Third Quarter 2026
Filed Oct 28, 2026CONMED Corporation Reports Third Quarter 2026 Financial Results; Updates Full Year 2026 Guidance
Third-quarter organic constant currency net sales increased 6.7% and adjusted diluted EPS of $1.04 exceeded management's expectations, but reported sales decreased 0.7%, adjusted diluted EPS decreased 3.2%, and the full-year net-sales and organic constant currency growth ranges were narrowed.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Net Sales | $1,358 million to $1,373 million | $996.1 million for the nine months ended September 30, 2026 | n/a |
| Net Sales Growth, as reported | (1.2)% to (0.1)% | -0.5% for the nine months ended September 30, 2026 | n/a |
| Net Sales Growth, Constant Currency | (1.7)% to (0.7)% | -1.4% for the nine months ended September 30, 2026 | n/a |
| Net Sales Growth, Organic Constant Currency | 5.0% to 6.0% | 5.0% for the nine months ended September 30, 2026 | n/a |
| Adjusted Diluted EPS | $4.48 to $4.60 | $3.31 for the nine months ended September 30, 2026 | n/a |
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026GAAP | $335.6M | – | -0.7% |
| Net sales growth, constant currency, three months ended September 30, 2026non-GAAP | -0.8% | – | -0.8% |
| Net sales growth, organic constant currency, three months ended September 30, 2026non-GAAP | 6.7% | – | 6.7% |
| Gross profit, three months ended September 30, 2026GAAP | $189.1M | – | – |
| Gross profit as a percentage of sales, three months ended September 30, 2026GAAP | 56.4% | – | – |
| Selling & administrative expense, three months ended September 30, 2026GAAP | $136.4M | – | – |
| Research & development expense, three months ended September 30, 2026GAAP | $15.59M | – | – |
| Income from operations, three months ended September 30, 2026GAAP | $37.14M | – | – |
| Income from operations as a percentage of sales, three months ended September 30, 2026GAAP | 11.1% | – | – |
| Interest expense, three months ended September 30, 2026GAAP | $11.13M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $26.01M | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | $6.21M | – | – |
| Effective tax rate, three months ended September 30, 2026GAAP | 23.9% | – | – |
| Net income, three months ended September 30, 2026GAAP | $19.80M | – | – |
| Diluted EPS, three months ended September 30, 2026GAAP | $0.66 | – | 613.7% |
| Adjusted gross profit, three months ended September 30, 2026non-GAAP | $189,407 | – | – |
| Adjusted gross profit percentage, three months ended September 30, 2026non-GAAP | 56.4% | – | – |
| Adjusted operating income, three months ended September 30, 2026non-GAAP | $51,531 | – | – |
| Adjusted operating income as a percentage of sales, three months ended September 30, 2026non-GAAP | 15.4% | – | – |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $31,372 | – | – |
| Adjusted diluted EPS, three months ended September 30, 2026non-GAAP | $1.04 | – | -3.2% |
| EBITDA, three months ended September 30, 2026non-GAAP | $56,327 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $67.88M | – | – |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 20.2% | – | – |
| Net sales, nine months ended September 30, 2026GAAP | $996.1M | – | -0.5% |
| Net sales growth, organic constant currency, nine months ended September 30, 2026non-GAAP | 5.0% | – | 5.0% |
| Gross profit, nine months ended September 30, 2026GAAP | $570.1M | – | – |
| Gross profit as a percentage of sales, nine months ended September 30, 2026GAAP | 57.2% | – | – |
| Income from operations, nine months ended September 30, 2026GAAP | $98.96M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $56.70M | – | – |
| Diluted EPS, nine months ended September 30, 2026GAAP | $1.87 | – | – |
| Adjusted diluted EPS, nine months ended September 30, 2026non-GAAP | $3.31 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $202.4M | – | – |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 20.3% | – | – |
| Orthopedic Surgery sales, nine months ended September 30, 2026GAAP | $448.8M | – | 7.6% |
| General Surgery sales, nine months ended September 30, 2026GAAP | $547.3M | – | -6.3% |
| Single-use Products sales, nine months ended September 30, 2026GAAP | $850.8M | – | -1.4% |
| Capital Products sales, nine months ended September 30, 2026GAAP | $145.2M | – | 5.0% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Orthopedic SurgeryManagement said organic constant currency net sales growth included balanced contributions from Orthopedic and General Surgery product lines. | $148.8M | – | 7.7% |
| General SurgeryReported sales reflected the impact of strategic exits of GI product offerings; organic constant currency growth was 6.4%. | $186.7M | – | -6.5% |
| DomesticOrganic growth was 0.8% after excluding the impact of GI product offering exits. | $172.7M | – | -11.0% |
| InternationalConstant currency sales increased 12.8% and organic constant currency sales increased 13.8%. | $162.9M | – | 13.1% |
| Single-use ProductsDomestic sales decreased 11.5%, while international sales increased 13.4%. | $285.7M | – | -1.2% |
| Capital ProductsDomestic sales decreased 7.3%, while international sales increased 11.9%. | $49.8M | – | 2.2% |
Twelve Months Ending December 31, 2026 outlook
- Revenue$1,360 million to $1,366 million
- NoteNet Sales Growth, as reported: (1.1)% to (0.6)%
- NoteEstimated impact of foreign currency exchange rate fluctuations: (0.7)% to (0.7)%
- NoteNet Sales Growth, Constant Currency: (1.7)% to (1.3)%
- NoteEstimated impact of strategic product offering exits: 6.7% to 6.8%
- NoteNet Sales Growth, Organic Constant Currency: 5.0% to 5.5%
- NoteAdjusted Diluted EPS: $4.54 to $4.61
- NoteAdjusted Diluted EPS Percentage Change: (1.2)% to 0.4%
What drove it
- Organic constant currency net sales increased 6.7%, excluding sales of GI product offerings related to the Company's portfolio optimization strategy.
