MDT
Medtronic plc
Healthcare • CIK: 0001613103
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Market Cap
$129.34B
P/E (TTM)
28.0x
Rev Growth (TTM)
+6.9%
Net Margin (TTM)
13.0%
FCF Yield (TTM)
4.2%
FCF Margin (TTM)
15.2%
What Changed
10-Q Q3 2026 vs 10-Q Q2 2026
Antitrust Verdict — New Contingent Liabilitynot present→$1.146B judgment (trebled from $382M jury award;...
12-Month Debt Maturities$1,420M (as of October 24, 2025)→$191M (as of January 23, 2026)
Risk Landscape Score (LLM)3/10→7/10
Top Risk Severity AssessmentRegulatory and Compliance: high; Competition and...→Regulatory Compliance (EU): medium; Competitive...
Cardiovascular Revenue Growth (YoY)+10.77% (Q2 FY2026)→+13.83% (Q3 FY2026)
Antitrust appeal outcome — $1.146B judgment represents ~3.2% of TTM revenue...·Cardiovascular growth rate in Q4 FY2026 vs +13.83% Q3 benchmark — sustained >12%...·Diabetes business separation timeline — 18-month clock began Q3 FY2026 filing;...
Filing Intelligence
5.0/10
10-Q filed Feb 24, 2026 • Q3 2026
Executive Summary
A jury awarded $382 million in an antitrust case, automatically trebled to $1.146 billion, though the company believes the verdict is inconsistent and plans to appeal.. Cardiovascular Portfolio...
Key Concerns
- ●The filing lacks specific details on margin drivers or concerns, making it difficult to assess profitability trends comprehensively.
- ●A jury awarded $382 million in an antitrust case, automatically trebled to $1.146 billion, though the company believes the verdict is...
- ●The company has $1.3 billion in outstanding standby letters of credit, bank guarantees, and surety bonds supporting performance and tax...
Key Strengths
- ●Net sales experienced a 9% increase in the three months ended January 23, 2026, and an 8% increase for the nine months ended January 23,...
- ●Operating cash flow and free cash flow showed positive year-over-year increases for the nine-month period, indicating strong cash...
- ●The company provided detailed segment-level revenue growth figures, with Cardiac Rhythm & Heart Failure and Diabetes showing notable...
Cash Flow Health
Free Cash Flow8/8 positive
TTM$5.4B
Q3 '26
$2.3B+403%
Q2 '26
$457M-22%
FCF Margin
TTM15.2%
Q3 '2625.5%+400%
Sector: 0.0%Top 10%
OCF Margin20.5%
OCF/NI1.58x
CapEx Coverage3.9x
FCF Yield4.2%
FCF Growth (2Y)+9%
Cash Conversion Cycle
164 days
DSO: 65+DIO: 172−DPO: 73
Capital Allocation & Returns
Balanced
Total Shareholder YieldTTM
TTM3.5%
Div Yield2.8%
+Buyback (TTM)0.7%
Balancing returns with reinvestment
Dividend & Payout Metrics
Dividend Yield (TTM)2.8%
FCF Payout Ratio67.1%
Free Cash Flow (TTM)$5.4B
Stock Repurchases (TTM)$874.0M
Capital Return / FCF83.2%
Est. Dividends Paid (TTM)$3.6B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
6.5%
Stable
+0.0% YoY+1.7%
P25MedianP75
75th pctl (med: -0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
14.2%
8Q: 13.5%
Asset Turnover
0.39x
8Q: 0.38x
Leverage (1+D/E)
1.57x
D/E: 0.57x
DuPont: 8.7% ≈ 6.5% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
5.09x
8Q:5.10x
-49.5%
Invested Cap Turn
0.49x
8Q:0.47x
+3.5%
CapEx Intensity
2.6%
8Q:2.6%
CapEx/Depreciation
0.61x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q3 2026 | Q2 2026 | Q1 2026 | Q4 2026 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $35.5B | $9.0B↑0.6% | $9.0B↑4.5% | $8.6B↓3.9% | $8.9B↑7.7% | $8.3B↓1.3% | $8.4B↑6.2% | $7.9B↓7.8% | $8.6B |
Operating Income | $6.0B | $1.5B↓13.2% | $1.7B↑16.7% | $1.4B↑0.6% | $1.4B↓12.8% | $1.6B↑3.2% | $1.6B↑24.8% | $1.3B↑21.4% | $1.1B |
Net Income | $4.6B | $1.1B↓16.8% | $1.4B↑32.1% | $1.0B↓1.5% | $1.1B↓18.4% | $1.3B↑1.9% | $1.3B↑21.9% | $1.0B↑59.3% | $654.0M |
Operating Cash Flow | $7.3B | $2.7B↑196.6% | $925.0M↓15.0% | $1.1B↓57.0% | $2.5B↓1.7% | $2.6B↑168.5% | $958.0M↓2.8% | $986.0M↓64.5% | $2.8B |
Free Cash Flow | $5.4B | $2.3B↑403.3% | $457.0M↓21.7% | $584.0M↓71.8% | $2.1B↓1.3% | $2.1B↑278.3% | $554.0M↑18.9% | $466.0M↓80.2% | $2.4B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
28.0x
Volatile
8Q: 99.3x-2353%
High PEG ratio (3.1x) suggests expensive for growth
Valuation Lenses
Earnings
28.0x
vs – sector
Cash Flow
27.6x
EV/FCF vs –
Growth-Adj
3.1xPEG
Expensive for growth
Quality-Adj
4.3P/E per %ROIC
ROIC: 6.5%
Shareholder Returns
Dividend
2.8%
Buyback
0.7%
Total Yield
3.5%
Market Cap$129.34B
EV$149.34B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
75/100
High Quality
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Above Avg
9.5%
8Q:–
Return on Invested Capital (ROIC)Top 25%
6.5%
8Q:–
Flat
vs Sector:-0.0%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 14.2%
Asset Turnover: 0.39x
Earnings Quality
Cash Conversion
1.58x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin64.9%
Capital Efficiency
Invested Capital Turnover0.49x
Working Capital
Cash Conversion Cycle164 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
61/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
6.9%
OpInc Growth YoY
-11.1%
EPS Growth YoY
9.1%
FCF 3Y CAGR
9.1%
Margin Quality & Sustainability
Moderate
Profitability Cascade
Gross
64.9%
Operating
17.0%
Top 25% in sector
Net
13.0%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+2.2 pts
FCF: 15.2% | Net: 13.0%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Adequate
Net Debt / EBITDA
–Net Debt: $19.69B
Interest Coverage
–
Balance sheet risk & solvency analysis