Medtronic plc stock research
FY2024 Q1
Medtronic (MDT) Gross Margin — Quarter Ended Jul 28, 2023
Revenue declined from the prior quarter but rose compared to the same quarter last year, while gross profit followed a similar pattern. Gross margin improved sequentially, matching the year-ago level, as cost of revenue fell more sharply than revenue on a sequential basis.
Gross margin takeaway
Quarter ended Jul 28, 2023 · FY2024 Q1
Revenue declined from the prior quarter but rose compared to the same quarter last year, while gross profit followed a similar pattern. Gross margin improved sequentially, matching the year-ago level, as cost of revenue fell more sharply than revenue on a sequential basis.
- The sequential improvement in gross margin was the strongest observable driver, as the cost of revenue decreased proportionally more than the revenue decline. This allowed gross profit to remain relatively stable despite lower revenue.
- Compared to the prior quarter, revenue and gross profit were lower, but gross margin improved. Versus the same quarter a year ago, revenue and gross profit were higher, while gross margin remained stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.9%
Gross profit
$5.1B
Revenue
$7.7B
Cost of revenue
$2.6B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+0.0 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% |
| Jul 28, 2023 | $7.7B | $5.1B | $2.6B | 65.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 28, 2023
+0.7 pts
Year-over-year change
Jul 29, 2022
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was the strongest observable driver, as the cost of revenue decreased proportionally more than the revenue decline. This allowed gross profit to remain relatively stable despite lower revenue.
Compared to the prior quarter, revenue and gross profit were lower, but gross margin improved. Versus the same quarter a year ago, revenue and gross profit were higher, while gross margin remained stable.
Monitor the impact of competition in the medical device industry, as noted in the filing's risk factors, which could affect future revenue and margin trends.