Merit Medical Systems (NASDAQ:MMSI) Issues Earnings Results

Merit Medical Systems (NASDAQ:MMSI) released its quarterly earnings data on Thursday. The medical instruments supplier reported $1.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.96 by $0.23, FiscalAI reports. The firm had revenue of $418.84 million for the quarter, compared to analysts’ expectations of $405.25 million. Merit Medical Systems had a net margin of 9.03% and a return on equity of 13.54%. The company’s revenue for the quarter was up 9.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.01 earnings per share. 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 opened at $83.35 on Friday. Merit Medical Systems has a fifty-two week low of $59.74 and a fifty-two week high of $94.75. The stock’s 50 day simple moving average is $69.45 and its two-hundred day simple moving average is $71.69. The company has a debt-to-equity ratio of 0.45, a quick ratio of 3.46 and a current ratio of 5.08. The stock has a market cap of $4.97 billion, a price-to-earnings ratio of 36.08, a PEG ratio of 2.51 and a beta of 0.52.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on MMSI shares. Wells Fargo & Company reduced their price target on Merit Medical Systems from $78.00 to $74.00 and set an “equal weight” rating on the stock in a report on Friday, May 1st. Barrington Research cut their price objective on Merit Medical Systems from $109.00 to $107.00 and set an “outperform” rating on the stock in a research report on Monday, April 20th. Canaccord Genuity Group decreased their target price on Merit Medical Systems from $90.00 to $85.00 and set a “buy” rating for the company in a report on Friday, May 1st. BTIG Research raised their price target on Merit Medical Systems from $100.00 to $105.00 and gave the stock a “buy” rating in a research note on Friday. Finally, Piper Sandler reiterated an “overweight” rating on shares of Merit Medical Systems in a report on Friday, July 10th. Seven equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $92.78.

Key Stories Impacting Merit Medical Systems

Here are the key news stories impacting Merit Medical Systems this week:

• Positive Sentiment: Strong earnings and revenue beat: Second-quarter revenue rose 9.5% year over year to $418.8 million, surpassing the $405.3 million consensus estimate. Non-GAAP EPS increased 18% to $1.19, well above expectations of $0.96 and the year-ago result of $1.01. GAAP operating margin also improved to 14.4% from 12.3%. Merit Medical Reports Second Quarter 2026 Results And Updates Full-Year 2026 Guidance
• Positive Sentiment: Raised full-year guidance: Merit now expects fiscal 2026 adjusted EPS of $4.25 to $4.35, above the prior consensus estimate of $3.98. Revenue guidance remains approximately $1.6 billion, broadly in line with expectations, suggesting the primary upside is coming from earnings and margin performance. Merit Medical Raises 2026 Outlook on Strong Q2 Results
• Positive Sentiment: Analyst confidence increased: Following the earnings beat and guidance increase, multiple analysts maintained Buy ratings and raised their price targets, reinforcing expectations for continued earnings growth. Analysts Increase Forecasts on Merit Medical Systems After Strong Q2 Results
• Negative Sentiment: Cash generation softened: Year-to-date operating cash flow fell 11% to $110.0 million, while free cash flow declined 14% to $76.6 million. Investors may monitor whether this reflects temporary working-capital needs or a sustained pressure on cash conversion. Merit Medical Second-Quarter Results

Insider Activity at Merit Medical Systems

In other news, Director Lynne N. Ward sold 5,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $62.61, for a total value of $313,050.00. Following the completion of the transaction, the director owned 7,809 shares in the company, valued at $488,921.49. This trade represents a 39.04% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Brian G. Lloyd purchased 2,000 shares of the company’s stock in a transaction that occurred on 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 completion of the transaction, the insider directly owned 2,000 shares of the company’s stock, valued at $125,240. This represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.70% of the stock is currently owned by corporate insiders.

Institutional Trading of Merit Medical Systems

A number of hedge funds have recently modified their holdings of MMSI. State Street Corp boosted its stake in Merit Medical Systems by 1.5% during the fourth quarter. State Street Corp now owns 2,231,048 shares of the medical instruments supplier’s stock worth $196,645,000 after acquiring an additional 32,459 shares in the last quarter. Fuller & Thaler Asset Management Inc. lifted its holdings in shares of Merit Medical Systems by 12.7% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 2,077,796 shares of the medical instruments supplier’s stock valued at $183,137,000 after purchasing an additional 234,682 shares during the last quarter. Wellington Management Group LLP lifted its holdings in shares of Merit Medical Systems by 7.0% during the fourth quarter. Wellington Management Group LLP now owns 1,327,013 shares of the medical instruments supplier’s stock valued at $116,963,000 after purchasing an additional 86,504 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Merit Medical Systems by 4.0% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,225,013 shares of the medical instruments supplier’s stock worth $107,974,000 after purchasing an additional 47,151 shares in the last quarter. Finally, Morgan Stanley grew its stake in shares of Merit Medical Systems by 17.6% in the 4th quarter. Morgan Stanley now owns 1,140,390 shares of the medical instruments supplier’s stock worth $100,514,000 after buying an additional 170,517 shares during the last quarter. Institutional investors own 99.66% of the company’s stock.

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.