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CONMED's Q1 Earnings and Revenues Beat, Organic Sales Outlook Up
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Key Takeaways
CONMED beat Q1 EPS and revenue estimates, though sales dipped 1.3% year over year.
CNMD raised its 2026 organic CER revenue growth outlook to 5-6.5% on stronger execution.
CNMD saw orthopedic growth offset by GI product exit, which hurt general surgery sales.
CONMED Corporation (CNMD - Free Report) posted adjusted earnings per share (EPS) of 89 cents for the first quarter of 2026, down 6.3% year over year. The figure beat the Zacks Consensus Estimate by 8.5%.
The adjustments include costs related to legal matters and contingent consideration fair value adjustments, among others.
GAAP EPS for the quarter was 45 cents, up 136.8% from the year-ago period’s EPS of 19 cents.
CNMD’s Revenues in Detail
CONMED registered revenues of $317 million in the first quarter, down 1.3% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 2%.
At the constant exchange rate (CER), revenues were up 2.9% year over year.
Per management, the top line was hurt by a $15.5 million decrease in sales from the exit of certain GI products.
CONMED’s Segmental Details
CNMD derived its revenues from two product lines — Orthopedic Surgery and General Surgery.
Orthopedic Surgery revenues in the fourth quarter totaled $147.7 million, up 6.8% and 4.5% year over year on a reported basis and at CER, respectively.
The U.S. Orthopedic sales grew 5.5%. Internationally, orthopedic sales increased 7.6% and 3.9% on a reported basis and at CER, respectively.
General Surgery revenues were $169.3 million, down 7.4% on a reported basis and 8.5% at CER year over year.
U.S. General Surgery sales declined 10.4%, while internationally General Surgery sales increased 0.1% but declined 3.8% on a reported basis and at CER, respectively.
The decline in the United States was due to a loss of $15.2 million in sales due to the exit of certain GI products.
CONMED Corporation Price, Consensus and EPS Surprise
Domestic revenues in the first quarter totaled $173 million, down 5.8% on a reported basis year over year.
International revenues in the first quarter amounted to $144 million, up 4.7% on a reported basis and 1% at CER year over year.
CONMED’s Margin Analysis
In the quarter under review, CNMD’s adjusted gross profit increased 0.4% year over year to $181.9 million. The gross margin expanded 100 basis points (bps) to 57.4%.
Selling & administrative expenses decreased 4.8% year over year to $141.7 million. Research and development expenses rose 26.2% to $16.3 million. Total operating expenses of $158 million decreased 2.3% on a year-over-year basis.
Total adjusted operating profit totaled $32.8 million, reflecting a 10.6% decrease from the year-ago quarter. The operating margin in the first quarter contracted 100 bps to 13.1%.
CNMD’s Financial Position
The company exited the reported quarter with cash and cash equivalents of $35 million compared with $40.8 million a year ago.
Cumulative net cash provided by operating activities at the end of first-quarter 2026 was $13.5 million compared with $41.5 million a year ago.
CONMED’s Guidance
CNMD has updated its outlook for 2026.
For 2026, total reported revenues are expected to be in the range of $1,350 million-$1,375 million compared with previous guidance of $1,345 million-$1,375 million. The Zacks Consensus Estimate is pegged at $1.36 billion.
Organic CER revenues are expected to lie between $1,331.2 million and $1,350.1 million, reflecting organic CER growth of 5-6.5% over the comparable 2025 period. The company previously expected Organic CER revenues of $1,324 million to $1,344 million.
The company continues to expect adjusted EPS for 2026 in the range of $4.30-$4.45. The Zacks Consensus Estimate is pegged at $4.36.
CONMED expects revenues to be in the range of $336 million-$340 million for the second quarter. The Zacks Consensus Estimate is pegged at $310.7 million.
