LivaNova (LIVN) Q2 2026 Earnings Call Transcript
LivaNova (LIVN) reported Q2 2026 revenue of $390.6 million, up 10.8% reported and 9.8% constant currency, and adjusted diluted EPS of $1.26. Adjusted gross margin rose to 71.0%. Full-year 2026 revenue guidance was raised to 8% to 9% constant-currency growth, and adjusted EPS to $4.30 to $4.40, while free cash flow guidance was lowered to $140 million to $160 million.
How this was made
The 30-second read
Why it matters
The most tradable elements are the simultaneous guidance raise (revenue and adjusted EPS) and guidance cut (adjusted free cash flow), tied to capex and strategic investments, plus specific demand and reimbursement drivers.
Market read
Traders can reprice near-term expectations using the explicit guidance updates and cash-flow/capex trade-off described by management.
What to watch
The OSA PMA supplement timing was pushed to 2H26 to 1H27, which could delay upside from that program even as other segments show momentum.
Background
This is a Q2 2026 earnings call transcript summary for LivaNova, covering segment performance, reimbursement updates, clinical algorithm results, and full-year guidance changes.
Ticker impact
LivaNova raised 2026 constant-currency revenue growth guidance to 8% to 9% and EPS to $4.30 to $4.40, while lowering free cash flow guidance to $140M to $160M.
Likely two-sided reaction: upside bias on raised revenue/EPS, offset by FCF reduction and capex ramp.
The article provides specific, time-bound forecast changes (revenue/EPS up, FCF down) plus drivers (manufacturing and IT investments, Medicare reimbursement, tariff refund), which are actionable for positioning into subsequent quarters.
Market effects
Signals continued demand and share gains in cardiopulmonary and epilepsy devices, with reimbursement and manufacturing capacity as key swing factors.
Highlights stronger Europe and Rest-of-World growth versus U.S. growth, which may influence regional demand expectations for medtech peers.
Tariff refund and component supply agreements underscore supply-chain and policy sensitivity in medical device manufacturing.
Counterpoint
Raised EPS and revenue may be partially offset by execution risk from the manufacturing line and IT investments that also drove the free cash flow guidance reduction.
Key entities
- companyLivaNova PLC
Reported Q2 2026 results and updated full-year 2026 guidance, including revenue/EPS increases and free cash flow reduction.
- counterpartyThermo Fisher Scientific
Entered a long-term oxygenator component agreement with LivaNova to secure supply and reduce manufacturing bottlenecks.
- regulatorCMS
Asked about RECOVER 36-month depression data, with formal consideration deferred until publication.
