Q3 marks the highest revenue growth Medtronic has achieved in 10 quarters with 6% organic revenue growth. We're unlocking new markets and accelerating our performance.
— Geoffrey Martha, Chairman & CEO
03Detailed Report
MDT
Medtronic plc
Period
Q3 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 24, 2026
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Executive Summary
Medtronic reported fiscal Q3 2026 revenue of $9.018 billion (6% organic, 8.7% reported). Adjusted gross margin remained strong (≈64.9%); adjusted operating profit was roughly $2.2 billion and adjusted EPS beat guidance by $0.03. Operating cash flow was robust at $2.744 billion with free cash flow of approximately $2.30 billion after $444 million of capital expenditures. The quarter was driven by an outstanding performance in Cardiac Ablation Solutions (CAS; +80% year-over-year) led by pulsed field ablation (PFA) adoption; other notable contributors were CRM, Endoscopy and Diabetes (MiniMed). Management reiterated fiscal 2026 organic revenue guidance (~5.5%) and EPS range $5.62–$5.66. Balance sheet shows substantial liquidity (cash and short-term investments $8.38 billion) but elevated gross debt ($28.07 billion; net debt ~$26.92 billion). Key near-term risks include tariff headwinds, product/mix margin pressure from early-stage growth businesses (CAS and Diabetes), and execution risks tied to launches and the planned MiniMed separation.
Key Performance Indicators
Revenue
Increasing
9.02B
QoQ: 0.64% | YoY: 7.32%
Gross Profit
Increasing
5.85B
64.88% margin
QoQ: 8.25% | YoY: 7.22%
Operating Income
Increasing
1.77B
QoQ: 5.22% | YoY: 11.16%
Net Income
Decreasing
1.14B
QoQ: -16.81% | YoY: -10.00%
EPS
Decreasing
0.89
QoQ: -16.82% | YoY: -10.10%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $9.018B (Q3 FY26)
Organic revenue growth: 6% YoY; reported growth: 8.7% YoY
GAAP net income: $1.143B; net margin: 12.7%
GAAP EPS (diluted): $0.89
Adjusted EPS (management): $1.36 for the quarter
Gross profit / adjusted gross margin: $5.851B / ~64.9%
Operating income (GAAP): $1.773B; operating margin (GAAP): ~19.7%
Adjusted operating profit (management): ~$2.2B; adjusted operating margin: 24.1%
EBITDA: $2.49B
Operating cash flow: $2.744B
Free cash flow: $2.30B (after capex $444M)
Cash and short-term investments: $8.383B
Total investments (reported): $8.62B
Total assets: $91.485B; Total equity: $48.985B
Total debt: $28.071B; Net debt: $26.924B
Current assets / current liabilities: $24.071B / $9.495B (current ratio ≈ 2.5)
Capital allocation activities: dividends paid $911M, share repurchases $105M (repurchases continued), debt repayment $1.229B
Tariff impact (management): ~$185M FY26 (includes ~$75M in Q4)
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
9.02B
7.32%
0.64%
Gross Profit
5.85B
7.22%
8.25%
Operating Income
1.77B
11.16%
5.22%
Net Income
1.14B
-10.00%
-16.81%
EPS
0.89
-10.10%
-16.82%
Key Financial Ratios
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