Revenue growth accelerated to 13.7% year-over-year in Q1 FY2027, but operating margin remains constrained at 18.1% due to elevated SG&A spending of $3.2B (33% of revenue), suggesting growth investments are currently offsetting scale benefits.
Medtronic plc (MDT) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | 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 |
|---|
| Sales/Revenue | 37.54B | 36.36B | 33.54B | 32.36B | 31.23B | 31.69B | 30.12B | 28.91B | 30.56B | 29.95B | 29.71B | 28.83B | 20.26B | 17B | 16.59B | 16.18B | 15.93B | 15.82B | 14.6B | 13.52B | 12.3B | 11.29B | 10.05B | 9.09B | 7.67B | 6.41B | 5.55B | 5.01B | 4.13B | 2.6B | 2.44B |
| Revenue Growth % | 9.77% | 8.43% | 3.62% | 3.64% | -1.45% | 5.21% | 4.16% | -5.38% | 2.02% | 0.82% | 3.04% | 42.31% | 19.15% | 2.5% | 2.51% | 1.58% | 0.73% | 8.34% | 8.02% | 9.89% | 8.92% | 12.31% | 10.65% | 18.55% | 19.57% | 15.47% | 10.71% | 21.3% | 58.71% | 6.83% | 12.41% |
| Cost of Goods Sold | 12.51B | 12.72B | 11.63B | 11.22B | 10.72B | 10.14B | 10.48B | 9.42B | 9.15B | 9.07B | 9.29B | 9.14B | 6.31B | 4.33B | 4.13B | 3.89B | 3.7B | 3.58B | 3.52B | 3.45B | 3.17B | 2.81B | 2.45B | 2.25B | 1.89B | 1.65B | 1.11B | 1.02B | 886.2M | 740.3M | 629.3M |
| COGS % of Revenue | - | 34.98% | 34.68% | 34.66% | 34.33% | 32.02% | 34.81% | 32.59% | 29.96% | 30.27% | 31.28% | 31.71% | 31.14% | 25.48% | 24.87% | 24.03% | 23.22% | 22.65% | 24.1% | 25.5% | 25.76% | 24.93% | 24.33% | 24.79% | 24.66% | 25.78% | 20.05% | 20.38% | 21.44% | 28.42% | 25.81% |
| Gross Profit | 25.04B | 23.64B | 21.91B | 21.15B | 20.51B | 21.54B | 19.63B | 19.49B | 21.4B | 20.89B | 20.42B | 19.69B | 13.95B | 12.67B | 12.46B | 12.29B | 11.81B | 11.81B | 11.08B | 10.07B | 9.13B | 8.48B | 7.61B | 6.83B | 5.77B | 4.76B | 4.44B | 3.99B | 3.35B | 2.68B | 2.32B |
| Gross Margin % | 66.69% | 65.02% | 65.32% | 65.34% | 65.67% | 67.98% | 65.19% | 67.41% | 70.04% | 69.73% | 68.72% | 68.29% | 68.86% | 74.52% | 75.13% | 75.97% | 74.11% | 74.67% | 75.9% | 74.5% | 74.24% | 75.07% | 75.68% | 75.21% | 75.34% | 74.22% | 79.95% | 79.66% | 80.94% | 102.99% | 94.96% |
| Gross Profit Growth % | - | 7.93% | 3.58% | 3.12% | -4.8% | 9.71% | 0.74% | -8.94% | 2.47% | 2.3% | 3.68% | 41.13% | 10.1% | 1.67% | 1.37% | 4.12% | -0.02% | 6.58% | 10.05% | 10.27% | 7.71% | 11.41% | 11.34% | 18.34% | 21.37% | 7.2% | 11.12% | 19.37% | 24.73% | 15.87% | 36.78% |
| Operating Expenses | 18.25B | 17.18B | 15.95B | 16B | 15.02B | 15.79B | 15.15B | 14.7B | 15.13B | 14.25B | 15.03B | 14.33B | 10.19B | 8.86B | 8.06B | 12.29B | 11.81B | 11.81B | 11.08B | 10.07B | 9.13B | 8.48B | 7.61B | 6.83B | 5.77B | 4.76B | 4.44B | 3.99B | 3.35B | 2.68B | 2.32B |
| OpEx % of Revenue | - | 47.24% | 47.56% | 49.45% | 48.11% | 49.83% | 50.3% | 50.84% | 49.53% | 47.56% | 50.6% | 49.7% | 50.27% | 52.1% | 48.6% | 75.97% | 74.11% | 74.67% | 75.9% | 74.5% | 74.24% | 75.07% | 75.68% | 75.21% | 75.34% | 74.22% | 79.95% | 79.66% | 80.94% | 102.99% | 94.96% |
