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Key Takeaways CONMED's AirSeal is now FDA-cleared for 8 mm hex cannulas on the da Vinci 5 robotic platform.Joint testing with Intuitive Surgical supported compatibility across da Vinci X, Xi and 5 systems.AirSeal maintains pressure, clears smoke and supports low-pressure insufflation during robotic surgery. CONMED (CNMD - Free Report) recently announced that the FDA has expanded the indication for its AirSeal Robotic Solution to be used with Intuitive Surgical’s (ISRG - Free Report) 8 mm hex cannulas on the da Vinci 5 (dV5) robotic surgery platform. Previously approved for Intuitive Surgical’s 8 mm round cannulas, the solution is now compatible across the full portfolio of the da Vinci X, da Vinci Xi and da Vinci 5 robotic systems.

Management noted that the expanded indication was supported by extensive engineering and technical compatibility testing conducted jointly with Intuitive Surgical. The company remains focused on providing surgeons and hospitals with compatibility data and clear product communication, helping them deliver high-quality patient care.

The expanded indication brings greater clarity on the integration of the AirSeal Robotic Solution with the da Vinci 5 platform, supporting efficient and consistent surgical workflows while contributing to positive patient outcomes. Management also expressed confidence that this achievement strengthens the long-term growth potential of CONMED’s AirSeal portfolio.

Likely Trend of CNMD Stock Following the NewsFollowing the announcement, CNMD shares gained 0.3% at yesterday’s close. Year to date, the stock has risen 3.5% against the industry’s 2.2% decline. However, the S&P 500 has risen 9.3% in the same timeframe.

CONMED is well positioned to benefit from the expanded indication for its AirSeal Robotic Solution. Compatibility with the da Vinci 5 platform broadens the product’s addressable market and reinforces its value within robotic-assisted minimally invasive surgeries. As hospitals continue to adopt ISRG’s latest robotic platform and the company continues to expand in international markets, adoption of CONMED’s AirSeal is likely to be strengthened, which will drive growth for its surgical portfolio.

CNMD currently has a market capitalization of $1.26 billion.

Image Source: Zacks Investment Research

More on the NewsThe AirSeal Robotic Solution is an advanced insufflation system developed specifically for robotic-assisted minimally invasive surgery. It combines an AirSeal Cannula Cap with AirSeal and a bifurcated tube set to deliver stable pneumoperitoneum, continuous smoke evacuation and low-pressure insufflation through robotic ports, eliminating the need for an accessory port. Unlike conventional insufflation systems that replenish carbon dioxide only after pressure drops, AirSeal maintains pressure, improving visualization and minimizing interruptions during surgery.

Its three-lumen design provides CO2 insufflation, smoke evacuation and a regulated gas barrier that maintains consistent cavity pressure even during leaks or suction. By preserving visualization, minimizing pressure fluctuations and restoring pneumoperitoneum when disruptions occur, the system supports physiologic stability, enhances intraoperative efficiency and contributes to smoother patient recovery during minimally invasive robotic procedures.

The expanded indication strengthens AirSeal’s role in robotic surgery by enabling seamless integration with Intuitive Surgical’s latest system architecture while providing hospitals and surgeons with greater flexibility in using complementary technologies. Backed by more than 40 clinical studies, the system is designed to support low-pressure insufflation, helping improve patient outcomes, procedural efficiency and surgical performance.

Industry Prospects Favoring the MarketGoing by the data provided by Mordor Intelligence, the insufflation devices market is predicted to be valued at $3.28 billion in 2026 and is expected to witness a CAGR of 5.9% through 2031.

Factors like the growing adoption of minimally invasive surgeries, advancements in insufflation technology, rising volumes of bariatric and gynecologic procedures, integration with digital operating rooms, expanding ambulatory surgery infrastructure and a shift toward disposable insufflation consumables are boosting the market’s growth.

Other NewsCONMED recently appointed John E. Gallagher as its chief financial officer, effective July 15, 2026. He succeeds Todd Garner, who will remain associated with the company in an advisory role through Nov. 2, 2026. Gallagher brings nearly three decades of financial leadership experience across public healthcare and industrial companies, including Certara, Inc., Cue Health Inc. and Becton, Dickinson & Co.

In May, CONMED announced the appointment of seasoned healthcare executives Celine Martin and Jeff Mirviss to its board of directors, effective July 1, 2026. The move expands the board to nine members and strengthens governance with deep leadership expertise from Johnson & Johnson and Boston Scientific.

