LivaNova Reports Third-Quarter 2026 Results; Raises Full-Year 2026 Revenue and Adjusted Diluted EPS Guidance
LivaNova PLC (LIVN) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 NEWS RELEASE LivaNova Reports Third-Quarter 2026 Results; Raises Full-Year 2026 Revenue and Adjusted Diluted EPS Guidance – Delivered 9.9% reported and 10.0% constant-currency revenue growth – Raised full-year 2026 revenue and adjusted diluted earnings per share guid
How this was made
The 30-second read
Why it matters
The raised guidance reflects robust demand for its cardiopulmonary and neuromodulation products, supporting a bullish outlook for the stock.
Market read
First‑report earnings and guidance lift for a listed med‑tech company; likely to move the stock and influence sector sentiment.
What to watch
Potential headwinds from regulatory approvals for new CPT codes and competitive pressure in neuro‑stimulation.
LivaNova Reports Third-Quarter 2026 Results; Raises Full-Year 2026 Revenue and Adjusted Diluted EPS Guidance
Third-quarter revenue grew 9.9% reported and 10.0% constant currency, both principal segments grew more than 10%, adjusted operating income and adjusted diluted EPS increased, and the company raised full-year revenue and adjusted diluted EPS guidance. GAAP operating income and GAAP diluted EPS declined from the prior-year quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third-quarter 2026 net revenueGAAP | $393.1M | – | 9.9% |
| Third-quarter 2026 net revenue constant-currency changenon-GAAP | 10.0% | – | 10.0% |
| Third-quarter 2026 cost of salesGAAP | $128.1M | – | – |
| Third-quarter 2026 gross profitGAAP | $265.1M | – | – |
| Third-quarter 2026 gross marginGAAP | 67.4% | – | – |
| Third-quarter 2026 adjusted gross marginnon-GAAP | 69.3% | – | – |
| Third-quarter 2026 selling, general, and administrative expenseGAAP | $154.9M | – | – |
| Third-quarter 2026 adjusted SG&Anon-GAAP | $135.7M | – | – |
| Third-quarter 2026 research and development expenseGAAP | $47.7M | – | – |
| Third-quarter 2026 adjusted R&Dnon-GAAP | $44.7M | – | – |
| Third-quarter 2026 other operating expenseGAAP | $34M | – | – |
| Third-quarter 2026 operating incomeGAAP | $28.4M | – | – |
| Third-quarter 2026 operating marginGAAP | 7.2% | – | – |
| Third-quarter 2026 adjusted operating incomenon-GAAP | $92.3M | – | – |
| Third-quarter 2026 adjusted operating marginnon-GAAP | 23.5% | – | – |
| Third-quarter 2026 income before income taxGAAP | $46.8M | – | – |
| Third-quarter 2026 income tax expenseGAAP | $12.4M | – | – |
| Third-quarter 2026 income tax rateGAAP | 26.5% | – | – |
| Third-quarter 2026 adjusted income tax ratenon-GAAP | 23.3% | – | – |
| Third-quarter 2026 net incomeGAAP | $34.3M | – | – |
| Third-quarter 2026 adjusted net incomenon-GAAP | $70.7M | – | – |
| Third-quarter 2026 diluted earnings per shareGAAP | $0.11 | – | – |
| Third-quarter 2026 adjusted diluted earnings per sharenon-GAAP | $1.23 | – | – |
| Third-quarter 2026 net cash provided by operating activitiesGAAP | $73.7M | – | – |
| Third-quarter 2026 adjusted free cash flownon-GAAP | $55.8M | – | – |
| Nine months ended September 30, 2026 net revenueGAAP | $1.15B | – | 11.6% |
| Nine months ended September 30, 2026 net revenue constant-currency changenon-GAAP | 10.3% | – | 10.3% |
| Nine months ended September 30, 2026 gross profitGAAP | $782.5M | – | – |
| Nine months ended September 30, 2026 gross marginGAAP | 68.3% | – | – |
| Nine months ended September 30, 2026 adjusted gross marginnon-GAAP | 69.6% | – | – |
| Nine months ended September 30, 2026 operating incomeGAAP | $119.4M | – | – |
| Nine months ended September 30, 2026 adjusted operating incomenon-GAAP | $254.1M | – | – |
| Nine months ended September 30, 2026 net income (loss)GAAP | $165.2M | – | – |
| Nine months ended September 30, 2026 adjusted net incomenon-GAAP | $196.2M | – | – |
| Nine months ended September 30, 2026 diluted earnings (loss) per shareGAAP | $2.93 | – | – |
| Nine months ended September 30, 2026 adjusted diluted earnings per sharenon-GAAP | $3.48 | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $155.5M | – | – |
| Nine months ended September 30, 2026 purchases of property, plant, and equipmentGAAP | ($76.6 million) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Third-quarter 2026 CardiopulmonaryGrowth across all regions, driven by strong consumables demand and Essenz™ Perfusion System sales, as well as favorable realized price. | $225.3M | – | 10.9% |
