Medline Reports Third Quarter and Nine Months 2026 Results
Medline Inc. (MDLN) filed an SEC Form 8-K — Results of Operations and Financial Condition. November 4, 2026 Medline Reports Third Quarter and Nine Months 2026 Results • Third quarter net sales of $7.9 billion, an increase of 10.4% • Third quarter net income of $318 million, a decrease of 1.2% • Third quarter Adjusted EBITDA 1 of $1.0 billion, an increase of 11.8% • Nin
How this was made
The 30-second read
Why it matters
The earnings beat on sales growth and the guidance raise provide fresh material for traders.
Market read
Guidance raise is a primary catalyst for MDLN and may influence related healthcare distribution stocks.
What to watch
Potential headwinds from inflation‑driven cost pressures and the recent distribution‑center fire.
Third quarter net sales increased 10.4% to $7.9 billion and Adjusted EBITDA increased 11.8% to $960 million; full year 2026 Organic Sales guidance was raised to 10.0% to 10.5%.
Double-digit sales growth, higher Adjusted EBITDA, raised Organic Sales guidance and strong nine-month cash generation were offset by lower GAAP net income, gross-margin compression, and substantial nine-month costs related to the Tracy distribution center fire.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 26, 2026GAAP | $7.86B | – | 10.4 % |
| Organic Sales, three months ended September 26, 2026non-GAAP | $748M | – | 10.5 % |
| Cost of goods sold, three months ended September 26, 2026GAAP | $5.93B | – | 13.2 % |
| Gross profit, three months ended September 26, 2026GAAP | $1.93B | – | 2.7 % |
| Gross margin, three months ended September 26, 2026GAAP | 24.5 % | – | – |
| Selling, general and administrative expenses, three months ended September 26, 2026GAAP | $1.26B | – | 12.8 % |
| Amortization of intangible assets, three months ended September 26, 2026GAAP | $176M | – | (0.6) % |
| Other operating (income) expenses, net, three months ended September 26, 2026GAAP | −$10M | – | NM |
| Total operating expense, three months ended September 26, 2026GAAP | $1.43B | – | 9.5 % |
| Operating income, three months ended September 26, 2026GAAP | $500M | – | (12.9) % |
| Operating margin, three months ended September 26, 2026GAAP | 6.4 % | – | – |
| Income before income taxes, three months ended September 26, 2026GAAP | $386M | – | 11.9 % |
| Provision for income taxes, three months ended September 26, 2026GAAP | $68M | – | NM |
| Net income, three months ended September 26, 2026GAAP | $318M | – | (1.2) % |
| Net income margin, three months ended September 26, 2026GAAP | 4.0 % | – | – |
| Net income attributable to Medline Inc., three months ended September 26, 2026GAAP | $195M | – | (39.4) % |
| Diluted earnings per share attributable to Medline Inc., three months ended September 26, 2026GAAP | $ 0.22 | – | – |
| Adjusted EBITDA, three months ended September 26, 2026non-GAAP | $960M | – | 11.8 % |
| Adjusted EBITDA Margin, three months ended September 26, 2026non-GAAP | 12.2 % | – | – |
| Adjusted Net Income, three months ended September 26, 2026non-GAAP | $577M | – | – |
| Adjusted Diluted EPS, three months ended September 26, 2026non-GAAP | $ 0.44 | – | – |
| Net sales, nine months ended September 26, 2026GAAP | $22.89B | – | 10.9 % |
| Organic Sales, nine months ended September 26, 2026non-GAAP | $2.21B | – | 10.7 % |
| Gross profit, nine months ended September 26, 2026GAAP | $5.98B | – | 6.7 % |
| Gross margin, nine months ended September 26, 2026GAAP | 26.1 % | – | – |
| Operating income, nine months ended September 26, 2026GAAP | $1.32B | – | (26.3) % |
| Operating margin, nine months ended September 26, 2026GAAP | 5.8 % | – | – |
| Net income, nine months ended September 26, 2026GAAP | $696M | – | (28.8) % |
| Net income margin, nine months ended September 26, 2026GAAP | 3.0 % | – | – |
| Net income attributable to Medline Inc., nine months ended September 26, 2026GAAP | $384M | – | (60.7) % |
| Diluted earnings per share attributable to Medline Inc., nine months ended September 26, 2026GAAP | $ 0.45 | – | – |
| Adjusted EBITDA, nine months ended September 26, 2026non-GAAP | $2.80B | – | 5.0 % |
| Adjusted EBITDA Margin, nine months ended September 26, 2026non-GAAP | 12.2 % | – | – |
| Adjusted Net Income, nine months ended September 26, 2026non-GAAP | $1.68B | – | – |
| Adjusted Diluted EPS, nine months ended September 26, 2026non-GAAP | $ 1.27 | – | – |
| Net cash provided by operating activities, nine months ended September 26, 2026GAAP | $2.15B | – | 42.0 % |
| Free Cash Flow, nine months ended September 26, 2026non-GAAP | $1.80B | – | 49.6 % |
