# Medtronic plc (MDT)

Informational only - not investment advice.

CIK: 0001613103
SIC: 3845 Electromedical & Electrotherapeutic Apparatus
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 38](/major-group/38/) > [SIC 3845 Electromedical & Electrotherapeutic Apparatus](/industry/3845/)
Latest 10-K filed: 2026-06-18
SEC page: https://www.sec.gov/edgar/browse/?CIK=1613103
Filing source: https://www.sec.gov/Archives/edgar/data/1613103/000162828026044354/mdt-20260424.htm

## At a glance

FY2026 · period end 2026-04-24 · filed 2026-06-18 · accession 0001628280-26-044354 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001613103.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 36,364,000,000 USD | 2026 | verified |
| Net income | 4,801,000,000 USD | 2026 | verified |
| Assets | 93,028,000,000 USD | 2026 | verified |
| Free cash flow | 5,426,000,000 USD | 2026 | computed |
| Net margin | 13.20% | 2026 | computed |
| Operating margin | 17.78% | 2026 | computed |
| Revenue YoY | +8.43% | 2026 | computed |
| ROE | 9.71% | 2026 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | MDT | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 13.2% | -5.9% | 91 | 12 |
| Operating margin | 17.8% | 9.7% | 82 | 12 |
| Revenue growth | 8.4% | 15.3% | 25 | 13 |
| FCF margin | 14.9% | 11.0% | 83 | 13 |
| ROE | 9.7% | -12.2% | 83 | 13 |
| ROA | 5.2% | -7.1% | 83 | 13 |
| Liabilities / equity | 0.87 | 0.95 | 42 | 13 |
| Current ratio | 2.13 | 3.77 | 17 | 13 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3845 Electromedical & Electrotherapeutic Apparatus, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 36364000000 | USD | 2026 | 2026-06-18 |
| Net income | 4801000000 | USD | 2026 | 2026-06-18 |
| Assets | 93028000000 | USD | 2026 | 2026-06-18 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-06-18. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001613103.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 29,710,000,000 | 29,953,000,000 | 30,557,000,000 | 28,913,000,000 | 30,117,000,000 | 31,686,000,000 | 31,227,000,000 | 32,364,000,000 | 33,537,000,000 | 36,364,000,000 |
| Net income | 4,028,000,000 | 3,104,000,000 | 4,631,000,000 | 4,789,000,000 | 3,606,000,000 | 5,039,000,000 | 3,758,000,000 | 3,676,000,000 | 4,662,000,000 | 4,801,000,000 |
| Operating income | 5,383,000,000 | 6,640,000,000 | 6,268,000,000 | 4,791,000,000 | 4,484,000,000 | 5,752,000,000 | 5,485,000,000 | 5,144,000,000 | 5,955,000,000 | 6,467,000,000 |
| Diluted EPS | 2.89 | 2.27 | 3.41 | 3.54 | 2.66 | 3.73 | 2.82 | 2.76 | 3.61 | 3.73 |
| Operating cash flow | 6,880,000,000 | 4,684,000,000 | 7,007,000,000 | 7,234,000,000 | 6,240,000,000 | 7,346,000,000 | 6,039,000,000 | 6,787,000,000 | 7,044,000,000 | 7,330,000,000 |
| Capital expenditures | 1,254,000,000 | 1,068,000,000 | 1,134,000,000 | 1,213,000,000 | 1,355,000,000 | 1,368,000,000 | 1,459,000,000 | 1,587,000,000 | 1,859,000,000 | 1,904,000,000 |
| Dividends paid | 2,376,000,000 | 2,494,000,000 | 2,693,000,000 | 2,894,000,000 | 3,120,000,000 | 3,383,000,000 | 3,616,000,000 | 3,666,000,000 | 3,589,000,000 | 3,639,000,000 |
| Share buybacks | 3,544,000,000 | 2,171,000,000 | 2,877,000,000 | 1,326,000,000 | 652,000,000 | 2,544,000,000 | 645,000,000 | 2,138,000,000 | 3,235,000,000 | 1,035,000,000 |
