Growth improves, but MiniMed still matters
- Fiscal 2026 revenue was $36.4 billion, up 8%, helped by strong Cardiovascular and Diabetes growth.
- Cardiovascular is the largest piece at 38% of revenue and grew 12% for the year.
- The MiniMed IPO started the Diabetes separation, but Medtronic still owns about 90% of it.
- Medical Surgical improved to 5% growth, but its goodwill cushion is still only about 12%.
- Finn's view is balanced: better growth and strong finances, offset by execution risk and an only fair price.
Better growth, messier structure
Medtronic's fiscal 2026 update made the growth story look stronger. Total revenue rose 8% to $36.4 billion. Cardiovascular grew 12%, Diabetes grew 13%, and Medical Surgical grew 5%. That is a clear improvement from the weaker Medical Surgical trend seen earlier.
The bull case is simple. Medtronic has a wide device portfolio, sells in more than 150 countries, and has new product cycles in heart care, surgical robotics, and diabetes technology. If those keep working, the new three-segment core company could grow faster than investors used to expect.
The bear case is also real. The Diabetes split is no longer just a plan, but it is not finished. MiniMed has gone public, yet Medtronic still owns about 90% of it. That leaves investors exposed to MiniMed while also adding tax, timing, and capital allocation questions.
The other big watch item is Medical Surgical. Its fair value was only about 12% above its carrying value in the annual impairment test, including goodwill. In plain English, if that business slips, Medtronic may need to write down part of the value it carries on the books.
Devices, doctors, and long sales ties
Medtronic makes money by designing, making, and selling medical devices and related services. Hospitals, health systems, doctors, clinicians, and patients use its products for heart disease, spine and brain conditions, surgery, monitoring, and diabetes care.
The company sells through its own sales teams and through independent distributors around the world. This matters because many products need doctor training, hospital trust, and support after sale. A new device can take time to win use, but a trusted product can stay in use for years.
The business depends on research and development, patents, trademarks, trade secrets, and strong clinical evidence. It can break if a rival launches a better product, if hospitals push prices lower, if procedure volumes slow, or if a major business like Medical Surgical misses its targets.
What Medtronic sells
Cardiac Rhythm and Heart Failure
This includes pacemakers, defibrillators, and ablation systems. It is part of the largest segment and helps anchor Medtronic's scale in heart care.
Structural Heart and Aortic
This group includes heart valves and stent grafts. It serves large, long-term markets tied to aging patients and heart disease.
Coronary and Peripheral Vascular
This includes stents, angioplasty balloons, and renal denervation systems. It benefits when new heart and blood vessel products gain share.
Cranial, Spinal, and Neuromodulation
These products include spinal implants, neurosurgery tools, robotic guidance, spinal cord stimulation, brain stimulation, and drug infusion systems. The portfolio gives Medtronic a broad position in neuroscience.
Surgical and Endoscopy
This includes stapling, vessel sealing, and the Hugo robotic-assisted surgery system. Hugo is an upside option, but the segment still needs better growth and margin proof.
Acute Care and Monitoring
This group sells patient monitoring, oxygen, brain activity, and airway management products. It is less flashy than robotics, but it supports the Medical Surgical base.
Diabetes and MiniMed
This includes insulin pumps, continuous glucose monitoring systems, and smart insulin pens. Diabetes grew 13% in fiscal 2026, but it is now being separated through MiniMed.
Fiscal 2026 revenue mix
The mix is from the fiscal year ended April 24, 2026. Diabetes is no longer a reportable segment, but it still generated revenue and matters because Medtronic owns about 90% of MiniMed.
What could go wrong
MiniMed separation stalls
High impact · Medium oddsMedtronic has started separating Diabetes through the MiniMed IPO, but the job is not complete. It still owns about 90% of MiniMed, so investors remain tied to that business. A slow or tax-heavy exit could reduce the value the separation is meant to unlock.
Medical Surgical goodwill write-down
High impact · Medium oddsMedical Surgical has $20.0 billion of goodwill allocated to it. Goodwill is the extra value recorded after acquisitions, above the value of the assets bought. Its fair value was only about 12% above carrying value, so weak sales or margins could trigger a large accounting charge.
Core product momentum fades
Medium impact · Medium oddsThe current bull case needs new products to keep driving growth, especially in Cardiovascular and surgical robotics. If products like PulseSelect PFA or Hugo do not gain enough use, top-line growth could slow. That would make the stock harder to justify.
Pricing and procedure pressure
Medium impact · Medium oddsMedtronic sells into markets where hospitals, governments, and rivals all push on price. Procedure volumes also matter because many devices are used during surgeries or interventions. Pressure from new therapies, hospital budgets, or country-level cost controls could weigh on sales.
In one breath
What does Medtronic do?
Medtronic makes medical devices used in heart care, brain and spine care, surgery, monitoring, and diabetes treatment. It sells to hospitals, doctors, health systems, and patients in more than 150 countries.
Why is MiniMed important to Medtronic stock?
MiniMed is the diabetes business that Medtronic is separating. Diabetes grew 13% in fiscal 2026, and Medtronic still owns about 90% of MiniMed, so the timing and value of the remaining exit matter.
What is Medtronic's biggest risk right now?
The clearest accounting risk is Medical Surgical goodwill. The unit had only about a 12% cushion over carrying value, so weaker performance could lead to a material write-down.
Is Medtronic growing fast?
It is growing better than before, but not like a small high-growth company. Fiscal 2026 revenue rose 8%, with faster growth in Cardiovascular and Diabetes and slower growth in Neuroscience and Medical Surgical.