Segment and Geographic Information

9 Months Ended

Jan. 23, 2026

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

The Company has four reportable segments: Cardiovascular Portfolio, Neuroscience Portfolio, Medical Surgical Portfolio, and Diabetes Operating Unit. The chief operating decision maker (CODM) is our Chief Executive Officer (CEO) and has chosen to organize the entity based upon therapy solutions provided by each segment. The four reportable segments are strategic businesses that are managed separately, as each one develops and manufactures products and provides services oriented toward targeted therapy solutions.

The CODM measures and evaluates segment performance and allocates resources based on net sales and segment operating profit. Net sales include end-customer revenues from products developed, manufactured, and distributed by the segments. Significant expense categories include cost of products sold excluding amortization of intangible assets, research and development expense, and selling, general, and administrative expenses. The CODM uses segment operating profit in the budget and forecasting process and to monitor budget and forecast variances versus actual when assessing segment performance and allocating capital resources to each segment.

Segment operating profit excludes interest income and expense, amortization of intangible assets, currency impact of remeasurement and hedging recorded in other operating expense (income), net, non-operating income or expense items, and other items not allocated to the segments. During the first quarter of fiscal year 2026, the segment operating profit utilized by the CODM to evaluate segment performance and allocate resources changed to include allocations of certain corporate expenses, stock-based compensation, and centralized distribution expenses. For the three and nine months ended January 23, 2026, segment operating profit includes allocations of $1.0 billion and $3.0 billion, respectively, of corporate, stock-based compensation and centralized distribution expenses that were previously excluded from segment operating profit. Prior period information has been recast to conform to the current classification.

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in Note 1 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended April 25, 2025. Certain depreciable assets may be recorded by one segment, while the depreciation expense is allocated to another segment. The allocation of depreciation expense is based on the proportion of the assets used by each segment.

The following tables present reconciliations of financial information from the segments to the applicable line items in the Company's consolidated financial statements:

Segment Operating Profit

	Three months ended January 23, 2026
(in millions)	Cardiovascular		Neuroscience		Medical Surgical		Diabetes		Total
Net sales	$	3,457	$	2,558	$	2,173	$	796	$	8,985
Reconciliation of revenues
Other operating segment net sales(1)									32
Total consolidated net sales									$	9,017
Less:
Cost of products sold, excluding amortization of intangible assets	1,159		815		867		332		3,173
Research and development expense	284		153		174		109		720
Selling, general, and administrative expense	1,129		841		628		300		2,897
Other segment items(2)	(14)		12		6		(2)		3
Reportable segment operating profit	$	899	$	737	$	499	$	57	$	2,192
Reconciliation of segment profit / (loss)
Other operating segment profit (loss)(1)									(1)
Currency and other									(13)
Interest expense, net									(181)
Other non-operating income, net									121
Amortization of intangible assets									(441)
Restructuring and associated costs									(172)
Acquisition and divestiture-related items									(38)
Certain litigation charges, net									(62)
Income before income taxes									$	1,404

	Three months ended January 24, 2025
(in millions)	Cardiovascular		Neuroscience		Medical Surgical		Diabetes		Total
Net sales	$	3,037	$	2,458	$	2,072	$	694	$	8,260
Reconciliation of revenues
Other operating segment net sales(1)									32
Total consolidated net sales									$	8,292
Less:
Cost of products sold, excluding amortization of intangible assets	964		712		788		284		2,748
Research and development expense	248		152		164		108		672
Selling, general, and administrative expense	1,010		820		605		266		2,701
Other segment items(2)	(14)		12		4		(15)		(12)
Reportable segment operating profit	$	828	$	762	$	512	$	50	$	2,151
Reconciliation of segment profit / (loss)
Other operating segment profit (loss)(1)									13
Currency and other									4
Interest expense, net									(179)
Other non-operating income, net									72
Amortization of intangible assets									(416)
Restructuring and associated costs									(46)
Acquisition and divestiture-related items									(28)
Certain litigation charges, net									(22)
Medical device regulations									(11)
Income before income taxes									$	1,540

(1)Includes the operations and ongoing transition agreements from businesses the Company has exited or divested.

(2)Other segment items for the Cardiovascular, Neuroscience, and Medical Surgical segments include royalty expense. The Cardiovascular segment for both periods and the Diabetes segment for the three months ended January 24, 2025 also include income from funded research and development arrangements.

