Medtronic (NYSE:MDT) is underperforming the S&P 500 index so far in 2019, but most investors won't complain about a 22% year-to-date gain. The medical device giant delivered solid, if not spectacular, fiscal 2020 first-quarter results in August. Investors were hoping for more good news with Medtronic's Q2 results.

Those hopes were realized when the company provided its Q2 update on Tuesday morning. Here are the highlights from Medtronics' latest quarterly results.

Second-quarter key on keyboard

Image source: Getty Images.

By the numbers

Medtronic reported revenue in the second quarter of $7.7 billion. This reflected a 3% increase from the prior-year period revenue total of $7.5 billion. Wall Street analysts projected Q2 revenue of $7.66 billion.

The company announced net income of $1.36 billion, or $1.01 per share, based on generally accepted accounting principles (GAAP). This represented an increase of more than 21% from the earnings of $1.12 billion, or $0.82 per share, reported in the same quarter of 2018. 

Medtronic reported adjusted net income of $1.77 billion, or $1.31 per share, up 7% year over year. This beat the average analysts' earnings estimate of $1.28 per share.

Behind the numbers

The company's restorative therapies group delivered the strongest growth for Medtronic in the second quarter. Revenue for this unit jumped 6% year over year to $2.112 billion. Sales for brain therapies increased by 10% over the prior-year period, while specialty therapies, spine, and pain therapies generated single-digit percentage growth.

Medtronic's minimally invasive therapies group posted Q2 revenue of $2.142 billion, up 4.6% year over year. This group includes two divisions -- the surgical innovations division and the respiratory, gastrointestinal & renal division -- both of which delivered mid-single-digit revenue growth.

The company's smallest segment, its diabetes group, ranked last in terms of growth, with Q2 revenue increasing by 2.2% year over year to $596 million. International growth, though, was exceptionally strong as Medtronic's launch of its MiniMed 670G hybrid closed-loop insulin pump system continued to gain momentum. However, U.S. diabetes sales fell from the prior-year period due to increased competition.

Looking ahead

Medtronic still projects sales to be between $31.4 billion and $31.7 billion for full-year 2019. Non-GAAP earnings per share are expected to be between $5.57 and $5.63, up from the company's previous guidance of $5.54 to $5.60.

CEO Omar Ishrak said, "As we look forward, we're even more excited about what lies ahead, as the investments we've made in our pipeline begin to pay off by accelerating our revenue growth and creating value for our shareholders." One example of Medtronic's pipeline paying off could be the company's new robotic surgical system, which it plans to launch soon.

However, 2020 could bring increased volatility for Medtronic. With multiple presidential candidates advocating single-payer healthcare programs, healthcare stocks could experience big price swings as political campaigns heat up next year.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.