Merit Medical Systems (MMSI) Goldman Sachs 47th Annual Global Healthcare Conference 2026 summary

Strategic and operational changes

• Recent re-segmentation aligns internal and external reporting, improving accountability and clarity across platforms.

• CEO transition to Martha brought a focus on foundational and therapeutic segments, streamlining decision-making and reporting.

• Platforms are not full business units but have increased autonomy and shared resources, with marketing and R&D closely integrated.

• Product life cycle management and portfolio rationalization are ongoing, with recent divestitures and SKU consolidation.

• International markets, especially Europe and China, are performing in line with expectations, with China shifting from a headwind to a modest contributor.

Growth drivers and portfolio outlook

• Growth is primarily volume-driven, with pricing and new product launches providing additional support.

• Foundational segment has a three-year CAGR of 6%, while therapeutic is at 11%; OEM expected to stabilize at mid to high single-digit growth.

• Recent acquisitions in endoscopy and oncology (including View Point) are expected to drive further growth.

• The View Point acquisition expands the addressable market, with revenue ramping from $2M to $15M over two years.

• M&A activity remains focused on deepening existing areas rather than expanding into new ones, with no pressure to acquire for growth padding.

Financial performance and guidance

• Q1 foundational business grew 5.5% organically, therapeutic grew 12%, both in line with multi-year CAGRs after adjusting for divestitures and recalls.

• OEM business is rebounding, with orders returning and expected mid-single-digit growth in Q2.

• Tariffs and other headwinds are being managed, with some reimbursement received and ongoing adjustments expected after Q2.

• Operating margin expansion is expected to continue, though at a slower pace than the previous five years.

• Guidance remains realistic and achievable, with a focus on delivering on long-range plans rather than overpromising.