	Nine months ended January 23, 2026
(in millions)	Cardiovascular		Neuroscience		Medical Surgical		Diabetes		Total
Net sales	$	10,179	$	7,536	$	6,428	$	2,274	$	26,417
Reconciliation of revenues
Other operating segment net sales(1)									101
Other adjustments(2)									39
Total consolidated net sales									$	26,557
Less:
Cost of products sold, excluding amortization of intangible assets	3,426		2,308		2,512		951		9,197
Research and development expense	863		477		523		337		2,200
Selling, general, and administrative expense	3,331		2,546		1,861		853		8,591
Other segment items(3)	(45)		23		9		(3)		(17)
Reportable segment operating profit	$	2,604	$	2,183	$	1,523	$	136	$	6,446
Reconciliation of segment profit / (loss)
Other operating segment profit (loss)(1)									18
Currency and other									(108)
Interest expense, net									(539)
Other non-operating income, net									247
Amortization of intangible assets									(1,364)
Restructuring and associated costs									(251)
Acquisition and divestiture-related items									(96)
Certain litigation charges, net									(89)
Other adjustments(2)									39
Income before income taxes									$	4,302

	Nine months ended January 24, 2025
(in millions)	Cardiovascular		Neuroscience		Medical Surgical		Diabetes		Total
Net sales	$	9,145	$	7,226	$	6,196	$	2,027	$	24,593
Reconciliation of revenues
Other operating segment net sales(1)									106
Other adjustments(2)									(90)
Total consolidated net sales									$	24,610
Less:
Cost of products sold, excluding amortization of intangible assets	3,013		2,108		2,385		844		8,350
Research and development expense	761		463		496		317		2,038
Selling, general, and administrative expense	3,009		2,462		1,805		790		8,067
Other segment items(3)	(27)		19		14		(33)		(27)
Reportable segment operating profit	$	2,389	$	2,173	$	1,496	$	108	$	6,166
Reconciliation of segment profit / (loss)
Other operating segment profit (loss)(1)									39
Currency and other									(44)
Interest expense, net									(555)
Other non-operating income, net									403
Amortization of intangible assets									(1,243)
Restructuring and associated costs									(154)
Acquisition and divestiture-related items									(15)
Certain litigation charges, net									(104)
Medical device regulations									(38)
Other adjustments(2)									(90)
Income before income taxes									$	4,367

(1)Includes the operations and ongoing transition agreements from businesses the Company has exited or divested.

(2)Includes adjustments to the Company's Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.

(3)Other segment items for the Cardiovascular, Neuroscience, and Medical Surgical segments include royalty expense. The Cardiovascular segment for both periods and the Diabetes segment for the nine months ended January 24, 2025 also include income from funded research and development arrangements.

Total Assets

(in millions)	January 23, 2026		April 25, 2025
Cardiovascular	$	16,748	$	16,548
Neuroscience	18,447		18,476
Medical Surgical	32,748		33,317
Diabetes	4,312		4,136
Total reportable segments	72,255		72,476
Other operating segment(1)	207		296
Corporate	19,023		18,906
Total	$	91,485	$	91,680

Depreciation Expense

	Three months ended				Nine months ended
(in millions)	January 23, 2026		January 24, 2025		January 23, 2026		January 24, 2025
Cardiovascular	$	66	$	56	$	186	$	167
Neuroscience	80		73		235		210
Medical Surgical	62		51		169		152
Diabetes	32		30		95		81
Total reportable segments	240		211		685		610
Other operating segment (1)	—		—		—		1
Corporate	68		57		193		167
Total	$	308	$	268	$	878	$	778

(1)Includes the operations and ongoing transition agreements from businesses the Company has exited or divested.

Geographic Information

Net sales are attributed to the country based on the location of the customer taking possession of the products or in which the services are rendered. The following table presents net sales for the three and nine months ended January 23, 2026 and January 24, 2025 for the Company's country of domicile, countries with significant concentrations, and all other countries:

	Three months ended				Nine months ended
(in millions)	January 23, 2026		January 24, 2025		January 23, 2026		January 24, 2025
Ireland	$	36	$	28	$	104	$	86
United States	4,493		4,237		13,234		12,624
Rest of world	4,488		4,027		13,218		11,900
Total other countries, excluding Ireland	8,981		8,264		26,452		24,524
Total	$	9,017	$	8,292	$	26,557	$	24,610