Revenue during the quarter grew 4.07 percent to $7,345 million from $7,058 million in the previous year period. Gross margin for the quarter contracted 75 basis points over the previous year period to 68.33 percent. Total expenses were 81.14 percent of quarterly revenues, down from 81.58 percent for the same period last year. This has led to an improvement of 44 basis points in operating margin to 18.86 percent.

Operating income for the quarter was $1,385 million, compared with $1,300 million in the previous year period.

However, the adjusted operating income for the quarter stood at $1,998 million compared to $1,931 million in the prior year period. At the same time, adjusted operating margin contracted 16 basis points in the quarter to 27.20 percent from 27.36 percent in the last year period.

"Q2 revenue was disappointing and did not meet our expectations. We faced issues that affected our growth, including slower than expected revenue as we await new product introductions, particularly in CVG and Diabetes," said Omar Ishrak, Medtronic chairman and chief executive officer. "Despite this revenue shortfall, we produced a strong improvement in operating margins and double digit constant currency earnings per share growth."

For financial year 2017, the company projects diluted earnings per share to be in the range of $4.55 to $4.60 on adjusted basis.

The company has spent $357 million cash to meet investing activities during the first six months as against cash outgo of $2,074 million in the last year period.

The company has spent $2,651 million cash to carry out financing activities during the first six months as against cash outgo of $2,525 million in the last year period.

Cash and cash equivalents stood at $2,954 million as on Oct. 28, 2016, up 24.22 percent or $576 million from $2,378 million on Oct. 30, 2015.

Working capital drops significantly
Medtronic plc has witnessed a decline in the working capital over the last year. It stood at $12,925 million as at Oct. 28, 2016, down 37.25 percent or $7,672 million from $20,597 million on Oct. 30, 2015. Current ratio was at 2.35 as on Oct. 28, 2016, down from 3.53 on Oct. 30, 2015.

Cash conversion cycle (CCC) has decreased to 79 days for the quarter from 150 days for the last year period. Days sales outstanding went up to 65 days for the quarter compared with 64 days for the same period last year.

Days inventory outstanding has decreased to 73 days for the quarter compared with 144 days for the previous year period. At the same time, days payable outstanding was almost stable at 58 days for the quarter, when compared with the previous year period.