| Net capital expenditures, nine months ended September 26, 2026GAAP | −$348M | – | 12.6 % |
| Net Leverage, trailing twelve months ended September 26, 2026non-GAAP | 2.5 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Medline Brand segment, three months ended September 26, 2026The release states that net sales growth was primarily driven by existing customer growth and implementation of new customer signings from 2025. | $3.64B | – | 6.6 % |
| Supply Chain Solutions segment, three months ended September 26, 2026The release states that net sales growth was primarily driven by existing customer growth and implementation of new customer signings from 2025. | $4.22B | – | 13.9 % |
| Medline Brand segment, nine months ended September 26, 2026The release states that nine-month sales growth was primarily driven by implementation of new customer signings from 2025 and existing customer growth. | $10.64B | – | 6.5 % |
| Supply Chain Solutions segment, nine months ended September 26, 2026The release states that nine-month sales growth was primarily driven by implementation of new customer signings from 2025 and existing customer growth. | $12.25B | – | 15.1 % |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
full year 2026 outlook
- NoteOrganic Sales growth: 10.0% to 10.5%
- NoteAdjusted EBITDA: $3.3 billion to $3.4 billion
- NoteGuidance for full year 2026 Adjusted EBITDA excludes $324 million of net tariff refunds through the first nine months of 2026.
Capital returns
- In October, the Medline Board of Directors approved a share repurchase program authorizing the Company, including Medline Holdings, LP, to repurchase up to $1 billion of the Company’s outstanding shares of Class A common stock and/or units of Medline Holdings, LP.
- The Company prepaid $750 million in aggregate principal amount of the 2033 Refinancing Term Loan Facility.
What drove it
- Third quarter net sales growth was primarily driven by existing customer growth and implementation of new customer signings from 2025.
- Nine-month net sales growth was primarily driven by implementation of new customer signings from 2025 and existing customer growth.
- Third quarter Adjusted EBITDA growth was primarily driven by higher net sales and net IEEPA tariff refund benefits.
- The Company recognized $81 million and $324 million of net IEEPA tariff refund benefits during the three and nine months ended September 26, 2026, respectively.
- Free Cash Flow was driven by net cash provided by operating activities and was partially offset by $348 million of capital expenditures.
Concerns
- Third quarter gross margin was 24.5 %, compared to 26.4 % in the prior-year quarter.
- Nine-month gross margin was 26.1 %, compared to 27.1 % in the prior-year period.
- Nine-month operating income decreased 26.3 % to $ 1,317 (in millions), and net income decreased 28.8 % to $ 696 (in millions).
- The Company reported net losses of $316 million related to the fire at its distribution center in Tracy, California during the first nine months of 2026.
- The Company cited higher operating expenses, higher cost of goods sold including the impact of tariffs, customer and segment mix, and increased inventory costs associated with inflation as nine-month net-income pressures.
- Supply Chain Solutions segment Adjusted EBITDA decreased 10.2 % in the third quarter and 2.2 % for the nine-month period.
What to watch
- Delivery against full year 2026 Organic Sales growth guidance of 10.0% to 10.5%.
- Delivery against full year 2026 Adjusted EBITDA guidance of $3.3 billion to $3.4 billion, which excludes $324 million of net tariff refunds through the first nine months of 2026.
- Progress toward the annual total new customer signings goal and implementation of customer signings from 2025.
- The ongoing effect of the Tracy, California distribution center fire, net of insurance proceeds.
- Gross-margin performance amid inventory costs associated with inflation, tariffs, and customer and segment mix.
- Execution of investments in distribution automation, new distribution centers, and kitting manufacturing-capacity expansion.
Balance sheet and cash flow
- Cash and cash equivalents as of September 26, 2026: $ 2,321 (in millions).
- Short-term investments as of September 26, 2026: $ 1,287 (in millions).
- Total debt as of September 26, 2026: $ 12,743 (in millions).
- Net debt as of September 26, 2026: $ 9,135 (in millions).
- Net cash provided by operating activities for the first nine months of 2026: $2.2 billion.
- Free Cash Flow for the first nine months of 2026: $1.8 billion.