| Assets | 99,857,000,000 | 91,393,000,000 | 89,694,000,000 | 90,689,000,000 | 93,083,000,000 | 90,981,000,000 | 90,948,000,000 | 89,981,000,000 | 91,680,000,000 | 93,028,000,000 |
| Liabilities | 49,527,000,000 | 40,571,000,000 | 39,482,000,000 | 39,817,000,000 | 41,481,000,000 | 38,260,000,000 | 39,283,000,000 | 39,561,000,000 | 43,424,000,000 | 42,956,000,000 |
| Stockholders' equity | 50,208,000,000 | 50,720,000,000 | 50,091,000,000 | 50,737,000,000 | 51,428,000,000 | 52,551,000,000 | 51,483,000,000 | 50,214,000,000 | 48,024,000,000 | 49,463,000,000 |
| Cash and cash equivalents | 4,967,000,000 | 3,669,000,000 | 4,393,000,000 | 4,140,000,000 | 3,593,000,000 | 3,714,000,000 | 1,543,000,000 | 1,284,000,000 | 2,218,000,000 | 1,949,000,000 |
| Free cash flow | 5,626,000,000 | 3,616,000,000 | 5,873,000,000 | 6,021,000,000 | 4,885,000,000 | 5,978,000,000 | 4,580,000,000 | 5,200,000,000 | 5,185,000,000 | 5,426,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 13.56% | 10.36% | 15.16% | 16.56% | 11.97% | 15.90% | 12.03% | 11.36% | 13.90% | 13.20% |
| Operating margin | 18.12% | 22.17% | 20.51% | 16.57% | 14.89% | 18.15% | 17.56% | 15.89% | 17.76% | 17.78% |
| Return on equity | 8.02% | 6.12% | 9.25% | 9.44% | 7.01% | 9.59% | 7.30% | 7.32% | 9.71% | 9.71% |
| Return on assets | 4.03% | 3.40% | 5.16% | 5.28% | 3.87% | 5.54% | 4.13% | 4.09% | 5.09% | 5.16% |
| Liabilities / equity | 0.99 | 0.80 | 0.79 | 0.78 | 0.81 | 0.73 | 0.76 | 0.79 | 0.90 | 0.87 |
| Current ratio | 1.74 | 2.28 | 2.59 | 2.13 | 2.65 | 1.86 | 2.39 | 2.03 | 1.85 | 2.13 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-06-18. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001613103.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2022-07-29 |  |  | 0.70 | reported discrete quarter |
| 2023-Q2 | 2022-10-28 |  |  | 0.32 | reported discrete quarter |
| 2023-Q3 | 2023-01-27 |  |  | 0.92 | reported discrete quarter |
| 2024-Q1 | 2023-07-28 | 7,702,000,000 | 791,000,000 | 0.59 | reported discrete quarter |
| 2024-Q2 | 2023-10-27 | 7,984,000,000 | 909,000,000 | 0.68 | reported discrete quarter |
| 2024-Q3 | 2024-01-26 | 8,089,000,000 | 1,322,000,000 | 0.99 | reported discrete quarter |
| 2024-Q4 | 2024-04-26 | 8,589,000,000 | 654,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-07-26 | 7,915,000,000 | 1,042,000,000 | 0.80 | reported discrete quarter |
| 2025-Q2 | 2024-10-25 | 8,403,000,000 | 1,270,000,000 | 0.99 | reported discrete quarter |
| 2025-Q3 | 2025-01-24 | 8,292,000,000 | 1,294,000,000 | 1.01 | reported discrete quarter |
| 2025-Q4 | 2025-04-25 | 8,927,000,000 | 1,056,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-07-25 | 8,578,000,000 | 1,040,000,000 | 0.81 | reported discrete quarter |
| 2026-Q2 | 2025-10-24 | 8,961,000,000 | 1,374,000,000 | 1.07 | reported discrete quarter |
| 2026-Q3 | 2026-01-23 | 9,017,000,000 | 1,143,000,000 | 0.89 | reported discrete quarter |
| 2026-Q4 | 2026-04-24 | 9,807,000,000 | 1,244,000,000 |  | derived Q4 = FY annual - nine-month YTD |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from MDT's latest 10-K: [/company/MDT/business/](/company/MDT/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from MDT's latest 10-K: [/company/MDT/risk-factors/](/company/MDT/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1613103/000162828026011107/mdt-20260123.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-02-24
Report date: 2026-01-23

