Merit Medical Systems (NASDAQ:MMSI) Announces Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Merit Medical Systems (NASDAQ:MMSI) released its quarterly earnings data on Thursday. The medical instruments supplier reported $1.12 earnings per share for the quarter, topping the consensus estimate of $1.04 by $0.08, FiscalAI reports. Merit Medical Systems had a net margin of 9.94% and a return on equity of 14.37%. The business had revenue of $416.24 million for the quarter, compared to analyst estimates of $410.56 million. During the same quarter last year, the firm earned $0.92 EPS. Merit Medical Systems’s quarterly revenue was up 8.4% compared to the same quarter last year.

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 Stock Down 7.7%

MMSI traded down $7.15 during trading on Friday, hitting $86.24. The company had a trading volume of 1,804,091 shares, compared to its average volume of 664,363. The company has a market capitalization of $5.15 billion, a PE ratio of 32.42, a PEG ratio of 2.33 and a beta of 0.51. The company has a quick ratio of 2.79, a current ratio of 4.20 and a debt-to-equity ratio of 0.44. Merit Medical Systems has a one year low of $59.74 and a one year high of $94.85. The firm’s 50-day moving average price is $88.60 and its 200 day moving average price is $77.14.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on MMSI shares. Robert W. Baird set a $98.00 price target on shares of Merit Medical Systems in a research report on Friday, July 31st. Wells Fargo & Company raised their price objective on Merit Medical Systems from $83.00 to $92.00 and gave the stock an “equal weight” rating in a research note on Friday. Weiss Ratings upgraded Merit Medical Systems from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday, October 12th. Canaccord Genuity Group set a $121.00 target price on Merit Medical Systems in a research note on Friday. Finally, Raymond James Financial restated an “outperform” rating and issued a $100.00 price target on shares of Merit Medical Systems in a report on Friday, July 31st. Eight investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Merit Medical Systems currently has an average rating of “Moderate Buy” and a consensus price target of $105.55.

Key Headlines Impacting Merit Medical Systems

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

• Positive Sentiment: Strong Q3 earnings beat expectations. Merit reported third-quarter revenue of $416.2 million, up 8.4% year over year and ahead of the $410.6 million consensus estimate. Non-GAAP EPS was $1.12 versus expectations of $1.04, while GAAP EPS rose 51% to $0.70. Merit Medical Q3 2026 results
• Positive Sentiment: Profitability and cash generation improved. Organic constant-currency revenue increased 9%, GAAP operating margin expanded to 14.1% from 11.1%, and year-to-date operating cash flow reached $175.2 million, with $129.5 million in free cash flow.
• Positive Sentiment: Full-year guidance was raised. Management increased its 2026 earnings outlook following the strong quarter, supporting expectations for continued growth. Merit Medical raises 2026 guidance
• Positive Sentiment: Analysts raised targets. BTIG Research lifted its target from $105 to $110 and maintained a buy rating. Wells Fargo raised its target from $83 to $92, although it retained an equal-weight rating. Analysts raise Merit Medical price targets
• Positive Sentiment: Cardiac-therapy capabilities expanded. Merit acquired Solo Pace, adding temporary pacing technology designed for patients with aortic stenosis and strengthening its TAVR-related product portfolio. Merit Medical acquires Solo Pace
• Neutral Sentiment: Valuation remains a consideration. With the stock trading at roughly 36 times earnings and near its 52-week high, investors may be demanding continued execution, leaving limited room for disappointment.
• Negative Sentiment: Some caution remains among analysts. Wells Fargo’s equal-weight rating and the company’s narrowed sales outlook temper the bullish impact of the earnings beat and guidance increase.

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.