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Here's Why You Should Retain CONMED Stock in Your Portfolio for Now
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Key Takeaways
CONMED sees growth opportunities from BioBrace adoption, robotic procedures and expanding ASC penetration.
AirSeal's expanded dV5 compatibility broadens its opportunity across Intuitive Surgical's robotic platforms.
Supply-chain improvements and a focused portfolio may boost execution, while tariffs remain a headwind.
CONMED Corporation (CNMD - Free Report) is well positioned for growth on the back of rising adoption of its high-margin, differentiated platforms like AirSeal, Buffalo Filter and BioBrace. The company’s long-term prospects seem good as robotic procedure volume rises, coupled with the expanding penetration of Ambulatory Surgery Centers. Improving supply-chain bottlenecks should drive top and bottom-line growth.
CONMED is facing tariff headwinds that are unfavorably impacting its earnings per share (EPS) and revenue expansion. Higher operating expense investments remain a concern.
Shares of this Zacks Rank #3 (Hold) company have gained 15.7% in the year-to-date period, outperforming the industry’s 5.1% increase and the S&P 500 Index’s 11.1% rise.
Image Source: Zacks Investment Research
CONMED, a renowned global medical products manufacturer specializing in surgical instruments and devices, has a market capitalization of $1.39 billion. The company projects 4.8% earnings growth over the next five years.
The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.30%.
Factors Favoring CNMD Stock
BioBrace Adoption & Repeat Utilization Can Support Orthopedic Growth: BioBrace is gaining traction as CONMED expands its orthopedic soft-tissue repair franchise. The product was a key contributor to the second-quarter orthopedic growth. The growth is supported by clinical data from more than 30 published studies and updated AAOS guidelines recommending augmentation in rotator cuff repair.
Management highlighted a 94% healing rate in high-risk patients and noted that surgeons using BioBrace RC are increasingly becoming repeat users. The launch of BioBrace RC has also made augmentation more consistent and efficient for surgeons. With roughly 1 million rotator cuff procedures annually in the United States, continued penetration could provide CONMED with a sizeable procedural growth opportunity beyond its traditional product portfolio.
AirSeal's Expanded Compatibility With dV5 Broadens Opportunity: Another potential catalyst is the expanded indication allowing AirSeal Robotic to be used with Intuitive Surgical's 8-millimeter Hex cannulas, which are compatible across the X, Xi and da Vinci 5 platforms. This effectively improves CONMED's ability to position AirSeal across Intuitive Surgical's multiport robotic portfolio and removes potential uncertainty around compatibility for surgeons and hospitals. It should strengthen AirSeal's addressable robotic installed base going forward and complements the company's existing opportunities in laparoscopy, ASCs and other robotic platforms.
Supply-chain Normalization & Portfolio Focus May Improve Execution: CONMED's operational recovery provides another potential earnings driver. On its second-quarter earnings call, management stated that service levels have improved, back orders have fallen to their lowest levels in years, and age-critical back orders have been reduced. This is important for orthopedics, where previous supply constraints had restricted product availability.
At the same time, completing the GI portfolio exit allows management to concentrate commercial and R&D resources on minimally invasive, robotic and laparoscopic surgery, smoke evacuation and orthopedic soft-tissue repair. A more focused portfolio, combined with better product availability, should reduce execution friction and allow CONMED to direct resources toward its higher-growth platforms.
Challenges for CNMD Stock
AirSeal's Near-Term Deceleration Creates Growth-Execution Risk: AirSeal remains a major contributor to General Surgery, but its second-quarter performance fell short of management's expectations. Although both capital and disposable sales increased and growth improved sequentially, CONMED now expects AirSeal's second-half growth to improve at a slower rate than previously projected. This matters because AirSeal is central to the company's strategy around robotic surgery, laparoscopy and ASCs.
Management continues to target high-single-digit to low-double-digit long-term growth, but achieving that trajectory depends on expanding utilization in underpenetrated laparoscopic procedures and generating additional clinical evidence. Consequently, slower adoption could moderate CONMED's consolidated growth rate even as the underlying long-term opportunity remains substantial.
Tariffs Remain an Underlying Earnings Headwind Despite Q2 Refund: The strong second-quarter EPS performance should be viewed in the context of a 21-cent-per-share tariff refund related to tariffs paid in 2025, which is not representative of recurring operating performance.
Management continues to model approximately 35 cents of tariff-related EPS headwind for full-year 2026. This creates pressure on earnings even if organic sales trends improve. Excluding the refund, second-quarter adjusted operating margin was essentially flat year over year, despite the reported 250-basis-point improvement.
Therefore, future margin expansion will increasingly need to be driven by product mix, productivity and operating leverage rather than temporary tariff-related benefits, placing greater importance on underlying execution in the second half of the year.
CONMED is witnessing a positive estimate revision trend for 2026. In the past 60 days, the Zacks Consensus Estimate for earnings has improved 3.7% to $4.54 per share.
The Zacks Consensus Estimate for third-quarter 2026 revenues and EPS is pegged at $336.8 million and $1.00, respectively, suggesting a decline of 0.3% and 7.4% from the year-ago reported numbers.
Veracyte reported a second-quarter 2026 adjusted earnings per share (EPS) of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%.
VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.
Globus Medical reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Inspire Medical reported second-quarter 2026 adjusted EPS of 14 cents, which beat the Zacks Consensus Estimate by 163.6%. Revenues of $200.6 million surpassed the Zacks Consensus Estimate by 2.9%.
INSP has an estimated long-term earnings growth rate of 10.6%. INSP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 195.9%.