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

UNDERSTANDING OUR FINANCIAL INFORMATION

The following discussion and analysis provides information management believes to be relevant to understanding the financial condition and results of operations of Medtronic plc and its subsidiaries (Medtronic plc, Medtronic, or the Company, or we, us, or our). For a full understanding of financial condition and results of operations, you should read this discussion along with Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended April 25, 2025. In addition, you should read this discussion along with our consolidated financial statements and related notes thereto at and for the three and nine months ended January 23, 2026. Amounts reported in millions within this quarterly report are computed based on the actual amounts, and therefore, the sum of the components may not equal the total amount reported in millions due to rounding. Additionally, certain columns and rows within tables may not sum due to rounding.

Financial Trends

Throughout this Management’s Discussion and Analysis, we present certain financial measures that facilitate management's review of the operational performance of the Company and as a basis for strategic planning; however, such financial measures are not presented in our financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S.) (U.S. GAAP). These financial measures are considered "non-GAAP financial measures" and are intended to supplement, and should not be considered as superior to, financial measures presented in accordance with U.S. GAAP. We believe that non-GAAP financial measures provide information useful to investors in understanding the Company's underlying operational performance and trends and may facilitate comparisons with the performance of other companies in the medical technologies industry.

As presented in the GAAP to Non-GAAP Reconciliations section on the following pages, our non-GAAP financial measures exclude the impact of amortization of intangible assets and certain charges or benefits that contribute to or reduce earnings and that may affect financial trends and include certain charges or benefits that result from transactions or events that we believe may or may not recur with similar materiality or impact to our operations in future periods (Non-GAAP Adjustments).

In the event there is a Non-GAAP Adjustment recognized in our operating results, the tax cost or benefit attributable to that item is separately calculated and reported. Because the effective rate can be significantly impacted by the Non-GAAP Adjustments that take place during the period, we often refer to our tax rate using both the effective rate and the non-GAAP nominal tax rate (Non-GAAP Nominal Tax Rate). The Non-GAAP Nominal Tax Rate is calculated as the income tax provision, adjusted for the impact of Non-GAAP Adjustments, as a percentage of income before income taxes, excluding Non-GAAP Adjustments.

Free cash flow is a non-GAAP financial measure calculated by subtracting property, plant, and equipment additions from operating cash flows.

Refer to the “GAAP to Non-GAAP Reconciliations," "Income Taxes," and "Free Cash Flow" sections for reconciliations of the non-GAAP financial measures to their most directly comparable financial measures prepared in accordance with U.S. GAAP.

36

EXECUTIVE LEVEL OVERVIEW

Medtronic is the leading global healthcare technology company — alleviating pain, restoring health, and extending life for millions of people around the world. Our primary products include those for cardiac rhythm disorders, cardiovascular disease, neurological disorders and diseases, spinal conditions and musculoskeletal trauma, ear, nose, and throat conditions, urological and digestive disorders, advanced and general surgical care, respiratory and monitoring solutions, and diabetes conditions.

The following is a summary of net sales and diluted earnings per share for the three months ended January 23, 2026 and January 24, 2025 and operating cash flow for the nine months ended January 23, 2026 and January 24, 2025:

37

GAAP to Non-GAAP Reconciliations

The tables below present our GAAP to Non-GAAP reconciliations for the three months ended January 23, 2026 and January 24, 2025:

