Merit Medical Systems (NASDAQ:MMSI) Announces Quarterly Earnings Results, Beats Expectations By $0.23 EPS

Key Points

• Merit Medical beat quarterly expectations: EPS was $1.19 versus the $0.96 consensus, while revenue reached $418.84 million, up 9.5% year over year.
• Strong operating performance led to raised 2026 guidance: Organic constant-currency revenue growth was 9% in the quarter, and the company now expects non-GAAP full-year EPS of $4.25–$4.35, up from $4.01–$4.15 previously.
• Near-term risks remain: Management expects third-quarter results to moderate due to seasonal trends, while tariffs are projected to reduce 2026 results by about $16 million, or $0.21 per share.

Merit Medical Systems (NASDAQ:MMSI - Get Free Report) issued its earnings results on Thursday. The medical instruments supplier reported $1.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.96 by $0.23, FiscalAI reports. Merit Medical Systems had a net margin of 9.03% and a return on equity of 13.54%. The business had revenue of $418.84 million during the quarter, compared to the consensus estimate of $405.25 million. During the same period last year, the business posted $1.01 EPS. Merit Medical Systems's revenue was up 9.5% on a year-over-year basis. Merit Medical Systems updated its FY 2026 guidance to 4.250-4.350 EPS.

Here are the key takeaways from Merit Medical Systems' conference call:

• Merit reported 9% organic constant-currency revenue growth in Q2, its strongest quarterly organic growth in three years, with broad-based strength across foundational and therapeutic products, including vascular intervention, access, cardiac therapies, endoscopy, and OEM.
• Q2 profitability exceeded expectations: non-GAAP operating margin rose to 22.6%, non-GAAP EPS increased 18% to $1.19, and free cash flow reached nearly $52 million. Excluding a $0.09-per-share tariff refund benefit, EPS was still $1.10 and above guidance.
• The company raised its 2026 outlook, now expecting 6.9%-7.6% constant-currency revenue growth and non-GAAP EPS of $4.25-$4.35, versus prior EPS guidance of $4.01-$4.15; organic growth guidance increased to 6.9%-7.5%.
• Acquisitions are performing ahead of expectations: BioLife’s annualized 2026 revenue outlook increased to approximately $23 million, while C2 CryoBalloon remains expected to generate $8 million-$9 million. Merit also launched SCOUT MD and is introducing View Point Medical’s OneMark system to expand its oncology localization offering.
• Management expects third-quarter revenue and EPS to moderate sequentially because of normal summer seasonality, while ongoing tariffs are expected to reduce 2026 results by approximately $16 million, or $0.21 per share; tariff policy uncertainty also contributed to a wider Q3 margin and EPS outlook range.

Merit Medical Systems Stock Performance

Merit Medical Systems stock traded up $2.51 during trading hours on Thursday, hitting $83.35. The company had a trading volume of 2,024,596 shares, compared to its average volume of 691,109. The firm has a market cap of $4.97 billion, a PE ratio of 36.08, a PEG ratio of 2.51 and a beta of 0.52. The company has a debt-to-equity ratio of 0.45, a current ratio of 5.08 and a quick ratio of 3.46. Merit Medical Systems has a one year low of $59.74 and a one year high of $94.75. The firm has a 50-day moving average of $69.45 and a 200 day moving average of $71.69.

Analyst Upgrades and Downgrades

Several analysts have issued reports on MMSI shares. Citigroup restated an "outperform" rating on shares of Merit Medical Systems in a research note on Monday, April 20th. Barrington Research reduced their target price on Merit Medical Systems from $109.00 to $107.00 and set an "outperform" rating for the company in a research note on Monday, April 20th. Wall Street Zen lowered Merit Medical Systems from a "strong-buy" rating to a "buy" rating in a report on Sunday, April 5th. Compass Point set a $107.00 price target on Merit Medical Systems in a research note on Monday, April 20th. Finally, Piper Sandler reaffirmed an "overweight" rating on shares of Merit Medical Systems in a report on Friday, July 10th. Eight equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $92.80.

Insider Activity at Merit Medical Systems

In other news, Director Lynne N. Ward sold 5,000 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $62.61, for a total transaction of $313,050.00. Following the transaction, the director owned 7,809 shares in the company, valued at approximately $488,921.49. This trade represents a 39.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Brian G. Lloyd bought 2,000 shares of the stock in a transaction dated Thursday, May 7th. The shares were purchased at an average price of $62.62 per share, for a total transaction of $125,240.00. Following the purchase, the insider owned 2,000 shares of the company's stock, valued at $125,240. This trade represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 0.70% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MMSI. Los Angeles Capital Management LLC bought a new position in Merit Medical Systems during the 4th quarter worth $25,000. Danske Bank A S acquired a new stake in shares of Merit Medical Systems during the third quarter worth $42,000. Quarry LP boosted its position in shares of Merit Medical Systems by 185.9% in the third quarter. Quarry LP now owns 526 shares of the medical instruments supplier's stock valued at $44,000 after acquiring an additional 342 shares during the period. Global Retirement Partners LLC boosted its position in shares of Merit Medical Systems by 973.6% in the fourth quarter. Global Retirement Partners LLC now owns 569 shares of the medical instruments supplier's stock valued at $50,000 after acquiring an additional 516 shares during the period. Finally, Kemnay Advisory Services Inc. acquired a new position in shares of Merit Medical Systems in the fourth quarter valued at about $82,000. 99.66% of the stock is owned by institutional investors and hedge funds.

Merit Medical Systems Company Profile

Merit Medical Systems, Inc is a global manufacturer and marketer of a broad range of medical devices used in diagnostic and interventional procedures. The company's product portfolio encompasses vascular access, drainage, embolotherapy, and interventional oncology devices, as well as radiofrequency ablation systems and hemostasis solutions. These products serve physicians and hospitals in critical care settings and support minimally invasive treatment options across multiple specialties, including cardiology, radiology, oncology, neurology and endoscopy.

Founded in 1987 by Fred Lampropoulos, Merit Medical Systems has grown through both organic development and targeted acquisitions to expand its technology offerings and geographic reach.

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