MDT · Q1 FY2027
Medtronic plc Q1 FY2027 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $9.756B | $8.580B (yr ago) | Beat |
| EPS | $1.14 | $0.81 (yr ago) | Beat |
| Free Cash Flow | $1.290B | $0.580B (yr ago) | Beat |
| Gross Margin | 38.3% | Not disclosed (yr ago) | Miss |
| Operating Margin | 18.1% | 16.8% (yr ago) | Beat |
What changed
Q1 FY2027 revenue increased 13.7% year over year to $9.756B, while EPS rose 40.7% to $1.14. Free cash flow more than doubled to $1.290B and operating margin expanded 1.3 percentage points to 18.1%, making the quarter stronger across growth, profitability and cash conversion; a comparable prior-year gross margin was not disclosed.
Impact on the investment thesis
With no prior SageNoodle valuation, we establish fair value at $93.61 per share. The strong quarter supports a 23.0x TTM EPS base multiple, but the resulting 2.2% upside from $91.62 leaves the shares fairly valued.