| Selling, General & Admin | 12.18B | 11.78B | 10.85B | 10.74B | 10.41B | 10.29B | 10.15B | 10.11B | 10.42B | 10.24B | 10.02B | 9.47B | 6.9B | 5.85B | 5.7B | 5.62B | 5.43B | 5.28B | 5.87B | 4.71B | 4.15B | 3.66B | 3.21B | 2.8B | 2.37B | 1.96B | 1.69B | 1.58B | 1.33B | 1.05B | 944.5M |
| SG&A % of Revenue | - | 32.41% | 32.35% | 33.17% | 33.35% | 32.48% | 33.7% | 34.96% | 34.09% | 34.18% | 33.72% | 32.84% | 34.08% | 34.38% | 34.35% | 34.74% | 34.06% | 33.39% | 40.18% | 34.83% | 33.77% | 32.4% | 31.97% | 30.83% | 30.94% | 30.62% | 30.35% | 31.48% | 32.06% | 40.4% | 38.74% |
| Research & Development | 2.92B | 2.87B | 2.73B | 2.73B | 2.7B | 2.75B | 2.49B | 2.33B | 2.33B | 2.26B | 2.19B | 2.22B | 1.64B | 1.48B | 1.56B | 1.49B | 1.51B | 1.46B | 1.35B | 1.27B | 1.24B | 1.11B | 951.3M | 851.5M | 749.4M | 646.3M | 577.6M | 479.7M | 429.2M | 297.2M | 280.2M |
| R&D % of Revenue | - | 7.9% | 8.15% | 8.45% | 8.63% | 8.67% | 8.28% | 8.06% | 7.63% | 7.53% | 7.38% | 7.71% | 8.09% | 8.69% | 9.39% | 9.21% | 9.46% | 9.23% | 9.28% | 9.43% | 10.07% | 9.86% | 9.46% | 9.37% | 9.78% | 10.08% | 10.4% | 9.57% | 10.38% | 11.41% | 11.49% |
| Other Operating Expenses | 3M | 2.52B | 2.37B | 2.53B | 1.91B | 2.75B | 2.51B | 2.26B | 2.39B | 1.75B | 2.82B | 2.64B | 1.64B | 1.53B | 807M | 5.18B | 4.91B | 5.1B | 3.86B | 4.09B | 3.74B | 3.71B | 3.44B | 3.18B | 2.65B | 2.15B | 2.18B | 1.93B | 1.58B | 1.26B | 1.05B |
| Operating Income | 6.79B | 6.47B | 5.96B | 5.14B | 5.49B | 5.75B | 4.48B | 4.79B | 6.27B | 6.64B | 5.38B | 5.36B | 3.77B | 3.81B | 4.4B | 4.48B | 4.46B | 4.79B | 3.46B | 3.65B | 3.74B | 3.71B | 3.44B | 3.18B | 2.65B | 2.15B | 1.88B | 1.68B | 1.36B | 1.09B | 913.8M |
| Operating Margin % | 18.08% | 17.78% | 17.76% | 15.89% | 17.56% | 18.15% | 14.89% | 16.57% | 20.51% | 22.17% | 18.12% | 18.59% | 18.59% | 22.42% | 26.53% | 27.7% | 27.99% | 30.26% | 23.73% | 27.01% | 30.4% | 32.81% | 34.25% | 35.01% | 34.62% | 33.52% | 33.83% | 33.57% | 32.91% | 41.91% | 37.48% |
| Operating Income Growth % | - | 8.6% | 15.77% | -6.22% | -4.64% | 28.28% | -6.41% | -23.56% | -5.6% | 23.35% | 0.41% | 42.35% | -1.23% | -13.38% | -1.81% | 0.52% | -6.83% | 38.19% | -5.12% | -2.35% | 0.92% | 7.58% | 8.25% | 19.89% | 23.48% | 14.41% | 11.58% | 23.75% | 24.61% | 19.47% | 43.68% |
| EBITDA | 9.1B | 9.43B | 8.82B | 7.79B | 8.18B | 8.46B | 7.19B | 7.45B | 8.93B | 9.28B | 8.3B | 8.18B | 5.07B | 4.66B | 5.22B | 5.34B | 5.26B | 5.56B | 4.16B | 4.29B | 4.32B | 4.25B | 3.91B | 3.62B | 3.06B | 2.48B | 2.18B | 1.93B | 1.57B | 1.26B | 1.03B |
| EBITDA Margin % | 24.23% | 25.92% | 26.29% | 24.07% | 26.2% | 26.7% | 23.86% | 25.78% | 29.21% | 31% | 27.94% | 28.37% | 25.03% | 27.42% | 31.47% | 33.03% | 33.04% | 35.15% | 28.52% | 31.73% | 35.14% | 37.62% | 38.86% | 39.88% | 39.94% | 38.67% | 39.19% | 38.42% | 38.06% | 48.3% | 42.27% |
