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Merit Medical Q1 Earnings & Revenues Beat Estimates, Sales View Up
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Key Takeaways
MMSI posted Q1 EPS of 94 cents, beating estimates by 11.9% and rising 9% year over year.
Revenues reached $381.9M, up 7%, driven by growth in both Foundational and Therapeutic segments.
MMSI raised 2026 revenue outlook to $1.612-$1.634B while maintaining EPS guidance of $4.01-$4.15.
Merit Medical Systems, Inc. (MMSI - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 94 cents, up 9% from the year-ago quarter’s level. The bottom line surpassed the Zacks Consensus Estimate by 11.9%.
GAAP EPS for the quarter was 63 cents, up 39% year over year.
MMSI’s Revenue Details
Revenues amounted to $381.9 million in the reported quarter, up 7% year over year on a reported basis. The metric topped the Zacks Consensus Estimate by 1.3%.
Total revenues at constant exchange rate (CER) increased 5.2% year over year, whereas CER organic revenues improved 3.7%.
Merit Medical’s Geographic Results
The U.S. sales amounted to $226.5 million, which increased 6.1% year over year on a reported basis and 6.8% at CER. Our first-quarter projection was $228 million for the metric.
International sales amounted to $155.4 million, up 9.6% year over year on a reported basis and 2.9% at CER. This figure compares to our projection of $148.7 million.
Merit Medical Systems, Inc. Price, Consensus and EPS Surprise
Beginning first-quarter 2026, Merit Medical started operating through two product categories — Foundational (67% of sales) and Therapeutic (33% of sales). Foundational products are used primarily for access and enabling functions in vascular and other procedures. Therapeutic products include devices and systems. The company previously reported under two categories — Cardiovascular and Endoscopy.
The Foundational category reported first-quarter revenues of $255.5 million, up 6% on a reported basis and 4% at CER year over year.
Therapeutic unit’s revenues totaled $126.4 million, up 10% year over year on a reported basis and 5% at CER.
Merit Medical’s Margin Analysis
In the quarter under review, Merit Medical’sgross profit increased 7.4% year over year to $184.8 million. The adjusted gross margin contracted 20 basis points (bps) to 53.2%. We had projected a 53.3% gross margin for the first quarter.
Selling, general & administrative expenses increased 10% year over year to $118.2 million. Research and development expenses rose 0.6% year over year to $22.6 million.
Operating profit totaled $44.2 million, reflecting a 7.6% increase from the prior-year quarter’s level. The adjusted operating margin in the first quarter expanded 40 bps to 19.7%.
MMSI’s Financial Position
Merit Medical exited first-quarter 2026 with cash and cash equivalents of $488.1million compared with $446.4 million at the end of the fourth quarter of 2025. Total long-term debt at the end of the first quarter was $735.2 million compared with $734 million in the previous quarter.
Cumulative net cash provided by operating activities at the end of first-quarter 2026 was $40.7 million compared with $40.6 million a year ago.
Merit Medical’s Guidance
MMSI has updated its outlook for2026.
Net revenues for 2026 are projected to be between $1.612billion and $1.634 billion (reflecting an increase of 6-8% year over year on a reported basis), up from the previous guidance of $1.610-$1.630 billion. The Zacks Consensus Estimate is pegged at $1.61 billion.
The company has maintained its guidance for 2026 adjusted EPS of $4.01-$4.15 (implying an increase of 5-8% year over year). The Zacks Consensus Estimate is pegged at $4.04.
Our Take on MMSI
Merit Medical exited the first quarter of 2026 with better-than-expected results. The year-over-year uptick in the top and bottom lines was impressive. The company’s organic growth remained modest at 2.7% (3.7% ex-divestiture), but was supplemented by acquisitions. Profitability stood out as operating margin expanded to a record 19.7% and EPS grew 9%, both ahead of guidance. Free cash flow increased 26%, reflecting disciplined cost control and improving operational execution.
Looking ahead, growth should be supported by expansion in higher-growth therapeutic segments, new product launches such as the Resilience stent, and the View Point Medical acquisition, which strengthens the oncology platform and expands addressable markets. However, challenges persist, including OEM revenue volatility, tariff-related margin pressure, and macro headwinds in APAC. The DualCap divestiture and near-term acquisition may weigh on growth and earnings cadence. Despite these factors, management maintains confidence in steady growth and margin improvement through 2026.
Merit Medical’s shares have lost 22.6% so far this year compared with the industry’s decline of 6%. The S&P 500 Index has risen 4.5% in the same period.
Image Source: Zacks Investment Research
Merit Medical’s Zacks Rank and Key Picks
Merit Medical currently has a Zacks Rank #3 (Hold).