CNMD’s Zacks Rank & Key PicksCONMED currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the broader medical space are West Pharmaceutical (WST - Free Report) and Cardinal Health (CAH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

West Pharmaceutical reported first-quarter 2026 earnings per share (EPS) of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

West Pharmaceutical has an estimated long-term earnings growth rate of 14.4%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 19.4%.

Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.

Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 10.3%.

CONMED Corporation (NYSE: CNMD) today announced that its [url="]AirSeal Robotic Solution[/url] is now indicated for use with Intuitive's 8 mm hex cannulas us

Posted by Defense World Staff on Jul 21st, 2026

Allspring Global Investments Holdings LLC grew its position in shares of CONMED Corporation (NYSE:CNMD – Free Report) by 39.9% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 582,733 shares of the company’s stock after buying an additional 166,301 shares during the quarter. Allspring Global Investments Holdings LLC owned 1.94% of CONMED worth $20,705,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also recently modified their holdings of the company. Kestra Advisory Services LLC purchased a new stake in shares of CONMED during the 4th quarter valued at about $26,000. Kelleher Financial Advisors bought a new position in shares of CONMED in the 3rd quarter worth approximately $28,000. Aster Capital Management DIFC Ltd boosted its holdings in shares of CONMED by 409.2% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 723 shares of the company’s stock worth $29,000 after buying an additional 581 shares during the last quarter. Quarry LP boosted its holdings in shares of CONMED by 244.8% in the third quarter. Quarry LP now owns 869 shares of the company’s stock worth $41,000 after buying an additional 617 shares during the last quarter. Finally, Rockefeller Capital Management L.P. grew its position in CONMED by 48.6% during the fourth quarter. Rockefeller Capital Management L.P. now owns 1,043 shares of the company’s stock valued at $42,000 after buying an additional 341 shares during the period.

Analyst Ratings Changes Several research firms have weighed in on CNMD. Zacks Research downgraded shares of CONMED from a “hold” rating to a “strong sell” rating in a research report on Monday, July 13th. Bank of America restated an “underperform” rating and issued a $40.00 price objective on shares of CONMED in a research note on Monday, June 29th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of CONMED in a report on Thursday, June 4th. Wells Fargo & Company set a $39.00 target price on CONMED in a research report on Monday, July 13th. Finally, BMO Capital Markets initiated coverage on CONMED in a report on Wednesday, July 8th. They set a “market perform” rating and a $36.00 price target for the company. Five analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, CONMED currently has an average rating of “Reduce” and a consensus target price of $38.80.

Check Out Our Latest Stock Analysis on CNMD

CONMED Price Performance CNMD stock opened at $43.51 on Tuesday. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.04 and a current ratio of 2.29. The company’s fifty day moving average price is $35.98 and its 200-day moving average price is $38.36. CONMED Corporation has a one year low of $31.44 and a one year high of $56.63. The company has a market capitalization of $1.31 billion, a PE ratio of 24.58, a price-to-earnings-growth ratio of 3.19 and a beta of 0.93.

CONMED (NYSE:CNMD – Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $0.89 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.82 by $0.07. The company had revenue of $317.05 million for the quarter, compared to the consensus estimate of $310.64 million. CONMED had a net margin of 4.00% and a return on equity of 13.84%. CONMED’s revenue for the quarter was down 1.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.95 EPS. On average, equities analysts anticipate that CONMED Corporation will post 4.38 EPS for the current fiscal year.

CONMED Profile (Free Report)

CONMED Corporation (NYSE: CNMD) is a global medical technology company headquartered in Utica, New York. Founded in 1970, CONMED develops, manufactures and markets a broad portfolio of surgical devices and accessories for minimally invasive procedures. The company’s product line supports surgeons and healthcare providers in specialties including orthopedics, general surgery, gastroenterology and gynecology.

CONMED operates two principal segments: Orthopedics, and Visualization & Energy.

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LARGO, Fla.--(BUSINESS WIRE)--CONMED Corporation (NYSE: CNMD) today announced that it will report financial results for the second quarter 2026 after the market close on Wednesday, July 29, 2026. The Company’s management will host a conference call at 4:30 p.m. ET that same day to discuss the results.

To participate in the conference call via telephone, please click here to pre-register and obtain the dial-in number and passcode.

This conference call will also be webcast and can be accessed from the “Investors” section of CONMED's website: https://www.conmed.com/en/investor-relations. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.

About CONMED Corporation

CONMED is a medical technology company that provides devices and equipment for surgical procedures. The Company’s products are used by surgeons and other healthcare professionals in a variety of specialties including orthopedics, general surgery, gynecology, and thoracic surgery. For more information, visit www.conmed.com.

