Merit Medical Posts Adjusted Earnings of $1.12 a Share and Raises 2026 Forecast
Key Facts
Merit Medical reported third-quarter results on October 29 for the quarter ended September 30, 2026, posting revenue of $416.2 million and adjusted earnings of $1.12 a share. The company said constant-currency organic revenue growth was 9% and results exceeded the high end of its guidance. According to Investing.com data, adjusted earnings per share topped the average analyst estimate of $1.04, while revenue also exceeded expectations of $410.34 million. Reported revenue rose 8.4% from the same period in 2025. On the day of the announcement, the stock closed at $93.39, compared with $92.21 in the previous session, according to EL7 data.
Earnings per share were $0.70 under accounting standards, up 51% year over year, while adjusted earnings reached $1.12, up 22%. Net income was $42.3 million, compared with $27.8 million in the third quarter of 2025, and diluted earnings per share rose from $0.46 to $0.70. The comparison shows improvement in both reported and adjusted earnings during the period. But margin measures did not all move in the same direction: adjusted operating margin rose to 21.3% from 19.7% a year earlier, while adjusted gross margin fell to 52.8% from 53.6%. The company said the 81-basis-point year-over-year decline in gross margin was primarily tied to manufacturing variances and higher freight and distribution costs.
By segment, revenue from the therapies business rose 14% to $140.509 million, while oncology revenue increased 16% to $27.085 million. The company said U.S. sales grew 11% during the quarter, compared with a 3% increase in international sales. Foundational product sales also rose 6% overall and 8% organically, while therapeutic product sales increased 13% overall and 11% organically. Constant-currency organic revenue growth was 9%, the same level recorded in the second quarter, according to Investing.com. The chief executive said results exceeded the high end of the company’s guidance, driven mainly by this growth, while the company cited strong U.S. revenue trends and better-than-expected demand across its foundational and therapeutic platforms.
Merit raised its 2026 revenue forecast range to $1.635–$1.642 billion, compared with the previous range of $1.631–$1.643 billion. It also raised its adjusted earnings-per-share forecast range to $4.33–$4.37, from $4.25–$4.35 previously. The update lifts the lower end of both ranges, while the upper end of the revenue forecast is below the previous estimate. The chief financial officer said the company lowered its China forecast by about $4 million for the second half of the year, while other assumptions were largely unchanged. The company forecast fourth-quarter revenue of $418 million to $426 million and adjusted earnings per share of $1.08 to $1.12.
The company had announced that its investor call to discuss third-quarter results would be held on October 29, 2026, at 4:30 p.m. Eastern time. The quarterly results and annual forecast provide the company’s framework for the rest of the year, with fourth-quarter revenue and adjusted earnings per share expected within the announced ranges. Segment figures show differing growth across foundational and therapeutic products, alongside expansion in oncology revenue. Meanwhile, the year-over-year decline in gross margin coincided with an increase in adjusted operating margin. The stock closed the October 29 session at $93.39, up 1.28% from the previous close, and remained stable in after-hours trading, according to an Investing.com report.