Medtronic plc stock research
FY2023 Q3
Medtronic (MDT) Gross Margin — Quarter Ended Jan 27, 2023
Revenue was slightly higher than the prior quarter but slightly lower than the same quarter last year. Gross profit decreased relative to both periods, while cost of revenue increased, resulting in a gross margin that weakened compared with both the preceding quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Jan 27, 2023 · FY2023 Q3
Revenue was slightly higher than the prior quarter but slightly lower than the same quarter last year. Gross profit decreased relative to both periods, while cost of revenue increased, resulting in a gross margin that weakened compared with both the preceding quarter and the year-ago quarter.
- The gross margin declined sequentially and year-over-year, driven by a higher cost of revenue relative to revenue. Revenue growth was outpaced by cost growth, compressing profitability.
- Compared with the immediately preceding quarter, revenue was higher but gross profit was lower, and cost of revenue was higher, leading to a weakened gross margin. Versus the same quarter one year earlier, revenue was lower, gross profit was lower, and cost of revenue was higher, also resulting in a weakened gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.2%
Gross profit
$5.0B
Revenue
$7.7B
Cost of revenue
$2.7B
Quarter-over-quarter change
n/a
Year-over-year change
-3.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 27, 2023 | $7.7B | $5.0B | $2.7B | 65.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Jan 28, 2022
-3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin declined sequentially and year-over-year, driven by a higher cost of revenue relative to revenue. Revenue growth was outpaced by cost growth, compressing profitability.
Compared with the immediately preceding quarter, revenue was higher but gross profit was lower, and cost of revenue was higher, leading to a weakened gross margin. Versus the same quarter one year earlier, revenue was lower, gross profit was lower, and cost of revenue was higher, also resulting in a weakened gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its increase has been the primary factor behind the margin compression.