Forward-Looking Statements

This press release and associated conference call may contain forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties, which could cause actual results, performance, or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures. For example, in addition to general industry and economic conditions, factors that could cause actual results to differ materially from those in the forward-looking statements may include, but are not limited to the risk factors discussed in the Company's Annual Report on Form 10-K for the full year ended December 31, 2025, listed under the heading Forward-Looking Statements in the Company’s most recently filed Form 10-Q and other risks and uncertainties, which may be detailed from time to time in reports filed by CONMED with the SEC. Any and all forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The Company believes that all forward-looking statements made by it have a reasonable basis, but there can be no assurance that management’s expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct.

More News From CONMED Corporation

Back to Newsroom

Shares of CONMED Corporation (NYSE: CNMD - Get Free Report) have earned an average rating of "Reduce" from the eight analysts that are covering the firm, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation and seven have issued a hold recommendation on the company. The average 12 month price

Key Takeaways CONMED growth is driven by AirSeal, Buffalo Filter, and BioBrace platforms, gaining adoption.CNMD benefits from supply-chain recovery, boosting orthopedic sales and product availability.CONMED expects margin gains from GI exit, despite tariff and revenue headwinds in 2026. CONMED Corporation (CNMD - Free Report) is well-positioned for growth on the back of rising adoption of its high-margin, differentiated platforms like AirSeal, Buffalo Filter and BioBrace. The company’s long-term prospects seem good as robotic procedure volume rises, coupled with the expanding penetration of Ambulatory Surgery Centers. Moreover, improving supply-chain bottlenecks should drive top- and bottom-line growth.

CONMED is facing tariff headwinds that are unfavorably impacting its earnings per share (EPS) and revenue expansion. Higher operating expense investments remain a concern.

Shares of this Zacks Rank #3 (Hold) company have lost 9.9% in the year-to-date period compared with the industry’s 3.3% decline and the S&P 500 Index’s 3.6% fall.

CONMED, a renowned global medical products manufacturer specializing in surgical instruments and devices, has a market capitalization of $1.06 billion. The company projects 5.2% earnings growth over the next five years.

The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.56%.

Image Source: Zacks Investment Research

Factors Favoring CNMD StockStrong Growth Drivers in High-Margin Segment: CONMED delivered a strong fourth-quarter fiscal 2025 performance, led by robust orthopedic growth, solid execution and continued expansion of its higher-margin platforms. Looking ahead to fiscal 2026, management plans to stay focused on three key growth drivers, AirSeal insufflation systems, Buffalo Filter and BioBrace, which offer favorable procedural growth and margin profiles. AirSeal remains significantly underpenetrated in traditional laparoscopy, currently used in just 6–7% of the more than 3 million annual U.S. procedures, leaving ample room for long-term expansion as adoption improves.

Buffalo Filter continues to benefit from a growing global smoke evacuation market exceeding $1 billion, supported by increasing regulatory mandates such as smoke-free operating room laws across multiple U.S. states, as well as adoption in Nordic countries and Canada. Meanwhile, BioBrace is gaining traction across more than 70 surgical applications, with new product innovations and ongoing clinical validation strengthening its adoption. Collectively, these platforms underscore CONMED’s strategy to prioritize R&D, commercial execution and capital allocation toward high-growth, high-margin opportunities.

Supply-Chain Normalization Boosting Orthopedics Recovery: Resolving the sports medicine supply-chain constraints remains a central operational priority entering fiscal 2026. During fiscal 2025, the company invested in additional planning capabilities, infrastructure, external operational expertise and leadership resources, including back-order levels and the number of affected SKUs declining to a three-year low by year-end.

This improvement enabled the orthopedics segment to return to stronger growth, with fourth-quarter orthopedic sales rising 12.1% in constant currency, reflecting both improving product availability and continued demand for key offerings such as BioBrace and other soft-tissue repair solutions.

Management’s near-term objective is to stabilize and scale supply processes to ensure consistent product availability, while the long-term objective is to build a more agile, data-driven, high-performance supply chain to support sustained innovation and above-market growth in the orthopedic portfolio over time.

Margin Improvement Initiatives and Capital Returns: Several structural actions underway are expected to strengthen profitability and shareholder returns beginning in fiscal 2026 and continuing thereafter. The strategic exit from the gastroenterology product lines is intended to concentrate resources on higher-growth, higher-margin businesses. It is expected to improve the company’s consolidated long-term gross margin profile by 80 basis points (bps) once the transition is completed.

