Stock Analysis on Net
Stock Analysis on Net

Medtronic PLC (NYSE:MDT)

Common-Size Income Statement
Quarterly Data

Medtronic PLC, common-size consolidated income statement (quarterly data)

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3 months ended: Jul 31, 2026 Apr 24, 2026 Jan 23, 2026 Oct 24, 2025 Jul 25, 2025 Apr 25, 2025 Jan 24, 2025 Oct 25, 2024 Jul 26, 2024 Apr 26, 2024 Jan 26, 2024 Oct 27, 2023 Jul 28, 2023 Apr 28, 2023 Jan 27, 2023 Oct 28, 2022 Jul 29, 2022 Apr 29, 2022 Jan 28, 2022 Oct 29, 2021 Jul 30, 2021 Apr 30, 2021 Jan 29, 2021 Oct 30, 2020 Jul 31, 2020
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of products sold, excluding amortization of intangible assets -35.01 -34.65 -36.17 -34.16 -34.98 -35.24 -33.51 -35.06 -34.88 -35.45 -34.39 -34.58 -34.12 -34.87 -34.80 -33.42 -34.13 -32.03 -31.68 -31.82 -32.53 -32.39 -33.71 -35.37 -38.50
Gross profit 64.99% 65.35% 63.83% 65.84% 65.02% 64.76% 66.49% 64.94% 65.12% 64.55% 65.61% 65.42% 65.88% 65.13% 65.20% 66.58% 65.87% 67.97% 68.32% 68.18% 67.47% 67.61% 66.29% 64.63% 61.50%
Research and development expense -7.90 -6.84 -8.01 -8.41 -8.46 -7.66 -8.14 -8.29 -8.54 -7.85 -8.59 -8.74 -8.67 -7.49 -8.90 -8.91 -9.39 -8.06 -8.60 -8.61 -9.39 -7.72 -7.73 -8.36 -9.54
Selling, general, and administrative expense -32.78 -31.17 -32.78 -33.09 -32.71 -30.47 -32.77 -32.81 -33.54 -32.18 -33.04 -33.64 -33.93 -30.62 -33.84 -34.50 -34.83 -31.76 -32.99 -33.32 -31.89 -31.68 -32.63 -34.00 -37.14
Amortization of intangible assets -4.22 -4.17 -4.89 -5.17 -5.35 -6.32 -5.02 -4.91 -5.23 -4.89 -5.18 -5.32 -5.57 -4.95 -5.58 -5.55 -5.74 -5.37 -5.56 -5.49 -5.46 -5.46 -5.83 -5.79 -6.76
Restructuring charges, net -0.74 -1.19 -0.85 -0.11 -0.52 -1.65 -0.52 -0.36 -0.59 -1.30 -0.25 -0.50 -0.70 -3.43 -0.49 -0.40 -0.19 -0.33 -0.15 -0.13 -0.14 -0.73 -1.07 -1.27 -0.81
Certain litigation charges, net 0.00 -0.24 -0.69 0.00 -0.31 -2.40 -0.27 0.00 -1.02 -0.51 0.00 -0.81 -0.52 0.35 0.00 0.00 0.00 0.00 -0.45 -0.43 -0.33 0.00 -1.57 -1.10 1.35
Other operating income (expense), net -1.26 -2.65 -0.38 -0.25 -0.80 -0.18 0.07 0.42 -0.04 -5.55 -0.21 0.39 -0.03 -0.69 1.63 1.29 -0.46 -1.79 0.81 -0.27 -9.52 -2.43 -1.04 -1.95 1.75
Operating profit 18.08% 19.09% 16.24% 18.81% 16.85% 16.09% 19.85% 18.98% 16.15% 12.26% 18.33% 16.78% 16.46% 18.31% 18.01% 18.51% 15.26% 20.66% 21.37% 19.92% 10.75% 19.59% 16.42% 12.16% 10.34%
Other non-operating income, net 1.96 1.41 1.34 1.03 0.38 -0.01 0.88 2.06 1.98 0.07 2.19 1.92 0.99 2.02 1.94 1.44 1.13 0.91 0.86 0.84 1.39 1.26 1.11 0.85 1.26
Interest expense, net -1.91 -1.80 -2.01 -2.02 -2.05 -1.95 -2.16 -2.49 -2.11 -2.36 -2.32 -2.25 -1.92 -2.19 -2.16 -1.56 -2.22 -1.77 -1.76 -1.73 -1.72 -1.72 -1.84 -6.15 -2.63
Income before income taxes 18.13% 18.69% 15.57% 17.82% 15.18% 14.13% 18.57% 18.55% 16.02% 9.97% 18.20% 16.45% 15.53% 18.14% 17.79% 18.39% 14.16% 19.80% 20.47% 19.03% 10.43% 19.13% 15.69% 6.87% 8.97%
Income tax (provision) benefit -2.97 -5.85 -2.82 -2.41 -2.97 -2.24 -2.86 -3.34 -2.77 -2.28 -1.67 -5.04 -5.18 -4.23 -1.89 -12.66 -1.53 -1.35 -1.37 -2.24 -0.80 -2.44 0.76 -0.41 -1.43
Net income 15.16% 12.84% 12.75% 15.41% 12.21% 11.89% 15.71% 15.21% 13.25% 7.68% 16.53% 11.41% 10.35% 13.92% 15.91% 5.74% 12.63% 18.46% 19.10% 16.78% 9.63% 16.68% 16.45% 6.46% 7.55%
Net income attributable to noncontrolling interests -0.09 -0.15 -0.08 -0.08 -0.08 -0.06 -0.11 -0.10 -0.09 -0.07 -0.19 -0.03 -0.08 -0.11 -0.09 -0.11 -0.03 -0.10 -0.04 -0.08 -0.08 -0.07 -0.12 -0.07 -0.06
Net income attributable to Medtronic 15.07% 12.68% 12.68% 15.33% 12.12% 11.83% 15.61% 15.11% 13.16% 7.61% 16.34% 11.39% 10.27% 13.81% 15.81% 5.63% 12.60% 18.36% 19.06% 16.71% 9.55% 16.61% 16.33% 6.39% 7.48%

