01—Abstract
Summary
Summary of the 10-Q filed February 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Medtronic plc reported solid top-line growth for the nine months ended January 23, 2026, with net sales increasing by 8% to $26.6 billiona.
This growth was primarily driven by strong performance in its Cardiovascular and Diabetes segments, with the latter showing a notable 12% increase in sales due to international demand for its MiniMed 780G system. Diluted earnings per share (EPS) for the nine-month period slightly decreased to $2.76b from $2.79 in the prior year, reflecting increased costs and expenses. For the third quarter, net sales grew 9% year-over-year to $9.0 billion, supported by broad-based growth across most segments.
However, diluted EPS saw a more pronounced decline to $0.89c from $1.01 in the prior year's quarter. This was influenced by higher cost of products sold, including increased duties from tariffs and asset write-offs, alongside increased selling, general, and administrative expenses related to new product launches and the planned separation of the Diabetes business. The company continues to manage its debt levels, with total debt decreasing slightly, and maintains a strong liquidity position.
02—Key points
Key Highlights
- Net sales increased 9% year-over-year to $9.0 billion in the third quarter and 8% to $26.6 billion for the nine months ended January 23, 2026.
- Cardiovascular segment demonstrated strong growth, with net sales up 14% in the quarter and 11% year-to-date, driven by Cardiac Rhythm & Heart Failure and Coronary & Peripheral Vascular product lines.
- Diabetes segment sales rose 15% in the quarter and 12% year-to-date, primarily fueled by international adoption of the MiniMed 780G system.
- Diluted EPS decreased to $0.89 for the third quarter (from $1.01 year-over-year) and $2.76 for the nine months (from $2.79 year-over-year), impacted by increased operating costs and specific charges.
- Cost of products sold as a percentage of net sales increased due to higher duties from tariffs and asset write-offs.
- Selling, general, and administrative expenses increased, driven by new product launches, commercialization activities, and costs associated with the planned separation of the Diabetes business.
- The company announced its intent to acquire CathWorks Ltd. for up to $585 million, aimed at expanding its Coronary & Peripheral Vascular division.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Medtronic plc kept $0.13.
- Revenue$9.02B100.0%
- Cost of revenue−$3.26B36.2%
- Gross profit$5.76B63.8%
- Operating costs−$4.29B47.6%
- Operating income$1.46B16.2%
- Interest, other & tax−$314.0M3.5%
- Net income$1.15B12.8%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed February 24, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $9.02B$8.29B | +8.7% |
| Cost of Revenue | $3.26B$2.78B | +17.3% |
| Gross Profit | $5.76B$5.51B | +4.4% |
| SG&A Expenses | $2.96B$2.72B | +8.8% |
| Operating Income | $1.46B$1.65B | −11.1% |
| Net Income | $1.15B$1.30B | −11.7% |
| EPS (Basic) | $0.89$1.01 | −11.9% |
| EPS (Diluted) | $0.89$1.01 | −11.9% |
| Shares Outstanding (Basic) | 1.28B1.28B | 0.0% |
| Shares Outstanding (Diluted) | 1.29B1.29B | +0.3% |
05—Questions
Frequently Asked Questions
What is the overall financial performance of Medtronic in this quarter?
Medtronic reported a 9% increase in net sales to $9.0 billion for the third quarter. However, diluted earnings per share (EPS) declined to $0.89 from $1.01 in the prior year's quarter. This was mainly due to an increase in the cost of products sold, including higher tariff duties and asset write-offs, as well as increased selling, general, and administrative expenses related to new product launches and the planned separation of its Diabetes business.
Which segments are driving Medtronic's revenue growth?
The Cardiovascular segment showed strong performance with a 14% increase in net sales for the quarter, and the Diabetes segment also saw significant growth with a 15% increase in net sales, largely driven by international demand for its MiniMed 780G system. Most other segments also contributed to the overall sales growth.
Are there any significant legal matters that could impact Medtronic's financials?
Medtronic is involved in various legal matters. A notable development is the jury verdict of $382 million (which will be trebled) in an antitrust litigation case brought by Applied Medical. While Medtronic believes the verdict is inconsistent with the evidence and plans to challenge it, the ultimate outcome remains uncertain. The company has not recorded a liability for this matter as an estimate of loss is not currently possible.
What is the outlook for Medtronic's Diabetes business given the planned separation?
Medtronic announced its intention to separate its Diabetes business into a new independent company, MiniMed Group, Inc. This separation is expected to be completed within 18 months. Despite this planned separation, the Diabetes segment saw a 15% increase in net sales this quarter, driven by the strong adoption of the MiniMed 780G system internationally.
06—Continue