Merit Medical Systems (MMSI) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $416.2M, up 8.4% reported and 8.9% organic constant currency; results exceeded expectations, led by U.S. growth and demand across both product platforms.

• Stronger-than-expected results through 9M lifted FY2026 revenue and non-GAAP EPS guidance; management cited confidence in growth, profitability and cash generation.

Financial highlights

• Q3 non-GAAP operating income rose to $88.5M from $75.6M; operating margin expanded 160 bps to 21.3%.

• Q3 non-GAAP net income was $67.4M, or $1.12 per share, versus $54.9M, or $0.92; GAAP net income was $42.3M versus $27.8M, with diluted EPS of $0.70 versus $0.46.

• 9M revenue was $1.217B, up 8.5%; GAAP net income was $122.1M and non-GAAP net income $195.3M, with non-GAAP EPS of $3.25.

• 9M operating cash flow was $175.2M and free cash flow $129.5M, versus $198.9M and $141.6M a year earlier; inventory investment was $59.9M.

Outlook and guidance

• FY2026 revenue guidance is $1.635B–$1.642B, or 7.9%–8.4% reported growth and 7.0%–7.5% constant-currency growth; organic constant-currency growth guidance is 7.1%–7.6%.

• FY2026 non-GAAP diluted EPS guidance increased to $4.33–$4.37 from $4.25–$4.35; projected growth is 13%–14%, including an estimated $0.01/share convertible-note dilution.

• Q4 revenue guidance is $418M–$426M, with 7%–8% organic constant-currency growth; non-GAAP operating margin is expected at 21.2%–22.1% and EPS at $1.08–$1.12.

• FY2026 capex is expected at $60M–$70M, mainly for product development and production, including the South Jordan distribution facility.

• Continued Growth Initiative targets include 5%–7% organic constant-currency revenue CAGR, 20%–22% non-GAAP operating margin and cumulative FCF above $400M; management expects close to $600M of cash flow.