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Medtronic MDT Unrecognized Tax Benefits

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Other financials

Income statement

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Revenue$9.8B+9.9%
Gross profit$6.4B+10.9%
Operating income$1.9B+30.4%
Net income$1.2B+17.8%
EPS (diluted)$0.97+18.3%

Balance sheet

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Cash & equivalents$1.9B-12.1%
Total debt$29.2B-1.6%
Total equity$49.5B+3.0%
Total assets$93.0B+1.5%

Cash flow

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Operating cash flow$2.6B+1.8%
CapEx$488.0M+6.3%
Free cash flow$2.1B+0.8%

Valuation

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Market cap$111.57B-6.1%
Enterprise value$138.83B-5.0%
P/E23.2×-2.3×
P/S3.1×-0.4×

Profitability

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Gross margin65%-0.3pp
Operating margin17.8%0.0pp
Net margin13.2%-0.7pp
FCF margin14.9%-0.5pp

Returns & leverage

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Return on equity9.8%+0.4pp
Debt / equity0.6×0.0×
Current ratio2.1×+0.3×

Where this comes from

Reported directly by Medtronic in its filing.

Tagged under the XBRL concept us-gaap:UnrecognizedTaxBenefits.

The source filing: Medtronic’s 10-Q, filed February 24, 2026.

Filed
Feb 24, 2026, 4:18 PM EST
Fiscal quarter
Q3 FY2026
Calendar quarter
Q1 2026
Accession
0001628280-26-011107

At both January 23, 2026 and April 25, 2025, the Company's gross unrecognized tax benefits were $2.9 billion. For the nine months ended January 23, 2026, the Company recognized a decrease in gross interest expense of $67 million in income tax provision in the consolidated statements of income. For the nine months ended January 24, 2025, the gross interest expense recognized in income tax provision in the consolidated statements of income was $42 million. The Company had a net receivable of $36 million at January 23, 2026 and a net payable of $74 million at April 25, 2025 for accrued interest and penalties. If all of the Company’s unrecognized tax benefits were recognized, approximately $2.7 billion would impact the Company’s effective tax rate. At January 23, 2026 and April 25, 2025, the amount of the Company's gross unrecognized tax benefits, net of cash advance, recorded as a noncurrent liability within accrued income taxes on the consolidated balance sheets was $2.0 billion and $1.9 billion, respectively. The Company recognizes interest and penalties related to income tax matters within income tax provision in the consolidated statements of income and records the liability within either current or noncurrent accrued income taxes on the consolidated balance sheets.

Item 1. Financial Statements

FAQ

What is Medtronic's unrecognized tax benefits?
Medtronic (MDT) reported unrecognized tax benefits of $2.9B in Q4 2025.
How has Medtronic's unrecognized tax benefits changed year-over-year?
Medtronic's unrecognized tax benefits decreased by 0.0% year-over-year, from $2.9B to $2.9B.
What is the long-term trend for Medtronic's unrecognized tax benefits?
Over 4 years (2021 to 2025), Medtronic's unrecognized tax benefits has grown at a 14.3% compound annual growth rate (CAGR), from $1.7B to $2.9B.
What does unrecognized tax benefits mean?
This represents the amount of tax benefits from uncertain tax positions that have not been recognized in the financial statements because they do not meet the 'more-likely-than-not' threshold. It reflects the company's exposure to potential tax audits and disputes with tax authorities. This is a key indicator of tax-related legal and financial risk.

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