[[GREPCENT_TABLE]]
[["","Three months ended January 23, 2026"],["(in millions, except per share data)","Income Before Income Taxes","","Income Tax Provision (Benefit)","","Net Income attributable to Medtronic","","Diluted EPS","","Effective Tax Rate"],["GAAP","$","1,404","","","$","254","","","$","1,143","","","$","0.89","","","18.1","%"],["Non-GAAP Adjustments:"],["Amortization of intangible assets(1)","441","","","81","","","360","","","0.28","","","18.4"],["Restructuring and associated costs(2)","172","","","31","","","141","","","0.11","","","18.0"],["Acquisition and divestiture-related items(3)","38","","","5","","","33","","","0.03","","","13.2"],["Certain litigation charges, net","62","","","10","","","52","","","0.04","","","16.1"],["(Gain)/loss on minority investments(4)","8","","","1","","","7","","","0.01","","","12.5"],["Certain tax adjustments, net","\u2014","","","(14)","","","14","","","0.01","","","\u2014"],["Non-GAAP","$","2,125","","","$","369","","","$","1,750","","","$","1.36","","","17.3","%"],["","Three months ended January 24, 2025"],["(in millions, except per share data)","Income Before Income Taxes","","Income Tax Provision (Benefit)","","Net Income attributable to Medtronic","","Diluted EPS","","Effective Tax Rate"],["GAAP","$","1,540","","","$","237","","","$","1,294","","","$","1.01","","","15.4","%"],["Non-GAAP Adjustments:"],["Amortization of intangible assets","416","","","77","","","339","","","0.26","","","18.5"],["Restructuring and associated costs(2)","46","","","9","","","37","","","0.03","","","19.6"],["Acquisition and divestiture-related items(3)","28","","","5","","","23","","","0.02","","","17.9"],["Certain litigation charges, net","22","","","5","","","18","","","0.01","","","22.7"],["(Gain)/loss on minority investments(4)","68","","","15","","","52","","","0.04","","","22.1"],["Medical device regulations(5)","11","","","2","","","9","","","0.01","","","18.2"],["Certain tax adjustments, net","\u2014","","","(15)","","","15","","","0.01","","","\u2014"],["Non-GAAP","$","2,130","","","$","334","","","$","1,787","","","$","1.39","","","15.7","%"]]
[[/GREPCENT_TABLE]]

(1)The Company recognized $30 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio.

(2)The charges primarily relate to employee termination benefits, facility related and contract termination costs, and asset write offs.

(3)The charges primarily include business combination costs, changes in fair value of contingent consideration, exit of business-related charges, and gains related to certain business or asset sales. Exit of business-related charges primarily relate to the impending separation of the Diabetes business. For the three months ended January 23, 2026, charges also include costs associated with the Company's June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.

(4)We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.

(5)The charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs.

38

The tables below present our GAAP to Non-GAAP reconciliations for the nine months ended January 23, 2026 and January 24, 2025:

[[GREPCENT_TABLE]]
[["","Nine months ended January 23, 2026"],["(in millions, except per share data)","Income Before Income Taxes","","Income Tax Provision (Benefit)","","Net Income attributable to Medtronic","","Diluted EPS","","Effective Tax Rate"],["GAAP","$","4,302","","","$","724","","","$","3,557","","","$","2.76","","","16.8","%"],["Non-GAAP Adjustments:"],["Amortization of intangible assets(1)","1,364","","","254","","","1,110","","","0.86","","","18.6"],["Restructuring and associated costs(2)","251","","","49","","","202","","","0.16","","","19.5"],["Acquisition and divestiture-related items(3)","96","","","23","","","73","","","0.06","","","24.0"],["Certain litigation charges, net","89","","","17","","","73","","","0.06","","","19.1"],["(Gain)/loss on minority investments(4)","145","","","8","","","137","","","0.11","","","5.5"],["Other(5)","(39)","","","(8)","","","(30)","","","(0.02)","","","20.5"],["Certain tax adjustments, net(6)","\u2014","","","\u2014","","","\u2014","","","\u2014","","","\u2014"],["Non-GAAP","$","6,209","","","$","1,066","","","$","5,122","","","$","3.98","","","17.2","%"],["","Nine months ended January 24, 2025"],["(in millions, except per share data)","Income Before Income Taxes","","Income Tax Provision (Benefit)","","Net Income attributable to Medtronic","","Diluted EPS","","Effective Tax Rate"],["GAAP","$","4,367","","","$","737","","","$","3,606","","","$","2.79","","","16.9","%"],["Non-GAAP Adjustments:"],["Amortization of intangible assets","1,243","","","227","","","1,017","","","0.79","","","18.3"],["Restructuring and associated costs(2)","154","","","30","","","124","","","0.10","","","19.5"],["Acquisition and divestiture-related items(3)","15","","","11","","","3","","","\u2014","","","73.3"],["Certain litigation charges, net","104","","","18","","","86","","","0.07","","","17.3"],["(Gain)/loss on minority investments(4)","41","","","25","","","14","","","0.01","","","61.0"],["Medical device regulations(7)","38","","","8","","","30","","","0.02","","","21.1"],["Other(5)","90","","","20","","","70","","","0.05","","","22.2"],["Certain tax adjustments, net(6)","\u2014","","","(49)","","","49","","","0.04","","","\u2014"],["Non-GAAP","$","6,051","","","$","1,027","","","$","4,999","","","$","3.87","","","17.0","%"]]
[[/GREPCENT_TABLE]]