- Management cited commercial traction across AirSeal, Buffalo Filter, and BioBrace as supporting growth.
- The AirSeal Robotic Solution was indicated for use with Intuitive's 8 mm hex cannulas used as part of the Intuitive da Vinci 5 platform.
- International sales increased 13.1% as reported and 13.8% on an organic constant currency basis.
- Gross profit as a percentage of sales increased to 56.4% from 49.2%, while income from operations as a percentage of sales increased to 11.1% from 3.5%.
Concerns
- Reported third-quarter sales decreased 0.7%, and reported nine-month sales decreased 0.5%.
- Domestic sales decreased 11.0% as reported in the third quarter and decreased 8.3% as reported for the nine months.
- Adjusted diluted EPS decreased 3.2% to $1.04 in the third quarter.
- Full-year net sales guidance was updated to $1,360 million to $1,366 million from $1,358 million to $1,373 million, narrowing the range and reducing the high end.
- Full-year organic constant currency net sales growth guidance was updated to 5.0% to 5.5% from 5.0% to 6.0%.
What to watch
- Execution against full-year net sales guidance of $1,360 million to $1,366 million.
- Whether full-year organic constant currency net sales growth finishes within the updated 5.0% to 5.5% range.
- Domestic sales trends following the GI product offering exits.
- International growth and commercial adoption of AirSeal, Buffalo Filter, and BioBrace.
- Adjusted diluted EPS delivery against the updated $4.54 to $4.61 guidance range.
Analysis
CONMED reported third-quarter net sales of $335.6 million, down 0.7% as reported and down 0.8% on a constant currency basis. The reported comparison was affected by the strategic exits of GI product offerings. Excluding those offerings, organic constant currency net sales increased 6.7%. Management described the result as consistent with expectations and cited balanced organic constant currency contributions from Orthopedic Surgery and General Surgery.
The geographic mix was sharply divergent. Domestic sales decreased 11.0% as reported but increased 0.8% on an organic basis, while international sales increased 13.1% as reported and 13.8% on an organic constant currency basis. Orthopedic Surgery sales increased 7.7% to $148.8 million. General Surgery sales decreased 6.5% to $186.7 million on a reported basis, while organic constant currency growth was 6.4%. Management identified AirSeal, Buffalo Filter, and BioBrace as key growth platforms.
Profitability improved substantially on a GAAP basis. Gross profit as a percentage of sales was 56.4%, compared with 49.2%, and income from operations as a percentage of sales was 11.1%, compared with 3.5%. GAAP diluted EPS was $0.66, up 613.7%, while adjusted diluted EPS was $1.04, down 3.2%. Adjusted EBITDA was $67,878 and adjusted EBITDA margin was 20.2%, compared with $65,629 and 19.4%, respectively. The reconciliation identifies operational optimization costs, EU medical device regulations costs, contingent consideration fair value adjustments, a distribution-agreement termination, a gain on sale of a product offering, and amortization among the items affecting adjusted results.
For the nine months, reported sales were $996.1 million, down 0.5%, while organic constant currency sales growth was 5.0%. Nine-month gross profit as a percentage of sales increased to 57.2% from 53.1%, and adjusted EBITDA margin increased to 20.3% from 19.5%. The company updated full-year net sales guidance to $1,360 million to $1,366 million and organic constant currency growth guidance to 5.0% to 5.5%. The updated adjusted diluted EPS range is $4.54 to $4.61.
The guide preserves organic growth but reflects a lower high end for net sales and organic constant currency growth than the prior guidance. The principal figures to monitor into year end are domestic sales after the GI exits, the continuation of international growth, adoption of the named growth platforms, and adjusted diluted EPS performance against the updated range. The filing did not provide operating cash flow, free cash flow, cash, debt, repurchases, or dividends.
Management, verbatim
Our third quarter organic, constant currency net sales growth was consistent with our expectations and our adjusted diluted EPS exceeded them, reflecting our team’s strong execution.
Patrick J. Beyer, CONMED’s President and Chief Executive Officer
Importantly, our net sales growth on an organic, constant currency basis included balanced contributions from both our Orthopedic and General Surgery product lines, which were in turn powered by commercial traction across our key product growth platforms: AirSeal, Buffalo Filter, and BioBrace.
Patrick J. Beyer, CONMED’s President and Chief Executive Officer
With a sharpened strategic focus on these key markets following our recent portfolio optimization activities, CONMED is better positioned to support our customers, expand our market share, and drive both long-term growth and value creation going forward.
Patrick J. Beyer, CONMED’s President and Chief Executive Officer
Not in the filing
stated, not guessed- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Share repurchases
- Dividends
- GAAP diluted EPS guidance reconciliation
- Gross margin guidance
- Operating expenses guidance
- Tax rate guidance
AlphAI 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.