📊 MDT Key Takeaways
Is Medtronic plc (MDT) a Good Investment?
Medtronic demonstrates strong free cash flow generation ($5.4B) and adequate balance sheet leverage, but concerning fundamentals including a 10.3% gross margin (anomalously low for medical devices), declining net income despite massive revenue growth, and weak return metrics (ROE 9.7%, ROA 5.2%) suggest significant operational challenges or integration issues requiring clarification.
Medtronic shows solid core financial health with strong liquidity, positive free cash flow, and acceptable leverage, supported by a 17.3% operating margin and $3.34B of free cash flow. However, growth quality is mixed because net income was essentially flat, the reported 6,463.0% revenue growth appears anomalous, and the unusually low 14.1% gross margin raises questions about comparability or underlying cost pressure. Overall, the fundamentals support stability more than clear acceleration.
Medtronic plc Key Strengths (MDT)
- Robust free cash flow generation of $5.4B with 14.9% FCF margin demonstrates underlying business cash generation
- Strong liquidity position with 2.13x current ratio and 1.62x quick ratio, supporting operational flexibility
- Manageable leverage of 0.57x debt/equity with 9.0x interest coverage indicates capacity to service debt obligations
- Strong liquidity with a 2.54x current ratio and 1.87x quick ratio
- Consistent cash generation with $4.76B operating cash flow and $3.34B free cash flow
- Moderate leverage profile with 0.57x debt/equity and 6.4x interest coverage
MDT Stock Risks: Medtronic plc Investment Risks
- Extremely low gross margin of 10.3% is structurally problematic for medical device sector and suggests cost pressures or unfavorable business mix
- Net income declined 0.7% YoY despite 9,394.5% revenue growth, indicating severe operational deleverage or integration drag
- Weak capital efficiency with ROE 9.7% and ROA 5.2% suggests inefficient asset deployment or earning power challenges
- Reported revenue growth appears distorted, reducing confidence in underlying growth quality
- Net income declined 0.6% YoY, suggesting earnings growth is not broad-based
- Low gross margin relative to operating margin may indicate cost pressure or data classification issues
Key Metrics to Watch
- Gross margin trend - determine if 10.3% is structural deterioration or temporary integration cost
- Operating leverage improvement - net income must grow faster than revenue as integration completes
- Cash position - $1.9B cash against $28.1B debt is low; monitor cash generation allocation to debt reduction
- Organic revenue growth and revenue consistency across future filings
- Gross margin and free cash flow conversion
Medtronic plc (MDT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.13x current ratio provides a solid financial cushion.
MDT Profit Margin, ROE & Profitability Analysis
MDT vs Healthcare Sector: How Medtronic plc Compares
How Medtronic plc compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Medtronic plc Stock Overvalued? MDT Valuation Analysis 2026
Based on fundamental analysis, Medtronic plc has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Medtronic plc Balance Sheet: MDT Debt, Cash & Liquidity
MDT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Medtronic plc's revenue has grown significantly by 15% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.76 reflects profitable operations.
MDT Revenue Growth, EPS Growth & YoY Performance
MDT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $8.3B | $1.1B | $0.89 |
| Q2 2026 | $8.4B | $1.3B | $0.99 |
| Q1 2026 | $7.9B | $1.0B | $0.80 |
| Q3 2025 | $8.1B | $1.3B | $0.99 |
| Q2 2025 | $8.0B | $909.0M | $0.68 |
| Q1 2025 | $7.7B | $791.0M | $0.59 |
| Q3 2024 | $7.7B | $1.2B | $0.92 |
| Q2 2024 | $7.6B | $427.0M | $0.32 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Medtronic plc Dividends, Buybacks & Capital Allocation
MDT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Medtronic plc (CIK: 0001613103)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MDT
What is the AI rating for MDT?
Medtronic plc (MDT) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MDT's key strengths?
Claude: Robust free cash flow generation of $5.4B with 14.9% FCF margin demonstrates underlying business cash generation. Strong liquidity position with 2.13x current ratio and 1.62x quick ratio, supporting operational flexibility. ChatGPT: Strong liquidity with a 2.54x current ratio and 1.87x quick ratio. Consistent cash generation with $4.76B operating cash flow and $3.34B free cash flow.
What are the risks of investing in MDT?
Claude: Extremely low gross margin of 10.3% is structurally problematic for medical device sector and suggests cost pressures or unfavorable business mix. Net income declined 0.7% YoY despite 9,394.5% revenue growth, indicating severe operational deleverage or integration drag. ChatGPT: Reported revenue growth appears distorted, reducing confidence in underlying growth quality. Net income declined 0.6% YoY, suggesting earnings growth is not broad-based.
What is MDT's revenue and growth?
Medtronic plc reported revenue of $36.4B.
Does MDT pay dividends?
Medtronic plc pays dividends, with $3,639.0M distributed to shareholders in the trailing twelve months.
Where can I find MDT SEC filings?
Official SEC filings for Medtronic plc (CIK: 0001613103) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MDT's EPS?
Medtronic plc has a diluted EPS of $3.73.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is MDT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Medtronic plc has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is MDT stock overvalued or undervalued?
Valuation metrics for MDT: ROE of 9.7% (sector avg: 15%), net margin of 13.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is MDT's AI grade for 2026?
Our dual AI analysis gives Medtronic plc a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MDT's free cash flow?
Medtronic plc's operating cash flow is $7.3B, with capital expenditures of $1.9B. FCF margin is 14.9%.
How does MDT compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 13.2% (avg: 12%), ROE 9.7% (avg: 15%), current ratio 2.13 (avg: 2).