Medtronic plc 10-Q for FY2027 Q1

Medtronic plc (MDT)

10-Q 2026-09-03 For: 2026-07-31

Added on September 04, 2026

About this 10-Q

Medtronic plc filed this 10-Q on September 3, 2026, covering the quarter ended July 31, 2026 (FY2027 Q1).

Headline figures

Quarter ended July 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $9.76B; up 13.7% from $8.58B a year earlier
Net income: $1.47B; up 41.3% from net income of $1.04B a year earlier
Diluted EPS: $1.14; up 40.7% from $0.81 a year earlier

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☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	July 31, 2026

☐	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the transition period from __________ to __________


Medtronic plc
(Exact name of registrant as specified in its charter)

Ireland			98-1183488
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Ordinary shares, par value $0.0001 per share	MDT	New York Stock Exchange
1.125% Senior Notes due 2027	MDT/27	New York Stock Exchange
0.375% Senior Notes due 2028	MDT/28	New York Stock Exchange
3.000% Senior Notes due 2028	MDT/28A	New York Stock Exchange
3.650% Senior Notes due 2029	MDT/29	New York Stock Exchange
2.950% Senior Notes due 2030	MDT/30	New York Stock Exchange
1.625% Senior Notes due 2031	MDT/31	New York Stock Exchange
1.000% Senior Notes due 2031	MDT/31A	New York Stock Exchange
3.125% Senior Notes due 2031	MDT/31B	New York Stock Exchange
0.750% Senior Notes due 2032	MDT/32	New York Stock Exchange
3.375% Senior Notes due 2034	MDT/34	New York Stock Exchange
3.875% Senior Notes due 2036	MDT/36	New York Stock Exchange
2.250% Senior Notes due 2039	MDT/39A	New York Stock Exchange
1.500% Senior Notes due 2039	MDT/39B	New York Stock Exchange
1.375% Senior Notes due 2040	MDT/40A	New York Stock Exchange
4.150% Senior Notes due 2043	MDT/43A	New York Stock Exchange
4.200% Senior Notes due 2045	MDT/45	New York Stock Exchange
1.750% Senior Notes due 2049	MDT/49	New York Stock Exchange
1.625% Senior Notes due 2050	MDT/50	New York Stock Exchange
4.150% Senior Notes due 2053	MDT/53	New York Stock Exchange


Item	Description	Page

	PART I
1.	Condensed Consolidated Financial Statements (Unaudited)	1
	Condensed Consolidated Statements of Income	1
	Condensed Consolidated Statements of Comprehensive Income	2
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Equity	4
	Condensed Consolidated Statements of Cash Flows	5
	Notes to the Condensed Consolidated Financial Statements	6
2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	35
3.	Quantitative and Qualitative Disclosures About Market Risk	55
4.	Controls and Procedures	55
	PART II
1.	Legal Proceedings	55
2.	Unregistered Sales of Equity Securities and Use of Proceeds	56
5.	Other Information	56
6.	Exhibits	57
	Signature	58


	Three months ended
(in millions, except per share data)	July 31, 2026		July 25, 2025
Net sales	$	9,756	$	8,578
Costs and expenses:
Cost of products sold, excluding amortization of intangible assets	3,416		3,001
Research and development expense	771		726
Selling, general, and administrative expense	3,198		2,806
Amortization of intangible assets	412		459
Restructuring charges, net	72		45
Certain litigation charges, net	—		27
Other operating expense (income), net	123		70
Operating profit	1,764		1,445
Other non-operating expense (income), net	(190)		(33)
Interest expense, net	186		176
Income before income taxes	1,769		1,302
Income tax provision	289		255
Net income	1,479		1,047
Net income attributable to noncontrolling interests	(9)		(7)
Net income attributable to Medtronic	$	1,470	$	1,040
Basic earnings per share	$	1.15	$	0.81
Diluted earnings per share	$	1.14	$	0.81
Basic weighted average shares outstanding	1,279.8		1,281.6
Diluted weighted average shares outstanding	1,285.1		1,287.1


	Three months ended
(in millions)	July 31, 2026		July 25, 2025
Net income	$	1,479	$	1,047
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on investment securities	(48)		19
Translation adjustment	(479)		349
Net investment hedges	695		(559)
Net change in retirement obligations	1		1
Unrealized gain (loss) on cash flow hedges	173		(128)
Other comprehensive income (loss)	342		(318)
Comprehensive income including noncontrolling interests	1,821		729
Comprehensive income attributable to noncontrolling interests	(9)		(8)
Comprehensive income attributable to Medtronic	$	1,812	$	720


