01—Abstract
Summary
Summary of the 10-Q filed August 26, 2025. Cited figures are marked; the original filing is the authoritative source.
Medtronic plc reported net sales of $8.578 billiona for the three months ended July 25, 2025, an 8% increase compared to the prior year period.
This growth was driven by strong performance across most business segments, particularly Cardiovascular and Diabetes, with notable contributions from Cardiac Rhythm & Heart Failure, Structural Heart & Aortic, and the MiniMed 780G AID system. Net income attributable to Medtronic remained relatively flat at $1.040 billionb ($0.81 diluted EPS) compared to $1.042 billion ($0.80 diluted EPS) in the prior year.
The company's operational cash flow saw a healthy increase to $1.088 billionc. Medtronic also highlighted progress in managing its cost structure and continued investment in research and development to drive future innovation, while navigating macroeconomic uncertainties such as tariffs.
02—Key points
Key Highlights
- Net sales increased by 8% year-over-year to $8.578 billion, driven by broad-based growth across key segments.
- Diluted earnings per share remained stable at $0.81, reflecting consistent profitability on a per-share basis.
- Operating cash flow improved significantly to $1.088 billion, indicating strong operational cash generation.
- Cardiovascular and Diabetes segments showed robust growth, with net sales increasing by 9% and 12% respectively.
- The company is actively managing its balance sheet, with $1.273 billion in cash and cash equivalents and $6.848 billion in investments.
- Medtronic is proceeding with the planned separation of its Diabetes business, expected within 18 months.
- The company reported a slight increase in its effective tax rate to 19.6%, partly due to global minimum tax impacts.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Medtronic plc kept $0.12.
- Revenue$8.58B100.0%
- Cost of revenue−$3.00B35.0%
- Gross profit$5.58B65.0%
- Operating costs−$4.13B48.2%
- Operating income$1.45B16.8%
- Interest, other & tax−$398.0M4.6%
- Net income$1.05B12.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed August 26, 2025Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $8.58B$7.92B | +8.4% |
| Cost of Revenue | $3.00B$2.76B | +8.7% |
| Gross Profit | $5.58B$5.15B | +8.2% |
| SG&A Expenses | $2.81B$2.65B | +5.7% |
| Operating Income | $1.45B$1.28B | +13.1% |
| Net Income | $1.05B$1.05B | −0.2% |
| EPS (Basic) | $0.81$0.81 | 0.0% |
| EPS (Diluted) | $0.81$0.80 | +1.3% |
| Shares Outstanding (Basic) | 1.28B1.29B | −0.9% |
| Shares Outstanding (Diluted) | 1.29B1.30B | −0.7% |
05—Questions
Frequently Asked Questions
How did Medtronic's revenue perform in the latest quarter?
Medtronic reported a solid increase in net sales, up 8% year-over-year to $8.578 billion for the three months ended July 25, 2025. This growth was broad-based, with particular strength in the Cardiovascular and Diabetes segments.
What was Medtronic's profitability this quarter?
Net income attributable to Medtronic was $1.040 billion, resulting in diluted earnings per share of $0.81, which is consistent with the $1.042 billion net income and $0.80 diluted EPS reported in the prior year's comparable period.
How is Medtronic managing its cash flow and liquidity?
The company demonstrated strong operating cash flow, generating $1.088 billion in the quarter. Medtronic maintains a healthy liquidity position with $1.273 billion in cash and cash equivalents and $6.848 billion in investments, supported by its credit facilities.
Are there any significant strategic initiatives underway?
Yes, Medtronic is actively pursuing the separation of its Diabetes business into a new, independent company, which is expected to be completed within 18 months. The company also continues to invest in research and development to fuel innovation across its other business segments.
06—Continue