Merit Medical raises FY26 EPS and sales guidance after Q2 beat

Merit Medical Systems (NASDAQ: MMSI) delivered second-quarter 2026 results that exceeded market expectations, driving a 4.4% pre-market share price gain to $87.00. The medical device manufacturer reported revenue of $418.8 million, surpassing the consensus estimate of $405.268 million, while non-GAAP earnings per share reached $1.19, beating the 96 cents per share forecast. Following the strong performance, management raised its fiscal year 2026 adjusted EPS guidance to $4.25–$4.35 and total revenue guidance to $1.631 billion–$1.643 billion.

The results were driven by 9% organic constant currency growth, with U.S. customer sales rising 10% year-over-year. Martha G. Aronson, President and CEO, attributed the outperformance to improving global revenue trends and execution on the Continued Growth Initiative. The company also noted that these figures exclude the impact of a strategic divestiture.

Financial Performance Highlights

GAAP operating margin improved to 14.4% from 12.3% in the prior year period, while non-GAAP operating margin rose to 22.6%, up from 21.2%. GAAP net income totaled $38.8 million, or $0.65 per share, representing a 20% increase year-over-year. Cash flow from operations stood at $110.0 million year-to-date, with free cash flow generation at $76.6 million.

Metric	Q2 2026	Q2 2025	Change
Revenue	$418.8 million	$382.5 million	10%
GAAP EPS	$0.65	$0.54	20%
Non-GAAP EPS	$1.19	$1.01	18%
Operating Margin	14.4%	12.3%	+210 bps

Segment Growth and Analyst Reaction

Revenue growth was broad-based, with the Therapeutic segment rising 15% to $137.9 million and the Foundational segment growing 7% to $281.0 million. Following the announcement, BTIG analyst Sam Eiber maintained a Buy rating on the stock and raised the price target from $100 to $105. Similarly, Needham analyst Mike Matson maintained a Buy rating and increased the price target from $90 to $101.

What the Numbers Show

The divergence between GAAP and non-GAAP metrics highlights the impact of acquisition-related costs and amortization on reported profitability. While GAAP operating margin expanded significantly, non-GAAP margins reflect underlying operational efficiency excluding one-time items such as intangible asset amortization and restructuring costs. The strong cash flow generation of $76.6 million year-to-date underscores the company’s ability to fund operations and investments through organic growth, even as it integrates recent acquisitions like View Point Medical.

Merit Medical Systems, Inc. will announce its financial results for the quarter ended June 30, 2026, after the close of the stock market on Thursday, July 30, 2026. The company, a global leader in healthcare technology, will host an investor conference call on the same day to discuss its performance. The call is scheduled for 4:30 p.m. Eastern (3:30 p.m. Central, 2:30 p.m. Mountain, and 1:30 p.m. Pacific).

Conference Call Details

Investors interested in participating in the conference call must pre-register using the provided link. Registrants will receive confirmation details, including dial-in instructions. A live webcast and slide deck will also be accessible via the company’s website.

Event	Date & Time
Financial Results Release	July 30, 2026 (after market close)
Investor Conference Call	July 30, 2026 at 4:30 p.m. Eastern

About Merit Medical Systems

Founded in 1987, Merit Medical Systems is engaged in the development, manufacture, and distribution of proprietary medical devices. These devices are used in interventional, diagnostic, and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care, and endoscopy. The company serves customers worldwide with a sales force and clinical support team totaling more than 800 individuals. Merit employs approximately 7,500 people globally.