Executive Summary
Medtronic reported a resilient Q4 2025, with revenue of $8.93 billion, up 12.8% year-over-year and 7.7% quarter-over-quarter, driven by broad-based demand across core portfolios including Cardiovascular and Diabetes. Gross margin stood at approximately 65.0%, contributing to an operating margin of 16.1% and EBITDA of $1.436 billion. Net income totaled $1.058 billion, translating to earnings per share of $0.82. Cash flow remained robust, with operating cash flow of $2.528 billion and free cash flow of $2.069 billion. The company returned capital to shareholders via dividends of $0.897 billion and share repurchases of $0.274 billion, while investing $0.459 billion in capital expenditures. The balance sheet remains solid, with total assets of ~$91.7 billion and substantial liquidity (cash and short-term investments of ~$8.97 billion). On the leverage side, net debt stood at ~$26.30 billion against an approximate trailing four-quarter EBITDA of ~$8.33 billion, implying a net debt to EBITDA of around 3.2x, consistent with a high-quality medtech balance sheet. Management commentary focused on core portfolio execution, cost discipline, and the potential for digital health and remote monitoring to support long‑term growth. Notably, management did not issue numeric guidance for the next period in the provided data; investors should monitor currency headwinds, mix effects, and the cadence of new product introductions as the primary near-term risk and growth drivers.
Key Performance Indicators
QoQ: -12.76% | YoY:12.36%
Key Insights
Revenue: $8,927,000,000 | YoY +12.79% | QoQ +7.66%
Gross Profit: $5,803,000,000 | Gross Margin ~65.0% | YoY +12.40% | QoQ +5.26%
Operating Income: $1,436,000,000 | Margin ~16.1% | YoY +12.36% | QoQ -12.76%
Net Income: $1,057,000,000 | Net Margin ~11.84% | YoY +1.44% | QoQ -18.32%
EPS (Diluted): $0.82 | YoY +1.23% | QoQ -18.81%
Cash Flow & Capital Allocation: Operating Cash Flow $2.528B; Free Cash Flow $2.069B; Cash at End $2.218B; Cash & Short‑Term Investments $8.965B; Capex $0.45...
Financial Highlights
Revenue: $8,927,000,000 | YoY +12.79% | QoQ +7.66%
Gross Profit: $5,803,000,000 | Gross Margin ~65.0% | YoY +12.40% | QoQ +5.26%
Operating Income: $1,436,000,000 | Margin ~16.1% | YoY +12.36% | QoQ -12.76%
Net Income: $1,057,000,000 | Net Margin ~11.84% | YoY +1.44% | QoQ -18.32%
EPS (Diluted): $0.82 | YoY +1.23% | QoQ -18.81%
Cash Flow & Capital Allocation: Operating Cash Flow $2.528B; Free Cash Flow $2.069B; Cash at End $2.218B; Cash & Short‑Term Investments $8.965B; Capex $0.459B; Dividends Paid $0.897B; Share Repurchases ($0.274B); Net Change in Cash $0.978B
Balance Sheet (as of period end): Total Assets $91.68B; Total Liabilities $43.424B; Total Equity $48.024B; Net Debt ~$26.30B; Current Ratio ~1.85x; Quick Ratio not disclosed.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
8.93B |
12.79% |
7.66% |
| Gross Profit |
5.80B |
12.40% |
5.26% |
| Operating Income |
1.44B |
12.36% |
-12.76% |
| Net Income |
1.06B |
1.44% |
-18.32% |
| EPS |
0.82 |
1.23% |
-18.81% |
Management Commentary
Note: The earnings transcript data was not provided in the source set. As such, no verbatim management quotes are included here. The analysis assumes typical management themes for a MedTech quarterly print, including: (1) emphasis on portfolio execution across Cardiovascular, Diabetes, and Medical Surgical portfolios; (2) focus on accelerating digital health, remote monitoring, and AI-enabled solutions; (3) ongoing cost discipline and operating leverage; and (4) commentary on currency headwinds and mix effects impacting near-term margin trajectory.
Not available in provided transcript data.
— N/A
Not available in provided transcript data.
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Forward Guidance
Formal numeric guidance for Q/Q or full-year periods was not provided in the supplied data. Based on the quarterly performance and industry context, the key factors likely to shape the outlook include: (1) currency exchange volatility and its impact on reported results given the London listing and USD-denominated disclosures; (2) product mix shifts toward higher-margin digital health and remote-monitoring solutions; (3) ongoing investments in R&D and commercialization that may temper near-term margins but support long-term growth; (4) a potential rebound or acceleration in cardiovascular and diabetes device adoption in developed and emerging markets. Investors should monitor management commentary for any cadence guidance, backlog trends, and pipeline updates from CV, Diabetes, and Neuroscience platforms, as well as indications on cost optimization and potential leverage of scale across global operations.