09:16 AM EDT, 08/15/2025 (MT Newswires) -- Medtronic ( MDT ) is expected to report fiscal first-quarter results above market expectations, while the medical device maker is likely to lift its full-year outlook amid easing tariff impacts and foreign-exchange tailwinds, according to Needham.

The brokerage forecasts the company to beat consensus estimates on revenue and per-share earnings for its first quarter due to new product launches, healthy market growth, favorable currency movements and senior management's conservative guidance, it said in a Friday client note.

The current consensus on FactSet is for Medtronic ( MDT ) to record adjusted EPS of $1.23 and sales of $8.38 billion for the fiscal first quarter. The company is scheduled to release its latest financial results next week.

"We expect (Medtronic ( MDT )) to raise its (fiscal 2026) revenue and EPS guidance given (fiscal first-quarter) upside, favorable currency, and tariff reductions/mitigation," Needham analysts, including Mike Matson, wrote in the note.

In May, Medtronic ( MDT ) said it anticipated adjusted EPS to be in a range of $5.50 to $5.60 for the ongoing fiscal year, with the higher end assuming that bilateral tariffs between the US and China during a 90-day period of suspension at the time remain in place throughout the year. The lower end reflected the company's view that the duties resume at higher levels following the 90-day pause.

Earlier in the week, US President Donald Trump signed an executive order to extend the tariff suspension on China for another 90 days. The two countries had previously agreed in May to suspend duties on each other's goods for three months.

During a conference call in May, Medtronic ( MDT ) Chief Financial Officer Thierry Pieton told analysts that the company estimated tariffs to have a net impact of roughly $200 million to $350 million on costs of goods sold in fiscal 2026, according to a FactSet transcript.

Needham believes that tariff rates have "eased somewhat" since May, while other large medical technology companies have reduced their projected tariff impacts due to lower rates and increased visibility in their efforts to tackle duties. The US dollar has also "weakened further" in the past few months, potentially resulting in a larger currency tailwind for Medtronic's ( MDT ) revenue and EPS, Needham said.

Medtronic ( MDT ) also has several significant new and upcoming product launches that could accelerate growth in its various portfolios and businesses, Needham said. The company is nearing US Food and Drug Administration approval and launch of its Hugo surgical robotics system, which could boost growth in fiscal 2027, according to the brokerage.