3 Reasons to Add This Medical Technology Stock to Your Portfolio in 2026

• Medtronic is divesting a concern that's slowing down its margins.

• The institution entered an important marketplace past year.

• Medtronic is simply a large dividend stock.

• 10 stocks we similar amended than Medtronic ›

Medtronic (NYSE: MDT) is coming disconnected a beardown year. The institution performed good successful 2025, contempt immoderate threats to its business, including the interaction of tariffs connected its operations.

As 2026 begins, the bully quality is that Medtronic hasn't peaked yet. There are inactive coagulated reasons to see buying shares of Medtronic this year, particularly for long-term, income-seeking investors.

Let's see 3 of them.

Last year, Medtronic announced that it would abstracted its diabetes concern into a stand-alone, publically traded entity. The transaction is expected to beryllium implicit by the extremity of this year, considering the timeline absorption provided to investors. There are respective reasons wherefore this is simply a large determination for the medtech leader.

First, Medtronic was incapable to support gait with manufacture leaders successful definite niches of the diabetes attraction market, including the improvement of top-of-the-line continuous glucose monitoring systems. Even wrong the insulin pump category, Medtronic had beardown challengers.

Second, diabetes attraction is Medtronic's lone direct-to-consumer unit, and it generates importantly little operating margins than the remainder of its business. In its fiscal twelvemonth 2025, ending connected April 25, 2025, diabetes attraction accounted for 8% of gross but lone 4% of operating profits. Once it gets escaped of this division, Medtronic volition beryllium much focused connected its B2B operations and should unlock much profitable maturation opportunities.

Last year, Medtronic received regulatory clearance successful the U.S. for the Hugo system, a robotic-assisted country (RAS) device, for usage successful urologic procedures. This won't boost Medtronic's top-line maturation this year, oregon adjacent next.

However, it introduces an important semipermanent accidental for the company, arsenic robotic country is an underpenetrated marketplace with charismatic semipermanent prospects. That's due to the fact that the minimally invasive procedures they alteration let surgeons to execute procedures with important advantages, but galore eligible procedures are inactive not being performed robotically.

Even with stiff contention from different aesculapian instrumentality leaders, Medtronic's introduction into this marketplace represents an important improvement for the company. As shipments for the instrumentality summation traction and caller indications assistance that, the Hugo strategy volition yet lend meaningfully to Medtronic's results.