Medtronic beats quarterly profit estimates on robust demand for heart devices

Feb 17 (Reuters) - Medtronic surpassed Wall Street expectations for third-quarter profit on Tuesday, buoyed by strong demand for ‌its heart devices and diabetes monitors.

Medtech firms are benefiting ‌from surging demand for medical procedures as health insurers report higher medical loss ​ratios — an indication that patients are availing more procedures. Market optimism is also boosted by wider physician uptake and technological advances.

The company maintained its fiscal 2026 adjusted per share profit forecast at $5.62 to $5.66.

Medtronic’s ‌growth drivers include its ⁠pulsed field ablation systems and its transcatheter aortic valve replacement devices, two minimally invasive technologies seeing ⁠rapid adoption.

Sales in the company's cardiovascular segment, which accounts for nearly 40% of sales, jumped 13.8% to $3.46 billion during the quarter, powered ​by strong ​demand for its pulsed field ​ablation portfolio.

The technology uses ‌high-energy electric pulses to destroy targeted heart tissues to reduce the frequency of abnormal heart rhythms.

Medtronic competes with Abbott and Dexcom in continuous glucose monitoring, a market that has expanded as patients increasingly adopt convenient finger prick-free technologies to track glucose levels.

Revenue ‌for the third quarter came in ​at $9.02 billion, compared with estimates of $8.91 billion, ​according to data compiled ​by LSEG.

On an adjusted basis, the company reported ‌quarterly profit of $1.36 per share, ​beating analysts' average ​estimate of $1.33 per share.

Healthcare conglomerate and larger peer Johnson & Johnson posted a 7.5% year-over-year increase in medtech sales in ​the reported quarter, ‌driven by strength in its electrophysiology segment that includes its ​heart devices.

(Reporting by Padmanabhan Ananthan and Puyaan Singh in ​Bengaluru; Editing by Sahal Muhammed)