Medtronic plc stock research
FY2025 Q1
Medtronic (MDT) Gross Margin — Quarter Ended Jul 26, 2024
Revenue decreased compared to the immediately preceding quarter while gross profit also declined, yet gross margin improved slightly as cost of revenue fell proportionally more. Versus the same quarter one year earlier, revenue and gross profit were higher, but gross margin weakened because cost of revenue grew faster than revenue.
Gross margin takeaway
Quarter ended Jul 26, 2024 · FY2025 Q1
Revenue decreased compared to the immediately preceding quarter while gross profit also declined, yet gross margin improved slightly as cost of revenue fell proportionally more. Versus the same quarter one year earlier, revenue and gross profit were higher, but gross margin weakened because cost of revenue grew faster than revenue.
- The strongest observable driver of gross margin this quarter was the relationship between cost of revenue and revenue: cost of revenue declined sequentially while revenue also declined, but the cost decline was proportionally larger, supporting margin improvement.
- Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.1%
Gross profit
$5.2B
Revenue
$7.9B
Cost of revenue
$2.8B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
-0.8 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 |
|---|---|---|---|---|
| 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% |
| Jul 26, 2024 | $7.9B | $5.2B | $2.8B | 65.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 26, 2024
+0.6 pts
Year-over-year change
Jul 28, 2023
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin this quarter was the relationship between cost of revenue and revenue: cost of revenue declined sequentially while revenue also declined, but the cost decline was proportionally larger, supporting margin improvement.
Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was lower.
Monitor whether cost of revenue continues to decline at a pace that supports or outweighs any changes in revenue.