Merit Medical Systems Stock Earnings Reports

Merit reported a strong start to FY2026 with Q1 revenue of $381.9M, up 7% GAAP / 5% constant currency. Organic constant-currency growth was 2.7% (3.7% excluding a divested product line). Performance exceeded the high end of prior expectations, helped by contributions from recent acquisitions (Biolife, C2 CryoBalloon) and strong U.S. sales. Non-GAAP operating margin improved 47 bps to a record 19.7% for a first quarter, non-GAAP EPS grew 9% year-over-year, and free cash flow was $25M (up 26%). Post-quarter Merit acquired View Point Medical (OneMark) for $140M to expand its oncology localization portfolio alongside SCOUT; management expects View Point to grow ~20% annually with ~70% gross margins and to be accretive to multi-year profitability (about $0.05 dilutive to 2026 EPS due to timing). Merit redesigned external reporting into foundational vs. therapeutic product categories and organized operations into eight platforms to improve focus and planning. Guidance was updated to reflect View Point: FY2026 revenue growth expected 6.3%–7.8% GAAP (5.6%–7.0% constant currency) and non-GAAP EPS guidance $4.01–$4.15 (includes $0.05 acquisition dilution). Tariffs remain a known headwind (guidance assumes ~$15M tariff impact for 2026), and Merit has begun seeking reimbursements for prior tariff payments. OEM sales were down in Q1 (impact from APAC macro and inventory transfers) but management expects normalized mid- to high-single-digit growth; WRAPSODY adoption is tracking to the company’s $7M FY2026 target. Balance sheet: $488M cash, $747.5M debt, ~1.6x adjusted net leverage, and ample revolving capacity. Management emphasizes disciplined tuck-in M&A, margin focus, execution against its three-year CGI program, and confidence in 2026 execution while monitoring geopolitical and tariff developments.