Medtronic
Medtronic's revenue rose 8.4% to $36.4 billion in fiscal 2026. Its operating margin was 17.8%, about the same as 17.8% a year earlier. Free cash flow was $5.4 billion, up 4.7%. It paid out $4.7 billion in dividends and buybacks, 86% of free cash flow. The diluted share count fell 0.1%.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
What Medtronic does
Medtronic, based in Galway, Ireland, makes medical devices and sells them to hospitals, physicians and other health care providers in more than 150 countries. Its products treat heart conditions, brain, spine and nerve conditions, and general surgical and acute care needs.
It has three reportable segments. The Cardiovascular Portfolio includes pacemakers, heart rhythm and heart failure devices, treatments for atrial fibrillation, and devices for heart valves, the aorta and blood vessels. The Neuroscience Portfolio covers cranial and spinal products, specialty therapies and neuromodulation, used by spinal surgeons, neurosurgeons, pain specialists and others. The Medical Surgical Portfolio covers surgical and endoscopy products and acute care and monitoring products, used mainly by health systems, physician offices and surgery centers.
In May 2025 Medtronic announced plans to separate its diabetes business. A new company, MiniMed Group, completed an initial public offering on March 9, 2026, and the diabetes unit stopped being a reportable segment in the fourth quarter of fiscal 2026. Medtronic's results in this report still include the diabetes business unless it says otherwise.
Its biggest risks, as it describes them
- Competition in its industry, and the need to launch new technologies that stand out from rivals.
- Quality problems that lead to recalls, safety alerts or product liability claims.
- Manufacturing or supply interruptions that could limit the devices it can sell.
- Strict medical device rules and changes in how governments and insurers pay for care.
- Dependence on its patents and the cost of defending them, along with a tax dispute in U.S. court.
Charts show fiscal years, from the 10-K filings.
Revenue and margins
Net income and earnings per share
From fiscal 2017 to 2026, earnings per share grew 2.9% a year and net income 2.0% a year, as buybacks cut the share count by 7%.
Returns on capital
Cash flow
Payouts and share count
Valuation
Two ways to value Medtronic yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.
What Medtronic says to expect
- Fiscal 2027: organic revenue growth
The company raised its FY27 organic revenue growth guidance to 7.25% to 7.75%, an increase from the prior guidance of 6.75% to 7.25%.
- Fiscal 2027: non-GAAP earnings per share
The company also raised its FY27 diluted non-GAAP EPS guidance to the new range of $5.94 to $6.00 versus the prior $5.90 to $6.00.
Discounted cash flow (DCF)
A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Medtronic's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.
Value per share on three example scenarios, from Medtronic's fiscal 2026 free cash flow of $5.4B, net cash of −$17.0B at April 24, 2026 and 1,288 million diluted shares, from its filings. The scenarios are fitted to Medtronic: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 5.2% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 9% for a business of moderate risk (Health Care Equipment); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $94.79
- Value on these assumptions, against the last close
- —
- Cash flows in years 1 to 10, valued today
- —
- Everything after year 10, valued today
- —
- Plus net cash
- —
- Share of value from after year 10
How the value changes with two assumptions
Price-to-earnings (P/E) method
Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.
Value per share on three example scenarios, from Medtronic's earnings per share of $4.07 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 28×, the middle of Medtronic's own P/E today, its peers' median and its sector's median (the Health Care median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 10%, 9% and 8%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $94.79
- Value at this multiple, against the last close
- —
- Medtronic's P/E at the last close
- 23.3×
| Company | Last close | Earnings per share | P/E today |
|---|---|---|---|
| Becton DickinsonBDX | $196.39 | $3.32 | 59.2× |
| StrykerSYK | $306.13 | $9.65 | 31.7× |
| Abbott LaboratoriesABT | $104.88 | $3.58 | 29.3× |
| MedtronicMDT | $94.79 | $4.07 | 23.3× |
| GE HealthCareGEHC | $71.98 | $4.18 | 17.2× |
Balance sheet
| Fiscal year end | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash and short-term investments | 10.6 | 8.0 | 8.0 | 9.0 | 9.2 |
| Debt incl. finance leases | 20.4 | 24.3 | 25.0 | 25.6 | 26.2 |
| Net debt (negative means net cash) | 9.8 | 16.4 | 17.0 | 16.7 | 17.0 |
| Net debt to EBITDA | 1.2x | 2.0x | 2.2x | 1.9x | 1.8x |
| Debt to equity | 0.4x | 0.5x | 0.5x | 0.5x | 0.5x |
| Interest coverage | 10.4x | 8.6x | 7.2x | 8.2x | 9.0x |
| Current ratio | 1.9x | 2.4x | 2.0x | 1.9x | 2.1x |
| Quick ratio | 1.5x | 1.8x | 1.6x | 1.4x | 1.6x |
Insider trades
Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Medtronic shares on the open market, and 5 insiders sold $14.7 million, $6.0 million of it under trading plans set up in advance.
