LivaNova Raises Outlook as Neuromodulation Growth Accelerates
Second-quarter revenue rose 10.8% to $390.6 million as both major businesses expanded.
The medical-technology company LivaNova PLC (LIVN) raised its full-year sales and earnings outlook after adjusted profit growth outpaced revenue in the second quarter.
The increase marked LivaNova’s second consecutive 100-basis-point boost to its 2026 constant-currency revenue-growth forecast. Neuromodulation accelerated from the first quarter, helping offset slower growth in the larger Cardiopulmonary business.
Revenue increased 7.8% sequentially from $362.3 million, while year-over-year growth slowed from 14.3% in the first quarter. Adjusted diluted earnings rose 20% from a year earlier to $1.26 a share, up from $0.98 in the prior quarter.
Cardiopulmonary revenue rose 11.2% to $221.6 million, driven by Essenz Perfusion System sales, consumables demand and favorable realized pricing. Constant-currency growth was concentrated in Europe at 23.8%, compared with 8.4% in the Rest of World and 2.2% in the U.S..
Neuromodulation revenue increased 10.1% to $166.9 million and rose 9.9% sequentially, accelerating from 9.3% year-over-year growth in the first quarter. Volume and favorable realized pricing supported growth across all regions, led by a 20.4% constant-currency increase in the Rest of World.
Adjusted operating income increased 17.3% to $90.8 million as adjusted operating margin widened 1.3 percentage points to 23.2%. GAAP operating income fell 8.7% to $49.5 million, and GAAP operating margin narrowed to 12.7%, even as gross margin expanded. GAAP net income climbed to $108.6 million, primarily reflecting a $95.4 million tax benefit tied to an Italian ruling on the deductibility of the SNIA environmental liability.
LivaNova now expects 2026 constant-currency revenue growth of 8% to 9% and adjusted diluted earnings of $4.30 to $4.40 a share. The company lowered its adjusted free-cash-flow forecast to $140 million to $160 million, citing additional investment in Cardiopulmonary capacity, innovation and information-technology infrastructure.
A new long-term agreement with Thermo Fisher Scientific is expected to increase availability of a critical oxygenator component and support higher production for unmet customer demand. The PolySync programming algorithm lifted the cumulative response rate to 84.5% among moderate-to-severe obstructive-sleep-apnea patients following first-quarter U.S. approval of the aura6000 system.