LivaNova PLC (LIVN): Results of Operations and Financial Condition
LivaNova PLC (LIVN) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 NEWS RELEASE LivaNova Reports Second-Quarter 2026 Results; Raises Full-Year 2026 Revenue and Adjusted Diluted EPS Guidance – Delivered double-digit reported revenue growth of 10.8%, with constant-currency revenue growth of 9.8% – Raised full-year 2026 revenue and adj
How this was made
The 30-second read
Why it matters
The guidance raise and disclosed oxygenator component supply agreement are likely to drive estimate revisions and near-term sentiment, while the lowered adjusted free cash flow range and reliance on non-GAAP metrics add uncertainty around cash conversion.
Market read
Traders can update 2026 revenue, adjusted EPS, and cash-flow expectations immediately based on the raised guidance ranges and the newly disclosed supply-chain and tax catalysts.
What to watch
The filing highlights non-GAAP measures and a discrete tax benefit; traders may discount sustainability of the tax impact and scrutinize whether cash flow headwinds persist beyond 2026.
LivaNova Reports Second-Quarter 2026 Results; Raises Full-Year 2026 Revenue and Adjusted Diluted EPS Guidance
Second-quarter revenue grew 10.8% on a reported basis and 9.8% on a constant-currency basis, both primary segments delivered double-digit reported growth, and the Company raised its full-year constant-currency revenue growth and adjusted diluted EPS guidance. GAAP operating income was below the prior-year period and adjusted free cash flow guidance was lowered for strategic investments.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Company revenueGAAP | $390.6 million | – | 10.8% |
| Total Company constant-currency revenue growthnon-GAAP | 9.8% | – | 9.8% |
| Operating incomeGAAP | $49.5 million | – | – |
| Adjusted operating incomenon-GAAP | $90.8 million | – | – |
| Diluted earnings per shareGAAP | $1.93 | – | – |
| Adjusted diluted earnings per sharenon-GAAP | $1.26 | – | – |
| Net cash provided by operating activitiesGAAP | $66.6 million | – | – |
| Adjusted free cash flownon-GAAP | $45.5 million | – | – |
| Discrete tax benefitGAAP | €81.8 million ($95.4 million) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| CardiopulmonaryGrowth in Europe, primarily reflecting Essenz™ Perfusion System sales, strong consumables demand, and favorable realized price. | $221.6 million | – | 11.2% |
| NeuromodulationGrowth across all regions, driven by volume growth and favorable realized price. | $166.9 million | – | 10.1% |
| Other RevenueIncludes rental and site services income not allocated to segments. | $2.1 million | – | 30.6% |
Full-Year 2026 outlook
- Revenuegrow between 8% and 9% on a constant-currency basis
- NoteForeign currency is expected to be a tailwind of approximately 1% based on current exchange rates.
- NoteAdjusted diluted earnings per share is expected to be in the range of $4.30 to $4.40.
- NoteAssuming a share count of approximately 56 million for full-year 2026.
- NoteAdjusted free cash flow is estimated to be in the range of $140 million to $160 million.
What drove it
- Cardiopulmonary growth in Europe was primarily driven by Essenz™ Perfusion System sales, strong consumables demand, and favorable realized price.
- Neuromodulation grew across all regions through volume growth and favorable realized price.
- The Company entered into a long-term agreement with Thermo Fisher Scientific that is anticipated to increase availability of a critical oxygenator component and support increased oxygenator output over time.
- The Italian tax authority ruling resulted in recognition of a discrete tax benefit of €81.8 million ($95.4 million) related to deductibility of the previously recorded SNIA environmental liability.
Concerns
- GAAP operating income was $49.5 million, compared with $54.2 million for the second quarter of 2025.
- Full-year 2026 adjusted free cash flow guidance was lowered to $140 million to $160 million from $160 million to $180 million to reflect incremental strategic investments in Cardiopulmonary capacity expansion, innovation, and IT infrastructure.
- The Company cited unmet customer demand for oxygenators and is seeking to increase output through the Thermo Fisher Scientific supply agreement.
What to watch
- Execution of the Thermo Fisher Scientific agreement and its expected support for increased oxygenator output over time.
- Cardiopulmonary performance in Europe, including Essenz™ Perfusion System sales, consumables demand, and realized price.
- Neuromodulation volume growth and realized price across all regions.
- The effect of incremental investments in Cardiopulmonary capacity expansion, innovation, and IT infrastructure on adjusted free cash flow.
Balance sheet and cash flow
- Second-quarter net cash provided by operating activities of $66.6 million.
- Second-quarter adjusted free cash flow of $45.5 million.
