Merit Medical raises 2026 earnings forecast to $4.33–$4.37 per share

Key Facts

Merit Medical raised its 2026 non-GAAP diluted earnings per share forecast to a range of $4.33–$4.37, from $4.25–$4.35, after third-quarter results exceeded the high end of management’s expectations. Revenue was $416.244 million, compared with $384.157 million a year earlier, an announced increase of 8.4%. Chief Executive Martha Aronson said results were driven mainly by constant-currency organic growth of 9%, excluding the impact of a strategic divestiture. She added that U.S. sales posted strong growth and that demand across the Foundational and Therapeutic platforms was better than expected. The results therefore combined revenue growth with a higher earnings estimate for the fiscal year ending December 31, 2026.

Company data showed constant-currency organic revenue growth of 8.9% under the detailed reconciliation, while the release rounded this measure to 9%. Constant-currency revenue growth was 8% in the results summary, while reported revenue increased 8.4% year over year. These measures separate the effects of currency and the divestiture from changes in reported revenue, explaining the different growth rates in the release. For the nine months ended September 30, revenue reached $1.216964 billion, compared with $1.121970 billion in the corresponding period of 2025. That represented year-over-year growth of 8.5% for the period.

Merit also revised its 2026 sales forecast, raising its reported growth range to 7.9%–8.4% from 7.6%–8.4%. It also raised its constant-currency sales growth estimate to 7.0%–7.5%, compared with the previous range of 6.8%–7.6%. The lower end of both estimates therefore rose, while the upper end of reported sales growth remained at 8.4% and the upper end of the constant-currency growth forecast declined. The July update had raised the non-GAAP earnings per share forecast to $4.25–$4.35 from $4.01–$4.15, before the increase the company announced in October. Merit said the current guidance is based on information and estimates available on October 29, and actual results may differ materially if risks materialize or assumptions prove inaccurate.

Third-quarter earnings per share were $1.12 on a non-GAAP basis, up 22% from the corresponding period, and $0.70 on a GAAP basis, up 51%. The GAAP operating margin widened to 14.1% from 11.1% a year earlier, while the non-GAAP operating margin rose to 21.3% from 19.7%. By contrast, the non-GAAP gross margin fell to 52.8% from 53.6%, and the GAAP gross margin declined to 48.2% from 48.5%. Cash flow from operations was $175.2 million from the beginning of the year through September 30, and free cash flow reached $129.5 million. Cash and cash equivalents also rose to $503.6 million on September 30 from $446.4 million at the end of 2025, while total debt obligations remained at $747.5 million on both dates.

By unit, cardiac intervention revenue rose to $27.547 million in the third quarter from $25.530 million a year earlier, an increase of 8%. Revenue for the Therapeutic unit totaled $140.509 million, compared with $123.251 million, an announced growth rate of 14%; its constant-currency growth was 13%. In other categories, Endoscopy revenue rose 33%, while Procedural Solutions declined 16% and Renal Therapies fell 2%. The company is expanding its cardiac intervention platform through its acquisition of Solo Pace, which added stimulation technology linked to transcatheter aortic valve replacement procedures. Merit completed its purchase of the remaining stakes in Solo Pace on October 13 for about $45 million, after previously holding a stake of approximately 18%.

Merit said the Solo Pace deal would have a limited impact on 2026 results and that it expects a slight contribution to non-GAAP earnings in 2027. This comes as the three-year financial target period for the Continued Growth Initiative approaches its end on December 31, 2026. The company said it is also working to complete its longer-term strategic plan. The third-quarter results call was held on October 29 at 4:30 p.m. Eastern time, following the announcement of results and updated guidance. The stock closed that day at $93.39, up 1.28% from the previous close, according to Investing.com.