Merit Medical Systems reported fourth‑quarter 2025 results that surpassed analyst expectations, with adjusted earnings per share of $1.04 versus a consensus estimate of $0.96, a beat of $0.08. Total revenue reached $393.9 million, up 10% from $355.2 million in the same quarter a year earlier, and exceeded the consensus estimate of $390.83 million by $3.07 million.
The revenue lift was driven by robust demand in the company’s core cardiovascular and endoscopy businesses. Cardiovascular sales grew 9% and were the primary contributor to the quarter’s top‑line growth, while endoscopy sales expanded 15%. In contrast, the OEM segment saw a 15% decline, a weakness that management noted as a temporary headwind.
Operating performance was strong, with a non‑GAAP operating margin of 21%, an increase of 138 basis points year‑over‑year. Gross margin reached 54.5%, up 103 basis points from the prior year and the highest quarterly gross margin in company history. The margin expansion reflects pricing power and a favorable product mix, offsetting the impact of tariff headwinds and inventory destocking in the OEM channel.
Management reaffirmed its fiscal‑2026 outlook, guiding total revenue of $1.610 billion to $1.630 billion and adjusted EPS of $4.01 to $4.15. The guidance aligns with a target of a 20% operating margin for 2026, underscoring confidence in continued execution and margin expansion.
"Our fourth quarter capped off an impressive year of operating and financial performance in 2025; we delivered 6.8% organic, constant currency revenue growth, a 130 basis‑point improvement year‑over‑year in our non‑GAAP operating margin and generated strong free cash flow of more than $215 million, a 16% increase year‑over‑year," said President and CEO Martha G. Aronson. "Fourth quarter total revenue growth of 10% was driven primarily by 9% growth in our Cardiovascular segment and, to a lesser extent, by 15% growth in our Endoscopy segment." "Our non‑GAAP operating margin increased 138 basis points year‑over‑year to 21%," added CFO Raul Parra. "Gross margin was 54.5%, up 103 basis points year‑over‑year and represents the highest quarterly gross margin in the company’s history." "We are introducing 2026 revenue and non‑GAAP earnings per share guidance which reflects confidence in our team’s ability to deliver continued strong execution, stable constant currency growth, improving profitability and solid free cash flow generation again this year," Aronson added.
Investors responded positively to the results, reflecting confidence in Merit Medical’s execution and its forward‑looking guidance.
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