Our Take on CNMD
CONMED exited the first quarter of 2026 with better-than-expected results. CONMED’s results highlight a strategic reset that should underpin performance through the remainder of 2026. The divestiture of its gastroenterology business sharpens focus on higher-growth, higher-margin segments, namely AirSeal, Buffalo Filter and BioBrace. These platforms offer durable tailwinds: AirSeal benefits from rising robotic and laparoscopic procedure volumes and a large installed base, while Buffalo Filter is supported by increasing smoke-evacuation legislation and international adoption. BioBrace continues to gain traction as a differentiated orthopedic solution, with expanding clinical validation and surgeon adoption driving sustained growth.
Operationally, improving supply chain reliability is enabling the orthopedic segment to return to consistent mid-single-digit growth, with further acceleration expected as capacity expands. Additionally, raised organic growth guidance (5–6.5%) reflects improving business momentum and stronger execution.
However, challenges remain. The exit of GI creates a near-term revenue and earnings headwind, while OEM smoke products continue to weigh on general surgery performance. Inflationary pressures on input costs and higher interest expense from debt refinancing could also constrain margins. Despite these factors, CONMED’s focused portfolio and strengthening execution position it for steady growth in 2026.
Globus Medical shares have gained 4% in the year-to-date period. Estimates for the company’s first-quarter 2026 EPS have increased 1 cent to 90 cents in the past 30 days. GMED’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 18.79%. In the last reported quarter, it posted an earnings surprise of 20.75%.
Estimates for Phibro Animal Health’s third-quarter fiscal 2026 EPS have remained constant at 72 cents in the past 30 days. Shares of the company have risen 45.3% in the year-to-date period against the industry’s 18.8% decline. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.15%. In the last reported quarter, it delivered an earnings surprise of 26.09%.
Cardinal Health shares have remained flat in the year-to-date period. Estimates for the company’s third-quarter 2026 EPS have decreased 1 cent to $2.80 in the past 30 days. CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 9.30%. In the last reported quarter, it posted an earnings surprise of 10.04%.
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CONMED's Q1 Earnings and Revenues Beat, Organic Sales Outlook Up
Key Takeaways
CONMED Corporation (CNMD - Free Report) posted adjusted earnings per share (EPS) of 89 cents for the first quarter of 2026, down 6.3% year over year. The figure beat the Zacks Consensus Estimate by 8.5%.
The adjustments include costs related to legal matters and contingent consideration fair value adjustments, among others.
GAAP EPS for the quarter was 45 cents, up 136.8% from the year-ago period’s EPS of 19 cents.
CNMD’s Revenues in Detail
CONMED registered revenues of $317 million in the first quarter, down 1.3% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 2%.
At the constant exchange rate (CER), revenues were up 2.9% year over year.
Per management, the top line was hurt by a $15.5 million decrease in sales from the exit of certain GI products.
CONMED’s Segmental Details
CNMD derived its revenues from two product lines — Orthopedic Surgery and General Surgery.
Orthopedic Surgery revenues in the fourth quarter totaled $147.7 million, up 6.8% and 4.5% year over year on a reported basis and at CER, respectively.
The U.S. Orthopedic sales grew 5.5%. Internationally, orthopedic sales increased 7.6% and 3.9% on a reported basis and at CER, respectively.
General Surgery revenues were $169.3 million, down 7.4% on a reported basis and 8.5% at CER year over year.
U.S. General Surgery sales declined 10.4%, while internationally General Surgery sales increased 0.1% but declined 3.8% on a reported basis and at CER, respectively.
The decline in the United States was due to a loss of $15.2 million in sales due to the exit of certain GI products.
CONMED Corporation Price, Consensus and EPS Surprise
CONMED Corporation price-consensus-eps-surprise-chart | CONMED Corporation Quote
CNMD’s Geographical Results
Domestic revenues in the first quarter totaled $173 million, down 5.8% on a reported basis year over year.
International revenues in the first quarter amounted to $144 million, up 4.7% on a reported basis and 1% at CER year over year.
