LivaNova (LIVN) Q3 2026 earnings summary

Executive summary

• Q3 net revenue rose 9.9% reported and 10.0% constant currency to $393.1M; adjusted diluted EPS increased to $1.23 from $1.11.

• FY26 revenue and adjusted diluted EPS guidance increased; adjusted operating margin and adjusted free cash flow ranges were maintained.

• Growth across Cardiopulmonary and Epilepsy coincided with oxygenator capacity expansion and continued OSA development investment.

Financial highlights

• Q3 adjusted operating income was $92.3M versus $80.4M; adjusted operating margin was 23.5% versus 22.5%.

• Q3 GAAP operating income was $28.4M versus $54.0M, primarily reflecting higher 3T Heater-Cooler litigation provision expense; GAAP net income was $34.3M versus $26.8M.

• Q3 adjusted gross margin was 69.3% versus 69.4%; adjusted SG&A was 34.5% of revenue versus 34.3%, and adjusted R&D was 11.4% versus 12.6%.

• Adjusted free cash flow was $55.8M versus $62.0M, reflecting higher planned capital and working-capital investment.

• Nine-month revenue rose 11.6% to $1,146.0M; net income was $165.2M versus a $273.4M loss, including a $95.0M Italian tax benefit in 2026 and a prior-year SNIA charge.

Outlook and guidance

• FY26 constant-currency revenue growth guidance increased to 9%-10% from 8%-9%; current exchange rates imply a ~1% FX tailwind.

• Adjusted diluted EPS guidance rose to $4.40-$4.50 from $4.30-$4.40, with ~14% growth at midpoint and ~56M weighted average diluted shares expected.

• Adjusted operating margin guidance remains 20%-21%; adjusted FCF guidance remains $140M-$160M, including $135M of expected capital spending.

• Cardiopulmonary growth guidance increased to 10.5%-11.5% and Epilepsy to 8%-9%; DTD revenue is forecast at ~$10M.

• Q4 spending is expected to rise for OSA development, Cardiopulmonary capacity and oxygenator scale-up; FY adjusted operating income is expected to absorb less than $5M in tariff impacts.