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ITGR Shares Down Despite Q3 Earnings & Revenues Beat Estimates
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Key Takeaways
Integer Holdings' Q3 adjusted EPS rose 25.2% to $1.79, beating the consensus estimate by 6.6%.
Revenues grew 8.4% year over year to $467.7M, led by solid cardio and vascular segment performance.
Despite strong results, ITGR shares fell more than 30% as 2026 guidance signaled slower revenue growth.
Integer Holdings Corporation (ITGR - Free Report) delivered adjusted earnings per share (EPS) of $1.79 in the third quarter of 2025, which improved 25.2% year over year. The figure surpassed the Zacks Consensus Estimate by 6.6%.
The adjustments include expenses related to the amortization of intangible assets and restructuring and restructuring-related charges, among others.
GAAP EPS for the quarter was $1.11, up 9.9% from the prior-year quarter.
ITGR Revenues in Detail
Integer Holdings registered revenues of $467.7 million in the third quarter, up 8.4% year over year. The figure topped the Zacks Consensus Estimate by 0.4%.
Organically, revenues increased 6.6%.
Robust sales from the majority of the product lines drove the company’s top line in the reported period.
Integer Holdings Segmental Analysis
Integer Holdings operates through three product lines — Cardio and Vascular (C&V); Cardiac Rhythm Management & Neuromodulation (CRM&N) and Other Markets.
During the third quarter of 2025, management began referring to ITGR’s Advanced Surgical, Orthopedics & Portable Medical product line as the Other Markets product line. This was aimed at better capturing the evolving nature of the company’s products and ongoing strategic focus. Per management, the name change has no impact on the financial information previously reported.
Revenues of the C&V business totaled $277.1 million, up 14.9% from the prior-year quarter on a reported basis and up 8.5% organically. Strong growth in the segment was driven by new product ramps in electrophysiology, Precision Coating and VSi Parylene acquisitions and strong customer demand in neurovascular. This compares to our third-quarter projection of $261.9 million.
Revenues of the CRM&N business were $169.2 million, up 2.5% year over year on a reported as well as on an organic basis. The solid year-over-year performance was driven by strong growth in emerging Neuromodulation customers with premarket approval products and normalized CRM growth. This compares to our third-quarter projection of $173.8 million for the product line.
Integer Holdings’ Other Markets revenues amounted to $21.4 million, down 15.5% year over year on a reported basis, but up 27.5% on an organic basis. Per management, this resulted from the execution of the planned multi-year Portable Medical exit announced in 2022. This compares to our third-quarter projection of $26.7 million for Other Markets revenues.
Integer Holdings Corporation Price, Consensus and EPS Surprise
Integer Holdings generated a gross profit of $126.2 million in the third quarter, up 8.2% year over year. The gross margin in the reported quarter contracted 10 basis points (bps) to 26.9%. We had projected 28.4% of gross margin for the third quarter.
Selling, general and administrative expenses were $50.5 million, up 12.6% year over year. Research, development and engineering costs were $10.9 million in the quarter, down 8.2% year over year. Total operating expenses of $69.7 million increased 19.1% year over year.
Adjusted operating profit totaled $85.9 million, reflecting a 13.5% uptick from the prior-year quarter. Adjusted operating margin in the third quarter expanded 80 bps to 18.3%.
Integer Holdings’ Financial Position
Integer Holdings exited the third quarter of 2025 with cash and cash equivalents of $58.9 million compared with $23.1 million at the second-quarter end. Total debt (including the current portion) at the end of third-quarter 2025 was $1.19 billion compared with $1.24 billion at the second-quarter end.
Cumulative net cash flow from operating activities at the end of third-quarter 2025 was $140.7 million compared with $141.9 million a year ago.
ITGR’s 2025 Guidance
Integer Holdings has updated its financial outlook for 2025.
For 2025, the company now expects revenues between $1,840 million and $1,854 million (implying an improvement of 7-8% from the 2024 reported figure). The Zacks Consensus Estimate is pegged at $1.87 billion.
The company now expects full-year adjusted EPS in the band of $6.29-$6.43 (indicating a rise of 19-21% from the 2024 reported figure). The Zacks Consensus Estimate is pegged at $6.38.
