v3.26.1
Revenue
 3 Months Ended
Jul. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The Company's revenues are principally derived from device-based medical therapies and services related to cardiac rhythm disorders, cardiovascular disease, hypertension, neurological surgery technologies, neurological disorders and diseases, spinal conditions and musculoskeletal trauma, chronic pain, ear, nose, and throat conditions, urological and digestive disorders, advanced and general surgical care products, respiratory and monitoring solutions, and diabetes conditions. The Company's primary customers include healthcare systems, clinics, third-party healthcare providers, distributors, and other institutions, including governmental healthcare programs and group purchasing organizations.
Starting in the first quarter of fiscal year 2027, the Cardiovascular Portfolio divisions transitioned from Cardiac Rhythm & Heart Failure, Structural Heart & Aortic, and Coronary & Peripheral Vascular to Electrophysiology Therapies (EPT), Interventional Cardiology Therapies (ICT), CardioVascular Surgery (CVS), and Peripheral Vascular Health (PVH). Our EPT division includes the Cardiac Rhythm Management and the Cardiac Ablation businesses. Our ICT division includes the Coronary and Renal Denervation and the Structural Heart businesses. Our CVS division includes the Cardiac Surgery and the Aortic businesses. Our PVH division includes the Peripheral Vascular Health business. Additionally, a product line from the Medical Surgical Portfolio in the Surgical & Endoscopy division moved to the Neuroscience Portfolio in the Neuromodulation division. Starting in the fourth quarter of fiscal year 2026, the Diabetes Business was no longer considered a reportable segment. Prior period net sales have been recast to conform to the new presentation.
The table below illustrates net sales by segment and division and by market geography for the three months ended July 31, 2026 and July 25, 2025. The U.S. revenue includes United States and U.S. territories, and the international revenue includes all other non-U.S. countries.
Worldwide
Three months ended
(in millions)July 31, 2026July 25, 2025
Electrophysiology Therapies$2,218 $1,712 
Interventional Cardiology Therapies894 834 
CardioVascular Surgery477 436 
Peripheral Vascular Health338 302 
Cardiovascular 3,927 3,285 
Cranial & Spinal Technologies1,365 1,211 
Specialty Therapies774 702 
Neuromodulation539 514 
Neuroscience 2,678 2,427 
Surgical & Endoscopy1,740 1,601 
Acute Care & Monitoring539 471 
Medical Surgical 2,279 2,073 
Reportable segment net sales8,884 7,785 
Diabetes843 721 
Other operating segment(1)
29 33 
Other adjustments(2)
— 39 
Total net sales$9,756 $8,578 
U.S.
International
Three months ended
(in millions)July 31, 2026July 25, 2025July 31, 2026July 25, 2025
Cardiovascular$1,853 $1,479 $2,074 $1,806 
Neuroscience1,813 1,624 864 803 
Medical Surgical982 884 1,297 1,188 
Reportable segment net sales4,649 3,988 4,236 3,797 
Diabetes240 217 603 504 
Other operating segment(1)
17 20 12 14 
Other adjustments(2)
— — — 39 
Total net sales$4,906 $4,224 $4,850 $4,354 
(1)Includes operations and ongoing transition agreements from businesses the Company has exited or divested.
(2)Reflects adjustments to the Company's Italian payback accruals as further described below.
The amount of revenue recognized is reduced by sales rebates, distributor chargebacks, returns, and other adjustments. Adjustments to rebates, distributor chargebacks, returns reserves, and other adjustments are recorded as increases or decreases to revenue. At both July 31, 2026 and April 24, 2026, $1.0 billion and $0.3 billion of rebates and other adjustments were classified as other accrued expenses and other liabilities, respectively, and $0.7 billion of distributor chargebacks were classified as a reduction of accounts receivable in the condensed consolidated balance sheets.
During the three months ended July 25, 2025, the Company decreased its accrual for the Italian payback by $39 million as an adjustment to net sales in the condensed consolidated statements of income resulting from the June 2025 Legislative Decree published by the Italian government and formalized into law in August 2025 confirming a reduction of the amounts due for years 2015 to 2018. Refer to Note 16 for additional information. Other adjustments to variable consideration during the three months ended July 31, 2026 and July 25, 2025 were not material.
Deferred Revenue and Remaining Performance Obligations
Deferred revenue at both July 31, 2026 and April 24, 2026 was $0.5 billion, of which $0.4 billion was included in other accrued expenses, respectively, and $0.1 billion was included in other liabilities. During the three months ended July 31, 2026, the Company recognized $140 million of revenue that was included in deferred revenue as of April 24, 2026. During the three months ended July 25, 2025, the Company recognized $135 million of revenue that was included in deferred revenue as of April 25, 2025.
Remaining performance obligations include goods and services that have not yet been delivered or provided under existing, noncancellable, contracts with minimum purchase commitments. At July 31, 2026, the estimated revenue expected to be recognized in future periods related to unsatisfied performance obligations for executed contracts with an original duration of one year or more was approximately $0.4 billion. The Company expects to recognize revenue on the majority of these remaining performance obligations over the next three years.