CONMED (CNMD) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales were $343.5 million, up 0.3% year-over-year as reported, with organic constant currency sales growth of 6.0%; six-month sales were $660.5 million, down 0.5% year-over-year, reflecting the exit from gastroenterology product lines.

• Adjusted diluted EPS for Q2 was $1.38, a 20% increase year-over-year, including a $0.21 benefit from tariff refunds; GAAP diluted EPS was $0.77.

• Strong performance in key growth platforms: AirSeal, Buffalo Filter, and BioBrace, with operational progress in portfolio optimization, supply chain, and leadership changes.

• Orthopedic surgery sales grew 8.2% in Q2 and 7.5% for the six months, while general surgery sales declined due to portfolio optimization and GI product exits.

• Strategic exits from GI product lines, leadership changes, and product innovation marked the quarter.

Financial highlights

• Adjusted gross profit margin for Q2 2026 was 59.5%, up 300 basis points year-over-year, with 250 bps from tariff refunds; gross profit margin (GAAP) was 57.5%.

• Adjusted operating margin was 18.2% (up 250 bps YoY); adjusted EBITDA for Q2 2026 was $78.1 million, with a margin of 22.7%.

• Q2 2026 net income was $23.1 million, up from $21.4 million in Q2 2025; adjusted net income was $41.7 million.

• Free cash flow for Q2 was $34.2 million, up 46% year-over-year; operating cash flow for six months was $50.6 million.

• Cash at quarter-end was $37.3 million; total debt $834.2 million; leverage ratio at 2.9x.

Outlook and guidance

• Full-year 2026 net sales guidance updated to $1,358–$1,373 million, with organic constant currency net sales growth expected at 5.0%–6.7%.

• Non-GAAP adjusted diluted EPS guidance raised to $4.48–$4.60.

• Adjusted gross margin expected at 57.5%–58% (inclusive of tariff benefit); adjusted interest expense $33 million; adjusted tax rate 25%.

• Free cash flow guidance for 2026 is $115 million, down from $125 million previously.

• Q3 2026 GAAP net sales expected between $334–$339 million; organic constant currency growth 6.4%–7.6%; adjusted EPS $0.98–$1.03.