Merit Medical Revenue Rises 8.4% to $416.2 Million as Company Raises 2026 Outlook
Key Facts
Merit Medical reported revenue of $416.2 million in the third quarter of 2026, up 8.4% year over year, and raised its full-year outlook, according to a statement published via GlobeNewswire on Oct. 29. Organic constant-currency revenue growth was 9% during the quarter, exceeding reported revenue growth. The GAAP operating margin also rose to 14.1% from 11.1% in the same quarter of 2025. The non-GAAP operating margin climbed to 21.3% from 19.7%. Results also showed an increase in earnings per share under both measures, while the available summary did not give the new annual outlook range.
Constant-currency revenue growth was 8%, while organic constant-currency growth reached 9%, according to the statement. This reflects two different growth measures for the same quarter, alongside an 8.4% increase in reported revenue compared with the third quarter of 2025. Second-quarter revenue was $418.8 million, up 10% year over year, while organic constant-currency growth was 9%. Reported revenue growth therefore slowed in the third quarter compared with the prior quarter, while organic constant-currency growth remained at the same level. The available summary does not identify the factors behind the raised outlook, so the decision cannot be linked to a specific reason.
Improved operations were reflected in wider margins compared with the same period a year earlier. The GAAP operating margin was 14.1%, versus 11.1% in the third quarter of 2025, while the non-GAAP margin reached 21.3%, up from 19.7%. For earnings per share, the company reported $0.70 on a GAAP basis, up 51% year over year. Non-GAAP earnings per share were $1.12, up 22% from the third quarter of 2025. These indicators point to simultaneous improvement in profitability and margins during the quarter, alongside sales growth.
Merit generated $175.2 million in cash from operations from the start of the year through the end of the third quarter, while free cash flow generation totaled $129.5 million over the same period. The figures provide a picture of cash generated by operating activities and available after capital expenditures, alongside revenue and earnings growth. In the second quarter, the company had posted mixed growth across its segments, with therapeutic revenue rising 15% and foundational revenue increasing 7%. Within therapeutic activities that quarter, endoscopy revenue grew 29% and cardiac interventions revenue rose 24%. The available summary does not provide a comparable segment breakdown for the third-quarter results.
Before announcing its third-quarter results, Merit’s 2026 revenue guidance range was $1.631 billion to $1.643 billion, while its annual non-GAAP earnings-per-share range was $4.25 to $4.35, according to a July update. CEO Martha Aronson said at the time that the company had raised its revenue and earnings-per-share outlook to reflect "stronger-than-expected results during the first half of 2026." In that context, she pointed to a focus on growth, improved profitability and cash flow. The October announcement confirms another increase to the full-year outlook, but the new figures were not included in the available summary. The company is scheduled to hold its investor call on third-quarter results on Oct. 29, 2026, at 4:30 p.m. Eastern time.