A month has gone by since the last earnings report for Conmed (CNMD Quick QuoteCNMD - Free Report) . Shares have added about 7.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Conmed due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for CONMED Corporation before we dive into how investors and analysts have reacted as of late.

CONMED’s Q2 Earnings and Revenues Beat Estimates, Gross Margin Expands

CONMEDposted adjusted earnings per share of $1.38 for the second quarter of 2026, up 20% year over year. The figure beat the Zacks Consensus Estimate by 25.5%.

The adjustments include costs related to legal matters and contingent consideration fair value adjustments, among others.

GAAP EPS for the quarter was 77 cents, up 11.6% from the year-ago period’s EPS of 69 cents.

CNMD's Organic Sales Gain Momentum

CNMD’s second-quarter revenues of $343.5 million increased 0.3% year over year and beat the consensus estimate by 1.9%. International strength and growth across the company’s key AirSeal, Buffalo Filter and BioBrace platforms supported the quarter.

At constant currency, total revenues declined 0.5% year over year. However, excluding sales tied to CONMED’s strategic exit from certain gastroenterology product offerings, organic constant-currency revenues increased 6%.

Domestic sales totaled $175.4 million, down 8% on a reported basis. Excluding the GI exits, domestic organic revenues rose 2.5%. International sales reached $168.1 million, up 10.8% on a reported basis and 8.9% at constant currency. International organic constant-currency growth was 9.9%.

CONMED's Orthopedic Revenues Increase

Orthopedic Surgery revenues totaled $152.3 million, up 8.2% year over year on a reported basis and 6.8% at constant currency. International orthopedic revenues advanced 10.8% at constant exchange rates, reflecting broad-based growth across major regions.

Domestic orthopedic sales were nearly flat and fell short of management’s expectations. Nonetheless, the company continued to strengthen its U.S. commercial organization. BioBrace was a major contributor, supported by adoption across orthopedic and foot-and-ankle procedures, particularly rotator cuff repair.

CNMD's General Surgery Business Improves

General Surgery revenues were $191.2 million, down 5.2% on a reported basis and 5.6% at constant currency. The decline reflected the impact of the GI portfolio exits. On an organic constant-currency basis, General Surgery sales increased 5.3%.

AirSeal and Buffalo Filter led the underlying growth. AirSeal sales increased across capital and single-use products and improved sequentially, but growth remained below management’s expectations. CONMED expects AirSeal trends to improve during the second half of 2026, but at a slower rate than previously assumed.

Direct smoke evacuation sales exceeded the company’s long-term expectation of high-single-digit to low-double-digit growth. This more than offset a modest decline in original equipment manufacturer smoke evacuation sales.

The company continues to prioritize its direct Buffalo Filter portfolio, which carries a stronger margin profile and brings CONMED closer to customers. Management also highlighted early commercial traction in Europe, Canada and Australia, along with expanding U.S. legislation requiring surgical smoke evacuation systems.

CONMED’s Margin Analysis

In the quarter under review, CNMD’s adjusted gross profit increased 5.6% year over year to $204.4 million. The adjusted gross margin expanded 300 basis points (bps) to 59.5%. The improvement included an $8.5 million benefit from tariff refunds, which contributed nearly 250 bps to the year-over-year expansion.

In the quarter under review, CNMD’s reported gross profit increased 4.9% year over year to $197.5 million. The gross margin expanded 250 bps to 57.5%.

Selling & administrative expenses increased 7% year over year to $145.6 million. Research and development expenses rose 9.6% year over year to $15.5 million. Total operating expenses of $161.1 million increased 7.3% on a year-over-year basis.

Total operating profit totaled $36.4 million, reflecting a 4.6% decrease from the year-ago quarter. The operating margin contracted 50 bps to 10.6%.

CNMD’s Financial Position

The company exited the second quarter with cash and cash equivalents of $37.3 million compared with $35 million a year ago.

Cumulative net cash provided by operating activities at the end of second-quarter 2026 was $50.6 million compared with $70.7 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 $1,358 million-$1,373 million compared with the previous guidance of $1,350 million-$1,375 million. This represents a reported revenue decline of 1.2-0.1% year over year.

Organic constant-currency revenue growth is expected to be 5-6% compared with the prior projection of 5-6.5%. The revised outlook reflects second-quarter performance and a more measured pace of sequential growth improvement in the second half of 2026.

The company now expects adjustedearnings per share PS for 2026 in the range of $4.48-$4.60, up from its previous guidance of $4.30-$4.45. The raised outlook reflects better-than-expected second-quarter results, a lower projected headwind from the GI product exits and a higher contribution from share repurchases. These benefits are expected to be partly offset by higher interest expenses and an increased tax-rate assumption.

CONMED expects third-quarter revenues to be in the range of $334 million-$339 million. Organic constant-currency growth is projected to be between 6.4% and 7.6%, excluding anticipated GI revenues of $3 million-$3.6 million and an approximately 10-basis-point foreign currency impact. Adjusted earnings per share is expected to be between 98 cents and $1.03.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

VGM Scores

Currently, Conmed has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Conmed has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.