Globus Medical’s shares have gained 3.3% 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 42.4% in the year-to-date period against the industry’s 20.5% 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’s shares have declined 6.2% 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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Merit Medical Q1 Earnings & Revenues Beat Estimates, Sales View Up
Key Takeaways
Merit Medical Systems, Inc. (MMSI - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 94 cents, up 9% from the year-ago quarter’s level. The bottom line surpassed the Zacks Consensus Estimate by 11.9%.
GAAP EPS for the quarter was 63 cents, up 39% year over year.
MMSI’s Revenue Details
Revenues amounted to $381.9 million in the reported quarter, up 7% year over year on a reported basis. The metric topped the Zacks Consensus Estimate by 1.3%.
Total revenues at constant exchange rate (CER) increased 5.2% year over year, whereas CER organic revenues improved 3.7%.
Merit Medical’s Geographic Results
The U.S. sales amounted to $226.5 million, which increased 6.1% year over year on a reported basis and 6.8% at CER. Our first-quarter projection was $228 million for the metric.
International sales amounted to $155.4 million, up 9.6% year over year on a reported basis and 2.9% at CER. This figure compares to our projection of $148.7 million.
Merit Medical Systems, Inc. Price, Consensus and EPS Surprise
Merit Medical Systems, Inc. price-consensus-eps-surprise-chart | Merit Medical Systems, Inc. Quote
MMSI’s Segmental Details
Beginning first-quarter 2026, Merit Medical started operating through two product categories — Foundational (67% of sales) and Therapeutic (33% of sales). Foundational products are used primarily for access and enabling functions in vascular and other procedures. Therapeutic products include devices and systems. The company previously reported under two categories — Cardiovascular and Endoscopy.
The Foundational category reported first-quarter revenues of $255.5 million, up 6% on a reported basis and 4% at CER year over year.
Therapeutic unit’s revenues totaled $126.4 million, up 10% year over year on a reported basis and 5% at CER.
Merit Medical’s Margin Analysis
In the quarter under review, Merit Medical’sgross profit increased 7.4% year over year to $184.8 million. The adjusted gross margin contracted 20 basis points (bps) to 53.2%. We had projected a 53.3% gross margin for the first quarter.
Selling, general & administrative expenses increased 10% year over year to $118.2 million. Research and development expenses rose 0.6% year over year to $22.6 million.
Operating profit totaled $44.2 million, reflecting a 7.6% increase from the prior-year quarter’s level. The adjusted operating margin in the first quarter expanded 40 bps to 19.7%.
MMSI’s Financial Position
Merit Medical exited first-quarter 2026 with cash and cash equivalents of $488.1million compared with $446.4 million at the end of the fourth quarter of 2025. Total long-term debt at the end of the first quarter was $735.2 million compared with $734 million in the previous quarter.
Cumulative net cash provided by operating activities at the end of first-quarter 2026 was $40.7 million compared with $40.6 million a year ago.
Merit Medical’s Guidance
MMSI has updated its outlook for2026.
Net revenues for 2026 are projected to be between $1.612billion and $1.634 billion (reflecting an increase of 6-8% year over year on a reported basis), up from the previous guidance of $1.610-$1.630 billion. The Zacks Consensus Estimate is pegged at $1.61 billion.
The company has maintained its guidance for 2026 adjusted EPS of $4.01-$4.15 (implying an increase of 5-8% year over year). The Zacks Consensus Estimate is pegged at $4.04.
Our Take on MMSI
Merit Medical exited the first quarter of 2026 with better-than-expected results. The year-over-year uptick in the top and bottom lines was impressive. The company’s organic growth remained modest at 2.7% (3.7% ex-divestiture), but was supplemented by acquisitions. Profitability stood out as operating margin expanded to a record 19.7% and EPS grew 9%, both ahead of guidance. Free cash flow increased 26%, reflecting disciplined cost control and improving operational execution.
Looking ahead, growth should be supported by expansion in higher-growth therapeutic segments, new product launches such as the Resilience stent, and the View Point Medical acquisition, which strengthens the oncology platform and expands addressable markets. However, challenges persist, including OEM revenue volatility, tariff-related margin pressure, and macro headwinds in APAC. The DualCap divestiture and near-term acquisition may weigh on growth and earnings cadence. Despite these factors, management maintains confidence in steady growth and margin improvement through 2026.
Merit Medical’s shares have lost 22.6% so far this year compared with the industry’s decline of 6%. The S&P 500 Index has risen 4.5% in the same period.
Image Source: Zacks Investment Research
Merit Medical’s Zacks Rank and Key Picks
Merit Medical currently has 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) and Cardinal Health (CAH - Free Report) . While Globus Medical sports a Zacks Rank #1 (Strong Buy) at present, 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’s shares have gained 3.3% 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 42.4% in the year-to-date period against the industry’s 20.5% 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’s shares have declined 6.2% 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%.