For fiscal 2026, CONMED guided to an additional 50 to 100 bps of gross-margin expansion, driven by favorable product mix and cost improvements. The company suspended its dividend and authorized a $150 million share repurchase program, with management indicating that redeploying the prior dividend amount toward buybacks is expected to contribute 7 cents of EPS accretion in fiscal 2026, supporting ongoing capital-return priorities while maintaining flexibility to invest in innovation and growth initiatives.

Downsides of CNMD StockRevenue & EPS Headwinds From GI Exit and Tariffs: While CNMD is positioning itself for stronger long-term growth and profitability, near-term challenges tied to strategic portfolio changes and external cost pressures remain. Management expects fiscal 2026 revenue growth to be moderate, with constant-currency organic growth of 4.5% to 6%, impacted by the shift away from lower-priority product lines. U.S. general surgery performance has also been affected by portfolio rationalization, including the exit of select smaller products, reduced focus on OEM smoke-evacuation offerings and the broader exit from the gastroenterology business.

Adjusted EPS is projected to be in the range of $4.30 to $4.45, down from $4.59 in fiscal 2025, reflecting a 45–50 cent hit from the GI exit and an additional 30–35 cent drag from tariff-related costs. Despite these pressures, management views the GI exit as a strategic move to enhance long-term margins and prioritize higher-growth areas.

Rising Operating Expense Investments: Operating expenses are anticipated to increase in fiscal 2026 as the company ramps up investments to drive its core growth platforms and strengthen its innovation pipeline. Adjusted SG&A expenses are expected to reach 38% to 38.5% of sales, influenced by lower revenues following the exit of the GI portfolio and higher commercial spending to support the expansion of key surgical and orthopedic businesses. Meanwhile, R&D spending is projected to rise to 4.5% to 5% of sales, marking an increase from previous years as CNMD allocates more resources toward product development, clinical research and technological advancements in areas such as robotic and laparoscopic surgery, smoke evacuation and soft-tissue repair.

Estimate TrendCONMED is witnessing a stable estimate revision trend for fiscal 2026. In the past 60 days, the Zacks Consensus Estimate for earnings has remained stable at $4.36 per share.

The Zacks Consensus Estimate for first-quarter fiscal 2026 revenues and EPS is pegged at $310.7 million and 82 cents, respectively, suggesting 3.3% and 13.7% declines from the year-ago reported numbers.

Stocks to ConsiderSome better-ranked stocks from the broader medical space are Phibro Animal Health (PAHC - Free Report) , GE HealthCare Technologies (GEHC - Free Report) and Cardinal Health (CAH - Free Report) .

Phibro Animal Health, currently sporting a Zacks Rank #1 (Strong Buy), reported second-quarter fiscal 2026 adjusted EPS of 87 cents, which surpassed the Zacks Consensus Estimate by 27.1%. Revenues of $373.9 million beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12% rise. The company’s earnings beat estimates in the trailing four quarters, the average surprise being 20.1%.

GE HealthCare Technologies, currently carrying a Zacks Rank #2 (Buy), reported fourth-quarter 2025 adjusted EPS of $1.44, which surpassed the Zacks Consensus Estimate by 0.7%. Revenues of $5.7 billion beat the Zacks Consensus Estimate by 1.9%.

GEHC has an estimated long-term earnings growth rate of 9.1% compared with the industry’s 12% rise. The company beat earnings estimates in the trailing four quarters, the average surprise being 7.5%.

Cardinal Health, currently carrying a Zacks Rank #2, reported a second-quarter fiscal 2026 adjusted EPS of $2.63, which surpassed the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion beat the Zacks Consensus Estimate by 0.9%.

CAH has an estimated long-term earnings growth rate of 15% compared with the industry’s 9.3% rise. The company’s earnings beat estimates in the trailing four quarters, the average surprise being 9.3%.

LARGO, Fla.--(BUSINESS WIRE)--CONMED Corporation (NYSE: CNMD) today announced financial results for the first quarter ended March 31, 2026.