| Third-quarter 2026 NeuromodulationGrowth across all regions, driven by higher volume and favorable realized price. | $166.1M | – | 11.1% |
| Third-quarter 2026 Other revenueIncludes rental and site services income not allocated to segments. For 2025, Other revenue included $3.1 million from a reduction in the reserve associated with the Italian MedTech payback measure related to product sales of previously divested businesses. | $1.7M | – | (65.7)% |
| Nine months ended September 30, 2026 Cardiopulmonary | $655.5M | – | 13.3% |
| Nine months ended September 30, 2026 Neuromodulation | $484.9M | – | 10.2% |
| Nine months ended September 30, 2026 Other revenueIncludes rental and site services income not allocated to segments. | $5.6M | – | (32.0)% |
Full-year 2026 outlook
- Revenue9% to 10% 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 $4.40 to $4.50.
- NoteAssuming a share count of approximately 56 million for full-year 2026.
- NoteAdjusted free cash flow is estimated in the range of $140 million to $160 million.
Capital returns
- Nine months ended September 30, 2026 shares repurchased from employees for minimum tax withholding were ($11.7 million), compared with ($3.6 million) for the nine months ended September 30, 2025.
What drove it
- Cardiopulmonary third-quarter revenue growth reflected strong consumables demand, Essenz™ Perfusion System sales, and favorable realized price.
- Neuromodulation third-quarter revenue growth reflected higher volume and favorable realized price.
- The company achieved operational production on a dedicated new oxygenator manufacturing line to expand production capacity in response to strong customer demand.
- In October 2026, the American Medical Association CPT® Editorial Panel announced new Category I CPT® codes that include LivaNova’s proximal hypoglossal nerve stimulation therapy, with an expected effective date of January 1, 2028.
- The published 36-month CORE-VNS study results reported a 76% median reduction in seizure frequency and durable clinical benefit.
Concerns
- Third-quarter GAAP operating income was $28.4 million versus $54.0 million in the prior-year quarter, while GAAP operating margin was 7.2% versus 15.1%.
- Third-quarter GAAP diluted earnings per share was $0.11 versus $0.49 in the prior-year quarter.
- Third-quarter other operating expense was $34.0 million versus $3.7 million in the prior-year quarter.
- Third-quarter GAAP gross margin was 67.4% versus 68.4% in the prior-year quarter.
- Other revenue declined (65.7)% to $1.7 million in the third quarter of 2026.
What to watch
- Delivery against full-year 2026 constant-currency revenue growth guidance of 9% to 10%.
- Delivery against full-year 2026 adjusted diluted earnings per share guidance of $4.40 to $4.50.
- Delivery against full-year 2026 adjusted free cash flow guidance of $140 million to $160 million.
- Ramp of the dedicated oxygenator manufacturing line and its ability to address customer demand.
- Implementation timing of the new Category I CPT® codes, which have an expected effective date of January 1, 2028.
Balance sheet and cash flow
- Cash and cash equivalents were $563.5 million as of September 30, 2026, compared with $635.6 million as of December 31, 2025.
- Current debt obligations were $3.9 million as of September 30, 2026, compared with $31.5 million as of December 31, 2025.
- Long-term debt obligations were $295.2 million as of September 30, 2026, compared with $345.2 million as of December 31, 2025.
- Nine months ended September 30, 2026 net cash used in investing activities was ($69.6 million), compared with ($42.7 million) in 2025.
- Nine months ended September 30, 2026 net cash used in financing activities was ($153.6 million), compared with ($222.8 million) in 2025.
- Nine months ended September 30, 2026 repayment of long-term debt obligations was ($95.9 million), compared with ($216.8 million) in 2025.
- Nine months ended September 30, 2026 payment of contingent consideration was ($50.4 million), compared with $— in 2025.
- SNIA environmental liability was $383.6 million as of September 30, 2026, compared with $396.2 million as of December 31, 2025.