| EBITDA Growth % | 0.3% | 6.91% | 13.16% | -4.78% | -3.27% | 17.71% | -3.6% | -16.5% | -3.85% | 11.86% | 1.45% | 61.3% | 8.77% | -10.69% | -2.32% | 1.54% | -5.31% | 33.53% | -2.92% | -0.79% | 1.73% | 8.73% | 7.82% | 18.37% | 23.52% | 13.93% | 12.92% | 22.45% | 25.06% | 22.07% | 37.83% |
| D&A (Non-Cash Add-back) | 2.12B | 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 |
| EBIT | 7.33B | 6.85B | 6.36B | 5.56B | 6B | 6.07B | 4.82B | 5.15B | 6.64B | 6.82B | 5.7B | 5.72B | 4.15B | 4.08B | 4.64B | 4.49B | 4.11B | 4.35B | 2.81B | 3.14B | 3.74B | 3.71B | 3.44B | 3.18B | 2.65B | 2.15B | 1.88B | 1.68B | 1.36B | 1.09B | 913.8M |
| Net Interest Income | -758M | -715M | -729M | -719M | -636M | -553M | -925M | -1.09B | -1.44B | -1.15B | -1.09B | -955M | -280M | -108M | -151M | -149M | -278M | -246M | -183M | 109M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | -33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 431M | 386M | 271M | 237M | 200M | 172M | 156M | 188M | 364M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 725M | 715M | 729M | 719M | 636M | 553M | 925M | 1.09B | 1.44B | 1.15B | 1.09B | 1.39B | 666M | 379M | 388M | 349M | 450M | 402M | 371M | 255M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -183M | -331M | -327M | -307M | -121M | -235M | -589M | -736M | -1.07B | -965M | -781M | -1.02B | -280M | -108M | -151M | -338M | -796M | -843M | -1.02B | -766M | -224M | -544M | -900M | -384.5M | -312.3M | -624.8M | -329M | -68.7M | -535.3M | -180.3M | -27.1M |
| Pretax Income | 6.6B | 6.14B | 5.63B | 4.84B | 5.36B | 5.52B | 3.9B | 4.05B | 5.2B | 5.67B | 4.6B | 4.34B | 3.49B | 3.71B | 4.25B | 4.14B | 3.66B | 3.94B | 2.44B | 2.88B | 3.52B | 3.16B | 2.54B | 2.8B | 2.34B | 1.52B | 1.55B | 1.61B | 825.1M | 911.4M | 886.7M |
| Pretax Margin % | 17.59% | 16.87% | 16.78% | 14.95% | 17.18% | 17.41% | 12.93% | 14.02% | 17.01% | 18.95% | 15.49% | 15.04% | 17.21% | 21.79% | 25.62% | 25.61% | 23% | 24.94% | 16.71% | 21.35% | 28.58% | 27.99% | 25.3% | 30.78% | 30.54% | 23.78% | 27.91% | 32.2% | 19.96% | 34.99% | 36.37% |
| Income Tax | 1.33B | 1.3B | 936M | 1.13B | 1.58B | 456M | 265M | -751M | 547M | 2.58B | 578M | 798M | 811M | 640M | 784M | 730M | 627M | 870M | 425M | 654M | 713M | 614.6M | 739.6M | 837.6M | 741.5M | 540.2M | 503.4M | 530.5M | 353.6M | 316.8M | 303.5M |
| Effective Tax Rate % | 20.19% | 21.17% | 16.63% | 23.42% | 29.46% | 8.27% | 6.8% | -18.52% | 10.53% | 45.46% | 12.56% | 18.4% | 23.26% | 17.27% | 18.44% | 17.61% | 17.11% | 22.06% | 17.42% | 22.67% | 20.28% | 19.44% | 29.07% | 29.95% | 31.67% | 35.44% | 32.49% | 32.85% | 42.86% | 34.76% | 34.23% |
