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

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The company performed well in 2025, despite some threats to its business, including the impact of tariffs on its operations.As 2026 begins, the good news is that Medtronic hasn't peaked yet. There are still solid reasons to consider buying shares of Medtronic this year, especially for long-term, income-seeking investors.Let's consider three of them.Image source: Getty Images.Last year, Medtronic announced that it would separate its diabetes business into a stand-alone, publicly traded entity. The transaction is expected to be complete by the end of this year, considering the timeline management provided to investors. There are several reasons why this is a great move for the medtech leader.First, Medtronic was unable to keep pace with industry leaders in certain niches of the diabetes care market, including the development of top-of-the-line continuous glucose monitoring systems. Even within the insulin pump category, Medtronic had strong challengers.Second, diabetes care is Medtronic's only direct-to-consumer unit, and it generates significantly lower operating margins than the rest of its business. In its fiscal year 2025, ending on April 25, 2025, diabetes care accounted for 8% of revenue but only 4% of operating profits. Once it gets rid of this division, Medtronic will be more focused on its B2B operations and should unlock more profitable growth opportunities.Last year, Medtronic received regulatory clearance in the U.S. for the Hugo system, a robotic-assisted surgery (RAS) device, for use in urologic procedures. This won't boost Medtronic's top-line growth this year, or even next.However, it introduces an important long-term opportunity for the company, as robotic surgery is an underpenetrated market with attractive long-term prospects. That's because the minimally invasive procedures they enable allow surgeons to perform procedures with significant advantages, but many eligible procedures are still not being performed robotically.Even with stiff competition from other medical device leaders, Medtronic's entry into this market represents an important development for the company. As shipments for the device gain traction and new indications help that, the Hugo system will eventually contribute meaningfully to Medtronic's results.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,940.01 -4.46 (-0.06%)Dow 3049,359.33 -83.07 (-0.17%)Nasdaq23,515.39 -14.61 (-0.06%)Russell 20002,677.74 +3.18 (+0.12%)VIX15.86 +0.02 (+0.13%)Gold4,595.40 -28.30 (-0.61%)Trending tickersBTC-USD Bitcoin USD 95,389.39 +119.07 (+0.12%)ETH-USD Ethereum USD 3,340.37 +28.99 (+0.88%)XRP-USD XRP USD 2.06 -0.01 (-0.56%)BTC-CAD Bitcoin CAD 132,716.22 +165.66 (+0.12%)SOL-USD Solana USD 142.64 -1.58 (-1.10%)PortfolioSign in to access your portfolioSign inTop gainersIBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)AGX Argan, Inc. 383.66 +54.00 (+16.38%)RIOT Riot Platforms, Inc. 19.23 +2.64 (+15.92%)ASTS AST SpaceMobile, Inc. 115.77 +14.52 (+14.34%)FIGR Figure Technology Solutions, Inc. 73.91 +9.00 (+13.86%)Top losersZGN Ermenegildo Zegna N.V. 9.56 -1.46 (-13.25%)SSL Sasol Limited 6.31 -0.84 (-11.75%)TLN Talen Energy Corporation 371.66 -47.41 (-11.31%)CEG Constellation Energy Corporation 307.71 -33.42 (-9.80%)GTM ZoomInfo Technologies Inc. 9.04 -0.97 (-9.65%)Most activeWMT Walmart Inc. 119.70 +0.50 (+0.42%)NVDA NVIDIA Corporation 186.11 -1.01 (-0.54%)IBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)ONDS Ondas Inc. 12.14 -0.71 (-5.50%)INTC Intel Corporation 46.99 -1.28 (-2.65%)Top economic eventsEarnings eventsMy earnings eventsEarnings events