CNMD Q4 Deep Dive: Ortho Outperformance and Strategic Refocusing Shape 2026 Outlook

Medical tech company CONMED (NYSE:CNMD) announced better-than-expected revenue in Q4 CY2025, with sales up 7.9% year on year to $373.2 million. On the other hand, the company’s full-year revenue guidance of $1.36 billion at the midpoint came in 0.7% below analysts’ estimates. Its non-GAAP profit of $1.43 per share was 8% above analysts’ consensus estimates.

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StockStory’s Take

CONMED’s fourth-quarter results were well received by the market, driven by standout performance in its orthopedics portfolio and continued progress in resolving supply chain challenges. Management highlighted the company’s exit from lower-growth gastroenterology product lines and renewed focus on high-growth areas such as robotic and laparoscopic surgery, smoke evacuation, and orthopedic soft tissue repair. CEO Patrick Beyer credited improvements in sports medicine supply, successful launches like the AIM meniscal repair program in Europe, and strong execution by the orthopedic sales team as key contributors. Beyer emphasized, “We ended the year with our backorder value and number of SKUs on backorder at a three-year low.”

Looking ahead, CONMED’s guidance reflects both confidence in its core growth drivers and caution around headwinds from tariffs and portfolio adjustments. Management expects continued investment in research and development to support innovation in platforms such as AirSeal, Buffalo Filter, and BioBrace. CFO Todd Garner noted that the improved capital position allows for a balanced approach to organic investments and potential acquisitions. However, management acknowledged that incremental tariffs and the divestiture of the gastroenterology line will weigh on margins, stating, “The significant headwinds are $0.45 to $0.50 from the GI exit, and $0.30 to $0.35 from the incremental tariffs.”

Key Insights from Management’s Remarks

Management attributed Q4’s strong performance to robust orthopedics growth, improved supply chain reliability, and strategic exits from non-core product lines, while maintaining focus on high-margin, high-growth markets.

• Orthopedic portfolio momentum: Management credited the quarter’s orthopedic outperformance to supply chain improvements, the BioBrace platform’s adoption, and the launch of the AIM meniscal repair program in Europe.
• AirSeal and robotic surgery adoption: The AirSeal insufflation system, used in robotic and laparoscopic procedures, continued its high single-digit to low double-digit growth, supported by expansion into ambulatory surgery centers and underpenetrated laparoscopic markets.
• Buffalo Filter advances: The Buffalo Filter smoke evacuation platform benefited from growing regulatory momentum, with 20 US states enacting smoke-free operating room laws and new product launches like PlumeSafe x5 enhancing clinical performance and market position.
• Portfolio refocusing: Exiting gastroenterology products is expected to improve CONMED’s long-term gross margin profile by roughly 80 basis points, allowing resource reallocation to areas with stronger growth prospects.
• CFO transition: The planned transition of CFO Todd Garner, who will move to an advisory role, was highlighted as a key leadership change, with an ongoing search for a successor focused on maintaining financial discipline and shareholder value.

Drivers of Future Performance

CONMED’s guidance for the coming year is shaped by targeted investments in growth platforms, evolving portfolio focus, and anticipated cost pressures from tariffs and product exits.

• Investment in innovation: Management plans to increase research and development spending, particularly in platforms like BioBrace, AirSeal, and Buffalo Filter, to support product advancement and market expansion, expecting these investments to drive long-term above-market growth.
• Tariff and portfolio headwinds: The company outlined significant margin pressures due to new tariffs and the shift away from gastroenterology, estimating a combined negative impact of up to $0.85 per share on adjusted EPS.
• Disciplined M&A approach: With leverage below three times EBITDA, management signaled renewed interest in strategic acquisitions, while emphasizing that all potential deals must align with established growth platforms and deliver shareholder value.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will closely track (1) the pace of adoption and utilization for CONMED’s AirSeal and BioBrace platforms, (2) the company’s ability to maintain supply chain improvements and execute its strategic focus on core growth markets, and (3) the successful transition of CFO responsibilities and potential M&A activity. Monitoring the impact of tariffs on margins and execution of portfolio adjustments will also be important for assessing future performance.

CONMED currently trades at $38.00, down from $38.69 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

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