Analysis
LivaNova reported second-quarter revenue of $390.6 million, up 10.8% on a reported basis and 9.8% on a constant-currency basis versus the prior-year period. Cardiopulmonary revenue was $221.6 million and Neuromodulation revenue was $166.9 million, with reported growth of 11.2% and 10.1%, respectively. The results point to broad operating momentum across the two primary businesses, with Cardiopulmonary supported by Europe, Essenz™ Perfusion System sales, consumables demand, and realized price, while Neuromodulation grew across all regions through volume and price.
Profitability was mixed across reported measures. GAAP operating income was $49.5 million versus $54.2 million in the second quarter of 2025, while adjusted operating income was $90.8 million versus $77.4 million. GAAP diluted earnings per share was $1.93 compared with $0.50, and adjusted diluted earnings per share was $1.26 compared with $1.05. The Company also recognized a discrete tax benefit of €81.8 million ($95.4 million) following a favorable ruling from the Italian tax authority on deductibility of the previously recorded SNIA environmental liability.
Cash generation for the quarter included net cash provided by operating activities of $66.6 million and adjusted free cash flow of $45.5 million. Management reduced its full-year adjusted free cash flow range to $140 million to $160 million from $160 million to $180 million, citing incremental strategic investments in Cardiopulmonary capacity expansion, innovation, and IT infrastructure. No capital-return activity, cash balance, or debt balance was provided in the supplied filing text.
The outlook was raised for revenue and adjusted diluted EPS. Full-year constant-currency revenue growth is now expected to be between 8% and 9%, versus 7% and 8% prior, while adjusted diluted EPS is expected to be $4.30 to $4.40, versus $4.20 to $4.30 prior. The long-term Thermo Fisher Scientific agreement is a key operational development because it is anticipated to improve availability of a critical oxygenator component, support higher output over time, and address unmet customer demand. Foreign currency is expected to be a tailwind of approximately 1%, consistent with prior guidance.
Management, verbatim
In the second quarter, LivaNova delivered strong revenue growth driven by sustained performance in our Cardiopulmonary and Epilepsy businesses. We are also pleased to announce an agreement with Thermo Fisher Scientific, an important step in securing a critical component for our oxygenators, supporting the Cardiopulmonary supply chain long-term. Our updated 2026 guidance reflects strong execution in the core businesses as we advance our strategic plan and drive long-term value creation.
Vladimir Makatsaria, Chief Executive Officer of LivaNova
Not in the filing
stated, not guessed- GAAP net income
- Gross profit and gross margin, GAAP and adjusted
- Operating expenses
- Tax rate
- Prior-quarter comparisons for revenue, segments, operating income, earnings per share, operating cash flow, and adjusted free cash flow
- Prior-year comparisons for operating cash flow and adjusted free cash flow
- Cash and cash equivalents balance
- Debt balance
- Share repurchases and dividends
- Prior guidance comparison using a separately provided previous outlook
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with LivaNova’s Q2 2026 results and updated full-year 2026 guidance, plus operational, tax, and leadership updates.
Ticker impact
LivaNova raised full-year 2026 revenue growth to 8% to 9% and adjusted EPS to $4.30 to $4.40 after reporting Q2 results.
Likely upward bias for near-term trading as the guidance increase and supply-chain deal support higher confidence in 2026 estimates.
The filing discloses multiple fresh, decision-relevant items: Q2 revenue and EPS figures, raised 2026 guidance ranges, a long-term Thermo Fisher oxygenator component agreement, and a discrete €81.8 million tax benefit from Agenzia delle Entrate.
Market effects
Medical technology and cardiopulmonary supply-chain confidence may improve for peers with similar oxygenator component dependencies, though the disclosure is company-specific.
Italian tax authority ruling reduces jurisdiction-specific overhang for LIVN; limited direct spillover to other regions.
Thermo Fisher supply agreement could reinforce broader oxygenator manufacturing capacity expectations, but impact is primarily through LIVN’s guidance.
Counterpoint
Raised guidance comes with a lowered adjusted free cash flow range ($140M to $160M vs $160M to $180M prior), implying margin or cash conversion tradeoffs from capacity and IT investments.
Key entities
- public_companyLivaNova PLC
Nasdaq-listed medical technology company reporting Q2 2026 results and raising full-year 2026 guidance.
- public_companyThermo Fisher Scientific
Entered into a long-term agreement with LivaNova to strengthen oxygenator component supply.
- government_agencyAgenzia delle Entrate
Italian tax authority issuing a favorable ruling recognizing a discrete €81.8 million tax benefit.
- personJette Nygaard-Anderson
Appointed to LivaNova’s Board and Nominating and Corporate Governance Committee effective June 10.
- personStefano Folli
Appointed President, Cardiopulmonary effective August 1.
