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ITGR reported Q1 adjusted EPS of $1.20, down 8.4% Y/Y and missing estimates.
ITGR posted $439.6M in revenues, up 0.5% Y/Y, beating estimates on solid product-line sales.
ITGR guides 2026 revenues down 1-3% and EPS at $5.83-$6.40 amid product headwinds.
Integer Holdings Corporation (ITGR - Free Report) delivered adjusted earnings per share (EPS) of $1.20 in the first quarter of 2026, which declined 8.4% year over year. The figure missed the Zacks Consensus Estimate by 0.8%.
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 48 cents, up 172.7% from the prior-year quarter.
ITGR’s Revenues in Detail
Integer Holdings registered revenues of $439.6 million in the first quarter, up 0.5% year over year. The figure topped the Zacks Consensus Estimate by 3%.
Organically, revenues increased 1.3%.
Robust sales from the majority of the product lines drove the company’s top line in the reported period.
Integer Holdings’ Q1 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 fourth 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.
In the first quarter of 2026, the C&V segment generated revenues of $262 million, reflecting a modest 1% year-over-year increase. Growth in the segment was primarily supported by continued strength in neurovascular and contributions from prior acquisitions. However, performance was partially offset by lower electrophysiology sales, mainly related to previously disclosed headwinds from certain new products.
The CRM&N segment reported revenues of $168 million, up 5% year over year. Growth was driven by solid performance in the cardiac rhythm management business, which more than offset ongoing weakness in neuromodulation. The neuromodulation decline was consistent with prior expectations and reflects previously communicated product-related headwinds.
Revenues from Other Markets declined year over year, primarily due to the continued impact of Integer Holdings’ strategic exit from the Portable Medical business. This segment remains outside the company’s core growth focus and largely reflects legacy manufacturing service agreements tied to divested operations.
Integer Holdings Corporation Price, Consensus and EPS Surprise
Integer Holdings generated a gross profit of $109.6 million in the first quarter, down 8.9% year over year. The gross margin in the reported quarter contracted 260 basis points (bps) to 24.9%. We projected 26.4% of gross margin for the first quarter.
Selling, general and administrative expenses were $58.7 million, up 14.8% year over year. Research, development and engineering costs were $16.2 million in the quarter, up 14.4% year over year. Total operating expenses of $77.7 million increased 9.8% year over year.
Adjusted operating profit totaled $61.1 million, reflecting a decline of 13.9% from the prior-year quarter. Adjusted operating margin in the first quarter contracted 230 bps to 13.9%.
Integer Holdings’ Financial Position
Integer Holdings exited the first quarter of 2026 with cash and cash equivalents of $8.1 million compared with $17.2 million at the fourth-quarter end. Total debt (including the current portion) at the end of first-quarter 2026 was $1.25 billion, up from $1.19 billion at the end of the fourth quarter.
Net cash flow from operating activities at the end of first-quarter 2026 was $24.7 million compared with $31.3 million a year ago.
ITGR’s 2026 Guidance
Integer Holdings updated its 2026 outlook.
For 2026, the company now expects revenues in the range of $1.805-$1.835 billion, implying a decline of 1-3% on a reported basis from the 2025 level. On an organic basis, sales are projected to be flat to down 1%. The Zacks Consensus Estimate is pegged at $1.85 billion.
Adjusted EPS are now expected in the band of $5.83-$6.40, implying a range from flat to a 9% decline year over year. The Zacks Consensus Estimate is pegged at $6.47 per share.
Our Take
Integer Holdings exited the first quarter of 2026 with mixed results.
The modest top-line growth, coupled with a contraction in adjusted operating margin due to lower fixed-cost absorption, reflects ongoing near-term pressures on operating leverage.
On the segmental front, performance remained uneven. The Cardio & Vascular business delivered modest growth, though electrophysiology sales were impacted by previously communicated headwinds from certain new products. Meanwhile, strength in Cardiac Rhythm Management supported the CRM&N segment, partially offset by continued softness in neuromodulation. The company also maintained disciplined cost control and benefited from lower interest expense, which provided some support to earnings despite margin pressures.
Management’s revised 2026 outlook remains a key overhang. The company now expects revenues to decline 1-3% year over year, indicating customer forecast reductions and headwinds from certain new products. While the underlying business, excluding these headwinds, is still expected to grow in the low to mid-single digits, 2026 is shaping up to be a transition year, with growth expected to normalize exiting the year and reaccelerate in 2027.
However, shares of ITGR gained 5.8% in yesterday’s trading session. ITGR stock has gained 12.9% in the year-to-date period against the industry’s 17.4% decline. However, the S&P 500 Index has increased 6.2% during the same time frame.
Image Source: Zacks Investment Research
Integer Holdings’ Zacks Rank & Key Picks
Integer Holdings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space that are expected to report earnings soon are DexCom, Inc. (DXCM - Free Report) , Encompass Health Corporation (EHC - Free Report) and The Cooper Companies, Inc. (COO - Free Report) .
The Zacks Consensus Estimate for DexCom’s first-quarter 2026 adjusted EPS is currently pegged at 47 cents. The consensus estimate for revenues is pegged at $1.18 billion. DXCM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DexCom has an estimated long-term growth rate of 20.6%. DXCM’s earnings yield of 4.1% compares favorably with the industry’s negative yield.
Encompass Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter 2026 adjusted EPS is currently pegged at $1.51. The same for revenues is pegged at $1.57 billion.
Encompass Health has an estimated long-term growth rate of 8.8%. EHC’s earnings yield of 5.9% compares favorably with the industry’s 5.6%.
Cooper Companies currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2026 adjusted EPS is currently pegged at $1.10. The same for its revenues is pegged at $1.05 billion.
