AI Takeaway
Medtronic delivered solid FY2026 results with revenue growing 8.4% to $36.4B and operating cash flow rising 4.1% to $7.3B, though net income growth lagged at 3.0% due to higher operating expenses.
Revenue
$36.36B
++8.43% YoY
EPS (Basic)
$3.75
++3.31% YoY
Operating Income
$6.47B
++8.60% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue increased 8.4% year-over-year from $33.5B to $36.4B in FY2026, reflecting broad-based demand for Medtronic's medical device portfolio and continued recovery in procedure volumes globally.
Source: Source: 10-K Income Statement
SG&A expenses rose 8.6% to $11.8B, keeping pace with revenue growth and indicating that Medtronic has not yet achieved meaningful operating leverage; cost of revenue also increased 9.4% to $12.7B, slightly outpacing revenue growth.
Source: Source: 10-K Income Statement
Operating margin remained essentially flat at 17.78% versus 17.76% in the prior year, suggesting that revenue gains were largely offset by proportional increases in both cost of revenue and SG&A, leaving little margin expansion.
Source: Source: 10-K Income Statement / Key Ratios
2 more insights available
Upgrade to unlockSG&A expenses of $11.8B represent a significant cost burden relative to revenue, and cost of revenue growth of 9.4% outpaced revenue growth of 8.4%, compressing gross profit margins. If this trend continues, Medtronic may struggle to expand profitability even as top-line growth continues.
Source: Source: 10-K Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.55 versus the $1.56 analyst consensus — a -0.4% miss for FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $36.36B | $33.54B | +8.43% |
Cost of Revenue | $12.72B | $11.63B | +9.36% |
Operating Income | $6.47B | $5.96B | +8.60% |
Net Income | $4.8B | $4.66B | +2.98% |
EPS (Basic) | $3.75 | $3.63 | +3.31% |
EPS (Diluted) | $3.73 | $3.61 | +3.32% |
SG&A Expense | $11.78B | $10.85B | +8.62% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $93.03B | $91.68B | +1.47% |
Current Assets | $24.79B | $23.81B | +4.09% |
Total Liabilities | $42.96B | $43.42B | -1.08% |
Current Liabilities | $11.66B | $12.88B | -9.48% |
Stockholders' Equity | $49.46B | $48.02B | +3.00% |
Cash & Equivalents | $1.95B | $2.22B | -12.13% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $7.33B | $7.04B | +4.06% |
Investing Cash Flow | $-2.93B | $-1.94B | -51.47% |
Financing Cash Flow | $-4.75B | $-4.36B | -8.94% |
Share Buybacks | $1.03B | $3.23B | -68.01% |
D&A | $2.96B | $2.86B | +3.39% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 17.8% | 17.8% | +0.03% |
Net Margin | 13.2% | — | — |
ROE | 9.7% | — | — |
ROA | 5.2% | — | — |
Current Ratio | $2.126 | — | — |
Debt to Equity | $0.868 | — | — |
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Medtronic reported FY2026 revenue of $36.4B, up 8.4% year-over-year, with operating income growing 8.6% to $6.5B. Net income rose a more modest 3.0% to $4.8B, and diluted EPS came in at $3.73, up 3.3% from $3.61 in the prior year.
The key takeaways from Medtronic's FY2026 10-K are strong top-line growth of 8.4%, stable operating margins near 17.8%, and robust operating cash flow of $7.3B. However, net income growth of only 3.0% lagged revenue growth, and SG&A expenses rose 8.6%, limiting earnings leverage.
Based on the financial data, key risks include rising operating costs with SG&A at $11.8B and cost of revenue growing faster than revenue, a debt-to-equity ratio of 0.87 that could be pressured by higher interest rates, and a 68% decline in share buybacks to $1.04B suggesting capital is being redirected elsewhere.
Medtronic appears financially healthy with a current ratio of 2.13, operating cash flow of $7.3B, and stockholders' equity of $49.5B. Total liabilities declined 1.1% to $43.0B and current liabilities fell 9.5%, further strengthening the near-term balance sheet position.
Medtronic's revenue grew 8.4% in FY2026, rising from $33.5B to $36.4B, reflecting broad-based demand for its medical device products. This growth outpaced the prior year's base and was accompanied by an 8.6% increase in operating income to $6.5B.