Analysis
LivaNova reported third-quarter revenue of $393.1 million, up 9.9% on a reported basis and 10.0% on a constant-currency basis. Both operating segments produced double-digit reported growth. Cardiopulmonary revenue was $225.3 million, up 10.9%, driven by consumables demand, Essenz™ Perfusion System sales, and favorable realized price. Neuromodulation revenue was $166.1 million, up 11.1%, driven by higher volume and favorable realized price. The company also stated that it achieved operational production on its dedicated oxygenator manufacturing line.
Profitability was mixed on a GAAP basis but improved on an adjusted basis. GAAP gross margin was 67.4%, versus 68.4% in the prior-year quarter, and GAAP operating income was $28.4 million, versus $54.0 million. GAAP operating margin was 7.2%, versus 15.1%, while other operating expense increased to $34.0 million from $3.7 million. GAAP diluted EPS was $0.11, compared with $0.49.
Adjusted measures showed operating leverage. Adjusted operating income increased to $92.3 million from $80.4 million, with adjusted operating margin rising to 23.5% from 22.5%. Adjusted diluted EPS increased to $1.23 from $1.11. Adjusted gross margin was 69.3%, versus 69.4%, while adjusted SG&A was $135.7 million versus $122.8 million and adjusted R&D was $44.7 million versus $45.0 million.
For the nine months ended September 30, 2026, net revenue was $1,146.0 million, up 11.6% reported and 10.3% on a constant-currency basis. Cardiopulmonary revenue was $655.5 million, up 13.3%, and Neuromodulation revenue was $484.9 million, up 10.2%. Nine-month adjusted operating income was $254.1 million, compared with $222.3 million, and adjusted diluted EPS was $3.48, compared with $3.04. GAAP net income was $165.2 million, compared with a net loss of ($273.4 million) in the prior-year period.
Liquidity remained substantial, with cash and cash equivalents of $563.5 million at September 30, 2026. Nine-month operating cash flow was $155.5 million and purchases of property, plant, and equipment were ($76.6 million). The company repaid ($95.9 million) of long-term debt obligations during the nine months and paid ($50.4 million) of contingent consideration. Management raised full-year constant-currency revenue growth guidance to 9% to 10% from 8% to 9% and raised adjusted diluted EPS guidance to $4.40 to $4.50 from $4.30 to $4.40, while maintaining adjusted free cash flow guidance of $140 million to $160 million.
Management, verbatim
Our team continues to deliver robust revenue growth driven by commercial execution and healthy global demand for our Cardiopulmonary and Epilepsy technologies.
Vladimir Makatsaria, Chief Executive Officer of LivaNova
We also made meaningful progress against key milestones, positioning us to address significant market demand while expanding patient access to care.
Vladimir Makatsaria, Chief Executive Officer of LivaNova
Our updated 2026 guidance reflects confidence across the portfolio as we advance our strategic priorities, drive innovation to address important unmet patient needs, and remain focused on delivering long-term shareholder value.
Vladimir Makatsaria, Chief Executive Officer of LivaNova
Not in the filing
stated, not guessed- Prior-quarter comparisons were not reported for the presented financial metrics.
- Third-quarter 2026 GAAP free cash flow was not reported.
- Third-quarter 2026 balance-sheet cash and debt comparisons were not reported.
- Dividend declarations or payments were not reported.
- A total debt line item was not reported.
- Full-year 2026 GAAP revenue, GAAP earnings per share, gross margin, operating expense, and tax-rate guidance were not reported.
- No separate prior-release outlook section was provided for formal actual-versus-prior-guidance comparison.
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
LivaNova filed a Form 8‑K reporting Q3 2026 results and updating its full‑year outlook.
Ticker impact
LivaNova raised its full‑year 2026 revenue growth range to 9‑10% and adjusted diluted EPS guidance to $4.40‑$4.50, after reporting Q3 revenue of $393.1 M and EPS of $1.23.
likely upward pressure as investors price in higher revenue and earnings outlook
The guidance lift is material for a mid‑cap medical‑technology stock and comes with concrete growth numbers, prompting traders to consider buying on the news.
Market effects
May boost sentiment for the broader medical‑technology and cardiopulmonary/neuromodulation sectors.
Positive for European‑listed med‑tech peers given LivaNova's UK manufacturing expansion.
Adds to the overall positive earnings backdrop for health‑care stocks in Q4.
Counterpoint
If the guidance raise is already priced in, the stock could face a short‑term pullback.
Key entities
- executiveVladimir Makatsaria
Chief Executive Officer of LivaNova who commented on the results.
