Stock Analysis on Net
Stock Analysis on Net

Medtronic PLC (NYSE:MDT)

Common-Size Income Statement 

Medtronic PLC, common-size consolidated income statement

Microsoft Excel
12 months ended: Apr 24, 2026 Apr 25, 2025 Apr 26, 2024 Apr 28, 2023 Apr 29, 2022 Apr 30, 2021
Net sales 100.00 100.00 100.00 100.00 100.00 100.00
Cost of products sold, excluding amortization of intangible assets -34.98 -34.68 -34.66 -34.33 -32.02 -34.81
Gross profit 65.02% 65.32% 65.34% 65.67% 67.98% 65.19%
Research and development expense -7.90 -8.15 -8.45 -8.63 -8.67 -8.28
Selling, general, and administrative expense -32.41 -32.35 -33.17 -33.35 -32.48 -33.70
Amortization of intangible assets -4.87 -5.39 -5.23 -5.44 -5.47 -5.92
Restructuring charges, net -0.68 -0.80 -0.70 -1.20 -0.19 -0.97
Certain litigation charges, net -0.31 -0.95 -0.46 0.10 -0.30 -0.39
Other operating income (expense), net -1.06 0.07 -1.44 0.42 -2.72 -1.05
Operating profit 17.78% 17.76% 15.89% 17.56% 18.15% 14.89%
Other non-operating income, net 1.06 1.20 1.27 1.65 1.00 1.12
Interest expense, net -1.97 -2.17 -2.22 -2.04 -1.75 -3.07
Income before income taxes 16.87% 16.78% 14.95% 17.18% 17.41% 12.93%
Income tax (provision) benefit -3.57 -2.79 -3.50 -5.06 -1.44 -0.88
Net income 13.30% 13.99% 11.45% 12.12% 15.98% 12.05%
Net income attributable to noncontrolling interests -0.10 -0.09 -0.09 -0.08 -0.07 -0.08
Net income attributable to Medtronic 13.20% 13.90% 11.36% 12.03% 15.90% 11.97%

Based on: 10-K (reporting date: 2026-04-24), 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30).

The common-size income statement analysis for the period from April 2021 to April 2026 reveals a profile of stable gross margins and a general trend toward improved operating efficiency, despite volatility in net income margins.

Gross Profitability Trends
Gross profit margins remained relatively consistent over the analyzed period, fluctuating within a narrow range between 65.02% and 67.98%. A peak was observed in April 2022 at 67.98%, followed by a slight normalization to approximately 65% in the subsequent years. This indicates a stable relationship between net sales and the cost of products sold, suggesting consistent pricing power and cost management of direct production expenses.
Operating Expense Management
Research and development (R&D) expenses showed a gradual downward trend as a percentage of net sales, declining from a peak of 8.67% in 2022 to 7.90% by 2026. Selling, general, and administrative (SG&A) expenses remained stable, generally hovering between 32% and 34%, with a slight contraction observed in the final two years of the period. Additionally, amortization of intangible assets as a percentage of sales decreased steadily from 5.92% in 2021 to 4.87% in 2026, contributing to a relative reduction in total operating overhead.
Operating Profit Performance
Operating profit margins experienced an initial increase from 14.89% in 2021 to a peak of 18.15% in 2022. While there was a temporary decline to 15.89% in 2024, the margin recovered and stabilized at approximately 17.7% through 2026. This suggests that improvements in operating margins were primarily driven by the reduction in amortization and R&D intensities rather than significant shifts in gross margins.
Net Income and Non-Operating Factors
Net income attributable to the parent company exhibited more volatility than operating profit. A significant peak occurred in April 2022 at 15.90%, followed by a sharp decline to 11.36% in 2024. This volatility is partly attributable to fluctuations in the income tax provision, which peaked at 5.06% of net sales in 2023 before moderating. By 2026, the net income margin reached a stabilized level of 13.20%. Interest expenses remained relatively controlled, fluctuating between 1.75% and 3.07% of net sales, indicating a stable debt-servicing burden relative to revenue.

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