Conmed Stock Earnings Reports

CONMED reported Q1 FY2026 sales of $317M, down 1.3% year-over-year, but organic sales (excluding exited GI lines) rose 3.8% y/y (2.1% in constant currency). Adjusted net income was $27.1M (-8.5% y/y) and adjusted EPS was $0.89 (-6.3% y/y), with results impacted by the GI exit. Management completed sales of its remaining GI product lines and will provide transition services into 2027, reallocating capital and focus to three core growth platforms: AirSeal (insufflation, targeting high single- to low double-digit growth over the long term), Buffalo Filter (smoke evacuation, benefiting from growing state legislation and product launches), and BioBrace (orthopedic soft-tissue augmentation with expanding clinical validation). Orthopedics showed mid-single-digit growth for the third consecutive quarter; general surgery was pressured by lumpy OEM smoke sales and the GI exit. Gross margin improved ~100 bps to 57.4% driven by mix and FX; full-year gross margin improvement guide remains +50–100 bps. Balance sheet: cash $35.0M, debt $860.2M, leverage ~3.1x; Q1 buybacks ~$37.4M (858k shares). Management raised 2026 organic revenue growth guidance to 5.0–6.5% and maintained adjusted EPS guidance of $4.30–$4.45 despite expecting to refinance upcoming convertibles with bank debt (not new convertibles), which will likely increase adjusted interest expense and impact EPS by at least $0.10. Operating cash flow and capex guidance unchanged (Op CF $145–155M; CapEx $20–30M). Management highlighted improving supply chain/service levels and continued investments in manufacturing capacity and clinical evidence to support long-term growth.