| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 381.88 | 7.5% |
| Total Income | 381.88 | 7.5% |
| Expenditure | 337.72 | 7.4% |
| PBT | 53.55 | 41.1% |
| Net Profit | 41.00 | 36.0% |
| OPM | 11.56% | 0.02pp |
| NPM | 10.73% | 2.25pp |
| EPS | 0.69 | 35.3% |
Merit Medical Reports Q1 2026 Revenue Up 7.5% to $381.9 Million, GAAP EPS Up 39%
01 May 2026 · 1 May, 1:56 am
Summary
Merit Medical Systems, Inc. announced strong first quarter 2026 financial results, with reported revenue increasing by 7.5% to $381.9 million. GAAP diluted earnings per share saw a significant rise of 39% to $0.68, while non-GAAP diluted EPS grew by 9% to $0.94. The company also demonstrated solid profitability with a non-GAAP operating margin of 19.7% and generated $24.7 million in free cash flow, up 26% year-over-year. Management expressed confidence in driving stable growth and improving profitability, highlighted by strategic actions including the divestiture of a non-core product line and the acquisition of View Point Medical to enhance its therapeutic oncology offerings.
Key Highlights
- 1
Merit Medical reported first quarter 2026 revenue of $381.9 million, marking a 7.5% increase compared to the prior year period.
- 2
GAAP diluted earnings per share (EPS) significantly rose by 39% to $0.68 for Q1 2026.
- 3
Non-GAAP diluted EPS increased by 9% to $0.94, while non-GAAP operating margin improved to 19.7% from 19.3% in the prior year.
- 4
The company generated $24.7 million in free cash flow, representing a 26% increase year-over-year.
- 5
Merit strategically divested its DualCap® product line for $28 million in February 2026, receiving $25.5 million in cash at closing.
- 6
On April 1, 2026, Merit acquired View Point Medical, Inc. for $140 million, with $90 million paid in cash at closing, expanding its therapeutic oncology portfolio.
Management Comments
Martha G. Aronson
Merit delivered first quarter financial results that exceeded the high-end of our expectations. We delivered 3.7% organic, constant currency revenue growth, excluding the impact of a strategic divestiture. We also delivered solid improvement in our non-GAAP operating margin despite incremental year-over-year headwinds from tariffs, and growth in our non-GAAP earnings per share and free cash flow, which increased 9% and 26%, respectively, year-over-year. We are pleased with the solid start to 2026 and remain confident in the team’s ability to drive stable constant currency growth, improving profitability, and solid free cash flow in 2026, the final year of our Continued Growth Initiatives Program. Importantly, we continue to identify opportunities to enhance our long-term organic growth and profitability profile as evidenced by the strategic divestiture of a non-core product line in February and our acquisition of the OneMark System from View Point Medical on April 1, 2026. This acquisition expands Merit’s portfolio of therapeutic oncology products with a differentiated oncology offering, serving a large and growing market opportunity, and is expected to contribute margin-accretive growth going forward.
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