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Oct 15, 2026 | Geoffrey MarthaChairman and CEO, Director | Sold plan | 50,000 | $95.00 | $4.8 million | Form 4 |
| Oct 15, 2026 | Michael MarinaroEVP, Pres MedSurg and Americas | Sold plan | 10,420 | $96.00 | $1.0 million | Form 4 |
| Sep 16, 2026 | Harry Skip KiilEVP & President Cardiovascular | Sold | 1,483 | $93.65 | $138,883 | Form 4 |
| Jul 8, 2026 | Matthew R. WalterSVP, Chief HR Officer | Sold plan | 3,102 | $83.15 | $257,931 | Form 4 |
| Jun 8, 2026 | Harry Skip KiilEVP & President Cardiovascular | Sold | 4,189 | $80.44 | $336,965 | Form 4 |
| Feb 19, 2026 | Harry Skip KiilEVP & President Cardiovascular | Sold | 52,524 | $97.71 | $5.1 million | Form 4 |
| Nov 19, 2025 | Gregory L SmithEVP Global Ops & Supply Chain | Sold | 30,000 | $101.95 | $3.1 million | Form 4 |
Piotroski F-score
The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.
| Test | FY24 | FY25 | FY26 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Fail | Pass | Pass |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | Fail | Fail | Fail |
| Current ratio rose | Fail | Fail | Pass |
| Share count didn't rise | Pass | Pass | Pass |
| Gross margin rose | Fail | Fail | Fail |
| Revenue rose relative to assets | Pass | Pass | Pass |
| F-score | 5 of 9 | 6 of 9 | 7 of 9 |
| Accruals ratio | −3.4% | −2.6% | −2.7% |
Compare
Put Medtronic side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| Medtronic | FY26 | 8.4% | 17.8% | 14.9% | 7.7% | 1.8x | 7 | |
| Abbott Laboratories | FY25 | 5.7% | 18.2% | 16.7% | 11.2% | 0.4x | 6 | Compare |
| Stryker | FY25 | 11.2% | 19.5% | 17.1% | 11.3% | 1.7x | 6 | Compare |
| Becton Dickinson | FY25 | 8.2% | 11.8% | 12.2% | 5.5% | 3.4x | 6 | Compare |
| GE HealthCare | FY25 | 4.8% | 13.4% | 7.3% | 13.2% | 1.8x | 7 | Compare |
10 years of figures
| Fiscal year | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | 29.7 | 30.0 | 30.6 | 28.9 | 30.1 | 31.7 | 31.2 | 32.4 | 33.5 | 36.4 |
| Revenue growth | 3.0% | 0.8% | 2.0% | −5.4% | 4.2% | 5.2% | −1.4% | 3.6% | 3.6% | 8.4% |
| Gross profit | 20.4 | 20.9 | 21.4 | 19.5 | 19.6 | 21.5 | 20.5 | 21.1 | 21.9 | 23.6 |
| Research and development | 2.2 | 2.3 | 2.3 | 2.3 | 2.5 | 2.7 | 2.7 | 2.7 | 2.7 | 2.9 |
