Integer Holdings's (NYSE:ITGR) Q2: Beats On Revenue But Stock Drops

Medical technology company Integer Holdings (NYSE:ITGR) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 11.4% year on year to $476.5 million. The company expects the full year’s revenue to be around $1.86 billion, close to analysts’ estimates. Its non-GAAP profit of $1.55 per share was in line with analysts’ consensus estimates.

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“Integer delivered another strong quarter of growth with sales up 11%, adjusted operating income up 15%, and adjusted EPS growth of 19% as we continue to execute our strategy,” said Joseph Dziedzic, Integer’s president and CEO.

Company Overview

With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings (NYSE:ITGR) is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Integer Holdings grew its sales at a decent 8.4% compounded annual growth rate. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Integer Holdings’s annualized revenue growth of 10.5% over the last two years is above its five-year trend, suggesting some bright spots.

We can better understand the company’s sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Integer Holdings’s organic revenue averaged 8.9% year-on-year growth. Because this number is lower than its normal revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results.

This quarter, Integer Holdings reported year-on-year revenue growth of 11.4%, and its $476.5 million of revenue exceeded Wall Street’s estimates by 2.6%.

Looking ahead, sell-side analysts expect revenue to grow 7.8% over the next 12 months, a slight deceleration versus the last two years. Still, this projection is above average for the sector and suggests the market sees some success for its newer products and services.

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Operating Margin

Integer Holdings’s operating margin has risen over the last 12 months and averaged 11.1% over the last five years. Its profitability was higher than the broader healthcare sector, showing it did a decent job managing its expenses.

Analyzing the trend in its profitability, Integer Holdings’s operating margin of 12.5% for the trailing 12 months may be around the same as five years ago, but it has increased by 2.8 percentage points over the last two years.

This quarter, Integer Holdings generated an operating margin profit margin of 12.5%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Integer Holdings’s solid 7.3% annual EPS growth over the last five years aligns with its revenue performance. This tells us its incremental sales were profitable.

In Q2, Integer Holdings reported EPS at $1.55, up from $1.30 in the same quarter last year. This print was close to analysts’ estimates. Over the next 12 months, Wall Street expects Integer Holdings’s full-year EPS of $5.72 to grow 18%.

Key Takeaways from Integer Holdings’s Q2 Results

We were impressed by how significantly Integer Holdings blew past analysts’ organic revenue expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, the company's EBITDA missed and it full-year revenue guidance was in line. Overall, this print was mixed. The market seemed to be hoping for more, and the stock traded down 5% to $109.89 immediately following the results.

Is Integer Holdings an attractive investment opportunity at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.