Medtronic plc stock research
FY2026 Q1
Medtronic (MDT) Gross Margin — Quarter Ended Jul 25, 2025
Revenue decreased from the prior quarter and increased from the same quarter last year, while gross profit followed a similar pattern. Gross margin improved relative to the prior quarter but weakened compared to the year-ago period, reflecting a mixed relationship between cost of revenue and revenue.
Gross margin takeaway
Quarter ended Jul 25, 2025 · FY2026 Q1
Revenue decreased from the prior quarter and increased from the same quarter last year, while gross profit followed a similar pattern. Gross margin improved relative to the prior quarter but weakened compared to the year-ago period, reflecting a mixed relationship between cost of revenue and revenue.
- The sequential improvement in gross margin was accompanied by a decline in cost of revenue that was proportionally smaller than the decline in revenue, while the year-over-year decline followed a larger increase in revenue relative to cost of revenue.
- Compared with the immediately preceding quarter, gross margin was higher; compared with 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
65.0%
Gross profit
$5.6B
Revenue
$8.6B
Cost of revenue
$3.0B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-0.1 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 25, 2024 | $8.4B | $5.5B | $2.9B | 64.9% |
| Jan 24, 2025 | $8.3B | $5.5B | $2.8B | 66.5% |
| Apr 25, 2025 | $8.9B | $5.8B | $3.1B | 64.7% |
| Jul 25, 2025 | $8.6B | $5.6B | $3.0B | 65.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 25, 2025
+0.3 pts
Year-over-year change
Jul 26, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was accompanied by a decline in cost of revenue that was proportionally smaller than the decline in revenue, while the year-over-year decline followed a larger increase in revenue relative to cost of revenue.
Compared with the immediately preceding quarter, gross margin was higher; compared with the same quarter one year earlier, gross margin was lower.
Monitor the relationship between cost of revenue and revenue, as it has been the most observable factor in gross margin changes.