| Net Income | 5.23B | 4.8B | 4.66B | 3.68B | 3.76B | 5.04B | 3.61B | 4.79B | 4.63B | 3.1B | 4.03B | 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 | 583.2M |
| Net Margin % | 13.93% | 13.2% | 13.9% | 11.36% | 12.03% | 15.9% | 11.97% | 16.56% | 15.16% | 10.36% | 13.56% | 12.27% | 13.2% | 18.02% | 20.9% | 22.35% | 19.43% | 19.59% | 14.86% | 16.51% | 22.78% | 22.55% | 17.94% | 21.56% | 20.87% | 15.35% | 18.84% | 21.91% | 11.33% | 22.83% | 23.92% |
| Net Income Growth % | 12.21% | 2.96% | 26.82% | -2.18% | -25.42% | 39.74% | -24.7% | 3.41% | 49.19% | -22.94% | 13.85% | 32.26% | -12.72% | -11.59% | -4.15% | 16.83% | -0.1% | 42.88% | -2.78% | -20.38% | 10.02% | 41.18% | -7.93% | 22.47% | 62.58% | -5.93% | -4.78% | 134.52% | -21.22% | 1.95% | 36.17% |
| Net Income (Continuing) | 5.27B | 4.84B | 4.69B | 3.7B | 3.78B | 5.06B | 3.63B | 4.81B | 4.65B | 3.1B | 4.02B | 3.54B | 2.67B | 3.06B | 3.47B | 3.42B | 3.06B | 3.08B | 2.07B | 2.23B | 2.8B | 2.55B | 1.8B | 1.96B | 1.6B | 984M | 1.05B | 1.08B | 466.7M | 594.6M | 583.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 618M | 609M | 232M | 206M | 182M | 171M | 174M | 135M | 121M | 102M | 122M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.07 | 3.73 | 3.61 | 2.76 | 2.82 | 3.73 | 2.66 | 3.54 | 3.41 | 2.27 | 2.89 | 2.48 | 2.41 | 3.02 | 3.37 | 3.41 | 2.86 | 2.79 | 1.84 | 1.95 | 2.41 | 2.09 | 1.48 | 1.60 | 1.30 | 0.80 | 0.85 | 0.89 | 0.39 | 0.51 | 0.50 |
| EPS Growth % | 11.85% | 3.32% | 30.8% | -2.13% | -24.4% | 40.23% | -24.86% | 3.81% | 50.22% | -21.45% | 16.53% | 2.9% | -20.2% | -10.39% | -1.17% | 19.23% | 2.51% | 51.63% | -5.64% | -19.09% | 15.31% | 41.22% | -7.5% | 23.08% | 62.5% | -5.88% | -4.49% | 128.21% | -23.53% | 2% | 11.11% |
| EPS (Basic) | - | 3.75 | 3.63 | 2.77 | 2.83 | 3.75 | 2.68 | 3.57 | 3.44 | 2.29 | 2.92 | 2.51 | 2.44 | 3.06 | 3.40 | 3.43 | 2.87 | 2.80 | 1.85 | 1.97 | 2.44 | 2.11 | 1.49 | 1.61 | 1.31 | 0.81 | 0.87 | 0.91 | 0.40 | 0.52 | 0.51 |
| Diluted Shares Outstanding | 1.29B | 1.29B | 1.29B | 1.33B | 1.33B | 1.35B | 1.35B | 1.35B | 1.36B | 1.37B | 1.39B | 1.43B | 1.11B | 1.01B | 1.03B | 1.06B | 1.08B | 1.11B | 1.13B | 1.14B | 1.16B | 1.22B | 1.22B | 1.23B | 1.23B | 1.22B | 1.23B | 1.22B | 1.21B | 1.18B | 1.17B |
| Basic Shares Outstanding | 1.28B | 1.28B | 1.29B | 1.33B | 1.33B | 1.34B | 1.34B | 1.34B | 1.35B | 1.36B | 1.38B | 1.41B | 1.1B | 1B | 1.02B | 1.05B | 1.08B | 1.11B | 1.12B | 1.13B | 1.15B | 1.2B | 1.21B | 1.21B | 1.22B | 1.21B | 1.2B | 1.19B | 1.18B | 1.15B | 1.14B |
| Dividend Payout Ratio | - | 75.81% | 76.98% | 99.73% | 96.22% | 67.14% | 86.52% | 60.43% | 58.15% | 80.35% | 58.99% | 60.46% | 49.98% | 36.41% | 30.43% | 28.23% | 31.3% | 29.27% | 38.87% | 25.32% | 17.99% | 18.25% | 22.45% | 17.94% | 19.01% | 28.33% | 23.01% | 17.25% | 28.16% | 17.31% | 15.55% |
Quick answers to the most common questions about buying MDT stock.