Cooper Companies has an estimated long-term growth rate of 8.4%. COO’s earnings yield of 7.2% compares favorably with the industry’s 6.1%.
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ITGR Stock Up Despite Q1 Earnings Missing Estimates, Revenues Rise Y/Y
Key Takeaways
Integer Holdings Corporation (ITGR - Free Report) delivered adjusted earnings per share (EPS) of $1.20 in the first quarter of 2026, which declined 8.4% year over year. The figure missed the Zacks Consensus Estimate by 0.8%.
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 48 cents, up 172.7% from the prior-year quarter.
ITGR’s Revenues in Detail
Integer Holdings registered revenues of $439.6 million in the first quarter, up 0.5% year over year. The figure topped the Zacks Consensus Estimate by 3%.
Organically, revenues increased 1.3%.
Robust sales from the majority of the product lines drove the company’s top line in the reported period.
Integer Holdings’ Q1 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 fourth 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.
In the first quarter of 2026, the C&V segment generated revenues of $262 million, reflecting a modest 1% year-over-year increase. Growth in the segment was primarily supported by continued strength in neurovascular and contributions from prior acquisitions. However, performance was partially offset by lower electrophysiology sales, mainly related to previously disclosed headwinds from certain new products.
The CRM&N segment reported revenues of $168 million, up 5% year over year. Growth was driven by solid performance in the cardiac rhythm management business, which more than offset ongoing weakness in neuromodulation. The neuromodulation decline was consistent with prior expectations and reflects previously communicated product-related headwinds.
Revenues from Other Markets declined year over year, primarily due to the continued impact of Integer Holdings’ strategic exit from the Portable Medical business. This segment remains outside the company’s core growth focus and largely reflects legacy manufacturing service agreements tied to divested operations.
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 $109.6 million in the first quarter, down 8.9% year over year. The gross margin in the reported quarter contracted 260 basis points (bps) to 24.9%. We projected 26.4% of gross margin for the first quarter.
Selling, general and administrative expenses were $58.7 million, up 14.8% year over year. Research, development and engineering costs were $16.2 million in the quarter, up 14.4% year over year. Total operating expenses of $77.7 million increased 9.8% year over year.
Adjusted operating profit totaled $61.1 million, reflecting a decline of 13.9% from the prior-year quarter. Adjusted operating margin in the first quarter contracted 230 bps to 13.9%.
Integer Holdings’ Financial Position
Integer Holdings exited the first quarter of 2026 with cash and cash equivalents of $8.1 million compared with $17.2 million at the fourth-quarter end. Total debt (including the current portion) at the end of first-quarter 2026 was $1.25 billion, up from $1.19 billion at the end of the fourth quarter.
Net cash flow from operating activities at the end of first-quarter 2026 was $24.7 million compared with $31.3 million a year ago.
ITGR’s 2026 Guidance
Integer Holdings updated its 2026 outlook.
For 2026, the company now expects revenues in the range of $1.805-$1.835 billion, implying a decline of 1-3% on a reported basis from the 2025 level. On an organic basis, sales are projected to be flat to down 1%. The Zacks Consensus Estimate is pegged at $1.85 billion.
Adjusted EPS are now expected in the band of $5.83-$6.40, implying a range from flat to a 9% decline year over year. The Zacks Consensus Estimate is pegged at $6.47 per share.
Our Take
Integer Holdings exited the first quarter of 2026 with mixed results.
The modest top-line growth, coupled with a contraction in adjusted operating margin due to lower fixed-cost absorption, reflects ongoing near-term pressures on operating leverage.
On the segmental front, performance remained uneven. The Cardio & Vascular business delivered modest growth, though electrophysiology sales were impacted by previously communicated headwinds from certain new products. Meanwhile, strength in Cardiac Rhythm Management supported the CRM&N segment, partially offset by continued softness in neuromodulation. The company also maintained disciplined cost control and benefited from lower interest expense, which provided some support to earnings despite margin pressures.
Management’s revised 2026 outlook remains a key overhang. The company now expects revenues to decline 1-3% year over year, indicating customer forecast reductions and headwinds from certain new products. While the underlying business, excluding these headwinds, is still expected to grow in the low to mid-single digits, 2026 is shaping up to be a transition year, with growth expected to normalize exiting the year and reaccelerate in 2027.
However, shares of ITGR gained 5.8% in yesterday’s trading session. ITGR stock has gained 12.9% in the year-to-date period against the industry’s 17.4% decline. However, the S&P 500 Index has increased 6.2% during the same time frame.
Image Source: Zacks Investment Research
Integer Holdings’ Zacks Rank & Key Picks
Integer Holdings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space that are expected to report earnings soon are DexCom, Inc. (DXCM - Free Report) , Encompass Health Corporation (EHC - Free Report) and The Cooper Companies, Inc. (COO - Free Report) .
The Zacks Consensus Estimate for DexCom’s first-quarter 2026 adjusted EPS is currently pegged at 47 cents. The consensus estimate for revenues is pegged at $1.18 billion. DXCM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DexCom has an estimated long-term growth rate of 20.6%. DXCM’s earnings yield of 4.1% compares favorably with the industry’s negative yield.
Encompass Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter 2026 adjusted EPS is currently pegged at $1.51. The same for revenues is pegged at $1.57 billion.
Encompass Health has an estimated long-term growth rate of 8.8%. EHC’s earnings yield of 5.9% compares favorably with the industry’s 5.6%.
Cooper Companies currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2026 adjusted EPS is currently pegged at $1.10. The same for its revenues is pegged at $1.05 billion.
Cooper Companies has an estimated long-term growth rate of 8.4%. COO’s earnings yield of 7.2% compares favorably with the industry’s 6.1%.