First Quarter 2026 Highlights

Sales of $317.0 million decreased 1.3% year-over-year as reported and 2.9% in constant currency. Net sales growth was impacted by a $15.5 million decrease in sales from the exit of certain GI products. Domestic revenue decreased 5.8% year-over-year. Domestic sales growth was impacted by a $15.2 million decrease in sales from the exit of certain GI products. International revenue increased 4.7% year-over-year as reported and 1.0% in constant currency. International sales growth was impacted by a $0.3 million decrease in sales from the exit of certain GI products. Diluted net earnings per share (GAAP) were $0.45, compared to diluted net earnings per share (GAAP) of $0.19 in the first quarter of 2025. Adjusted diluted net earnings per share(1) were $0.89, compared to adjusted diluted net earnings per share of $0.95 in the first quarter of 2025. “Our 2025 momentum continued in the first quarter as we delivered revenue and adjusted earnings ahead of our expectations,” said Patrick J. Beyer, CONMED’s President and Chief Executive Officer. “We continue to concentrate our resources and investment on our higher-growth, higher-margin areas: minimally invasive surgery, smoke evacuation, and orthopedic soft tissue repair.”

2026 Outlook

Based on the Company’s first quarter performance, management is raising its outlook for full-year 2026 organic revenue growth on a constant currency basis. The Company now expects year-over-year organic constant currency revenue growth, which excludes gastroenterology product sales, of approximately 5.0% to 6.5% compared to the prior guidance range of 4.5% to 6.0%. Full-year 2026 reported revenue is now expected to be in the range of $1.350 billion to $1.375 billion, compared to prior guidance of $1.345 billion to $1.375 billion. The updated revenue outlook reflects an estimated 40 to 50 basis points of favorable foreign exchange impact, compared to the prior assumption of 0 to 50 basis points of favorable impact. This updated guidance also reflects an estimated $14.5 million to $17.5 million in revenue from gastroenterology products, reduced from the prior guidance of $21.0 million to $25.0 million due to the divestiture of the remaining gastroenterology portfolio.

The Company continues to expect full-year adjusted diluted net earnings per share(2) in the range of $4.30 to $4.45. The reaffirmed outlook reflects stronger underlying operating performance, largely offset by higher-than-previously anticipated interest expense due to the planned refinancing of the Company's debt during 2026.

Supplemental Financial Disclosures

(1) A reconciliation of reported diluted net earnings per share to adjusted diluted net earnings per share, a non-GAAP financial measure, appears below.

(2) Information reconciling forward-looking adjusted diluted net earnings per share to the comparable GAAP financial measures is unavailable to the company without unreasonable effort, as discussed below.

Conference Call

The Company’s management will host a conference call today at 4:30 p.m. ET to discuss its first quarter 2026 results.

To participate in the conference call via telephone, please click here to pre-register and obtain the dial-in number and passcode.

This conference call will also be webcast and can be accessed from the “Investors” section of CONMED's website at www.conmed.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.

Consolidated Condensed Statements of Income

(in thousands except per share amounts, unaudited)

Three Months Ended

March 31,

2026

2025

Net sales

$

317,046

$

321,256

Cost of sales

133,599

143,504

Gross profit

183,447

177,752

% of sales

57.9

%

55.3

%

Selling & administrative expense

141,699

148,847

Research & development expense

16,333

12,947

Income from operations

25,415

15,958

% of sales

8.0

%

5.0

%

Interest expense

7,060

8,286

Income before income taxes

18,355

7,672

Provision for income taxes

4,527

1,636

Net income

$

13,828

$

6,036

Basic EPS

$

0.45

$

0.19

Diluted EPS

0.45

0.19

Basic shares

30,588

30,973

Diluted shares

30,621

31,151

Sales Summary

(in millions, unaudited)

Three Months Ended March 31,

% Change

Domestic

International

2026

2025

As

Reported

Impact of

Foreign

Currency

Constant

Currency

As

Reported

As

Reported

Impact of

Foreign

Currency

Constant

Currency

Orthopedic Surgery

$

147.7

$

138.3

6.8

%

-2.3

%

4.5

%

5.5

%

7.6

%

-3.7

%

3.9

%

General Surgery

169.3

183.0

-7.4

%

-1.1

%

-8.5

%

-10.4

%

0.1

%

-3.9

%

-3.8

%

$

317.0

$

321.3

-1.3

%

-1.6

%

-2.9

%

-5.8

%

4.7

%

-3.7

%

1.0

%

Single-use Products

$

270.0

$

276.3

-2.3

%

-1.6

%

-3.9

%

-8.1

%

6.2

%

-4.0

%

2.2

%

Capital Products

47.0

45.0

4.6

%

-1.5

%

3.1

%

12.4

%

-2.0

%

-2.8

%

-4.8

%

$

317.0

$

321.3

-1.3

%

-1.6

%

-2.9

%

-5.8

%

4.7

%

-3.7

%

1.0

%

Domestic

$

173.0

$

183.8

-5.8

%

0.0

%

-5.8

%

International

144.0

137.5

4.7

%

-3.7

%

1.0

%

$

317.0

$

321.3

-1.3

%

-1.6

%

-2.9

%

Reconciliation of Reported Net Income to Adjusted Net Income

(in thousands, except per share amounts, unaudited)

