|MDT Overview
MDT

Medtronic plc

Healthcare • CIK: 0001613103

Loading...

Market Cap
$120.09B
P/E (TTM)
25.2x
Rev Growth (TTM)
+5.3%
Net Margin (TTM)
13.7%
FCF Yield (TTM)
4.3%
FCF Margin (TTM)
15.0%

LATEST EARNINGS

Q2 FY2026
3 months ago
View source
Revenue
Net Income
EPS
  • Revenue of $9.0 billion increased 6.6% as reported and 5.5% organic, exceeding guidance.
  • GAAP diluted EPS of $1.07 and non-GAAP diluted EPS of $1.36 both increased 8%, surpassing guidance.
  • Cardiac Ablation Solutions revenue surged 71%, with U.S. growth at 128%, driven by the PFA portfolio.
  • Cardiovascular portfolio showed its strongest growth in over a decade, excluding pandemic impacts.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$5.2B
Q4 '25
$457M-22%
Q3 '25
$584M-72%
FCF Margin
TTM15.0%
Q4 '255.1%-25%
Sector: 5.8%Above Avg
OCF Margin20.5%
OCF/NI1.49x
CapEx Coverage3.7x
FCF Yield4.3%
FCF Growth (2Y)+3%
Cash Conversion Cycle
165 days
DSO: 66+DIO: 173DPO: 74

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM3.8%
Div Yield3.0%
+
Buyback (TTM)0.8%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)3.0%
FCF Payout Ratio69.4%
Free Cash Flow (TTM)$5.2B
Stock Repurchases (TTM)$950.0M
Capital Return / FCF87.7%
Est. Dividends Paid (TTM)$3.6B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
7.3%
Stable
+0.2% YoY+1.5%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
15.0%
8Q: 14.6%
Asset Turnover
0.38x
8Q: 0.37x
Leverage (1+D/E)
1.60x
D/E: 0.60x
DuPont: 9.2%7.3% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
5.10x
8Q:5.19x
-59.9%
Invested Cap Turn
0.49x
8Q:0.47x
+4.7%
CapEx Intensity
2.7%
8Q:2.6%
CapEx/Depreciation
0.63x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$34.8B
$9.0B4.5%
$8.6B3.9%
$8.9B7.7%
$8.3B1.3%
$8.4B6.2%
$7.9B7.8%
$8.6B6.2%
$8.1B
Operating Income
$6.2B
$1.7B16.7%
$1.4B0.6%
$1.4B12.8%
$1.6B3.2%
$1.6B24.8%
$1.3B21.4%
$1.1B29.0%
$1.5B
Net Income
$4.8B
$1.4B32.1%
$1.0B1.5%
$1.1B18.4%
$1.3B1.9%
$1.3B21.9%
$1.0B59.3%
$654.0M50.5%
$1.3B
Operating Cash Flow
$7.1B
$925.0M15.0%
$1.1B57.0%
$2.5B1.7%
$2.6B168.5%
$958.0M2.8%
$986.0M64.5%
$2.8B12.2%
$2.5B
Free Cash Flow
$5.2B
$457.0M21.7%
$584.0M71.8%
$2.1B1.3%
$2.1B278.3%
$554.0M18.9%
$466.0M80.2%
$2.4B10.5%
$2.1B
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
25.2x
Volatile
8Q: 94.3x-1728%
Valuation Lenses
Earnings
25.2x
vs sector
Cash Flow
25.9x
EV/FCF vs
Growth-Adj
1.9xPEG
Fair for growth
Quality-Adj
3.5P/E per %ROIC
ROIC: 7.3%
Shareholder Returns
Dividend
3.0%
Buyback
0.8%
Total Yield
3.8%
Market Cap$120.09B
EV
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
9.8%
8Q:
Return on Invested Capital (ROIC)Top 25%
7.3%
8Q:
Flat
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 15.0%
Asset Turnover: 0.38x

Earnings Quality

Cash Conversion

1.49x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin65.5%

Capital Efficiency

Invested Capital Turnover0.49x

Working Capital

Cash Conversion Cycle165 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
57/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
5.3%
OpInc Growth YoY
5.7%
EPS Growth YoY
13.5%
FCF 3Y CAGR
2.6%

Margin Quality & Sustainability

High Quality
Profitability Cascade
Gross
65.5%
Operating
17.9%
Above Avg in sector
Net
13.7%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+1.3 pts
FCF: 15.0% | Net: 13.7%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $20.77B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.60x
Balance sheet risk & solvency analysis