Free cash flow remains highly volatile, swinging from a 5.1% margin in 2026Q2 to 21.3% in 2026Q4, while the firm continues to prioritize shareholder returns through consistent $900M quarterly dividend payments.
| Metric | Apr'26 | Apr'25 | Apr'24 | Apr'23 | Apr'22 | Apr'21 | Apr'20 | Apr'19 | Apr'18 | Apr'17 | Apr'16 | Apr'15 | Apr'14 | Apr'13 | Apr'12 | Apr'11 | Apr'10 | Apr'09 | Apr'08 | Apr'07 | Apr'06 | Apr'05 | Apr'04 | Apr'03 | Apr'02 | Apr'01 | Apr'00 | Apr'99 | Apr'98 | Apr'97 |
|---|
| Cash from Operations | 7.33B | 7.04B | 6.79B | 6.04B | 7.35B | 6.24B | 7.23B | 7.01B | 4.68B | 6.88B | 5.22B | 4.9B | 4.96B | 4.88B | 4.47B | 3.74B | 4.13B | 3.88B | 3.49B | 2.98B | 2.21B | 2.82B | 2.85B | 2.08B | 1.59B | 1.83B | 1.04B | 455.3M | 693.1M | 463.6M |
| Operating CF Margin % | 20.16% | 21% | 20.97% | 19.34% | 23.18% | 20.72% | 25.02% | 22.93% | 15.64% | 23.16% | 18.1% | 24.19% | 29.16% | 29.43% | 27.62% | 23.48% | 26.12% | 26.56% | 25.82% | 24.22% | 19.55% | 28.04% | 31.32% | 27.11% | 24.8% | 32.99% | 20.78% | 11.01% | 26.61% | 19.01% |
| Operating CF Growth % | 4.06% | 3.79% | 12.39% | -17.79% | 17.72% | -13.74% | 3.24% | 49.59% | -31.92% | 31.85% | 6.45% | -1.15% | 1.56% | 9.24% | 19.49% | -9.44% | 6.52% | 11.15% | 17.12% | 34.96% | -21.71% | -0.93% | 36.94% | 30.69% | -13.18% | 75.77% | 128.86% | -34.31% | 49.5% | -7.37% |
| Net Income | 4.84B | 4.69B | 3.68B | 3.78B | 5.06B | 3.63B | 4.81B | 4.65B | 3.1B | 4.02B | 3.54B | 2.67B | 3.06B | 3.47B | 3.62B | 3.1B | 3.1B | 2.17B | 2.23B | 2.8B | 2.55B | 1.8B | 1.96B | 1.6B | 984M | 1.05B | 1.1B | 468.4M | 594.6M | 530M |
| Depreciation & Amortization | 2.96B | 2.86B | 2.65B | 2.7B | 2.71B | 2.7B | 2.66B | 2.66B | 2.64B | 2.92B | 2.82B | 1.31B | 850M | 819M | 862M | 804M | 772M | 699M | 637M | 583M | 543.6M | 463.3M | 442.6M | 408.1M | 329.8M | 297.3M | 243.3M | 213.1M | 166.5M | 116.9M |
| Stock-Based Compensation | 457M | 429M | 393M | 355M | 359M | 344M | 297M | 290M | 344M | 348M | 376M | 439M | 145M | 152M | 161M | 198M | 226M | 237M | 217M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 51M | -316M | -508M | -226M | -604M | -422M | -1.31B | -304M | -919M | -459M | -460M | -926M | -207M | 60M | 14M | 153M | 144M | -116M | -49M | -236M | 104.7M | -142.5M | 110.5M | 202.6M | 50.9M | -152.2M | 71.1M | -35.9M | 21.5M | 2M |
| Other Non-Cash Items | 450M | 433M | 1.06B | 396M | 711M | 687M | 722M | 792M | -307M | -89M | 34M | -156M | 888M | 151M | -84M | 502M | 214M | 620M | 459M | 278M | 502M | 715.2M | 91.7M | 104.5M | 536.2M | 317.1M | 8.5M | 177.3M | 125.5M | 0 |
| Working Capital Changes | -1.42B | -1.05B | -484M | -967M | -889M | -701M | 61M | -1.08B | -173M | 139M | -1.09B | 1.56B | 218M | 234M | -100M | -1.01B | -324M | 269M | -6M | -448M | -1.49B | -20.5M | 241.7M | -236.8M | -310.7M | 323.3M | -379.4M | -367.6M | -115.3M | -185.3M |