(in millions)	July 31, 2026		April 24, 2026
ASSETS
Current assets:
Cash and cash equivalents	$	1,691	$	1,949
Investments	7,128		7,271
Accounts receivable, less allowances for credit losses of $203 and $190, respectively	6,357		6,643
Inventories	6,215		5,951
Other current assets	2,999		2,972
Total current assets	24,390		24,787
Property, plant, and equipment, net	7,473		7,417
Goodwill	43,187		42,587
Other intangible assets, net	10,238		10,146
Tax assets	3,703		3,943
Other assets	4,315		4,147
Total assets	$	93,306	$	93,028
LIABILITIES AND EQUITY
Current liabilities:
Current debt obligations	$	2,536	$	1,788
Accounts payable	2,695		2,644
Accrued compensation	1,906		2,678
Accrued income taxes	1,056		914
Other accrued expenses	3,606		3,634
Total current liabilities	11,799		11,658
Long-term debt	25,617		26,173
Accrued compensation and retirement benefits	1,167		1,193
Accrued income taxes	1,522		1,515
Deferred tax liabilities	349		362
Other liabilities	2,001		2,055
Total liabilities	42,456		42,956
Commitments and contingencies (Note 16)
Shareholders’ equity:
Ordinary shares— par value $0.0001, 2.6 billion shares authorized, 1,280,046,863 and 1,280,177,293 shares issued and outstanding, respectively	—		—
Additional paid-in capital	20,805		20,926
Retained earnings	33,187		32,638
Accumulated other comprehensive loss	(3,759)		(4,101)
Total shareholders’ equity	50,232		49,463
Noncontrolling interests	618		609
Total equity	50,850		50,072
Total liabilities and equity	$	93,306	$	93,028


	Ordinary Shares			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity		Noncontrolling Interests		Total Equity
(in millions)	Number	Par Value
April 24, 2026	1,280	$	—	$	20,926	$	32,638	$	(4,101)	$	49,463	$	609	$	50,072
Net income	—	—		—		1,470		—		1,470		9		1,479
Other comprehensive income (loss)	—	—		—		—		342		342		—		342
Dividends to shareholders ($0.72 per ordinary share)	—	—		—		(921)		—		(921)		—		(921)
Issuance of shares under stock purchase and award plans, net of shares withheld for taxes	3	—		(21)		—		—		(21)		—		(21)
Repurchase of ordinary shares	(3)	—		(226)		—		—		(226)		—		(226)
Stock-based compensation	—	—		125		—		—		125		—		125

July 31, 2026	1,280	$	—	$	20,805	$	33,187	$	(3,759)	$	50,232	$	618	$	50,850


	Worldwide
	Three months ended
(in millions)	July 31, 2026		July 25, 2025
Electrophysiology Therapies	$	2,218	$	1,712
Interventional Cardiology Therapies	894		834
CardioVascular Surgery	477		436
Peripheral Vascular Health	338		302
Cardiovascular	3,927		3,285
Cranial & Spinal Technologies	1,365		1,211
Specialty Therapies	774		702
Neuromodulation	539		514
Neuroscience	2,678		2,427
Surgical & Endoscopy	1,740		1,601
Acute Care & Monitoring	539		471
Medical Surgical	2,279		2,073
Reportable segment net sales	8,884		7,785
Diabetes	843		721
Other operating segment(1)	29		33
Other adjustments(2)	—		39

Total net sales	$	9,756	$	8,578


	U.S.				International
	Three months ended
(in millions)	July 31, 2026		July 25, 2025		July 31, 2026		July 25, 2025
Cardiovascular	$	1,853	$	1,479	$	2,074	$	1,806
Neuroscience	1,813		1,624		864		803
Medical Surgical	982		884		1,297		1,188
Reportable segment net sales	4,649		3,988		4,236		3,797
Diabetes	240		217		603		504
Other operating segment(1)	17		20		12		14
Other adjustments(2)	—		—		—		39
Total net sales	$	4,906	$	4,224	$	4,850	$	4,354


(in millions)	Scientia		SPR
Cash consideration paid at closing	$	527	$	654
Fair value of contingent consideration	123		—
Total consideration transferred	651		654
Settlement of debt and accrued interest	30		—
Total purchase price	$	681	$	654


(in millions)	Scientia		SPR
Current assets (excluding inventory)	$	21	$	27
Inventory	33		31
Total current assets	54		58
Property, plant, and equipment, net	23		2
Goodwill	511		422
Other intangible assets	278		241
Other noncurrent assets	8		8

Total assets acquired	874		731

Other current liabilities	7		13
Accrued income taxes	145		—
Total current liabilities	151		13
Deferred tax liabilities	—		59