Three Months Ended March 31, 2026

Gross Profit

Selling & Administrative Expense

Research & Development Expense

Operating Income

Interest Expense

Tax Expense

Effective Tax Rate

Net Income

Diluted EPS

As reported

$

183,447

$

141,699

$

16,333

$

25,415

$

7,060

$

4,527

24.7

%

$

13,828

$

0.45

% of sales

57.9

%

44.7

%

5.2

%

8.0

%

Operational optimization costs(1)

379

(7,526

)

-

7,905

-

1,801

6,104

Executive transition costs(2)

-

(3,342

)

-

3,342

-

761

2,581

EU medical device regulations(3)

-

-

(1,167

)

1,167

-

266

901

Contingent consideration fair value adjustments(4)

-

(722

)

-

722

-

164

558

Termination of distribution agreement(5)

(1,864

)

-

-

(1,864

)

-

(425

)

(1,439

)

Gain on sale of product line(6)

-

3,916

-

(3,916

)

-

(892

)

(3,024

)

$

181,962

$

134,025

$

15,166

$

32,771

$

7,060

$

6,202

$

19,509

Adjusted gross profit %

57.4

%

Amortization(7)

$

1,500

(7,261

)

-

8,761

(1,276

)

2,442

7,595

As adjusted

$

126,764

$

15,166

$

41,532

$

5,784

$

8,644

24.2

%

$

27,104

$

0.89

% of sales

40.0

%

4.8

%

13.1

%

Three Months Ended March 31, 2025

Gross Profit

Selling & Administrative Expense

Research & Development Expense

Operating Income

Interest Expense

Tax Expense

Effective Tax Rate

Net Income

Diluted EPS

As reported

$

177,752

$

148,847

$

12,947

$

15,958

$

8,286

$

1,636

21.3

%

$

6,036

$

0.19

% of sales

55.3

%

46.3

%

4.0

%

5.0

%

Operational optimization costs(1)

3,410

(490

)

-

3,900

-

901

2,999

Executive transition costs(2)

-

(12,165

)

-

12,165

-

2,812

9,353

Contingent consideration fair value adjustments(4)

-

(3,962

)

-

3,962

-

916

3,046

Gain on sale of product line(6)

-

354

-

(354

)

-

(82

)

(272

)

Legal matters(8)

-

(1,037

)

-

1,037

-

240

797

$

181,162

$

131,547

$

12,947

$

36,668

$

8,286

$

6,423

$

21,959

Adjusted gross profit %

56.4

%

Amortization(7)

$

1,500

(7,172

)

-

8,672

(1,443

)

2,455

7,660

As adjusted

$

124,375

$

12,947

$

45,340

$

6,843

$

8,878

23.1

%

$

29,619

$

0.95

% of sales

38.7

%

4.0

%

14.1

%

Reconciliation of Reported Net Income to EBITDA & Adjusted EBITDA

(in thousands, unaudited)

Three Months Ended

March 31,

2026

2025

Net income

$

13,828

$

6,036

Provision for income taxes

4,527

1,636

Interest expense

7,060

8,286

Depreciation

4,174

4,235

Amortization

14,663

14,018

EBITDA

$

44,252

$

34,211

Stock based compensation

4,783

6,381

Operational optimization costs

7,905

3,900

Executive transition costs

3,342

12,165

EU medical device regulations

1,167

-

Contingent consideration fair value adjustments

722

3,962

Termination of distribution agreement

(1,864

)

-

Gain on sale of product line

(3,916

)

(354

)

Legal matters

-

1,037

Adjusted EBITDA

$

56,391

$

61,302

EBITDA Margin

EBITDA

14.0

%

10.6

%

Adjusted EBITDA

17.8

%

19.1

%

About CONMED Corporation

CONMED is a medical technology company that provides devices and equipment for surgical procedures. The Company’s products are used by surgeons and other healthcare professionals in a variety of specialties including orthopedics, general surgery, gynecology, and thoracic surgery. For more information, visit www.conmed.com.