For fiscal year 2026, Medtronic plc (MDT) reported total revenue of $36.36B. This represents a 1391.4% increase compared to $2.44B in 1997.
Medtronic plc (MDT) is profitable, generating $4.80B in net income for the fiscal year ending 2026 with a net profit margin of 13.2%.
Medtronic plc (MDT) reported an operating income of $6.47B, resulting in an operating profit margin of 17.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Medtronic plc (MDT) generated $23.64B in gross profit for the year, representing a gross profit margin of 65.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression from competitive investments
Metrics are mathematically derived from official filings.
Growth Acceleration Gains Momentum
Medtronic's revenue growth has accelerated significantly, reaching 13.7% year-over-year in Q1 FY2027, a marked improvement from the low-single-digit growth seen in early 2025, suggesting the portfolio optimization strategy is beginning to gain traction.
The acceleration from 2.8% growth in Q1 FY2025 to 13.7% in Q1 FY2027 represents a clear inflection point, moving well beyond the company's historical mid-single-digit trend. This suggests the contributions from newer growth platforms, as highlighted by management, are becoming material. However, the durability of this acceleration will depend on whether it is driven by sustainable market share gains or a one-time recovery from prior surgical backlogs.
Gross Margin Volatility Amidst Growth
Gross margin has exhibited significant quarterly volatility, ranging from 57.7% to 75.9% over the past ten quarters, indicating potential inconsistencies in product mix, pricing, or cost recognition that warrant closer examination.
The wide range in gross margin, particularly the spike to 75.9% in Q4 FY2026 followed by a drop to 65.0% in Q1 FY2027, suggests the company's profitability is highly sensitive to quarterly product mix and possibly the timing of large contract implementations. While the current 65.0% margin is healthy and comparable to peers like Stryker, this volatility introduces uncertainty into earnings forecasts and may reflect the 'lumpy' nature of bundled hospital contracts.
Operating Leverage Tested by Investment
Despite strong revenue growth, operating margin has not expanded proportionally, hovering around 18% in recent quarters, which suggests that increased spending on R&D and SG&A to fuel growth is currently offsetting the benefits of scale.
Operating income grew 28.6% year-over-year in Q1 FY2027, but operating margin only expanded modestly from 16.8% to 18.1%. This indicates that the cost of achieving accelerated growth—likely through a larger sales force and R&D for new platforms—is consuming a significant portion of the incremental gross profit. Investors should monitor whether this investment phase will eventually lead to structural margin expansion or if it represents a permanent step-up in the cost base.
EPS Growth Driven by Operational and Non-Operational Factors
Diluted EPS surged 40.7% year-over-year in Q1 FY2027, significantly outpacing the 13.7% revenue growth, which appears to be supported by both operational improvements and a lower effective tax rate compared to the prior year period.
The substantial gap between revenue growth and EPS growth implies positive contributions from non-operating items or a more favorable tax rate, as net income grew faster than operating income. The reported stock-based compensation of $125 million in Q1 FY2027, while material, does not appear to be the primary driver of this earnings leverage. This dynamic suggests the quality of the earnings beat is mixed, combining genuine operational improvement with potential non-recurring tailwinds.
SG&A Scale Reflects Commercial Investment
Selling, general, and administrative expenses have grown to $3.2 billion in Q1 FY2027, representing approximately 33% of revenue, which underscores the high fixed-cost nature of Medtronic's specialized clinical sales and support infrastructure.
The SG&A line item has grown in absolute terms alongside revenue, maintaining a relatively stable ratio. This consistency suggests management is investing to support the accelerated growth trajectory rather than achieving significant overhead efficiencies. The challenge will be to demonstrate that this commercial investment is generating sustainable returns and not merely defending market share in an increasingly competitive landscape.
Sustainability of Growth and Margin Trajectory
The strongest challenge to the positive narrative is whether the recent acceleration in revenue growth can be sustained without further compressing operating margins, given the significant ongoing investments required to compete in high-growth areas like robotics and diabetes.
Short-sellers would focus on the fact that operating margin remains below historical peaks despite the growth acceleration, questioning the profitability of the new growth platforms. The volatility in gross margin and the high level of SG&A spending could indicate that Medtronic is buying growth through aggressive pricing or unsustainable commercial investment. Furthermore, the threat from GLP-1 drugs to the bariatric and diabetes segments, while potentially overestimated, remains a material long-term risk to a portion of the revenue base.