Other noncurrent liabilities	42		4
Total liabilities assumed	193		77

Net assets acquired	$	681	$	654


(in millions)
Current assets	$	17
Property, plant, and equipment, net	11
Goodwill	555
Other intangible assets	200
Other assets	1
Total assets acquired	784

Current liabilities	7
Accrued income taxes	38
Total current liabilities	45
Deferred tax liabilities	21
Other noncurrent liabilities	1
Total liabilities assumed	66

Net assets acquired	$	718


(in millions)	Fair Value at July 31, 2026		Unobservable Input	Range	Weighted Average (1)
Revenue and other performance-based payments	$	220	Discount rate	7.8% - 28.2%	11.1%
			Projected fiscal year of payment	2027 - 2031	2029
Product development and other milestone-based payments	$	55	Discount rate	5.5%	5.5%
			Projected fiscal year of payment	2027 - 2028	2027


(in millions)	Employee Termination Benefits		Associated and Other Costs		Total
April 24, 2026	$	119	$	—	$	119
Charges	62		5		67
Cash payments	(88)		(4)		(92)

July 31, 2026	$	93	$	1	$	93


	July 31, 2026
	Valuation								Balance Sheet Classification
(in millions)	Cost		Unrealized Gains		Unrealized Losses		Fair Value		Investments		Other Assets
Level 1:
U.S. government and agency securities	$	366	$	—	$	(5)	$	362	$	362	$	—
Level 2:
Corporate debt securities	4,034		7		(39)		4,002		4,002		—
U.S. government and agency securities	764		—		(7)		757		757		—
Mortgage-backed securities	850		3		(23)		830		830		—
Non-U.S. government and agency securities	22		—		—		22		22		—

Other asset-backed securities	1,151		2		(10)		1,143		1,143		—
Total Level 2	6,822		12		(80)		6,754		6,754		—
Level 3:
Auction rate securities	36		—		(2)		34		—		34
Total available-for-sale debt securities	$	7,225	$	12	$	(87)	$	7,150	$	7,116	$	34


(in millions)	Amortized Cost		Fair Value
Due in one year or less	$	1,982	$	1,973
Due after one year through five years	3,235		3,209
Due after five years through ten years	1,497		1,482
Due after ten years	511		486
Total	$	7,225	$	7,150


(in millions)	Maturity by Fiscal Year	July 31, 2026		April 24, 2026
Current debt obligations	2027 - 2028	$	2,536	$	1,788

Long-term debt
4.250 percent five-year 2023 senior notes	2028	1,000		1,000
3.000 percent six-year 2022 senior notes	2029	1,139		1,174
0.375 percent eight-year 2020 senior notes	2029	1,139		1,174
3.650 percent five-year 2024 senior notes	2030	968		998
2.950 percent five-year 2025 senior notes	2031	854		881
1.625 percent twelve-year 2019 senior notes	2031	1,139		1,174
1.000 percent twelve-year 2019 senior notes	2032	1,139		1,174
3.125 percent nine-year 2022 senior notes	2032	1,139		1,174
0.750 percent twelve-year 2020 senior notes	2033	1,139		1,174
4.500 percent ten-year 2023 senior notes	2033	1,000		1,000
3.375 percent twelve-year 2022 senior notes	2035	1,139		1,174
4.375 percent twenty-year 2015 senior notes	2035	1,932		1,932
3.875 percent twelve-year 2024 senior notes	2037	968		998
6.550 percent thirty-year 2007 CIFSA senior notes	2038	253		253
2.250 percent twenty-year 2019 senior notes	2039	1,139		1,174
6.500 percent thirty-year 2009 senior notes	2039	158		158
1.500 percent twenty-year 2019 senior notes	2040	1,139		1,174
5.550 percent thirty-year 2010 senior notes	2040	224		224
1.375 percent twenty-year 2020 senior notes	2041	1,139		1,174
4.500 percent thirty-year 2012 senior notes	2042	105		105
4.000 percent thirty-year 2013 senior notes	2043	305		305
4.150 percent nineteen-year 2024 senior notes	2044	683		704
4.625 percent thirty-year 2014 senior notes	2044	127		127
4.625 percent thirty-year 2015 senior notes	2045	1,813		1,813
4.200 percent twenty-year 2025 senior notes	2046	854		881
1.750 percent thirty-year 2019 senior notes	2050	1,139		1,174
1.625 percent thirty-year 2020 senior notes	2051	1,139		1,174
4.150 percent twenty-nine year 2024 senior notes	2054	797		822

