MD

Medtronic plc stock research

Jan 23, 2026

FY2026 Q3

Medtronic (MDT) Gross Margin — Quarter Ended Jan 23, 2026

Revenue was unchanged from the prior quarter but higher than the same quarter last year. Gross profit decreased compared to the prior quarter while increasing year over year, and gross margin weakened relative to both periods.

Gross margin takeaway

Quarter ended Jan 23, 2026 · FY2026 Q3

Revenue was unchanged from the prior quarter but higher than the same quarter last year. Gross profit decreased compared to the prior quarter while increasing year over year, and gross margin weakened relative to both periods.

  • Cost of revenue rose while revenue held steady, leading to a lower gross profit and margin.
  • Compared to the immediately preceding quarter, revenue was flat while cost of revenue was higher, causing gross profit and margin to be lower. Versus the same quarter one year earlier, revenue and gross profit were higher, but cost of revenue increased more substantially, resulting in a lower gross margin.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

63.8%

Gross profit

$5.8B

Revenue

$9.0B

Cost of revenue

$3.3B

Quarter-over-quarter change

-2.0 pts

Year-over-year change

-2.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Apr 25, 2025$8.9B$5.8B$3.1B64.7%
Jul 25, 2025$8.6B$5.6B$3.0B65.0%
Oct 24, 2025$9.0B$5.9B$3.1B65.8%
Jan 23, 2026$9.0B$5.8B$3.3B63.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Oct 24, 2025

-2.0 pts

Year-over-year change

Jan 24, 2025

-2.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Cost of revenue rose while revenue held steady, leading to a lower gross profit and margin.

Compared to the immediately preceding quarter, revenue was flat while cost of revenue was higher, causing gross profit and margin to be lower. Versus the same quarter one year earlier, revenue and gross profit were higher, but cost of revenue increased more substantially, resulting in a lower gross margin.

Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.