Merit Raises 2026 Non-GAAP Earnings Outlook After Third Quarter

The Tip Desk · October 31, 2026 · 3 min read

The healthcare-technology maker lifted full-year non-GAAP EPS guidance to $4.33–$4.37 after $416.2 million of third-quarter sales and 9% organic constant-currency growth.

Merit Medical Systems (MMSI) raised its full-year 2026 non-GAAP earnings-per-share outlook after a third quarter in which reported sales reached $416.2 million, up 8.4% from a year earlier, and organic constant-currency revenue rose 9%, excluding a strategic divestiture.

The South Jordan, Utah-based manufacturer of healthcare technology said the quarter exceeded the high end of its expectations, with stronger-than-expected demand across both Foundational and Therapeutic platforms and continued U.S. growth. President and CEO Martha G. Aronson said the company had raised 2026 revenue and non-GAAP EPS guidance to reflect results over the first nine months.

Reported revenue growth slowed from 10% in the second quarter, when sales were $418.8 million. Organic constant-currency growth held at 9%. GAAP operating margin was 14.1%, compared with 11.1% a year earlier. Non-GAAP operating margin was 21.3%. GAAP net income was $42.3 million, or $0.70 a share, up about 52% from $27.8 million, or $0.46 a share. Non-GAAP net income was $67.4 million, or $1.12 a share, up about 23% from $54.9 million, or $0.92 a share.

Foundational revenue was $275.7 million, up 6%. Therapeutic revenue was $140.5 million, up 14%. Within Foundational, Access was $157.9 million, up 4%; OEM was $46.3 million, up 12%; Procedural Solutions was $27.2 million, down 16%; and Vascular Intervention was $42.4 million, up 20%. Within Therapeutic, Endoscopy was $23.4 million, up 33%; Oncology was $27.1 million, up 16%; Cardiac Therapies was $27.5 million, up 8%; and Renal Therapies was $13.6 million, down 2%.

GAAP gross margin was 48.2%. Non-GAAP gross margin was 52.8%.

For the year ending December 31, 2026, Merit now anticipates revenue of $1.635 billion to $1.642 billion, an 8% year-over-year increase, and non-GAAP EPS of $4.33 to $4.37, or 13% to 14% growth. Prior guidance, issued July 30, 2026, was $1.631 billion to $1.643 billion of revenue and $4.25 to $4.35 of non-GAAP EPS. The company said the update reflects stronger first-nine-month results and that it remains focused on Continued Growth Initiative targets for the three-year period ending December 31, 2026, while finalizing a longer-term strategic plan. Guidance is subject to trade-policy developments, acquisitions and other factors beyond current expectations.

Cash and cash equivalents were $503.6 million as of September 30, 2026, versus $446.4 million at December 31, 2025. Total debt obligations were $747.5 million at both dates. Available borrowing capacity was about $697 million.

For the nine months ended September 30, 2026, net sales were $1.217 billion, up 8%. Net income was $122.1 million, or $2.03 a share diluted. Operating cash flow was $175.2 million. Free cash flow was $129.5 million. Capital expenditures were $45.7 million. Proceeds from asset and business dispositions were $25.6 million.

Constant-currency organic revenue for the three months ended September 30, 2026 excluded the View Point Medical acquisition (April 2026) and the C2 CryoBalloon assets acquired from Pentax of America (November 2025). Prior-year organic comparisons excluded the DualCap product line sold to Health Line International on February 17, 2026.