A month has gone by since the last earnings report for Conmed (CNMD). Shares have added about 22.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Conmed due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for CONMED Corporation before we dive into how investors and analysts have reacted as of late.
CONMED Posts Q4 Earnings and Revenue Beat
CONMED Corporation delivered adjusted earnings per share of $1.43 in the fourth quarter of 2025, up 6.7% year over year.
The adjustments include costs related to legal matters and contingent consideration fair value adjustments, among others.
GAAP earnings per share for the quarter was 54 cents, down 50% from the year-ago period’s EPS of $1.08.
Full-year adjusted earnings per share was $4.59, reflecting a 10.1% increase from the year-ago period.
CNMD’s Revenues in Detail
CONMED registered revenues of $373.2 million in the fourth quarter, up 7.9% year over year on a reported basis.
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).
CONMED’s Segmental Details
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.
CNMD’s Geographical Results
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’s Margin Analysis
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%.
CNMD’s Financial Position
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.
CONMED’s Guidance
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -11.71% due to these changes.
VGM Scores
Currently, Conmed has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Conmed has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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CONMED Corporation (CNMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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