Medtronic reported a solid start to QQ1 2026 with revenue of $8.578 billion, up 2.1% year over year. The gross profit was $5.141 billion resulting in a gross margin of 59.93%, while operating income of $1.445 billion produced an operating margin of 16.85%. Net income stood at $1.04 billion and earnings per diluted share were $0.81. The results reflect a diversified portfolio mix and ongoing R&D investment, underpinning a platform for mid-single-digit topline growth and margin discipline in a competitive med-tech landscape.
On a quarter-over-quarter basis, revenue declined by 3.91% driven by seasonality and lapping a strong prior-year quarter, while operating income rose modestly by 0.63% QoQ. Net income declined 1.61% QoQ and earnings per share decreased by 1.22% QoQ. Cash flow remained competitive, with net cash provided by operating activities of $1.088 billion and free cash flow of $0.584 billion, supporting a net cash position of approximately $1.088 billion at period end. Capital allocation included modest share repurchases and a dividend payout, while capital expenditures totaled $0.504 billion for the quarter. Management commentary is not included in the provided data; investors should monitor portfolio momentum (Cardiovascular, Diabetes, Medical/Surgical, Neuroscience), FX effects, reimbursement dynamics, and ongoing investments in high-growth adjacencies such as remote monitoring and AI-enabled solutions for potential upside.
Overall, Medtronic remains a leading diversified med-tech franchise with durable profitability and a healthy balance sheet, offering a constructive setup for downside protection and selective upside as key product launches and adoption cycles unfold over the coming quarters.