Forward-Looking Statements

This press release and associated conference call may contain forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties, which could cause actual results, performance, or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures. For example, in addition to general industry and economic conditions, factors that could cause actual results to differ materially from those in the forward-looking statements may include, but are not limited to the risk factors discussed in the Company's Annual Report on Form 10-K for the full year ended December 31, 2025 and other risks and uncertainties, which may be detailed from time to time in reports filed by CONMED with the SEC. Any and all forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The Company believes that all forward-looking statements made by it have a reasonable basis, but there can be no assurance that management’s expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct.

Supplemental Information - Reconciliation of GAAP to Non-GAAP Financial Measures

The Company supplements the reporting of its financial information determined under generally accepted accounting principles in the United States (GAAP) with certain non-GAAP financial measures, including percentage sales growth in constant currency; adjusted gross profit; cost of sales excluding specified items; adjusted selling and administrative expenses; adjusted research and development expense; adjusted operating income; adjusted interest expense; adjusted income tax expense; adjusted effective income tax rate; adjusted net income and adjusted diluted net earnings per share (EPS). The Company believes that these non-GAAP measures provide meaningful information to assist investors and shareholders in understanding its financial results and assessing its prospects for future performance. Management believes percentage sales growth in constant currency and the other adjusted measures described above are important indicators of its operations because they exclude items that may not be indicative of, or are unrelated to, its core operating results and provide a baseline for analyzing trends in the Company’s underlying business. Further, the presentation of EBITDA is a non-GAAP measurement that management considers useful for measuring aspects of the Company’s cash flow. Management uses these non-GAAP financial measures for reviewing the operating results and analyzing potential future business trends in connection with its budget process and bases certain management incentive compensation on these non-GAAP financial measures.

Net sales on a constant currency basis is a non-GAAP measure. The Company analyzes net sales on a constant currency basis to better measure the comparability of results between periods. To measure percentage sales growth in constant currency, the Company removes the impact of changes in foreign currency exchange rates that affect the comparability and trend of net sales. To measure earnings performance on a consistent and comparable basis, the Company excludes certain items that affect the comparability of operating results and the trend of earnings. These adjustments are irregular in timing, may not be indicative of past and future performance and are therefore excluded to allow investors to better understand underlying operating trends.

Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales growth, gross profit, cost of sales, selling and administrative expenses, research and development expense, operating income, interest expense, income tax expense, effective income tax rate, net income and diluted net earnings per share, the most directly comparable GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures above, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

We are unable to present a quantitative reconciliation of our expected diluted net earnings per share to expected adjusted diluted net earnings per share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of acquisition, integration and other charges. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our consolidated condensed statements of income.

For the quarter ended March 2026, Conmed (CNMD - Free Report) reported revenue of $317.05 million, down 1.3% over the same period last year. EPS came in at $0.89, compared to $0.95 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $310.7 million, representing a surprise of +2.04%. The company delivered an EPS surprise of +8.98%, with the consensus EPS estimate being $0.82.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Conmed performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Geographic Revenue- International: $144 million versus the two-analyst average estimate of $137.8 million. The reported number represents a year-over-year change of +4.7%.Geographic Revenue- Domestic: $173 million versus $172.91 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -5.9% change.Net Sales- Single-use Products: $270 million versus $266.61 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -2.3% change.Net Sales- General Surgery: $169.3 million compared to the $170.48 million average estimate based on two analysts. The reported number represents a change of -7.5% year over year.Net Sales- Orthopedic Surgery: $147.7 million compared to the $140.22 million average estimate based on two analysts. The reported number represents a change of +6.8% year over year.Net Sales- Capital Products: $47 million compared to the $44.09 million average estimate based on two analysts. The reported number represents a change of +4.4% year over year.View all Key Company Metrics for Conmed here>>>

Shares of Conmed have returned +4% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways CONMED beat Q1 EPS and revenue estimates, though sales dipped 1.3% year over year.CNMD raised its 2026 organic CER revenue growth outlook to 5-6.5% on stronger execution.CNMD saw orthopedic growth offset by GI product exit, which hurt general surgery sales. CONMED Corporation (CNMD - Free Report) posted adjusted earnings per share (EPS) of 89 cents for the first quarter of 2026, down 6.3% year over year. The figure beat the Zacks Consensus Estimate by 8.5%.

The adjustments include costs related to legal matters and contingent consideration fair value adjustments, among others.

GAAP EPS for the quarter was 45 cents, up 136.8% from the year-ago period’s EPS of 19 cents.

CNMD’s Revenues in DetailCONMED registered revenues of $317 million in the first quarter, down 1.3% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 2%.