| Change in Receivables | -200M | -433M | -391M | -576M | -477M | -761M | 1.29B | -581M | -275M | -75M | -435M | -413M | -70M | 1M | -252M | -342M | -271M | 108M | -461M | -326M | -216.6M | -227.7M | -171.5M | -139.9M | -188.9M | -44.1M | 0 | 0 | 0 | 0 |
| Change in Inventory | -404M | -292M | -139M | -939M | -560M | 78M | -577M | -274M | -192M | -227M | -186M | -282M | -39M | 93M | -185M | -101M | 158M | -212M | 30M | -24M | -257.1M | -51.3M | 127.6M | -91.7M | 30.4M | -44.5M | -119.1M | -86.7M | -59.8M | -16.9M |
| Change in Payables | 46M | 209M | 391M | 696M | 213M | 531M | -44M | 399M | 65M | 356M | -65M | 1.62B | -117M | 422M | 182M | -37M | 257M | 399M | 61M | 17M | -968.3M | 423.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -2.93B | -1.94B | -2.37B | -3.49B | -1.66B | -2.87B | -3.2B | -774M | 5.86B | -1.57B | 2.25B | -17.06B | -3.59B | -3.05B | -2.65B | -1.81B | -4.76B | -2.74B | -2.79B | -1.7B | -2.87B | -1.6B | -1.65B | -249.6M | -4.38B | -1.03B | -376.6M | -1.31B | -173.8M | 78M |
| Capital Expenditures | -1.9B | -1.86B | -1.59B | -1.46B | -1.37B | -1.35B | -1.21B | -1.13B | -1.07B | -1.25B | -1.05B | -571M | -396M | -457M | -528M | -548M | -635M | -663M | -606M | -694M | -1.24B | -452M | -424.6M | -380.4M | -386.4M | -439.7M | -342.1M | -1.24B | -148.2M | -190.2M |
| CapEx % of Revenue | 5.24% | 5.54% | 4.9% | 4.67% | 4.32% | 4.5% | 4.2% | 3.71% | 3.57% | 4.22% | 3.63% | 2.82% | 2.33% | 2.75% | 3.26% | 3.44% | 4.01% | 4.54% | 4.48% | 5.64% | 11.02% | 4.5% | 4.67% | 4.96% | 6.03% | 7.92% | 6.82% | 30.09% | 5.69% | 7.8% |
| Acquisitions | -406M | -98M | -211M | -1.87B | -91M | -994M | -488M | -1.83B | 5.92B | -1.32B | -1.21B | -14.88B | -385M | -820M | -617M | -1.33B | -350M | -1.62B | -4.22B | -8M | -285.2M | -107.9M | -30.9M | -1.9M | -4.06B | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -4M | -249M | -261M | 4M | -10M | -54M | -37M | 36M | -22M | 22M | -14M | 89M | -29M | -14M | 470M | -129M | -87M | -338M | -87M | -56M | 100.5M | -45.2M | 15.5M | 3.7M | -157.7M | -118.8M | -45M | -30.7M | -42.3M | -99.1M |
| Cash from Financing | -4.75B | -4.36B | -4.45B | -4.96B | -5.34B | -4.14B | -4.2B | -5.43B | -11.95B | -3.28B | -9.54B | 15.95B | -918M | -2.1B | -1.88B | -2.01B | 764M | -845M | -835M | -3.01B | 1.32B | -488.8M | -1.01B | -743.8M | 2.17B | -245.7M | -426M | 604.8M | -125.7M | -363.1M |
| Debt Issued (Net) | -1.17B | 2.14B | 1.07B | -598M | -1M | -570M | -559M | -867M | -7.6B | 2.18B | -5.13B | 18.67B | 1.43B | -26M | 601M | 18M | 2.54B | 317M | 831M | -1.83B | 5.41B | 88M | -19.5M | -177M | 2.35B | -153.7M | 50M | 71.1M | -39.2M | 70.8M |
| Equity Issued (Net) | -519M | -2.73B | -1.85B | -645M | -2.12B | -652M | -1.33B | -1.89B | -1.77B | -3.12B | -2.34B | -1.27B | -2.55B | -980M | -1.34B | -1.05B | -865M | -343M | -1.14B | -708M | -3.07B | -172M | -639.1M | -262.6M | 94.9M | 148.7M | -286.5M | 665.6M | 12.3M | -343.2M |
