Merit Medical Systems (NASDAQ:MMSI) Announces Earnings Results

Merit Medical Systems (NASDAQ:MMSI) posted its quarterly earnings data on Thursday. The medical instruments supplier reported $1.12 earnings per share for the quarter, beating the consensus estimate of $1.04 by $0.08, FiscalAI reports. The company had revenue of $416.24 million during the quarter, compared to analyst estimates of $410.56 million. Merit Medical Systems had a net margin of 9.22% and a return on equity of 13.75%. The business’s revenue for the quarter was up 8.4% on a year-over-year basis. During the same quarter last year, the firm posted $0.92 EPS.

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

• Strong third-quarter performance: Revenue rose 8% to $416 million, including 9% organic constant-currency growth, while non-GAAP operating margin expanded 160 basis points to 21.3% and EPS increased 22% to $1.12. Free cash flow was nearly $53 million.
• Merit raised its 2026 outlook, now expecting 7.1%–7.6% organic constant-currency revenue growth, non-GAAP EPS of $4.33–$4.37, and a 21.2%–21.4% operating margin. Management said it remains on track to meet its three-year growth initiatives targets.
• Solo Pace acquisition expands the cardiac portfolio: Merit paid approximately $45 million for the remaining equity in the temporary pacing technology company, which serves the growing TAVR market; the deal is expected to be slightly accretive to 2027 earnings.
• Management cited ongoing execution and market risks, including competitive pressure on WRAPSODY, uncertainty surrounding China’s pricing and localization policies, elevated inventory, and lower gross margin from manufacturing variances, platinum costs, and freight. The company expects to address inventory and efficiency through its new chief operating officer’s initiatives.

Merit Medical Systems Price Performance

NASDAQ MMSI traded down $6.58 during trading on Friday, reaching $86.81. 606,401 shares of the company traded hands, compared to its average volume of 787,394. The stock’s 50 day moving average price is $88.68 and its two-hundred day moving average price is $77.12. The company has a debt-to-equity ratio of 0.44, a quick ratio of 2.79 and a current ratio of 4.20. Merit Medical Systems has a 1-year low of $59.74 and a 1-year high of $94.85. The company has a market cap of $5.18 billion, a price-to-earnings ratio of 35.95, a P/E/G ratio of 2.30 and a beta of 0.51.

Analyst Upgrades and Downgrades

MMSI has been the topic of several analyst reports. Bank of America lifted their target price on shares of Merit Medical Systems from $92.00 to $97.00 and gave the stock a “neutral” rating in a research report on Thursday, August 13th. Freedom Capital began coverage on Merit Medical Systems in a report on Tuesday. They set a “hold” rating for the company. Zacks Research downgraded Merit Medical Systems from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 19th. Needham & Company LLC lifted their price target on shares of Merit Medical Systems from $101.00 to $106.00 and gave the company a “buy” rating in a research report on Friday. Finally, BTIG Research upped their price target on shares of Merit Medical Systems from $105.00 to $110.00 and gave the company a “buy” rating in a report on Friday. Eight equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, Merit Medical Systems has a consensus rating of “Moderate Buy” and a consensus target price of $103.36.

Merit Medical Systems News Roundup

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

• Positive Sentiment: Third-quarter results exceeded expectations. Revenue increased 8.4% year over year to $416.2 million, surpassing the $410.6 million consensus estimate. Adjusted EPS was $1.12 versus expectations of $1.04 and $0.92 a year earlier. GAAP EPS rose 51% to $0.70, while GAAP and adjusted operating margins also improved. Merit Medical Reports Third Quarter 2026 Results
• Positive Sentiment: Management raised full-year 2026 earnings guidance. The outlook increase indicates confidence in continued profitability and follows 9% organic constant-currency revenue growth in the quarter. Year-to-date operating cash flow was $175.2 million and free cash flow was $129.5 million, supporting financial flexibility. Merit Medical Raises 2026 Earnings Guidance
• Positive Sentiment: Analysts increased their price targets. BTIG Research raised its target from $105 to $110 and assigned a Buy rating, while other analysts reportedly lifted targets to $106 and $110. These revisions suggest the earnings beat and improved outlook could support additional upside. Analysts Boost Forecasts After Strong Q3 Results
• Positive Sentiment: Merit expanded its cardiac therapies business. The acquisition of Solo Pace adds temporary pacing technology used in transcatheter aortic valve replacement procedures, potentially broadening the company’s cardiac product portfolio. Financial terms were not disclosed. Merit Medical Acquires Solo Pace
• Neutral Sentiment: Coverage is mixed. Freedom Capital initiated coverage with a Hold rating, contrasting with BTIG’s Buy recommendation. At roughly 36 times earnings, MMSI’s valuation leaves less room for execution or guidance disappointments.
• Negative Sentiment: The sales outlook was narrowed. Although earnings guidance increased, analysts noted that Merit narrowed its full-year revenue outlook. That may have tempered enthusiasm and contributed to pressure on the shares despite the quarterly beat. Merit Medical Lifted Guidance

About Merit Medical Systems

Merit Medical Systems, Inc is a medical device company that develops, manufactures and distributes disposable products used in interventional, diagnostic and therapeutic procedures. Its devices are designed for use by healthcare professionals in hospitals, outpatient facilities and other clinical settings.

The company’s product portfolio includes devices for vascular access, angiography, intervention, drainage, embolization, oncology and cardiac procedures. Merit also offers products used in peripheral intervention, spine procedures and other specialized areas of minimally invasive medicine, including kits, accessories and related procedural equipment.

Founded in 1987 and headquartered in South Jordan, Utah, Merit Medical serves healthcare providers through a global commercial and manufacturing network.