- Net cash used in investing activities, nine months ended September 26, 2026: $ (1,537) (in millions), compared to $ (336) (in millions).
- Net cash used in financing activities, nine months ended September 26, 2026: $ (220) (in millions), compared to $ (498) (in millions).
Analysis
Medline reported broad top-line momentum in the third quarter and first nine months of 2026. Third-quarter net sales increased 10.4% and Organic Sales increased 10.5%, while nine-month net sales increased 10.9% and Organic Sales increased 10.7%. Management attributed growth to existing customer growth and implementation of new customer signings from 2025. Supply Chain Solutions grew faster than Medline Brand in both reported periods, with segment net-sales growth of 13.9% in the quarter and 15.1% for nine months.
The sales growth did not fully translate into GAAP profit expansion. Third-quarter gross margin was 24.5 %, versus 26.4 % a year earlier, and operating income declined 12.9 %. Nine-month gross margin was 26.1 %, versus 27.1 %, while operating income declined 26.3 % and net income declined 28.8 %. The company cited increased inventory costs associated with inflation, higher operating expenses, customer and segment mix, and higher cost of goods sold including tariffs. The nine-month period also included net losses of $316 million related to the Tracy, California distribution center fire.
Non-GAAP earnings were stronger than GAAP earnings. Third-quarter Adjusted EBITDA increased 11.8 % to $ 960 (in millions), and its margin increased to 12.2 % from 12.1 %. Nine-month Adjusted EBITDA increased 5.0 % to $ 2,796 (in millions), although Adjusted EBITDA Margin declined to 12.2 % from 12.9 %. Medline reported net IEEPA tariff refund benefits of $81 million in the quarter and $324 million in the nine-month period. These benefits were included in net income and Adjusted EBITDA, but full-year Adjusted EBITDA guidance excludes the $324 million of net tariff refunds through the first nine months.
Cash generation was a positive feature of the release. Nine-month operating cash flow rose 42.0 % to $ 2,152 (in millions), and Free Cash Flow rose 49.6 % to $ 1,804 (in millions), after $ (348) (in millions) of net capital expenditures. The company reported cash and cash equivalents of $ 2,321 (in millions), short-term investments of $ 1,287 (in millions), total debt of $ 12,743 (in millions), net debt of $ 9,135 (in millions), and Net Leverage of 2.5. Capital allocation included authorization of up to $1 billion in share repurchases and prepayment of $750 million of the 2033 Refinancing Term Loan Facility.
Management raised full-year Organic Sales growth guidance to 10.0% to 10.5% from 9.0% to 10.0% while reaffirming Adjusted EBITDA guidance of $3.3 billion to $3.4 billion. The revised sales outlook reflects continuing commercial momentum, while the unchanged EBITDA outlook keeps attention on margin pressure, the impact of tariffs and inflation, customer and segment mix, and costs associated with the Tracy facility fire. Investors will also monitor whether Supply Chain Solutions can restore Adjusted EBITDA growth after declines in both reported periods.
Management, verbatim
Medline delivered another strong quarter, with double-digit net sales growth, reflecting continued momentum across our business.
Jim Boyle, chief executive officer of Medline
Our commercial execution remains strong, including continued progress toward our annual total new customer signings goal.
Jim Boyle, chief executive officer of Medline
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is included.
- Quarterly operating cash flow and quarterly Free Cash Flow were not reported.
- Dividend amount and dividend declaration were not reported.
- Forward guidance for revenue, gross margin, operating expenses, and tax rate was not reported.
- Prior-year basic and diluted earnings per share attributable to Medline Inc. were reported as N/A.
- Prior-year Adjusted Net Income and Adjusted Diluted EPS were not reported.
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
Medline filed a Form 8‑K reporting Q3 and nine‑month 2026 results, including a share‑repurchase program and a $1 billion buyback authorization.
Ticker impact
Medline issued guidance raising full year 2026 Organic Sales guidance to 10.0%-10.5% and reaffirmed Adjusted EBITDA guidance to $3.3B-$3.4B.
likely upward pressure as investors price in higher sales growth and stable EBITDA.
The raised organic‑sales outlook and reaffirmed EBITDA range signal improved operating performance, which typically supports a price rally.
Market effects
Positive outlook may lift other med‑surg distributors and suppliers.
May boost sentiment for US healthcare equipment stocks.
Limited to healthcare sector; no broad market effect.
Counterpoint
If inventory costs and tariff impacts worsen, the raised guidance could be insufficient.
Key entities
- companyMedline Inc.
Largest US med‑surg products provider, Nasdaq: MDLN.