Finance lease obligations	2028 - 2041	52		54
Debt discount, net	2028 - 2054	(52)		(57)

Deferred financing costs	2028 - 2054	(110)		(114)
Other	2053	23		—
Total long-term debt		$	25,617	$	26,173


		As of
(in billions)	Designation	July 31, 2026		April 24, 2026
Currency exchange rate contracts	Cash flow hedge	$	8.6	$	8.5
Currency exchange rate contracts(1)	Net investment hedge	6.1		7.5
Foreign currency-denominated debt(2)	Net investment hedge	20.5		21.1

Currency exchange rate contracts	Undesignated	4.1		4.3


	July 31, 2026
	Less than 12 months				More than 12 months
(in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate debt securities	$	655	$	(3)	$	2,200	$	(37)
U.S. government and agency securities	397		(5)		290		(7)
Mortgage-backed securities	51		(1)		525		(22)
Other asset-backed securities	—		—		515		(10)
Auction rate securities	11		(1)		22		(2)
Total	$	1,114	$	(9)	$	3,553	$	(78)


	(Gain) Loss Recognized in Accumulated Other Comprehensive Loss				(Gain) Loss Reclassified into Income

	Three months ended					Three months ended					Location of (Gain) Loss in Income Statement
(in millions)	July 31, 2026		July 25, 2025				July 31, 2026		July 25, 2025
Cash flow hedges
Currency exchange rate contracts	$	(198)	$	97			$	6	$	20		Other operating expense (income), net
Currency exchange rate contracts	4		38				(4)		(19)			Cost of products sold
Net investment hedges
Foreign currency-denominated debt	(635)		582				—		—			N/A
Currency exchange rate contracts	(102)		(1)				—		—			N/A
Fair value hedges
Currency exchange rate contracts	—		1				—		(20)			Other operating expense (income), net
Total	$	(930)	$	717			$	2	$	(18)


	Fair Value - Assets					Fair Value - Liabilities
(in millions)	July 31, 2026		April 24, 2026		Balance Sheet Classification	July 31, 2026		April 24, 2026		Balance Sheet Classification
Derivatives designated as hedging instruments
Currency exchange rate contracts	$	236	$	214	Other current assets	$	95	$	253	Other accrued expenses

Currency exchange rate contracts	395		328		Other assets	91		158		Other liabilities
Total derivatives designated as hedging instruments	630		542			186		411
Derivatives not designated as hedging instruments
Currency exchange rate contracts	10		13		Other current assets	11		10		Other accrued expenses




Total derivatives	$	640	$	555		$	197	$	420


	July 31, 2026
			Gross Amount Not Offset on the Balance Sheet
(in millions)	Gross Amount of Recognized Assets (Liabilities)		Financial Instruments		Cash Collateral Received		Net Amount
Derivative assets:
Currency exchange rate contracts	$	640	$	(169)	$	(40)	$	432




Derivative liabilities:
Currency exchange rate contracts	(197)		169		—		(28)




Total	$	443	$	—	$	(40)	$	404


	U.S.				Non-U.S.
	Three months ended
(in millions)	July 31, 2026		July 25, 2025		July 31, 2026		July 25, 2025

Service cost	$	12	$	12	$	12	$	11
Interest cost	42		42		14		12
Expected return on plan assets	(63)		(64)		(20)		(18)
Amortization of prior service cost	(1)		(1)		—		—
Amortization and settlement recognition of actuarial loss (gain)	5		5		1		1
Net periodic benefit cost (credit)	$	(4)	$	(6)	$	7	$	6


(in millions)	Unrealized (Loss) Gain on Investment Securities		Cumulative Translation Adjustments		Net Investment Hedges		Net Change in Retirement Obligations		Unrealized (Loss) Gain on Cash Flow Hedges		Total Accumulated Other Comprehensive Loss
April 24, 2026	$	(15)	$	(2,447)	$	(1,024)	$	(498)	$	(116)	$	(4,101)
Other comprehensive income (loss) before reclassifications	(47)		(479)		695		—		163		333
Reclassifications	—		—		—		1		10		10
Other comprehensive income (loss)	(48)		(479)		695		1		173		342
July 31, 2026	$	(63)	$	(2,925)	$	(329)	$	(499)	$	57	$	(3,759)


(in millions)	Unrealized (Loss) Gain on Investment Securities		Cumulative Translation Adjustments		Net Investment Hedges		Net Change in Retirement Obligations		Unrealized Gain (Loss) on Cash Flow Hedges		Total Accumulated Other Comprehensive Loss
April 25, 2025	$	(63)	$	(2,835)	$	(597)	$	(640)	$	(149)	$	(4,284)
Other comprehensive income (loss) before reclassifications	18		348		(559)		(1)		(134)		(327)
Reclassifications	1		—		—		2		5		8
Other comprehensive income (loss)	19		348		(559)		1		(128)		(319)

