Executive Summary
Medtronic reported Q4 2025 revenue of $8.927 billion, representing a 12.8% YoY increase and a 7.7% QoQ acceleration in the trailing four-quarter period. Gross profit rose to $5.803 billion with a gross margin of 65.0%, supported by a favorable product mix and continued pricing discipline. Despite top-line strength, operating income declined QoQ to $1.436 billion, compressing the operating margin to 16.1% on a quarterly basis, as higher operating expenses and mix effects impacted near-term profitability. Net income came in at $1.057 billion with an EPS of $0.82, resulting in a net income margin of 11.8%. Free cash flow generation remained robust at approximately $2.07 billion, underpinning solid balance sheet health and an ongoing return of capital through dividends and modest share repurchases.
Key Performance Indicators
QoQ: -12.76% | YoY:12.36%
Key Insights
Revenue: $8.927B (YoY +12.79%, QoQ +7.66%). Gross Profit: $5.803B (YoY +23.15%, QoQ +5.26%), Gross Margin: 65.0%. Operating Income: $1.436B (YoY +12.36%, QoQ -12.76%), Operating Margin: 16.1%. Net Income: $1.057B (YoY +1.44%, QoQ -18.32%), Net Margin: 11.8%. EPS: $0.82 (YoY +1.23%, QoQ -18.81%). EBITDA: $1.436B (EBITDA Margin 16.1%). Cash from Operations: $2.528B; Free Cash Flow: $2.069B. Dividends Paid: $0.897B; Stock Issued: $0.108B; Stock Repurchased: $(0.274)B. Cash at End of Period: $2.218B...
Financial Highlights
Revenue: $8.927B (YoY +12.79%, QoQ +7.66%). Gross Profit: $5.803B (YoY +23.15%, QoQ +5.26%), Gross Margin: 65.0%. Operating Income: $1.436B (YoY +12.36%, QoQ -12.76%), Operating Margin: 16.1%. Net Income: $1.057B (YoY +1.44%, QoQ -18.32%), Net Margin: 11.8%. EPS: $0.82 (YoY +1.23%, QoQ -18.81%). EBITDA: $1.436B (EBITDA Margin 16.1%). Cash from Operations: $2.528B; Free Cash Flow: $2.069B. Dividends Paid: $0.897B; Stock Issued: $0.108B; Stock Repurchased: $(0.274)B. Cash at End of Period: $2.218B. Total Assets: $91.68B; Total Liabilities: $43.424B; Shareholders’ Equity: $48.024B. Net Debt: $26.298B; Cash and Short-Term Investments: $8.965B; Current Assets/Current Liabilities: $23.814B / $12.879B resulting in positive working capital.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
8.93B |
12.79% |
7.66% |
| Gross Profit |
5.80B |
23.15% |
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
Transcript data not provided in the dataset. As a result, no management quotes or theme-based highlights could be extracted from an earnings call. If you supply the transcripts or a link, I can generate thematically grouped highlights with context and implications.
Transcript data not provided in the dataset.
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Transcript data not provided in the dataset.
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Forward Guidance
No formal forward guidance is present in the provided data. Given the quarter’s strength in revenue and free cash flow, the near-term outlook for Medtronic could hinge on sustaining growth across core franchises (Cardiovascular, Diabetes, Surgery/Minimally Invasive Solutions) while managing operating costs and currency exposures. Key risks to monitor include hospital capital expenditure cycles, reimbursement dynamics, supply chain integrity, and ongoing integration of newer product platforms. Absent explicit guidance, investors should watch for management commentary on cadence of new product launches, pipeline progress, and margin expansion opportunities tied to scale, pricing, and mix shifts.