(1)The Company recognized $121 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio.

(2)The charges primarily relate to employee termination benefits, facility related and contract termination costs, and asset write offs.

(3)The charges primarily include business combination costs, changes in fair value of contingent consideration, exit of business-related charges, and gains related to certain business or asset sales. Exit of business-related charges primarily relate to the impending separation of the Diabetes business and costs associated with the Company's June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.

(4)We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.

(5)Reflects adjustments to the Company's Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.

(6)The charges for the nine months ended January 23, 2026 primarily includes a tax benefit recognized due to a change in interest accrued on uncertain tax positions, offset by amortization of previously established deferred tax assets arising from intercompany intellectual property transactions. The charges for the nine months ended January 24, 2025 primarily includes amortization of previously established deferred tax as

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1613103/000162828026044354/mdt-20260424.htm
Complete FY 2026 MD&A: /company/MDT/mda/fy2026/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-06-18
Report date: 2026-04-24

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

UNDERSTANDING OUR FINANCIAL INFORMATION

The following discussion and analysis provides information management believes to be relevant to understanding the financial condition and results of operations of the Company. The discussion focuses on our financial results for the fiscal year ended April 24, 2026 (fiscal year 2026) and the fiscal year ended April 25, 2025 (fiscal year 2025). A discussion on our results of operations for fiscal year 2025 as compared to the fiscal year ended April 26, 2024 (fiscal year 2024) is included in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended April 25, 2025, filed with the SEC on June 20, 2025, and is incorporated by reference into this Form 10-K. You should read this discussion and analysis along with our consolidated financial statements and related notes thereto at April 24, 2026 and April 25, 2025 and for fiscal years 2026, 2025, and 2024, which are presented within "Item 8. Financial Statements and Supplementary Data" in this Annual Report on Form 10-K. Amounts reported in millions within this annual report are computed based on the actual amounts, and therefore, the sum of the components may not equal the total amount reported in millions due to rounding. Additionally, certain columns and rows within tables may not sum due to rounding.

Financial Trends

Throughout this Management’s Discussion and Analysis, we present certain financial measures that facilitate management's review of the operational performance of the Company and as a basis for strategic planning; however, such financial measures are not presented in our financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S.) (U.S. GAAP). These financial measures are considered non-GAAP financial measures and are intended to supplement, and should not be considered as superior to, financial measures presented in accordance with U.S. GAAP. We believe that non-GAAP financial measures provide information useful to investors in understanding the Company's underlying operational performance and trends and may facilitate comparisons with the performance of other companies in the medical technologies industry.

As presented in the "GAAP to Non-GAAP Reconciliations" section on the following pages, our non-GAAP financial measures exclude the impact of amortization of intangible assets and certain charges or benefits that contribute to or reduce earnings and that may affect financial trends and include certain charges or benefits that result from transactions or events that we believe may or may not recur with similar materiality or impact to our operations in future periods (non-GAAP adjustments).

In the event there is a non-GAAP adjustment recognized in our operating results, the tax cost or benefit attributable to that item is separately calculated and reported. Because the effective rate can be significantly impacted by the non-GAAP adjustments that take place during the period, we often refer to our tax rate using both the effective rate and the non-GAAP nominal tax rate. The non-GAAP nominal tax rate is calculated as the income tax provision, adjusted for the impact of non-GAAP adjustments, as a percentage of income before income taxes, excluding non-GAAP adjustments.

