CONMED (CNMD) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales were $317.0 million, down 1.3% year-over-year, mainly due to the exit from gastroenterology product lines, with growth in orthopedics and a focus on minimally invasive surgery, smoke evacuation, and orthopedic soft tissue repair.

• Portfolio optimization included the completed and earlier-than-expected divestiture of GI assets, allowing focus on higher-growth, higher-margin platforms.

• Net income increased to $13.8 million from $6.0 million in Q1 2025, with gross margin rising to 57.9% from 55.3% year-over-year.

• Adjusted diluted EPS was $0.89, down 6.3% year-over-year; reported diluted EPS was $0.45, up from $0.19.

• Supply chain improvements and expanded manufacturing capacity support sustained growth.

Financial highlights

• Orthopedic surgery sales grew 6.8% as reported and 4.5% in constant currency; general surgery sales declined 7.4% as reported and 8.5% in constant currency.

• Gross profit margin rose to 57.9% (up from 55.3%); operating income was $25.4 million, up from $15.9 million; adjusted EBITDA margin was 19.1%.

• U.S. sales declined 5.8%, international sales grew 1.0% in constant currency; international accounted for 45% of revenue.

• Cash flow from operations was $13.5 million, down from $41.5 million in Q1 2025.

• Adjusted net income was $27.1 million, down 8.5% year-over-year.

Outlook and guidance

• Full-year 2026 organic constant currency revenue growth guidance raised to 5.0%-6.5%; reported revenue expected between $1.33 billion and $1.375 billion.

• Adjusted EPS guidance for 2026 maintained at $4.30-$4.45 despite higher interest expense from planned debt refinancing.

• Q2 2026 revenue expected between $334 million and $340 million; adjusted EPS $1.09-$1.14.

• Operating cash flow for 2026 expected at $145-$155 million; free cash flow around $125 million.

• Management expects sufficient liquidity for at least the next twelve months, with plans to secure incremental financing for $800 million convertible notes maturing June 2027.