MDT · 10-Q · 2026Q3 · Full report

Operating Expense Trends

Medtronic plc · 2026-09-03 · Importance 47 · Surprise 22

Research and development expense increased 6% to $771 million for the three months ended July 31, 2026, from $726 million in the prior-year period. Selling, general, and administrative expense increased approximately 14% to $3.2 billion from $2.8 billion. The SG&A increase reflected higher selling expenses associated with sales growth, new product launches, and commercialization activities. Other operating expense reflected a $48 million net currency remeasurement and hedging loss, compared with a $62 million loss in the prior-year period, while lower research-and-development funding income partially offset the improvement.

Key facts

• Selling, general, and administrative expense for the three months ended July 31, 2026 was $3,200 million compared to $2,800 million for the corresponding period in the prior fiscal year. source
• Research and development expense for the three months ended July 31, 2026 was $771 million compared to $726 million for the corresponding period in the prior fiscal year. source
• The Company recognized net gains on minority investments of $64 million for the three months ended July 31, 2026 compared to net losses of $113 million for the corresponding period in the prior fiscal year. source
• Amortization expense decreased in the three months ended July 31, 2026 primarily because $45 million of accelerated amortization on certain Cardiovascular Portfolio intangible assets was recognized in the prior year. source
• Other operating expense (income), net resulted in a net loss of $48 million for the three months ended July 31, 2026 compared to a net loss of $62 million for the corresponding period in the prior fiscal year. source
• The Company excluded unrealized and realized gains and losses on minority investments from non-GAAP measures because it does not believe these components have a direct correlation to ongoing or future business operations. source