Free cash flow is a non-GAAP financial measure calculated by subtracting property, plant, and equipment additions from operating cash flows.

Refer to the "GAAP to Non-GAAP Reconciliations," "Income Taxes," and "Free Cash Flow" sections for reconciliations of the non-GAAP financial measures to their most directly comparable financial measures prepared in accordance with U.S. GAAP.

31

Table of Contents

EXECUTIVE LEVEL OVERVIEW

The following is a summary of revenue, diluted earnings per share, and operating cash flow for fiscal years 2026 and 2025:

GAAP to Non-GAAP Reconciliations

The tables below present reconciliations of our non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with U.S. GAAP for fiscal years 2026 and 2025.

[[GREPCENT_TABLE]]
[["","Fiscal Year 2026"],["(in millions, except per share data)","Income Before Income Taxes","","Income Tax Provision (Benefit)","","Net Income Attributable to Medtronic","","Diluted EPS","","Effective Tax Rate"],["GAAP","$","6,136","","","$","1,299","","","$","4,801","","","$","3.73","","","21.2","%"],["Non-GAAP adjustments:"],["Amortization of intangible assets(1)","1,772","","","329","","","1,444","","","1.12","","","18.6"],["Restructuring and associated costs(2)","370","","","80","","","290","","","0.23","","","21.6"],["Acquisition and divestiture-related items(3)","173","","","37","","","137","","","0.11","","","21.4"],["Certain litigation charges, net","113","","","23","","","89","","","0.07","","","20.4"],["(Gain)/loss on minority investments(4)","131","","","\u2014","","","130","","","0.10","","","\u2014"],["Other(5)","(39)","","","(8)","","","(30)","","","(0.02)","","","20.5"],["Certain tax adjustments, net(6)","\u2014","","","(260)","","","260","","","0.20","","","\u2014"],["Non-GAAP","$","8,656","","","$","1,499","","","$","7,120","","","$","5.53","","","17.3","%"]]
[[/GREPCENT_TABLE]]

32

Table of Contents

[[GREPCENT_TABLE]]
[["","Fiscal Year 2025"],["(in millions, except per share data)","Income Before Income Taxes","","Income Tax Provision (Benefit)","","Net Income Attributable to Medtronic","","Diluted EPS","","Effective Tax Rate"],["GAAP","$","5,628","","","$","936","","","$","4,662","","","$","3.61","","","16.6","%"],["Non-GAAP adjustments:"],["Amortization of intangible assets(1)","1,807","","","335","","","1,471","","","1.14","","","18.5"],["Restructuring and associated costs(2)","303","","","65","","","238","","","0.18","","","21.5"],["Acquisition and divestiture-related items(3)","124","","","23","","","101","","","0.08","","","18.5"],["Certain litigation charges, net","317","","","68","","","249","","","0.19","","","21.5"],["(Gain)/loss on minority investments(4)","213","","","26","","","185","","","0.14","","","12.2"],["Medical device regulations(7)","52","","","10","","","42","","","0.03","","","19.2"],["Other(5)","90","","","20","","","70","","","0.05","","","22.2"],["Certain tax adjustments, net(6)","\u2014","","","(62)","","","62","","","0.05","","","\u2014"],["Non-GAAP","$","8,533","","","$","1,423","","","$","7,079","","","$","5.49","","","16.7","%"]]
[[/GREPCENT_TABLE]]

(1)The Company recognized $121 million and $151 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio for fiscal years 2026 and 2025, respectively.

(2)The charges primarily relate to employee termination benefits, facility related and contract termination costs, and asset write offs.

(3)The charges primarily include business combination costs, changes in fair value of contingent consideration, exit of business-related charges, and gains related to certain business or asset sales. Exit of business-related charges primarily relate to the impending separation of the Diabetes Business and costs associated with the Company's June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.

(4)We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.

(5)Reflects adjustments to the Company's Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.

