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.
Key Performance Indicators
Revenue
Increasing
8.58B
QoQ: -3.91% | YoY: 2.08%
Gross Profit
Decreasing
5.14B
59.93% margin
QoQ: -11.41% | YoY: -5.79%
Operating Income
Decreasing
1.45B
QoQ: 0.63% | YoY: -9.40%
Net Income
Decreasing
1.04B
QoQ: -1.61% | YoY: -18.11%
EPS
Stable
0.81
QoQ: -1.22% | YoY: N/A
Revenue Trend
Margin Analysis
Financial Highlights
Overview of Key Metrics (QQ1 2026 vs prior period and year)
- Revenue: $8.578 billion; YoY growth +2.08%; QoQ change -3.91%
- Gross Profit: $5.141 billion; Gross Margin 59.93%; YoY margin change -5.79%; QoQ margin change -11.41%
- Operating Income: $1.445 billion; Operating Margin 16.85%; YoY margin change -9.40%; QoQ margin change +0.63%
- Net Income: $1.04 billion; Net Margin 12.12%; YoY margin change -18.11%; QoQ margin change -1.61%
- EPS (diluted): $0.81; QoQ change -1.22%; YoY data not available
- EBITDA: $2.225 billion; EBITDA Margin ~25.94%
- R&D Expenses: $726 million; SG&A (selling/general/administrative): $2.806 billion
- Interest Expense: $176 million; Depreciation & Amortization: $0.748 billion
- Cash Flow: Operating cash flow $1.089 billion; CAPEX $0.504 billion; Free Cash Flow $0.584 billion
- Balance Sheet Highlights: Cash and cash equivalents / cash and short-term investments $1.088 billion; Total current assets $1.003 billion; Total current liabilities $0.402 billion; Net debt position: negative $1.088 billion (net cash); Beginning cash $2.218 billion; Net change in cash -$2.218 billion due to FX and other financing activities in the quarter (data caveat: some balance sheet line items appear inconsistent in the provided data).
- Weighted average shares outstanding (basic): 1.2816 billion; Diluted: 1.2871 billion
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
8.58B
2.08%
-3.91%
Gross Profit
5.14B
-5.79%
-11.41%
Operating Income
1.45B
-9.40%
0.63%
Net Income
1.04B
-18.11%
-1.61%
EPS
0.81
N/A
-1.22%
Key Financial Ratios
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