Medtronic plc stock research
FY2026 Q2
Medtronic (MDT) Gross Margin — Quarter Ended Oct 24, 2025
In the current quarter, revenue increased while cost of revenue also increased, leading to higher gross profit and an improved gross margin compared to both the prior quarter and the same quarter last year. The gross margin strengthened as revenue growth outpaced the increase in cost of revenue.
Gross margin takeaway
Quarter ended Oct 24, 2025 · FY2026 Q2
In the current quarter, revenue increased while cost of revenue also increased, leading to higher gross profit and an improved gross margin compared to both the prior quarter and the same quarter last year. The gross margin strengthened as revenue growth outpaced the increase in cost of revenue.
- The strongest observable margin driver was the expansion of gross profit relative to revenue, as revenue grew faster than cost of revenue.
- Compared to the preceding quarter, revenue was higher and cost of revenue was moderately higher, resulting in improved gross margin. Compared to the same quarter one year earlier, both revenue and cost of revenue were higher, with revenue growth exceeding cost growth, leading to a stronger gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.8%
Gross profit
$5.9B
Revenue
$9.0B
Cost of revenue
$3.1B
Quarter-over-quarter change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| Oct 24, 2025 | $9.0B | $5.9B | $3.1B | 65.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 25, 2025
+0.8 pts
Year-over-year change
Oct 25, 2024
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the expansion of gross profit relative to revenue, as revenue grew faster than cost of revenue.
Compared to the preceding quarter, revenue was higher and cost of revenue was moderately higher, resulting in improved gross margin. Compared to the same quarter one year earlier, both revenue and cost of revenue were higher, with revenue growth exceeding cost growth, leading to a stronger gross margin.
Monitor the relationship between revenue growth and cost of revenue growth for signs of margin sustainability.