| Operating income | 5.4 | 6.6 | 6.3 | 4.8 | 4.5 | 5.8 | 5.5 | 5.1 | 6.0 | 6.5 |
| Net income | 4.0 | 3.1 | 4.6 | 4.8 | 3.6 | 5.0 | 3.8 | 3.7 | 4.7 | 4.8 |
| Diluted EPS (US$) | 2.89 | 2.27 | 3.41 | 3.54 | 2.66 | 3.73 | 2.82 | 2.76 | 3.61 | 3.73 |
| Diluted shares (millions) | 1,391 | 1,368 | 1,358 | 1,351 | 1,354 | 1,351 | 1,333 | 1,330 | 1,290 | 1,288 |
| Cash flow | ||||||||||
| Cash from operations | 6.9 | 4.7 | 7.0 | 7.2 | 6.2 | 7.3 | 6.0 | 6.8 | 7.0 | 7.3 |
| Capital expenditure | 1.3 | 1.1 | 1.1 | 1.2 | 1.4 | 1.4 | 1.5 | 1.6 | 1.9 | 1.9 |
| Free cash flow | 5.6 | 3.6 | 5.9 | 6.0 | 4.9 | 6.0 | 4.6 | 5.2 | 5.2 | 5.4 |
| Dividends paid | 2.4 | 2.5 | 2.7 | 2.9 | 3.1 | 3.4 | 3.6 | 3.7 | 3.6 | 3.6 |
| Share buybacks | 3.5 | 2.2 | 2.9 | 1.3 | 0.7 | 2.5 | 0.6 | 2.1 | 3.2 | 1.0 |
| Acquisitions | 1.3 | 0.1 | 1.8 | 0.5 | 1.0 | 0.1 | 1.9 | 0.2 | 0.1 | 0.4 |
| Stock-based compensation | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.4 | 0.4 | 0.4 | 0.4 | 0.5 |
| Balance sheet at fiscal year end | ||||||||||
| Cash and short-term investments | 13.7 | 11.2 | 9.8 | 10.9 | 10.8 | 10.6 | 8.0 | 8.0 | 9.0 | 9.2 |
| Debt incl. finance leases | 33.4 | 25.8 | 25.4 | 25.0 | — | 20.4 | 24.3 | 25.0 | 25.6 | 26.2 |
| Total assets | 99.9 | 91.4 | 89.7 | 90.7 | 93.1 | 91.0 | 90.9 | 90.0 | 91.7 | 93.0 |
| Total liabilities | 49.5 | 40.6 | 39.5 | 39.8 | 41.5 | 38.3 | 39.3 | 39.6 | 43.4 | 43.0 |
| Shareholders' equity | 50.2 | 50.7 | 50.1 | 50.7 | 51.4 | 52.6 | 51.5 | 50.2 | 48.0 | 49.5 |
| Margins and ratios | ||||||||||
| Gross margin | 68.7% | 69.8% | 70.0% | 67.4% | 65.2% | 68.0% | 65.7% | 65.3% | 65.3% | 65.0% |
| Operating margin | 18.1% | 22.2% | 20.5% | 16.6% | 14.9% | 18.1% | 17.6% | 15.9% | 17.8% | 17.8% |
| Net margin | 13.6% | 10.4% | 15.2% | 16.6% | 12.0% | 15.9% | 12.0% | 11.4% | 13.9% | 13.2% |
| Free cash flow margin | 18.9% | 12.1% | 19.2% | 20.8% | 16.2% | 18.9% | 14.7% | 16.1% | 15.5% | 14.9% |
| Return on capital | 6.7% | 5.3% | 8.6% | 7.3% | — | — | 5.9% | 5.8% | 7.5% | 7.7% |
| Return on equity | 7.9% | 6.2% | 9.2% | 9.5% | 7.1% | 9.7% | 7.2% | 7.2% | 9.5% | 9.8% |
| Return on assets | 4.0% | 3.2% | 5.1% | 5.3% | 3.9% | 5.5% | 4.1% | 4.1% | 5.1% | 5.2% |
| Net debt to EBITDA | 2.4x | 1.6x | 1.7x | 1.9x | — | 1.2x | 2.0x | 2.2x | 1.9x | 1.8x |