Medtronic plc stock research
FY2025 Q2
Medtronic (MDT) Gross Margin — Quarter Ended Oct 25, 2024
For the current quarter, revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin declined slightly relative to both comparison periods, indicating that the growth in cost of revenue outpaced the growth in revenue.
Gross margin takeaway
Quarter ended Oct 25, 2024 · FY2025 Q2
For the current quarter, revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin declined slightly relative to both comparison periods, indicating that the growth in cost of revenue outpaced the growth in revenue.
- The strongest observable driver is the slight weakening of gross margin, which fell compared to both the immediately preceding quarter and the same quarter one year earlier.
- Sequentially, revenue and gross profit were higher, but cost of revenue was also higher, resulting in a slightly lower gross margin. Year-over-year, the same pattern held: revenue and gross profit improved, yet gross margin decreased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.9%
Gross profit
$5.5B
Revenue
$8.4B
Cost of revenue
$2.9B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-0.5 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 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% |
| Oct 25, 2024 | $8.4B | $5.5B | $2.9B | 64.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 26, 2024
-0.2 pts
Year-over-year change
Oct 27, 2023
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the slight weakening of gross margin, which fell compared to both the immediately preceding quarter and the same quarter one year earlier.
Sequentially, revenue and gross profit were higher, but cost of revenue was also higher, resulting in a slightly lower gross margin. Year-over-year, the same pattern held: revenue and gross profit improved, yet gross margin decreased.
Monitor the company's ongoing assessment of risks related to supply chain and quality, as described in the filing.