Medtronic plc stock research
FY2024 Q3
Medtronic (MDT) Gross Margin — Quarter Ended Jan 26, 2024
Revenue, gross profit, and gross margin all improved compared to both the prior quarter and the same quarter last year. Cost of revenue increased at a slower pace than revenue, supporting the margin expansion.
Gross margin takeaway
Quarter ended Jan 26, 2024 · FY2024 Q3
Revenue, gross profit, and gross margin all improved compared to both the prior quarter and the same quarter last year. Cost of revenue increased at a slower pace than revenue, supporting the margin expansion.
- The gross margin strengthened sequentially and year-over-year, driven by revenue growth outpacing the increase in cost of revenue. This indicates improved efficiency in generating profit from sales.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue remained stable, leading to a slightly improved gross margin. Versus the same quarter one year earlier, all metrics were higher, with gross margin showing a more notable improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.6%
Gross profit
$5.3B
Revenue
$8.1B
Cost of revenue
$2.8B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| 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% |
| Jan 26, 2024 | $8.1B | $5.3B | $2.8B | 65.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 27, 2023
+0.2 pts
Year-over-year change
Jan 27, 2023
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened sequentially and year-over-year, driven by revenue growth outpacing the increase in cost of revenue. This indicates improved efficiency in generating profit from sales.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue remained stable, leading to a slightly improved gross margin. Versus the same quarter one year earlier, all metrics were higher, with gross margin showing a more notable improvement.
Monitor the trend in cost of revenue relative to revenue, as its stability in the current quarter was a key factor in margin improvement.