CONMED’s Margin Analysis
In the quarter under review, CNMD’s adjusted gross profit increased 0.4% year over year to $181.9 million. The gross margin expanded 100 basis points (bps) to 57.4%.
Selling & administrative expenses decreased 4.8% year over year to $141.7 million. Research and development expenses rose 26.2% to $16.3 million. Total operating expenses of $158 million decreased 2.3% on a year-over-year basis.
Total adjusted operating profit totaled $32.8 million, reflecting a 10.6% decrease from the year-ago quarter. The operating margin in the first quarter contracted 100 bps to 13.1%.
CNMD’s Financial Position
The company exited the reported quarter with cash and cash equivalents of $35 million compared with $40.8 million a year ago.
Cumulative net cash provided by operating activities at the end of first-quarter 2026 was $13.5 million compared with $41.5 million a year ago.
CONMED’s Guidance
CNMD has updated its outlook for 2026.
For 2026, total reported revenues are expected to be in the range of $1,350 million-$1,375 million compared with previous guidance of $1,345 million-$1,375 million. The Zacks Consensus Estimate is pegged at $1.36 billion.
Organic CER revenues are expected to lie between $1,331.2 million and $1,350.1 million, reflecting organic CER growth of 5-6.5% over the comparable 2025 period. The company previously expected Organic CER revenues of $1,324 million to $1,344 million.
The company continues to expect adjusted EPS for 2026 in the range of $4.30-$4.45. The Zacks Consensus Estimate is pegged at $4.36.
CONMED expects revenues to be in the range of $336 million-$340 million for the second quarter. The Zacks Consensus Estimate is pegged at $310.7 million.
Our Take on CNMD
CONMED exited the first quarter of 2026 with better-than-expected results. CONMED’s results highlight a strategic reset that should underpin performance through the remainder of 2026. The divestiture of its gastroenterology business sharpens focus on higher-growth, higher-margin segments, namely AirSeal, Buffalo Filter and BioBrace. These platforms offer durable tailwinds: AirSeal benefits from rising robotic and laparoscopic procedure volumes and a large installed base, while Buffalo Filter is supported by increasing smoke-evacuation legislation and international adoption. BioBrace continues to gain traction as a differentiated orthopedic solution, with expanding clinical validation and surgeon adoption driving sustained growth.
Operationally, improving supply chain reliability is enabling the orthopedic segment to return to consistent mid-single-digit growth, with further acceleration expected as capacity expands. Additionally, raised organic growth guidance (5–6.5%) reflects improving business momentum and stronger execution.
However, challenges remain. The exit of GI creates a near-term revenue and earnings headwind, while OEM smoke products continue to weigh on general surgery performance. Inflationary pressures on input costs and higher interest expense from debt refinancing could also constrain margins. Despite these factors, CONMED’s focused portfolio and strengthening execution position it for steady growth in 2026.
CONMED’s Zacks Rank & Stocks to Consider
CNMD currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Phibro Animal Health (PAHC - Free Report) andCardinal Health (CAH - Free Report) . While Globus Medical sports a Zacks Rank #1 (Strong Buy), Phibro Animal Health and Cardinal Health carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Globus Medical shares have gained 4% in the year-to-date period. Estimates for the company’s first-quarter 2026 EPS have increased 1 cent to 90 cents in the past 30 days. GMED’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 18.79%. In the last reported quarter, it posted an earnings surprise of 20.75%.
Estimates for Phibro Animal Health’s third-quarter fiscal 2026 EPS have remained constant at 72 cents in the past 30 days. Shares of the company have risen 45.3% in the year-to-date period against the industry’s 18.8% decline. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.15%. In the last reported quarter, it delivered an earnings surprise of 26.09%.
Cardinal Health shares have remained flat in the year-to-date period. Estimates for the company’s third-quarter 2026 EPS have decreased 1 cent to $2.80 in the past 30 days. CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 9.30%. In the last reported quarter, it posted an earnings surprise of 10.04%.