Medtronic plc (MDT) Stock Analysis

Analysis from 10-Q filed 2025-11-25. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 6.6%. FCF margin 14.9%. D/E 0.6x. Source: 10-Q filed 2025-11-25.

Metric	Value	Context
ROIC	6.6%	Below expectations
FCF Margin	14.9%	Healthy cash flow
Debt/Equity	0.6x	Moderate leverage

ROIC 6.6% — Top 50% of sector peers. FCF margin 14.9% — Top 5%.

Explore Medtronic plc: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for MDT: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Medtronic plc earns 6.6% ROIC, Top 50% in Healthcare

ROIC TTM 6.6%, sector median -4.9%, Top 50%. DuPont: NOPAT margin 14.0% × asset turnover 0.4x. Gross margin 65.0%. Operating margin 17.8%. Source: 10-Q filed 2025-11-25.

Metric	MDT	Rating	Context
Return on Invested Capital (ROIC)	6.6%	Warning	Above sector median of -4.9%
Return on Equity (ROE)	9.9%	Adequate	Moderate equity returns
Gross Margin	65.0%	Excellent	Strong pricing power
Operating Margin	17.8%	Good	Efficient operations

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Cash Flow: Medtronic plc generates $5.4B FCF at 14.9% margin, positive NaN/8 quarters

FCF TTM $5.4B. FCF margin 14.9%, Top 5%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-25.

Metric	MDT	Rating	Context
Free Cash Flow Margin	14.9%	Good	Healthy cash generation
Free Cash Flow (TTM)	$5.4B	Good	Positive cash generation
OCF/Net Income	1.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Medtronic plc at 0.6x leverage

Debt/Equity 0.6x. Total debt $28.0B, cash & investments $9.2B. Source: 10-Q filed 2025-11-25.

Metric	MDT	Rating	Context
Debt to Equity	0.6x	Good	Moderate leverage
Net Cash Position	$-18.7B	Warning	Net debt position

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Valuation: Medtronic plc trades at 22.2x earnings

P/E 22.2x. EV/Sales 3.5x. FCF yield 5.1%. Dividend yield 3.4%. Source: 10-Q filed 2025-11-25.

Metric	MDT	Rating	Context
P/E Ratio	22.2x	Adequate	Premium valuation
EV/Sales	3.5x	Good	Growth premium priced in
FCF Yield	5.1%	Good	Attractive cash return
Dividend Yield	3.4%	Adequate	Meaningful income

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Capital Allocation: Medtronic plc returns 4.4% shareholder yield

Total shareholder yield 4.4% (div 3.4% + buyback 1.0%). Capital returned $4.7B TTM. Source: 10-Q filed 2025-11-25.

Metric	MDT	Rating	Context
Total Shareholder Yield	4.4%	Good	Dividend + buyback yield combined
Buyback Yield	1.0%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$4.7B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	6.6%	Top 50%	-
Free Cash Flow Margin	14.9%	Top 5%	-
Gross Margin	65.0%	Top 50%	1.0x above
Operating Margin	17.8%	Top 25%	9.8x above
Return on Equity (ROE)	9.9%	Top 50%	-
P/E Ratio	22.2x	N/A	-

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Financial Scorecard

Metric	MDT	Rating	Sector Context
Return on Invested Capital (ROIC)	6.6%	Warning	Top 50% of sector (median: -4.9%)
Free Cash Flow Margin	14.9%	Good	Top 5% of sector (median: 0.0%)
Gross Margin	65.0%	Excellent	Top 50% of sector (median: 64.3%)
Debt to Equity Ratio	56.5%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	22.2x	Adequate	Fair value
Free Cash Flow Yield	5.1%	Good	Solid cash yield

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Frequently Asked Questions

Q: What is Medtronic plc's Return on Invested Capital (ROIC)?

Medtronic plc (MDT) has a trailing twelve-month Return on Invested Capital (ROIC) of 6.6%. Sector median -4.9%. Source: 10-Q filed 2025-11-25.

Q: What is Medtronic plc's Free Cash Flow Margin?

Medtronic plc (MDT) has a free cash flow margin of 14.9%, generating $5.4 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-25.

Q: What is Medtronic plc's P/E ratio and how does it compare to peers?

Medtronic plc (MDT) trades at a P/E ratio of 22.2x, which is above the sector median of N/A. EV/Sales 3.5x. FCF yield 5.1%. Source: 10-Q filed 2025-11-25.

Q: Does Medtronic plc pay a dividend?

Medtronic plc (MDT) currently pays a dividend yield of 3.4%. Total shareholder yield (dividend + buybacks) 4.4%. Source: 10-Q filed 2025-11-25.

Q: How much debt does Medtronic plc have?

Medtronic plc (MDT) has a debt-to-equity ratio of 0.6x with total debt of $28.0 billion. Net debt $18.7 billion. Source: 10-Q filed 2025-11-25.

Q: What is Medtronic plc's revenue and earnings growth?

Medtronic plc (MDT) grew revenue by 8.4% year-over-year. EPS +3.1% YoY. Source: 10-Q filed 2025-11-25.

Q: Is Medtronic plc buying back stock?

Medtronic plc (MDT) repurchased $1.0 billion of stock over the trailing twelve months. This represents a buyback yield of 1.0%. Source: 10-Q filed 2025-11-25.

Q: How does Medtronic plc compare to competitors in Healthcare?

Compared to other companies in Healthcare, Medtronic plc (MDT) shows: ROIC 6.6%, sector median -4.9% (Top 50%). FCF margin 14.9%, sector median 0.0% (Top 5%). Gross margin 65.0%, 0.7pp above sector median. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.

Q: What warning signs should I watch for with Medtronic plc?

No quantitative warning flags fired for Medtronic plc (MDT) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-11-25.

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Data Source: Data sourced from 10-Q filed 2025-11-25. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.