Based on: 10-Q (reporting date: 2026-07-31), 10-K (reporting date: 2026-04-24), 10-Q (reporting date: 2026-01-23), 10-Q (reporting date: 2025-10-24), 10-Q (reporting date: 2025-07-25), 10-K (reporting date: 2025-04-25), 10-Q (reporting date: 2025-01-24), 10-Q (reporting date: 2024-10-25), 10-Q (reporting date: 2024-07-26), 10-K (reporting date: 2024-04-26), 10-Q (reporting date: 2024-01-26), 10-Q (reporting date: 2023-10-27), 10-Q (reporting date: 2023-07-28), 10-K (reporting date: 2023-04-28), 10-Q (reporting date: 2023-01-27), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-K (reporting date: 2022-04-29), 10-Q (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-K (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-29), 10-Q (reporting date: 2020-10-30), 10-Q (reporting date: 2020-07-31).

Analysis of the common-size income statement reveals a general trend of margin stabilization and operational efficiency improvements from July 2020 through July 2026. While early periods were marked by higher volatility in operating expenses and profitability, the latter half of the timeline shows a more consistent cost structure and a stabilized bottom line.

Gross Profitability Trends
Gross profit margins exhibited an initial upward trajectory, rising from 61.50% in July 2020 to a peak of 68.32% in January 2022. Following this peak, the margin stabilized within a corridor between 63.83% and 66.49%. This stability is reflected in the cost of products sold, which, excluding amortization, generally fluctuated between 33% and 36% of net sales over the observed period.
Operating Expense Analysis
Selling, general, and administrative (SG&A) expenses showed a notable contraction from an initial high of 37.14% to a more sustainable range of 30% to 34%. Research and development (R&D) expenditures remained relatively consistent, typically oscillating between 7% and 9% of net sales, indicating a steady commitment to innovation relative to revenue. Amortization of intangible assets demonstrated a gradual long-term decline, moving from 6.76% in July 2020 to 4.22% by July 2026.
Operating Profit Performance
Operating profit margins experienced significant volatility in the early stages, ranging from 10.34% to 21.37%. However, a more consistent performance pattern emerged from late 2021 onward, with margins largely maintaining a range between 16% and 20%. A brief decline to 12.26% was noted in April 2024, followed by a recovery to 18.08% by July 2026.
Net Income and Fiscal Volatility
Net income attributable to the company was heavily influenced by fluctuations in income tax provisions. A significant outlier occurred in October 2022, where a tax provision of 12.66% of net sales caused the net income margin to drop to 5.63%. Aside from this event and other periodic tax-driven swings, the net income margin shifted from a baseline of approximately 6-7% in 2020 to a more robust range of 12% to 16% in the final two years of the data set.
Non-Operating Items
Interest expenses remained relatively stable, typically hovering between 1.5% and 2.5% of net sales. Other non-operating income provided a modest but consistent positive contribution to the pre-tax income in most quarters, generally ranging from 0.8% to 2.2% of net sales.

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