Medtronic's Q2 Time: Why Healthcare Investors Are Watching This Earnings Call

Medtronic (MDT) will unveil its second-quarter fiscal 2026 financial performance on November 18 before market hours commence. The medical device powerhouse delivered $1.26 earnings per share in the previous quarter, outpacing analyst forecasts by 2.44 percentage points. With a track record of surpassing expectations across four consecutive quarters (averaging 2.20% upside), MDT has built considerable credibility with the investment community.

The Numbers Everyone Is Watching

Consensus expectations peg second-quarter revenues at $8.86 billion, reflecting a 5.4% annual uptick. The expected EPS of $1.31 would represent 4% growth year-over-year. Notably, analyst estimates have remained steady throughout the past 60 days, suggesting conviction in these projections.

Why the Diabetes Unit Deserves Center Stage

The Diabetes division emerged as an unexpected growth engine for MDT. The MiniMed 780G automated insulin delivery system continues gaining traction globally, while Simplera Sync CGM technology penetrates new markets. Both Guardian 4 sensors and Extended Infusion Sets momentum remained robust during this period.

Q2 brought critical FDA clearances—the SmartGuard algorithm received approval as an interoperable automated glycemic controller compatible with Abbott’s Instinct sensor for type 1 diabetes management. Additionally, the MiniMed 780G secured clearance for adults 18 and older managing insulin-dependent type 2 diabetes. These regulatory wins likely fueled sequential revenue expansion.

The planned spinoff into a standalone entity called MiniMed represents Medtronic’s strategic pivot toward higher-margin segments. Wall Street projects 9.2% year-over-year Diabetes revenue acceleration.

Neuroscience: Momentum Building Across Multiple Fronts

This segment’s performance hinges on several catalysts. The AiBLE spine technology ecosystem continues its adoption trajectory, while Core Spine and Neurosurgery divisions should contribute steady growth.

Neuromodulation performed solidly, driven by U.S. expansion in Pain Stim applications and the Inceptiv closed-loop spinal cord stimulator. BrainSense Adaptive DBS technology adoption among Parkinson’s patients bolstered Brain Modulation revenues. September’s FDA approval for Altaviva—a minimally invasive tibial neuromodulation therapy addressing urge incontinence—opens new market opportunities heading into the quarter.

Supply chain normalization in Neurovascular (following the earlier Pipeline Vantage recall and China tender pricing headwinds) should restore profitability. Zacks Consensus expects Neuroscience revenues to advance 1.5% annually.

Cardiovascular: The Star Performer

Medtronic’s flagship Cardiovascular unit demonstrated relentless momentum. Within Cardiac Ablation Solutions, pulsed field ablation systems (PulseSelect and Afrera Sphere-9) accelerated adoption across U.S. and international territories. Mapper hiring initiatives and expanded account penetration should bolster top-line growth.

Structural Heart dynamics improved substantially. The Evolut FX+ TAVR device captured increasing market share across multiple regions, particularly in Japan. A competitor’s market withdrawal created a vacuum that MDT efficiently filled in international corridors. Premium Cardiac Rhythm Management offerings—including AURORA EV-ICD, Micra leadless pacemakers, and the 3830 conduction system pacing lead—maintained their upward trajectory.

Cardiovascular revenues are anticipated to climb 8.4% compared to the year-ago period.

Medical Surgical: Steady Expansion

The Advanced Energy portfolio benefited from LigaSure vessel sealing technology’s market traction, translating into share gains. ProGrip self-gripping polyester mesh, Electrosurgery, and Esophageal product lines sustained their growth trajectory. The AI-powered Touch Surgery platform’s expanding deployment likely drove incremental revenue benefits.

MedSurg revenues are projected to increase 5.4% year-over-year.

What the Investment Model Suggests

Medtronic carries a Zacks Rank of #3 (Hold) with an Earnings Surprise Probability (Earnings ESP) of 0.00%. Historically, stocks combining a Zacks Rank #1-3 classification with positive Earnings ESP demonstrate higher beat probability—a condition not satisfied in MDT’s current setup. Nevertheless, the company’s consistent outperformance streak warrants attention from long-term healthcare investors monitoring Q2 time announcements.

Looking Ahead

As MDT’s November 18 earnings time approaches, the convergence of regulatory approvals, successful product launches, and strategic divestitures positions the company for potential near-term momentum. The Diabetes spinoff announcement particularly signals management’s confidence in core high-growth therapeutic areas, including pulsed field ablation and renal denervation innovation pipelines.

Healthcare sector participants will scrutinize whether actual results align with consensus expectations or if Medtronic extends its impressive beat streak once again.