Medtronic plc stock research
FY2023 Q4
Medtronic (MDT) Gross Margin — Quarter Ended Apr 28, 2023
Revenue, gross profit, and cost of revenue all rose compared to the prior quarter and the same quarter last year. Despite the revenue increase, gross margin weakened slightly from the immediate prior quarter and was lower than the year-ago level.
Gross margin takeaway
Quarter ended Apr 28, 2023 · FY2023 Q4
Revenue, gross profit, and cost of revenue all rose compared to the prior quarter and the same quarter last year. Despite the revenue increase, gross margin weakened slightly from the immediate prior quarter and was lower than the year-ago level.
- The most observable driver in the current quarter is that cost of revenue grew at a faster pace than revenue when compared with the year-ago quarter, which put downward pressure on gross margin. The margin decline versus the prior quarter was minimal, indicating relative stability.
- Compared to the immediately preceding quarter, revenue improved while gross profit also rose, but gross margin was nearly stable, weakening only slightly. Versus the same quarter one year earlier, revenue and gross profit were both higher, but gross margin was lower, driven by a proportionally larger increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.1%
Gross profit
$5.6B
Revenue
$8.5B
Cost of revenue
$3.0B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-2.8 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% |
| Apr 28, 2023 | $8.5B | $5.6B | $3.0B | 65.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 27, 2023
-0.1 pts
Year-over-year change
Apr 29, 2022
-2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver in the current quarter is that cost of revenue grew at a faster pace than revenue when compared with the year-ago quarter, which put downward pressure on gross margin. The margin decline versus the prior quarter was minimal, indicating relative stability.
Compared to the immediately preceding quarter, revenue improved while gross profit also rose, but gross margin was nearly stable, weakening only slightly. Versus the same quarter one year earlier, revenue and gross profit were both higher, but gross margin was lower, driven by a proportionally larger increase in cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth compared to the year-ago period weighed on gross margin.