Medtronic (MDT) Gross Margin — Quarter Ended Oct 27, 2023

Revenue was higher than both the immediately preceding quarter and the year-ago quarter. Gross profit also rose, but cost of revenue increased more, resulting in a gross margin that was lower than both comparison periods.

Gross margin takeaway

Quarter ended Oct 27, 2023 · FY2024 Q2

The primary observable factor in the gross margin decline was the proportionally larger increase in cost of revenue relative to the increase in revenue.
Compared to the prior quarter, gross margin weakened. Compared to the same quarter last year, gross margin also weakened.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

65.4%

Gross profit

$5.2B

Revenue

$8.0B

Cost of revenue

$2.8B

Quarter-over-quarter change

-0.5 pts

Year-over-year change

-1.2 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%
Oct 27, 2023	$8.0B	$5.2B	$2.8B	65.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jul 28, 2023

-0.5 pts

Year-over-year change

Oct 28, 2022

-1.2 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The primary observable factor in the gross margin decline was the proportionally larger increase in cost of revenue relative to the increase in revenue.

Compared to the prior quarter, gross margin weakened. Compared to the same quarter last year, gross margin also weakened.

Monitor the trend in cost of products sold, a key component of cost of revenue as disclosed in the filing.