| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 43 | 23.1x | 17.8x | Around median | |
Growth | 84 | 12.4% | 7.1% | Top tier | |
Quality | 80 | 16.0% | 4.5% | Top tier | |
Safety | 69 | — | 2.6x | Top tier | |
Capital Return | 87 | — | 2.12% | Top tier | |
Momentum | 80 | 37.5% | 2.9% | Top tier | |
Sentiment | 43 | 6 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
LivaNova PLC operates in medical technology through two main businesses: Cardiopulmonary and Epilepsy. The Cardiopulmonary business generates revenue from Essenz heart-lung machines and consumables, particularly oxygenators and perfusion tubing, while the Epilepsy business relies on VNS Therapy, new patient implants, and end-of-service device replacement procedures. The company is also developing an obstructive sleep apnea treatment system using pHGNS technology and the PolySync algorithm, as well as a joint digital health platform and programs for using VNS Therapy in difficult-to-treat depression.
In fiscal Q2 2026, LivaNova reported record revenue of $390.6 million, up 9.8% in constant currency, and gross profit of $273.7 million, equivalent to a GAAP gross margin of approximately 70.1%. Net income was $108.6 million and GAAP earnings per share were $1.93, while adjusted earnings per share were $1.26 and exceeded expectations by 16.67%. Adjusted operating margin rose to 23% from 22%, but a non-recurring $6 million tariff refund added approximately 150 basis points to gross margin and $0.08 to adjusted earnings per share.
The Cardiopulmonary business generated $222 million in fiscal Q2 2026, or approximately 56.8% of total revenue, and grew 10%, supported by mid-teens growth in heart-lung machines and high-single-digit growth in consumables. Oxygenators and perfusion tubing grew in the low teens, while autotransfusion systems and cannulae grew more slowly. The Epilepsy business also grew 10%, with combined growth of 15% in Europe and the rest of the world and 8% in the United States, benefiting from improved pricing, volume, reimbursement, and CORE-VNS clinical evidence.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on LIVN is “Buy,” with an average price target of $88.2 and a relatively wide range of $76 to $95. The average is above the 52-week range high of $85.76, reflecting expectations for continued Cardiopulmonary and Epilepsy growth, but the $76 low end and the reduced free cash flow outlook highlight the valuation's sensitivity to spending and execution risks. The data do not provide a valid earnings multiple, so the available assessment is based on the target range, the 52-week range of $48.82–$85.76, and the company's ability to achieve its fiscal 2026 guidance.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Revenue reached $390.6 million and grew 9.8% in constant currency, with both Cardiopulmonary and Epilepsy growing 10%. The Cardiopulmonary business generated $222 million, driven by increased Essenz placements and growth in oxygenators and perfusion tubing. Net income was $108.6 million and GAAP earnings per share were $1.93, while adjusted earnings per share reached $1.26. Earnings also benefited from a non-recurring $6 million tariff refund, so the full improvement does not represent a repeatable trajectory.
The company expects Essenz to account for approximately 80% of heart-lung machine placements in fiscal 2026, compared with 55% in fiscal 2025. Oxygenator market share increased from approximately 30% nearly two years ago to approximately 40%, according to management, while demand continues to exceed the market's supply capacity. A new production line is scheduled to begin operating in the second half of fiscal 2026 and have a material production impact during fiscal 2027. The company also aims to launch a next-generation oxygenator in fiscal 2028 through a line separate from the current INSPIRE lines.
Management raised its revenue growth outlook to 8%–9% in constant currency from 7%–8% following strong performance in the first half of fiscal 2026. The expected Cardiopulmonary growth range increased to 9.5%–10.5%, while the Epilepsy growth range increased to 7%–8%. The company also raised its adjusted earnings per share outlook to $4.30–$4.40, equivalent to growth of approximately 11.5% at the midpoint. In contrast, it maintained its expected adjusted operating margin at 20%–21% and lowered its adjusted free cash flow outlook to $140–$160 million.
Medicare reimbursement in fiscal 2026 increased by approximately 50% for both new patient implants and end-of-service procedures compared with fiscal 2025 rates. Medicare represents approximately 40% of the payer mix and Medicaid represents another approximately 40%, while commercial payers account for the remainder. Improved reimbursement helped reopen accounts that had been closed for economic reasons, alongside procedure growth within existing accounts. Reduced volume discounts also made realized pricing during the first half of fiscal 2026 approximately twice the customary annual increase of 1%–2%.
PolySync data published in June 2026 showed a cumulative response rate of approximately 85% among patients with moderate to severe cases using pHGNS technology. According to management's comparison, the non-responder rate declined to approximately one out of every seven patients, compared with approximately one out of every three under the current standard of care. The company targets OSA revenue of $200–$400 million in fiscal 2030. However, the PMA supplement submission is now expected between the second half of fiscal 2026 and the first half of fiscal 2027, keeping regulatory timing and commercial execution among the main risks.
Cash was $517 million on June 30, 2026, compared with $636 million at the end of fiscal 2025, and debt declined to $293 million from $377 million. The decreases in cash and debt resulted partly from the early repayment of a $98 million term facility, including accrued interest. Adjusted free cash flow was $46 million in fiscal Q2 2026, compared with $48 million in the comparable period. First-half capital expenditures increased to $46 million from $26 million, with new annual guidance of $135 million to fund manufacturing capacity, innovation, and technology infrastructure.
