Haemonetics (NYSE:HAE) reported a stronger start to fiscal 2027, with first-quarter revenue rising 6% year over year to $339 million and adjusted diluted earnings per share increasing 4% to $1.14. The company raised its full-year revenue outlook, citing broad-based growth across its MedSurg and apheresis businesses, while maintaining a disciplined stance on assumptions for the remainder of the year.
Chief Executive Officer Chris Simon said the quarter reflected investments in the company’s portfolio, operating model and commercial execution. “All three of our core platforms contributed to our performance this quarter,” Simon said, pointing to plasma, blood management technologies and interventional technologies.
MedSurg Growth Led by Blood Management and Vascular Closure
Hemostasis management posted mid-teens disposable growth as utilization increased across the installed base and the company gained share, according to Simon. He said demand for the HN cartridge supported the expansion of viscoelastic testing applications. The TEG business has grown at an average annual rate of 15% over the past five years, he said, with disposable products accounting for roughly 85% of TEG revenue.
Transfusion management also benefited from software implementations and faster customer activations, which the company said are expanding its recurring revenue base.
Interventional technologies returned to organic growth of 3%, led by low-double-digit growth in vascular closure. Simon said VASCADE MVP and VASCADE MVP XL gained momentum in the U.S., while electrophysiology helped offset softness in peripheral and coronary procedures and esophageal cooling.
The company attributed vascular closure performance to a stabilizing pulse field ablation, or PFA, market; investments in sales and marketing; and the expanded indication for VASCADE MVP XL for use with outer diameters up to 17 French. Simon said PFA penetration in atrial fibrillation procedures is now estimated at 80% to 85%, supporting an access-site market growth rate of approximately 6% to 7%.
Haemonetics also highlighted a real-world Emory University study involving more than 1,600 patients using VASCADE MVP XL in large-bore sheath procedures. The study showed rapid hemostasis, more than 92% same-day discharge and what the company described as an excellent safety profile.
Plasma Revenue Advances as Persona PLUS Rollout Accelerates
Apheresis revenue rose 5% on a reported basis and 6% organically to $191 million. Plasma revenue grew 8% organically, supported by double-digit global disposable growth, customer share gains, collection activity and the rollout of Persona PLUS.
Simon said U.S. customer collections increased in the high-single-digit to low-double-digit range, including favorable ordering patterns. North American disposables rose in the mid-20% range during the quarter, while European sales increased by double digits.
Persona PLUS is a firmware upgrade designed to improve plasma yield, center productivity and cost per liter. The rollout is ahead of schedule, Simon said, and early adopters have achieved yield gains exceeding 5% compared with earlier Persona offerings. The company said it is converting 30 to 40 collection centers per week, while its guidance only includes contracted deployments with committed implementation timelines.
Other apheresis revenue declined 3% organically, which management attributed to portfolio optimization and order timing. Haemonetics raised its fiscal 2027 apheresis revenue outlook to low- to mid-single-digit growth, though it retained its assumption that underlying collection volume will grow 0% to 2% for the year.
Margins, Cash Flow and Capital Allocation
First-quarter gross margin was 60.4%, down 40 basis points from the prior-year period. Chief Financial Officer James D’Arecca said the comparison was affected by approximately $14 million of upfront software license revenue recognized in the first quarter of fiscal 2026, which added about 200 basis points to the prior-year gross-margin result. Excluding that benefit, the company said adjusted gross margin expanded through product mix, pricing, Persona PLUS adoption and manufacturing execution.
Operating expenses rose 7% to $126 million, reflecting higher personnel costs, self-insured benefit plans, the Vivasure Medical acquisition and freight expense. Adjusted operating margin was 23.4%, down 70 basis points year over year, though management said it expanded after accounting for the prior-year software benefit.
D’Arecca reaffirmed the company’s expectation for 50 to 100 basis points of adjusted operating-margin expansion in fiscal 2027. He said the company expects to offset external cost pressures through revenue growth, product mix, Persona PLUS, productivity initiatives and tariff recovery.
- Operating cash flow reached $52 million, about three times the prior-year level.
- Free-cash-flow conversion was 75% of adjusted net income in the first quarter and 106% over the trailing 12 months.
- Haemonetics repaid $50 million on its revolving credit facility during the quarter and another $50 million after quarter-end.
- Cash totaled $223 million at quarter-end, while net leverage was about 2.69 times EBITDA under its credit agreement.
The company reaffirmed its fiscal 2027 free-cash-flow conversion target of approximately 80% of adjusted net income. Management said it currently prioritizes organic growth investments and debt reduction, while retaining flexibility for opportunistic share repurchases. Haemonetics has $325 million remaining under its share repurchase authorization after buying back $100 million of stock last year, according to Simon.
Raised Revenue Outlook
Haemonetics raised fiscal 2027 reported revenue growth guidance to 5% to 8% and organic revenue growth guidance to 4% to 7%. D’Arecca said adjusted earnings per share is expected to grow broadly in line with the increased reported revenue outlook.
Management said the higher outlook incorporates first-quarter outperformance, while assumptions for the remaining three quarters are largely unchanged. The company’s guidance is adjusted for the impact of a 53rd week and excludes foreign exchange effects and the exit of its Liquid Solutions business when measuring organic growth.
Simon also said Haemonetics expects a potential Japanese approval for the VASCADE MVP XL label expansion later in the fiscal year, although it has not included related benefits in its forecast. The company is also in discussions with the U.S. Food and Drug Administration regarding PerQseal Elite and has included launch costs, but not potential revenue, in its plans.
About Haemonetics (NYSE:HAE)
Haemonetics Corporation is a global provider of blood management solutions that support the collection, processing and transfusion of blood and blood products. The company’s offerings are designed to enhance patient safety and operational efficiency for blood centers, hospitals and plasma collection facilities. Haemonetics serves healthcare providers worldwide by delivering integrated systems, software and consumables that address critical needs throughout the continuum of blood management.
The company’s product portfolio includes automated apheresis and plasma collection systems, surgical blood salvage and coagulation monitoring devices, and pathogen reduction technologies.
