Medtronic plc stock research
FY2024 Q4
Medtronic (MDT) Gross Margin — Quarter Ended Apr 26, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than the prior quarter but slightly lower than a year ago. Cost of revenue rose relative to both periods, resulting in a gross margin that weakened from the prior quarter and also declined from the same quarter last year.
Gross margin takeaway
Quarter ended Apr 26, 2024 · FY2024 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than the prior quarter but slightly lower than a year ago. Cost of revenue rose relative to both periods, resulting in a gross margin that weakened from the prior quarter and also declined from the same quarter last year.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased while cost of revenue rose at a proportionally faster pace, compressing gross margin. This dynamic is evident in both sequential and year-over-year comparisons.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin weakened as cost of revenue increased more than proportionally. Versus the same quarter one year earlier, revenue was higher while gross profit was slightly lower, and gross margin declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.6%
Gross profit
$5.5B
Revenue
$8.6B
Cost of revenue
$3.0B
Quarter-over-quarter change
-1.0 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| 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% |
| Apr 26, 2024 | $8.6B | $5.5B | $3.0B | 64.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 26, 2024
-1.0 pts
Year-over-year change
Apr 28, 2023
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased while cost of revenue rose at a proportionally faster pace, compressing gross margin. This dynamic is evident in both sequential and year-over-year comparisons.
Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin weakened as cost of revenue increased more than proportionally. Versus the same quarter one year earlier, revenue was higher while gross profit was slightly lower, and gross margin declined.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth has been the primary factor behind the gross margin decline.