Medtronic plc stock research
FY2025 Q3
Medtronic (MDT) Gross Margin — Quarter Ended Jan 24, 2025
Revenue decreased slightly from the prior quarter but increased compared to the same quarter last year, while gross profit held steady sequentially and rose year over year. The gross margin improved both sequentially and versus the prior year, driven by a larger decrease in cost of revenue relative to the revenue change.
Gross margin takeaway
Quarter ended Jan 24, 2025 · FY2025 Q3
Revenue decreased slightly from the prior quarter but increased compared to the same quarter last year, while gross profit held steady sequentially and rose year over year. The gross margin improved both sequentially and versus the prior year, driven by a larger decrease in cost of revenue relative to the revenue change.
- The decline in cost of revenue relative to revenue was the strongest observable margin driver this quarter.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue fell while revenue was slightly lower. Compared to the same quarter one year earlier, gross margin also improved, supported by a higher gross profit on moderately higher revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.5%
Gross profit
$5.5B
Revenue
$8.3B
Cost of revenue
$2.8B
Quarter-over-quarter change
+1.5 pts
Year-over-year change
+0.9 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 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% |
| Jan 24, 2025 | $8.3B | $5.5B | $2.8B | 66.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 25, 2024
+1.5 pts
Year-over-year change
Jan 26, 2024
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in cost of revenue relative to revenue was the strongest observable margin driver this quarter.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue fell while revenue was slightly lower. Compared to the same quarter one year earlier, gross margin also improved, supported by a higher gross profit on moderately higher revenue.
Monitor the trajectory of cost of products sold, as it directly influences gross margin, and note filing risks such as supply interruptions that could affect future cost levels.