $519 million. Cranial & Spinal Technologies sales amounted to $1.31 billion, up 3.7% year over year organically. Specialty Therapies revenues totaled $746 million, down 0.2% year over year organically. Neuromodulation revenues grew 3.6% organically to $503 million.

MDT in the third quarter of FY26 has reported the adjusted earnings per share of $1.36, beating the analysts’ estimates for the adjusted earnings per share by 2.07%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 8.7 percent to $9.02 billion in the third quarter of FY26, beating the analysts’ estimates for revenue by 1.35%. The company highlighted that this quarter marked its highest enterprise revenue growth in 10 quarters. The gross margin in the reported quarter contracted 265 basis points (bps) to 63.8% due to a 17.3% rise in the cost of products sold (excluding amortization of intangible assets). The adjusted operating margin fell 253 bps year over year to 23%.

Additionally, during the quarter, Medtronic secured CE Mark for Sphere-360 and FDA clearance for Hugo robotic-assisted surgery. The company also executed its M&A strategy with two key transactions, CathWorks in Coronary and Renal Denervation and Anteris in Structural Heart.

The company maintained its fiscal year 2026 guidance, reiterating expectations for organic revenue growth of approximately 5.5% and adjusted EPS of $5.62 to $5.66. This guidance includes a potential $185 million impact from tariffs.