Medtronic plc reported QQ2 2026 results showing revenue of $8.961 billion, up 0.38% year over year and 4.46% quarter over quarter, with a strong gross margin of 60.3% and an operating margin of 18.8%. Net income of $1.374 billion drove earnings per share of $1.07 (GAAP) and $1.06 on a diluted basis. EBITDA stood at $2.366 billion, yielding an EBITDA margin of 26.4%. The quarter benefited from continued strength in demand for cardiovascular and diabetes therapies, while investment in R&D remained elevated at $0.754 billion. Medtronic ended the period with liquidity and a net cash position (net debt negative) of about $2.01 billion, underscoring financial flexibility to fund ongoing R&D and potential strategic initiatives.
Despite solid profitability, top-line revenue growth was modest on a YoY basis, suggesting ongoing cyclicality and pricing dynamics in a large, hospital-facing market. The company’s cash generation supports a differentiated portfolio across Cardiovascular, Medical-Surgical, Neuroscience, and Diabetes Operating Units, positioning Medtronic to benefit from continued adoption of minimally invasive and catheter-based therapies. The discussion for investors should emphasize how management intends to translate this margin resilience into sustainable long-term growth, potential pipeline catalysts, and sensitivity to macro health-care spending and reimbursement dynamics.