View the Zacks #1 Rank List
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Here's Why You Should Retain CONMED Stock in Your Portfolio for Now
Key Takeaways
CONMED Corporation (CNMD - Free Report) is well positioned for growth on the back of rising adoption of its high-margin, differentiated platforms like AirSeal, Buffalo Filter and BioBrace. The company’s long-term prospects seem good as robotic procedure volume rises, coupled with the expanding penetration of Ambulatory Surgery Centers. Improving supply-chain bottlenecks should drive top and bottom-line growth.
CONMED is facing tariff headwinds that are unfavorably impacting its earnings per share (EPS) and revenue expansion. Higher operating expense investments remain a concern.
Shares of this Zacks Rank #3 (Hold) company have gained 15.7% in the year-to-date period, outperforming the industry’s 5.1% increase and the S&P 500 Index’s 11.1% rise.
Image Source: Zacks Investment Research
CONMED, a renowned global medical products manufacturer specializing in surgical instruments and devices, has a market capitalization of $1.39 billion. The company projects 4.8% earnings growth over the next five years.
The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.30%.
Factors Favoring CNMD Stock
BioBrace Adoption & Repeat Utilization Can Support Orthopedic Growth: BioBrace is gaining traction as CONMED expands its orthopedic soft-tissue repair franchise. The product was a key contributor to the second-quarter orthopedic growth. The growth is supported by clinical data from more than 30 published studies and updated AAOS guidelines recommending augmentation in rotator cuff repair.
Management highlighted a 94% healing rate in high-risk patients and noted that surgeons using BioBrace RC are increasingly becoming repeat users. The launch of BioBrace RC has also made augmentation more consistent and efficient for surgeons. With roughly 1 million rotator cuff procedures annually in the United States, continued penetration could provide CONMED with a sizeable procedural growth opportunity beyond its traditional product portfolio.
AirSeal's Expanded Compatibility With dV5 Broadens Opportunity: Another potential catalyst is the expanded indication allowing AirSeal Robotic to be used with Intuitive Surgical's 8-millimeter Hex cannulas, which are compatible across the X, Xi and da Vinci 5 platforms. This effectively improves CONMED's ability to position AirSeal across Intuitive Surgical's multiport robotic portfolio and removes potential uncertainty around compatibility for surgeons and hospitals. It should strengthen AirSeal's addressable robotic installed base going forward and complements the company's existing opportunities in laparoscopy, ASCs and other robotic platforms.
Supply-chain Normalization & Portfolio Focus May Improve Execution: CONMED's operational recovery provides another potential earnings driver. On its second-quarter earnings call, management stated that service levels have improved, back orders have fallen to their lowest levels in years, and age-critical back orders have been reduced. This is important for orthopedics, where previous supply constraints had restricted product availability.
At the same time, completing the GI portfolio exit allows management to concentrate commercial and R&D resources on minimally invasive, robotic and laparoscopic surgery, smoke evacuation and orthopedic soft-tissue repair. A more focused portfolio, combined with better product availability, should reduce execution friction and allow CONMED to direct resources toward its higher-growth platforms.
Challenges for CNMD Stock
AirSeal's Near-Term Deceleration Creates Growth-Execution Risk: AirSeal remains a major contributor to General Surgery, but its second-quarter performance fell short of management's expectations. Although both capital and disposable sales increased and growth improved sequentially, CONMED now expects AirSeal's second-half growth to improve at a slower rate than previously projected. This matters because AirSeal is central to the company's strategy around robotic surgery, laparoscopy and ASCs.
Management continues to target high-single-digit to low-double-digit long-term growth, but achieving that trajectory depends on expanding utilization in underpenetrated laparoscopic procedures and generating additional clinical evidence. Consequently, slower adoption could moderate CONMED's consolidated growth rate even as the underlying long-term opportunity remains substantial.
Tariffs Remain an Underlying Earnings Headwind Despite Q2 Refund: The strong second-quarter EPS performance should be viewed in the context of a 21-cent-per-share tariff refund related to tariffs paid in 2025, which is not representative of recurring operating performance.
Management continues to model approximately 35 cents of tariff-related EPS headwind for full-year 2026. This creates pressure on earnings even if organic sales trends improve. Excluding the refund, second-quarter adjusted operating margin was essentially flat year over year, despite the reported 250-basis-point improvement.
Therefore, future margin expansion will increasingly need to be driven by product mix, productivity and operating leverage rather than temporary tariff-related benefits, placing greater importance on underlying execution in the second half of the year.
CONMED Corporation Price and Consensus
CONMED Corporation price-consensus-chart | CONMED Corporation Quote
Estimate Trend
CONMED is witnessing a positive estimate revision trend for 2026. In the past 60 days, the Zacks Consensus Estimate for earnings has improved 3.7% to $4.54 per share.
The Zacks Consensus Estimate for third-quarter 2026 revenues and EPS is pegged at $336.8 million and $1.00, respectively, suggesting a decline of 0.3% and 7.4% from the year-ago reported numbers.
Stocks to Consider
Some better-ranked stocks from the broader medical space are Veracyte (VCYT - Free Report) , Globus Medical (GMED - Free Report) and Inspire Medical Systems (INSP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Veracyte reported a second-quarter 2026 adjusted earnings per share (EPS) of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%.
VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.
Globus Medical reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Inspire Medical reported second-quarter 2026 adjusted EPS of 14 cents, which beat the Zacks Consensus Estimate by 163.6%. Revenues of $200.6 million surpassed the Zacks Consensus Estimate by 2.9%.
INSP has an estimated long-term earnings growth rate of 10.6%. INSP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 195.9%.