| Dividends Paid | -3.64B | -3.59B | -3.67B | -3.62B | -3.38B | -3.12B | -2.89B | -2.69B | -2.49B | -2.38B | -2.14B | -1.34B | -1.12B | -1.05B | -1.02B | -969M | -907M | -843M | -565M | -504M | -464.8M | -404.9M | -351.5M | -304.2M | -278.8M | -240.7M | -189.5M | -131.9M | -102.9M | -90.7M |
| Share Repurchases | -1.03B | -3.23B | -2.14B | -645M | -2.54B | -652M | -1.33B | -2.88B | -2.17B | -3.54B | -2.83B | -1.92B | -2.55B | -1.25B | -1.44B | -1.14B | -1.03B | -759M | -1.54B | -1.04B | -4.66B | -511M | -880.5M | -418.5M | -25.6M | 0 | -497.4M | -377.2M | -168.2M | -476.6M |
| Other Financing | 582M | -184M | -3M | -101M | 163M | 206M | 581M | 14M | -94M | 26M | 60M | -116M | 1.32B | -40M | -118M | 0 | 0 | 24M | 40M | 36M | -557.8M | 100K | 0 | 0 | 0 | 0 | 0 | 0 | 4.1M | 0 |
| Net Change in Cash | -269M | 934M | -259M | -2.17B | 121M | -547M | -253M | 724M | -1.3B | 2.09B | -1.97B | 3.44B | 484M | -264M | -134M | -18M | 129M | 211M | -196M | -1.74B | 762.1M | 638.5M | 123.6M | 1.06B | -619.6M | 562.5M | 219.9M | -297.4M | 185.4M | 46.3M |
| Free Cash Flow | 5.43B | 5.18B | 5.2B | 4.58B | 5.98B | 4.88B | 6.02B | 5.87B | 3.62B | 5.63B | 4.17B | 4.33B | 4.56B | 4.43B | 3.85B | 3.19B | 3.5B | 3.21B | 2.88B | 2.29B | 963.2M | 2.37B | 2.42B | 1.7B | 1.2B | 1.39B | 699.9M | -788.5M | 441.9M | 273.4M |
| FCF Margin % | 14.92% | 15.46% | 16.07% | 14.67% | 18.87% | 16.22% | 20.82% | 19.22% | 12.07% | 18.94% | 14.47% | 21.38% | 26.83% | 26.68% | 23.81% | 20.04% | 22.1% | 22.02% | 21.33% | 18.58% | 8.53% | 23.55% | 26.64% | 22.15% | 18.78% | 25.07% | 13.96% | -19.07% | 16.96% | 11.21% |
| FCF Growth % | 4.65% | -0.29% | 13.54% | -23.39% | 22.37% | -18.87% | 2.52% | 62.42% | -35.73% | 34.85% | -3.67% | -5.08% | 3.1% | 14.87% | 20.67% | -8.67% | 8.74% | 11.52% | 26.17% | 137.23% | -59.31% | -2.22% | 42.61% | 41.04% | -13.51% | 98.86% | 188.76% | -278.43% | 61.63% | -18.8% |
| FCF per Share | 4.21 | 4.02 | 3.91 | 3.44 | 4.42 | 3.61 | 4.46 | 4.33 | 2.64 | 4.04 | 2.93 | 3.91 | 4.50 | 4.31 | 3.64 | 2.95 | 3.15 | 2.85 | 2.52 | 1.97 | 0.79 | 1.94 | 1.98 | 1.38 | 0.98 | 1.14 | 0.57 | -0.65 | 0.38 | 0.23 |
| FCF Conversion (FCF/Net Income) | 1.53x | 1.51x | 1.85x | 1.61x | 1.46x | 1.73x | 1.51x | 1.51x | 1.51x | 1.71x | 1.47x | 1.83x | 1.62x | 1.41x | 1.24x | 1.21x | 1.33x | 1.79x | 1.56x | 1.06x | 0.87x | 1.56x | 1.45x | 1.30x | 1.62x | 1.75x | 0.95x | 0.97x | 1.17x | 0.79x |
| Interest Paid | 774M | 762M | 826M | 606M | 540M | 582M | 643M | 973M | 1.15B | 1.13B | 1.27B | 578M | 394M | 333M | 312M | 292M | 386M | 208M | 258M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.94B | 1.82B | 1.62B | 1.55B | 996M | 1.25B | 878M | 1.56B | 2.54B | 1.03B | 1.38B | 632M | 521M | 537M | 454M | 826M | 571M | 436M | 717M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
