Livanova Stock Earnings Reports

LivaNova reported a strong start to 2026 with Q1 revenue of $362M, up 11% constant currency, driven by cardiopulmonary (CP) and epilepsy businesses. Key operational highlights: cardiopulmonary revenue of $209M (up 14%) led by Essenz heart-lung machine (HLM) placements, consumables share gains, and improved manufacturing output; epilepsy revenue up 8% with improved realized pricing following meaningful Medicare reimbursement increases for VNS (effective Jan 1, 2026) and positive clinician reception to the Core VNS data. The company achieved major OSA milestones: FDA PMA approval of the aura6000 pHGNS system (notably without a CCC-related contraindication/warning) and publication of 12-month randomized OSPREY trial results showing clinically meaningful and durable patient benefit. LivaNova is advancing next‑gen OSA hardware (MRI-compatible PMA supplement planned H2 2026) and PolySync titration algorithm (data to be presented at SLEEP), and is rolling out a cloud clinician portal for epilepsy with full digital launches tied to next‑gen Bluetooth generator in 2027. Financials: adjusted gross margin ~68%, adjusted operating income margin ~20%, adjusted EPS $0.98 in Q1 (vs. $0.88 prior year). Management raised full‑year 2026 revenue guidance to +7% to +8% (vs. prior 6%–7%), projects adjusted diluted EPS $4.20–$4.30 (midpoint ~9% growth), and maintains adjusted free cash flow guidance $160M–$180M while increasing planned 2026 capex to $120M to support CP capacity expansion and oxygenator scale-up. Risks/notes: supply chain improvements and a new internal manufacturing line (coming online H2 2026) are expected to increase output (low double‑digit in 2026) but backorders remain; management is monitoring geopolitical impacts (estimated ~$5M headwind to adjusted operating income) and reimbursement/coding dynamics in HGNS that could affect timing of commercial traction. Overall, investors should view this quarter as evidence of durable core growth, validated progress toward entering a large OSA market, and disciplined investment that supports higher mid‑term growth and margin targets.