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CONMED Corporation CNMD delivered adjusted earnings per share (EPS) of $1.43 in the fourth quarter of 2025, up 6.7% year over year. The figure beat the Zacks Consensus Estimate by 8.6%.
The adjustments include costs related to legal matters and contingent consideration fair value adjustments, among others.
GAAP EPS for the quarter was 54 cents, down 50% from the year-ago period’s EPS of $1.08.
Full-year adjusted EPS was $4.59, reflecting a 10.1% increase from the year-ago period. The figure beat the Zacks Consensus Estimate by 2.2%.
CONMED registered revenues of $373.2 million in the fourth quarter, up 7.9% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 1.9%.
At constant exchange rate (CER), revenues were up 7.1% year over year.
Per management, the top line was aided by strength in General Surgery and Orthopedics Surgery product lines.
Full-year revenues were $1.37 billion, reflecting a 5.2% improvement from the year-ago period on a reported basis (up 5.1% at CER). The metric was in line with the Zacks Consensus Estimate.
Shares of this company gained nearly 1.4% in yesterday’s after-hours trading.
CNMD derived its revenues from two product lines — Orthopedic Surgery and General Surgery.
Orthopedic Surgery revenues in the fourth quarter totaled $157.4 million, up 13.2% and 12.1% year over year on a reported basis and at CER, respectively.
The U.S. Orthopedic sales grew 6.6%. Internationally, orthopedic sales increased 17.5% and 15.7% on a reported basis and at CER, respectively.
General Surgery revenues were $215.8 million, up 4.3% on a reported basis and 3.8% at CER year over year.
U.S. General Surgery sales declined 0.4%, while internationally General Surgery sales increased 16.3% and 14.8% on a reported basis and at CER, respectively.
The decline in the United States was due to CONMED’s OEM smoke evacuation SKUs.
Geographically, CONMED derived its revenues from the Domestic and International regions.
Domestic revenues in the fourth quarter totaled $ 206.2 million, up 1.4% on a reported basis year over year.
International revenues in the fourth quarter amounted to $167 million, up 17% on a reported basis and 15.4% at CER year over year.
CONMED Corporation price-consensus-eps-surprise-chart | CONMED Corporation Quote
In the quarter under review, CNMD’s gross profit increased 10.1% year over year to $218.3 million. The gross margin expanded 116 basis points (bps) to 58.5%.
Selling & administrative expenses increased 25.7% year over year to $166.8 million. Research and development expenses rose 13.1% year over year to $14.9 million. Total operating expenses of $181.7 million increased 24.6% on a year-over-year basis.
Total operating profit totaled $36.6 million, reflecting a 30.2% plunge from the year-ago quarter. The operating margin in the fourth quarter contracted 536 bps to 9.8%.
Cumulative net cash provided by operating activities at the end of fourth-quarter 2025 was $170.7 million compared with $166.9 million a year ago.
CNMD has initiated its outlook for 2026.
For 2026, total reported revenues are expected to be in the range of $1,345 million-$1,375 million.
Organic CER revenues are expected to lie between $1,324 million and $1,344 million, reflecting organic CER growth of 4.5%-6% over the comparable 2025 period.
The adjusted EPS for 2026 is projected to be in the range of $4.30-$4.45. The Zacks Consensus Estimate is pegged at $4.52.
CONMED exited the fourth quarter of 2025 with better-than-expected results. The solid top-line performance and uptick in revenues from both product lines were encouraging. Robust geographical results looked promising. The expansion of gross margin bodes well for the stock.
On the earnings call, management highlighted strong momentum across its three high-growth platforms. AirSeal was used in approximately 1.6 million procedures in 2025 and continues to deliver high single-digit to low double-digit growth, supported by expanding adoption in robotic surgery and significant untapped potential in traditional laparoscopy. Buffalo Filter benefited from the continued expansion of smoke-free operating room legislation and strengthened its market leadership with the launch of the next-generation PlumeSafe X5. BioBrace further advanced as a key pillar of the sports medicine strategy, achieving adoption across more than 70 procedures. These look encouraging for the stock.
On the flip side, the contraction of operating margin does not bode well for the stock.
CNMD currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the broader medical space that are expected to report earnings soon are Boston Scientific Corporation BSX, Cardinal Health, Inc. CAH and The Cooper Companies, Inc. COO.
The Zacks Consensus Estimate for Boston Scientific’s fourth-quarter 2025 adjusted EPS is currently pegged at 78 cents. The consensus estimate for revenues is pegged at $5.27 billion. BSX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has an estimated long-term growth rate of 16.4%. BSX’s earnings yield of 3.7% compares favorably with the industry’s 2.4%.
Cardinal Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2026 adjusted EPS is currently pegged at $2.34. The same for revenues is pegged at $64.33 billion.
Cardinal Health has an estimated long-term growth rate of 14.7%. CAH’s P/S ratio of 0.21 compares favorably with the industry’s 2.20.
Cooper Companies currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter fiscal 2026 adjusted EPS is currently pegged at $1.03. The same for its revenues is pegged at $1.03 billion.
Cooper Companies has an estimated long-term growth rate of 7.8%. COO’s current ratio of 1.89 compares favorably with the industry’s 1.64.
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This article originally published on Zacks Investment Research (zacks.com).
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