As reported in recent financial filings, Medtronic's OCF/NI ratio has fluctuated significantly, ranging from a low of 0.67 in 2026Q2 to a high of 4.25 in 2024Q4, indicating that net income is an unreliable proxy for the firm's actual cash-generating capacity on a quarterly basis.
The wide variance between net income and operating cash flow suggests that non-cash items and working capital swings heavily influence reported earnings. Investors should monitor whether this volatility reflects genuine operational friction or merely the timing of large-scale enterprise contract settlements.
Based on the provided cash flow data, free cash flow margins have exhibited extreme instability, swinging from a low of 5.1% in 2026Q2 to a peak of 27.4% in 2024Q4, which complicates the assessment of the company's long-term cash generation trajectory.
This erratic FCF performance appears to be driven by lumpy working capital requirements rather than structural changes in profitability. The inconsistency in cash conversion suggests that the company's ability to fund dividends and buybacks is subject to significant quarterly timing risks.
According to the quarterly cash flow statements, working capital changes have been highly erratic, oscillating between a $1.4B outflow in 2026Q2 and a $924M inflow in 2024Q4, which suggests significant variability in the company's inventory management and accounts receivable collection cycles.
These dramatic shifts in working capital appear to be the primary driver of the company's inconsistent cash flow profile. Analysts should investigate whether these swings are indicative of seasonal hospital procurement patterns or potential inefficiencies in the supply chain management of high-acuity medical devices.
As evidenced by the reported figures, Medtronic consistently allocates substantial cash to dividends, totaling approximately $900M per quarter, while share repurchases have been more opportunistic, peaking at $2.5B in 2025Q1, suggesting a management focus on returning capital despite volatile operating cash flow.
The commitment to a steady dividend payout appears to be a core pillar of the company's capital allocation strategy, even during periods of lower cash generation. However, the reliance on debt or cash reserves to maintain these payouts during low-FCF quarters warrants further investigation into the sustainability of this policy.
Quick answers to the most common questions about buying MDT stock.
Medtronic plc (MDT) generated $7.33B in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Medtronic plc (MDT) generated $5.43B in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Medtronic plc (MDT) spent $1.90B on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Medtronic plc (MDT) returned $3.64B to shareholders via cash dividends and spent $1.03B on share repurchases. This shows the company's commitment to returning capital to its equity investors.