(6)The net charges for fiscal year 2026 primarily relates to the impact of an intercompany sale of intellectual property, the net tax charge as a result of the separation of the Diabetes Business and amortization of previously established deferred tax assets arising from intercompany intellectual property transactions, which were partially offset by a tax benefit recognized due to a change in estimate of accrued interest on uncertain tax positions. The charges for fiscal year 2025 primarily includes amortization of previously established deferred tax assets from intercompany intellectual property transactions.

(7)The charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs.

Free Cash Flow

Free cash flow, a non-GAAP financial measure, is calculated by subtracting additions to property, plant, and equipment from net cash provided by operating activities. Management uses this non-GAAP financial measure, in addition to U.S. GAAP financial measures, to evaluate our operating results. Free cash flow should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with U.S. GAAP. Reconciliations between net cash provided by operating activities (the most comparable U.S. GAAP measure) and free cash flow are as follows:

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["(in millions)","2026","","2025"],["Net cash provided by operating activities","$","7,330","","","$","7,044"],["Additions to property, plant, and equipment","(1,904)","","","(1,859)"],["Free cash flow","$","5,426","","","$","5,185"]]
[[/GREPCENT_TABLE]]

Refer to the "Summary of Cash Flows" section for drivers of the change in cash provided by operating activities.

33

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Macroeconomic Trends

Looking ahead, a number of macroeconomic and geopolitical factors could negatively impact our business, including without limitation:

•Competitive product launches and pricing pressure, geographic macroeconomic developments including changes in global trade policies and fluctuations in currency exchange rates, general price inflation, changes in interest rates, reimbursement challenges, impacts from changes in the mix of our product offerings, delays in product registration approvals, national and provincial tender pricing for certain products, particularly in China, replacement cycle challenges, and supply chain challenges from time to time.

•Recent developments in global trade policy have introduced new uncertainties for our business. The U.S., China, and other jurisdictions have recently imposed or proposed additional tariffs on imported goods. Based on current rates as of June 3, 2026, we estimate the pre-tax net tariff impact to be $250 million in fiscal year 2027, excluding any considerations of government refunds. The actual amount could vary based on changes in tariff rates, duration of tariffs, scope of tariffs, and potential countermeasures or mitigation actions. While we are taking proactive steps to mitigate the effects of these tariffs, the evolving nature of international trade policy continues to present a risk to our cost structure and financial performance. Further escalation or expansion of trade barriers could have a material adverse effect on our results of operations. On February 20, 2026, the U.S. Supreme Court ruled that President Trump's tariff policies under the International Emergency Economic Powers Act ("IEEPA") are unconstitutional. As a result of this ruling, the U.S. Court of International Trade issued an order directing the U.S. Customs and Border Protection ("CBP") agency to begin formalizing a process for refunds. On April 20, 2026, the CBP launched an online portal that can be used to submit IEEPA tariff refund requests. All requests will be reviewed by the CBP to determine validity prior to the issuance of refunds. We cont

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/MDT/mda/fy2026/
All MD&A years: /company/MDT/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2025 MD&A](/company/MDT/mda/fy2025/): filed 2025-06-20; accession 0001613103-25-000091 (https://www.sec.gov/Archives/edgar/data/1613103/000161310325000091/mdt-20250425.htm)
- [FY 2024 MD&A](/company/MDT/mda/fy2024/): filed 2024-06-20; accession 0001613103-24-000072 (https://www.sec.gov/Archives/edgar/data/1613103/000161310324000072/mdt-20240426.htm)
- [FY 2023 MD&A](/company/MDT/mda/fy2023/): filed 2023-06-22; accession 0001613103-23-000040 (https://www.sec.gov/Archives/edgar/data/1613103/000161310323000040/mdt-20230428.htm)
- [FY 2022 MD&A](/company/MDT/mda/fy2022/): filed 2022-06-23; accession 0001613103-22-000023 (https://www.sec.gov/Archives/edgar/data/1613103/000161310322000023/mdt-20220429.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3845 Electromedical & Electrotherapeutic Apparatus) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/MDT.md · JSON record: /company/MDT.json · verified financials: /company/MDT/financials.json / /company/MDT/financials.csv · machine TOC for the whole site: /llms.txt