Our Take
Integer Holdings exited the third quarter of 2025 with strong results. The strong year-over-year top-line and bottom-line performances were impressive. Strength in the majority of the product lines was encouraging. However, Integer Holdings’ strong quarterly execution was overshadowed by investor concerns about its outlook for 2026, which sent the stock tumbling more than 30% yesterday. While the company delivered solid sales growth and healthy profit expansion this quarter, management’s guidance for next year signaled a pause in momentum, projecting revenue growth between a 2% decline and a modest 2% increase. That cautious tone caught investors off guard, especially following several quarters of consistent double-digit gains.
Shares of ITGR have lost 44.2% so far this year compared with the industry’s 1.9% decline. The S&P 500 Index has increased 14.9% during the same time frame.
The sharp dip in Integer Holdings’ stock is likely about expectations, not performance. The company warned that 2026 could be a slower year as some customer programs and new product launches take longer to ramp up, but this looks like a short-term pause rather than a long-term issue. Management expects growth to bounce back in 2027 as those projects gain traction.
Image Source: Zacks Investment Research
Integer Holdings’ Zacks Rank and Key Picks
Integer Holdings currently carries a Zacks Rank #3 (Hold).
Phibro Animal Health reported a fourth-quarter fiscal 2025 EPS of 57 cents, which beat the Zacks Consensus Estimate by 9.62%. Net sales of $378.7 million topped the consensus estimate by 4.86%. PAHC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Phibro has an estimated earnings growth rate of 21.1% in fiscal 2026 compared with the industry’s 12.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 27.88%.
Veracyte, sporting a Zacks Rank #1, reported fiscal second-quarter 2025 adjusted EPS of 44 cents, which beat the Zacks Consensus Estimate by 41.9%. Revenues of $130.2 million topped the Zacks Consensus Estimate by 7.1%.
VCYT has an estimated earnings growth rate of 19.3% for 2025 compared with the industry’s 12.9%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 242.77%.
Insulet, sporting a Zacks Rank #1, reported a fiscal second-quarter 2025 adjusted EPS of $1.17, which outperformed the Zacks Consensus Estimate by 25.81%. Revenues of $649.1 million exceeded the Zacks Consensus Estimate by 5.46%.
PODD has an estimated earnings growth rate of 42.3% for 2025 compared with the industry’s 12.7%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 19.54%.
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ITGR Shares Down Despite Q3 Earnings & Revenues Beat Estimates
Key Takeaways
Integer Holdings Corporation (ITGR - Free Report) delivered adjusted earnings per share (EPS) of $1.79 in the third quarter of 2025, which improved 25.2% year over year. The figure surpassed the Zacks Consensus Estimate by 6.6%.
The adjustments include expenses related to the amortization of intangible assets and restructuring and restructuring-related charges, among others.
GAAP EPS for the quarter was $1.11, up 9.9% from the prior-year quarter.
ITGR Revenues in Detail
Integer Holdings registered revenues of $467.7 million in the third quarter, up 8.4% year over year. The figure topped the Zacks Consensus Estimate by 0.4%.
Organically, revenues increased 6.6%.
Robust sales from the majority of the product lines drove the company’s top line in the reported period.
Integer Holdings Segmental Analysis
Integer Holdings operates through three product lines — Cardio and Vascular (C&V); Cardiac Rhythm Management & Neuromodulation (CRM&N) and Other Markets.
During the third quarter of 2025, management began referring to ITGR’s Advanced Surgical, Orthopedics & Portable Medical product line as the Other Markets product line. This was aimed at better capturing the evolving nature of the company’s products and ongoing strategic focus. Per management, the name change has no impact on the financial information previously reported.
Revenues of the C&V business totaled $277.1 million, up 14.9% from the prior-year quarter on a reported basis and up 8.5% organically. Strong growth in the segment was driven by new product ramps in electrophysiology, Precision Coating and VSi Parylene acquisitions and strong customer demand in neurovascular. This compares to our third-quarter projection of $261.9 million.
Revenues of the CRM&N business were $169.2 million, up 2.5% year over year on a reported as well as on an organic basis. The solid year-over-year performance was driven by strong growth in emerging Neuromodulation customers with premarket approval products and normalized CRM growth. This compares to our third-quarter projection of $173.8 million for the product line.
Integer Holdings’ Other Markets revenues amounted to $21.4 million, down 15.5% year over year on a reported basis, but up 27.5% on an organic basis. Per management, this resulted from the execution of the planned multi-year Portable Medical exit announced in 2022. This compares to our third-quarter projection of $26.7 million for Other Markets revenues.