July 25, 2025	$	(44)	$	(2,487)	$	(1,156)	$	(641)	$	(276)	$	(4,604)


	Three months ended July 31, 2026
(in millions)	Cardiovascular		Neuroscience		Medical Surgical		Total
Net sales	$	3,927	$	2,678	$	2,279	$	8,884
Reconciliation of revenues
Other operating segments net sales(1)							872

Total consolidated net sales							$	9,756

Less:
Cost of products sold, excluding amortization of intangible assets	1,308		786		919		3,013
Research and development expense	303		163		189		656
Selling, general, and administrative expense	1,269		922		681		2,872
Other segment items(2)	14		13		5		32
Reportable segment operating profit	$	1,033	$	793	$	485	$	2,311
Reconciliation of segment profit / (loss)
Other operating segments profit(1)							74
Currency and other							(69)
Interest expense, net							(186)
Other non-operating expense (income), net							190
Amortization of intangible assets							(412)
Restructuring and associated costs							(89)
Acquisition and divestiture-related items							(50)


Income before income taxes							$	1,769


	Three months ended July 25, 2025
(in millions)	Cardiovascular		Neuroscience		Medical Surgical		Total
Net sales	$	3,285	$	2,427	$	2,073	$	7,785
Reconciliation of revenues
Other operating segments net sales(1)							755
Other adjustments(3)							39
Total consolidated net sales							$	8,578

Less:
Cost of products sold, excluding amortization of intangible assets	1,132		724		812		2,668
Research and development expense	280		157		169		606
Selling, general, and administrative expense	1,060		831		605		2,497
Other segment items(2)	(15)		2		1		(12)
Reportable segment operating profit	$	828	$	713	$	486	$	2,027
Reconciliation of segment profit / (loss)
Other operating segments profit(1)							37
Currency and other							(47)
Interest expense, net							(176)
Other non-operating expense (income), net							33
Amortization of intangible assets							(459)
Restructuring and associated costs							(67)
Acquisition and divestiture-related items							(58)
Certain litigation charges, net							(27)
Other adjustments(3)							39
Income before income taxes							$	1,302


	Total Assets				Depreciation Expense
	As of				Three months ended
(in millions)	July 31, 2026		April 24, 2026		July 31, 2026		July 25, 2025
Cardiovascular	$	17,517	$	17,553	$	71	$	64
Neuroscience	19,942		18,514		78		77
Medical Surgical	31,905		32,535		65		54
Total reportable segments	69,364		68,602		215		194
Other operating segments(1)	4,747		4,827		34		31
Corporate	19,195		19,598		69		64
Total	$	93,306	$	93,028	$	317	$	289


Assumption:
Approximate % by which the fair value exceeds the carrying value based on annual impairment test						12% - 335%
Approximate % by which the fair value exceeds the carrying value if the discount rate was to increase 1%						3% - 307%
Approximate % by which the fair value exceeds the carrying value if the future cash flows in the income approach and revenue and earnings in the market approach were to decrease by 5%						7% - 313%


(in millions)	Medtronic & Medtronic Luxco Senior Notes(1)		CIFSA Senior Notes(2)
Net sales	$	946	$	—
Operating profit (loss)	(79)		(32)
Income (loss) before income taxes	(158)		(105)
Net loss attributable to Medtronic	(188)		(132)


Fiscal Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as a Part of Publicly Announced Program	Maximum Approximate Dollar Value of Shares that may yet be Purchased Under the Program
4/25/2026-5/29/2026	502,144	$	80.67	502,144	$	1,143,229,337
5/30/2026-7/3/2026	1,246,200	80.54		1,246,200	1,042,857,247
7/4/2026-7/31/2026	1,017,165	83.24		1,017,165	958,184,382
Total	2,765,509	$	81.56	2,765,509	$	958,184,382


		Medtronic plc
		(Registrant)

Date:	September 3, 2026	/s/ Denise L. Blomquist
		Denise L. Blomquist
		Vice President, Global Controller and Chief Accounting Officer (Principal Accounting Officer)


September 3, 2026			/s/ Geoffrey S. Martha
			Geoffrey S. Martha
			Chief Executive Officer
			(Principal Executive Officer)


September 3, 2026			/s/ Thierry Piéton
			Thierry Piéton
			Executive Vice President and
			Chief Financial Officer
			(Principal Financial Officer)