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

Merit Medical Systems (NASDAQ:MMSI) released its quarterly earnings data on Thursday. The medical instruments supplier reported $1.19 EPS for the quarter, beating analysts’ consensus estimates of $0.96 by $0.23, FiscalAI reports. The business had revenue of $418.84 million for the quarter, compared to the consensus estimate of $405.25 million. Merit Medical Systems had a return on equity of 13.97% and a net margin of 9.22%.The business’s revenue for the quarter was up 9.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.01 EPS. 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 Trading Up 2.0%

NASDAQ MMSI traded up $1.66 during trading hours on Friday, hitting $85.01. 2,200,989 shares of the company’s stock were exchanged, compared to its average volume of 760,694. 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 firm has a market capitalization of $5.07 billion, a P/E ratio of 35.13, a price-to-earnings-growth ratio of 2.59 and a beta of 0.52. The business’s 50 day moving average is $69.87 and its 200-day moving average is $71.78. Merit Medical Systems has a 12-month low of $59.74 and a 12-month high of $94.75.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. BTIG Research boosted their price objective on Merit Medical Systems from $100.00 to $105.00 and gave the company a “buy” rating in a research note on Friday. Wall Street Zen downgraded shares of Merit Medical Systems from a “strong-buy” rating to a “buy” rating in a research report on Sunday, April 5th. Robert W. Baird set a $98.00 target price on shares of Merit Medical Systems in a research note on Friday. Piper Sandler increased their price objective on Merit Medical Systems from $96.00 to $106.00 and gave the stock an “overweight” rating in a research report on Friday. Finally, Compass Point set a $107.00 price objective on shares of Merit Medical Systems in a research report on Monday, April 20th. Eight investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $100.30.

Trending Headlines about Merit Medical Systems

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

• Positive Sentiment: Q2 results exceeded expectations: Merit reported revenue of $418.8 million, up 9.5% year over year and above the $405.3 million consensus estimate. Non-GAAP EPS rose 18% to $1.19, beating estimates of $0.96; 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: 2026 guidance was raised: Management now expects full-year adjusted EPS of $4.25-$4.35, above the $3.98 analyst consensus. Broad-based product growth, revenue gains and expanding margins supported the improved outlook. MMSI Q2 Earnings, Revenues Beat Estimates; 2026 Guidance Raised
• Positive Sentiment: Analyst targets moved higher: Needham raised its target to $101 and maintained a Buy rating; BTIG lifted its target to $105 and maintained Buy; and JPMorgan raised its target to $95 with an Overweight rating. These revisions indicate increased confidence in Merit’s growth and earnings trajectory. Analysts Increase Forecasts After Strong Q2 Results
• Neutral Sentiment: Analyst opinion remains mixed: Wells Fargo raised its target to $83 but retained an Equal Weight rating, leaving its target below the stock’s recent trading level. Wells Fargo Raises Merit Medical Price Target
• Negative Sentiment: Cash generation weakened: Year-to-date operating cash flow fell 11% to $110.0 million, while free cash flow declined 14% to $76.6 million, a potential concern despite the strong earnings performance. Merit Medical Second Quarter Results

Insiders Place Their Bets

In other Merit Medical Systems news, Director Lynne N. Ward sold 5,000 shares of the company’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $62.61, for a total transaction of $313,050.00. Following the completion of the sale, the director directly owned 7,809 shares in the company, valued at $488,921.49. This represents a 39.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Brian G. Lloyd acquired 2,000 shares of the firm’s stock in a transaction on Thursday, May 7th. The shares were acquired at an average price of $62.62 per share, with a total value of $125,240.00. Following the completion of the purchase, the insider owned 2,000 shares of the company’s stock, valued at $125,240. This trade represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Merit Medical Systems

A number of hedge funds have recently bought and sold shares of the company. AQR Capital Management LLC lifted its position in shares of Merit Medical Systems by 7.3% in the 1st quarter. AQR Capital Management LLC now owns 16,361 shares of the medical instruments supplier’s stock worth $1,730,000 after buying an additional 1,114 shares during the last quarter. Goldman Sachs Group Inc. raised its position in shares of Merit Medical Systems by 16.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 719,313 shares of the medical instruments supplier’s stock worth $76,039,000 after purchasing an additional 103,878 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in shares of Merit Medical Systems by 745.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 922 shares of the medical instruments supplier’s stock worth $86,000 after purchasing an additional 813 shares during the last quarter. First Trust Advisors LP increased its position in Merit Medical Systems by 24.8% in the second quarter. First Trust Advisors LP now owns 59,215 shares of the medical instruments supplier’s stock worth $5,535,000 after buying an additional 11,770 shares during the period. Finally, Cerity Partners LLC increased its holdings in shares of Merit Medical Systems by 9.1% in the 2nd quarter. Cerity Partners LLC now owns 3,019 shares of the medical instruments supplier’s stock worth $282,000 after acquiring an additional 251 shares during the period. 99.66% of the stock is currently 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.