Medtronic's latest financial results topped expectations, and the company raised its outlook, but analysts and investors seemed largely underwhelmed. There are several areas where the Minnesota med-tech company is stuck in a holding pattern.

Medtronic CEO Geoff Martha has long touted the Hugo robot-assisted surgery system, which is not yet approved in the U.S. amid continuing clinical studies.

One analyst on a Tuesday morning conference call said some were questioning Martha's commitment to Hugo.

"We're making progress," Martha said. "This is a midterm growth driver for us beyond the fiscal year."

Another analyst asked for some insight about Medtronic's plans for mergers and acquisitions. The company has not announced any recent deals, and Martha did not offer specific plans.

"We're talking about allocating our money to the areas of highest growth. We are still focused on value-creating, tuck-in M&A," Martha said.

Analysts also asked for an update about Affera, a company that Medtronic acquired in 2022. Medtronic is seeking approval to use Affera's mapping and ablation system, which can be used with Sphere-9 catheters for atrial fibrillation.

"Obviously, we don't have approval yet in the U.S.," Martha said.

The company, based in Dublin, Ireland, with an operational headquarters in Fridley, saw its stock rise less than 1% Tuesday to close at $85.38.

Medtronic reported fiscal first quarter sales of $7.9 billion, an increase of 2.8%. On the bottom line the company reported a $1 billion profit, an increase of 31%.

Medtronic delivered earnings per share of $1.23, edging expectations.

The company raised its guidance for organic revenue growth of 4.5% to 5% for its fiscal year. Previously Medtronic projected a range of 4% to 5%.

Sales increased 12% in the rebounding diabetes business. It fared better in the U.S., where sales were up 14%.

Earlier this month Medtronic announced a partnership under which Abbott will produce a continuous glucose monitor for exclusive use with its devices.

"For [Medtronic], we believe this is a smart move on its part (something it should have done years ago) but the impact on the business will take quite a while and be modest," wrote analysts with Piper Sandler.

Piper Sandler estimated the product integration will take at least two years.