Integer Holdings Corporation Price, Consensus and EPS Surprise
Integer Holdings Corporation price-consensus-eps-surprise-chart | Integer Holdings Corporation Quote
ITGR’s Margin Analysis
Integer Holdings generated a gross profit of $126.2 million in the third quarter, up 8.2% year over year. The gross margin in the reported quarter contracted 10 basis points (bps) to 26.9%. We had projected 28.4% of gross margin for the third quarter.
Selling, general and administrative expenses were $50.5 million, up 12.6% year over year. Research, development and engineering costs were $10.9 million in the quarter, down 8.2% year over year. Total operating expenses of $69.7 million increased 19.1% year over year.
Adjusted operating profit totaled $85.9 million, reflecting a 13.5% uptick from the prior-year quarter. Adjusted operating margin in the third quarter expanded 80 bps to 18.3%.
Integer Holdings’ Financial Position
Integer Holdings exited the third quarter of 2025 with cash and cash equivalents of $58.9 million compared with $23.1 million at the second-quarter end. Total debt (including the current portion) at the end of third-quarter 2025 was $1.19 billion compared with $1.24 billion at the second-quarter end.
Cumulative net cash flow from operating activities at the end of third-quarter 2025 was $140.7 million compared with $141.9 million a year ago.
ITGR’s 2025 Guidance
Integer Holdings has updated its financial outlook for 2025.
For 2025, the company now expects revenues between $1,840 million and $1,854 million (implying an improvement of 7-8% from the 2024 reported figure). The Zacks Consensus Estimate is pegged at $1.87 billion.
The company now expects full-year adjusted EPS in the band of $6.29-$6.43 (indicating a rise of 19-21% from the 2024 reported figure). The Zacks Consensus Estimate is pegged at $6.38.
Our Take
Integer Holdings exited the third quarter of 2025 with strong results. The strong year-over-year top-line and bottom-line performances were impressive. Strength in the majority of the product lines was encouraging. However, Integer Holdings’ strong quarterly execution was overshadowed by investor concerns about its outlook for 2026, which sent the stock tumbling more than 30% yesterday. While the company delivered solid sales growth and healthy profit expansion this quarter, management’s guidance for next year signaled a pause in momentum, projecting revenue growth between a 2% decline and a modest 2% increase. That cautious tone caught investors off guard, especially following several quarters of consistent double-digit gains.
Shares of ITGR have lost 44.2% so far this year compared with the industry’s 1.9% decline. The S&P 500 Index has increased 14.9% during the same time frame.
The sharp dip in Integer Holdings’ stock is likely about expectations, not performance. The company warned that 2026 could be a slower year as some customer programs and new product launches take longer to ramp up, but this looks like a short-term pause rather than a long-term issue. Management expects growth to bounce back in 2027 as those projects gain traction.
Image Source: Zacks Investment Research
Integer Holdings’ Zacks Rank and Key Picks
Integer Holdings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Phibro Animal Health (PAHC - Free Report) , Veracyte (VCYT - Free Report) and Insulet (PODD - Free Report) .
Phibro Animal Health reported a fourth-quarter fiscal 2025 EPS of 57 cents, which beat the Zacks Consensus Estimate by 9.62%. Net sales of $378.7 million topped the consensus estimate by 4.86%. PAHC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Phibro has an estimated earnings growth rate of 21.1% in fiscal 2026 compared with the industry’s 12.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 27.88%.
Veracyte, sporting a Zacks Rank #1, reported fiscal second-quarter 2025 adjusted EPS of 44 cents, which beat the Zacks Consensus Estimate by 41.9%. Revenues of $130.2 million topped the Zacks Consensus Estimate by 7.1%.
VCYT has an estimated earnings growth rate of 19.3% for 2025 compared with the industry’s 12.9%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 242.77%.
Insulet, sporting a Zacks Rank #1, reported a fiscal second-quarter 2025 adjusted EPS of $1.17, which outperformed the Zacks Consensus Estimate by 25.81%. Revenues of $649.1 million exceeded the Zacks Consensus Estimate by 5.46%.
PODD has an estimated earnings growth rate of 42.3% for 2025 compared with the industry’s 12.7%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 19.54%.