CONMED Sales Fall 0.7% Despite 6.7% Organic Growth in Third Quarter
Key Facts
CONMED reported sales of $335.6 million in the third quarter of 2026, down 0.7% year over year and 0.2% below the market estimate of $336.28 million, according to Investing.com’s coverage of the company’s earnings call. The picture differed after excluding the company’s exit from gastrointestinal products: organic constant-currency sales grew 6.7% from the same period a year earlier. The company said on the call that reported sales fell 0.8% on a constant-currency basis, highlighting the effect of product mix changes on total revenue. Organic sales growth outweighed the decline in reported sales, but revenue still fell short of analysts’ estimate. The results thus combined expansion in the existing business on an organic basis with pressure on reported sales, as the company revised its full-year sales growth outlook.
Results varied by geography: international sales rose 13.1% year over year on a reported basis, while domestic sales fell 11.0%. On an organic basis, domestic sales increased 0.8%, according to the earnings call transcript published by Investing.com. The figures indicate that the reported domestic decline did not fully reflect demand performance after the effect of changes in product scope was excluded. International sales, meanwhile, provided clear support for reported revenue during the quarter. Management named AirSeal, Buffalo Filter Direct Smoke Evacuation and BioBrace as key sales growth drivers, saying these products "were the primary drivers of our sales growth."
On profitability, diluted earnings per share under generally accepted accounting principles were $0.66 in the third quarter, up 613.7% year over year, according to coverage of CONMED’s results. Adjusted gross margin was 56.4%, up 40 basis points from a year earlier, and the company said improved product mix was the main factor behind the increase. Adjusted operating margin reached 15.4%, up 20 basis points year over year. These indicators reflect improvement in adjusted margins alongside a decline in reported sales, while GAAP earnings per share posted a sharp increase compared with the year-earlier period. The available facts did not include adjusted earnings per share for the quarter or how much it exceeded analysts’ estimates.
CONMED raised its 2026 fiscal-year adjusted diluted earnings-per-share outlook to $4.54–$4.61, from the previous range of $4.48–$4.60, according to the company announcement cited in Investing.com’s coverage. At the same time, the company narrowed its full-year organic constant-currency sales growth range to 5%–5.5%, from 5%–6% previously. The lower end of the adjusted earnings-per-share outlook therefore improved, while the upper end of expected sales growth declined. The revision points to a better earnings trajectory at the low end, but reflects a narrower estimate for organic revenue growth over the rest of the year. The company also forecast adjusted gross margin of about 57.5% and free cash flow of about $115 million for fiscal 2026.
For the fourth quarter of 2026, the company expects sales of $364 million to $370 million and adjusted earnings per share of $1.23 to $1.30, according to the earnings call. The guidance is the next test of CONMED’s ability to sustain organic growth after total sales fell short of the market estimate in the third quarter. In trading on October 27, the company’s CNMD shares closed at $47.20, compared with a close of $47.68 on October 26, according to EL7 data. The stock then ended the October 28 session at $45.76, down 3.05% from the previous close, according to Investing.com. The decline coincided with the release of results and guidance that narrowed the full-year sales growth range, despite raising the adjusted earnings-per-share outlook.