10-QPeriod: Q3 FY2026

Medtronic plc Quarterly Report for Q3 Ended Jan 23, 2026

Filed February 24, 2026For Securities:MDT

Summary

Medtronic plc reported solid top-line growth for the nine months ended January 23, 2026, with net sales increasing by 8% to $26.6 billion. 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 $2.76 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 $0.89 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.

Financial Highlights

54 data points
Beta

Revenue

$9.02B

63.8% Gross Margin

Net Income

$1.15B

12.8% Net Margin

EPS (Diluted)

$0.89

Total Assets

$91.48B

Cash & Equivalents

$1.15B

Free Cash Flow

$2.30B

Financial Statements
Beta
Revenue$9.02B
Cost of Revenue$3.26B
Gross Profit$5.76B
SG&A Expenses$2.96B
Operating Income$1.46B
Net Income$1.15B
EPS (Basic)$0.89
EPS (Diluted)$0.89
Shares Outstanding (Basic)1.28B
Shares Outstanding (Diluted)1.29B

Key Highlights

  • 1Net 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.
  • 2Cardiovascular 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.
  • 3Diabetes segment sales rose 15% in the quarter and 12% year-to-date, primarily fueled by international adoption of the MiniMed 780G system.
  • 4Diluted 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.
  • 5Cost of products sold as a percentage of net sales increased due to higher duties from tariffs and asset write-offs.
  • 6Selling, general, and administrative expenses increased, driven by new product launches, commercialization activities, and costs associated with the planned separation of the Diabetes business.
  • 7The company announced its intent to acquire CathWorks Ltd. for up to $585 million, aimed at expanding its Coronary & Peripheral Vascular division.

Frequently Asked Questions

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.

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.

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.

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.