At the constant exchange rate (CER), revenues were up 2.9% year over year.

Per management, the top line was hurt by a $15.5 million decrease in sales from the exit of certain GI products.

CONMED’s Segmental DetailsCNMD derived its revenues from two product lines — Orthopedic Surgery and General Surgery.

Orthopedic Surgery revenues in the fourth quarter totaled $147.7 million, up 6.8% and 4.5% year over year on a reported basis and at CER, respectively.

The U.S. Orthopedic sales grew 5.5%. Internationally, orthopedic sales increased 7.6% and 3.9% on a reported basis and at CER, respectively.

General Surgery revenues were $169.3 million, down 7.4% on a reported basis and 8.5% at CER year over year.

U.S. General Surgery sales declined 10.4%, while internationally General Surgery sales increased 0.1% but declined 3.8% on a reported basis and at CER, respectively.

The decline in the United States was due to a loss of $15.2 million in sales due to the exit of certain GI products.

CNMD’s Geographical ResultsDomestic revenues in the first quarter totaled $173 million, down 5.8% on a reported basis year over year.

International revenues in the first quarter amounted to $144 million, up 4.7% on a reported basis and 1% at CER year over year.

CONMED’s Margin AnalysisIn the quarter under review, CNMD’s adjusted gross profit increased 0.4% year over year to $181.9 million. The gross margin expanded 100 basis points (bps) to 57.4%.

Selling & administrative expenses decreased 4.8% year over year to $141.7 million. Research and development expenses rose 26.2% to $16.3 million. Total operating expenses of $158 million decreased 2.3% on a year-over-year basis.

Total adjusted operating profit totaled $32.8 million, reflecting a 10.6% decrease from the year-ago quarter. The operating margin in the first quarter contracted 100 bps to 13.1%.

CNMD’s Financial PositionThe company exited the reported quarter with cash and cash equivalents of $35 million compared with $40.8 million a year ago.

Cumulative net cash provided by operating activities at the end of first-quarter 2026 was $13.5 million compared with $41.5 million a year ago.

CONMED’s GuidanceCNMD has updated its outlook for 2026.

For 2026, total reported revenues are expected to be in the range of $1,350 million-$1,375 million compared with previous guidance of $1,345 million-$1,375 million. The Zacks Consensus Estimate is pegged at $1.36 billion.

Organic CER revenues are expected to lie between $1,331.2 million and $1,350.1 million, reflecting organic CER growth of 5-6.5% over the comparable 2025 period. The company previously expected Organic CER revenues of $1,324 million to $1,344 million.

The company continues to expect adjusted EPS for 2026 in the range of $4.30-$4.45. The Zacks Consensus Estimate is pegged at $4.36.

CONMED expects revenues to be in the range of $336 million-$340 million for the second quarter. The Zacks Consensus Estimate is pegged at $310.7 million.

Our Take on CNMDCONMED exited the first quarter of 2026 with better-than-expected results. CONMED’s results highlight a strategic reset that should underpin performance through the remainder of 2026. The divestiture of its gastroenterology business sharpens focus on higher-growth, higher-margin segments, namely AirSeal, Buffalo Filter and BioBrace. These platforms offer durable tailwinds: AirSeal benefits from rising robotic and laparoscopic procedure volumes and a large installed base, while Buffalo Filter is supported by increasing smoke-evacuation legislation and international adoption. BioBrace continues to gain traction as a differentiated orthopedic solution, with expanding clinical validation and surgeon adoption driving sustained growth.

Operationally, improving supply chain reliability is enabling the orthopedic segment to return to consistent mid-single-digit growth, with further acceleration expected as capacity expands. Additionally, raised organic growth guidance (5–6.5%) reflects improving business momentum and stronger execution.

However, challenges remain. The exit of GI creates a near-term revenue and earnings headwind, while OEM smoke products continue to weigh on general surgery performance. Inflationary pressures on input costs and higher interest expense from debt refinancing could also constrain margins. Despite these factors, CONMED’s focused portfolio and strengthening execution position it for steady growth in 2026.

CONMED’s Zacks Rank & Stocks to ConsiderCNMD currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Phibro Animal Health (PAHC - Free Report) andCardinal Health (CAH - Free Report) . While Globus Medical sports a Zacks Rank #1 (Strong Buy), Phibro Animal Health and Cardinal Health carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Globus Medical shares have gained 4% in the year-to-date period. Estimates for the company’s first-quarter 2026 EPS have increased 1 cent to 90 cents in the past 30 days. GMED’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 18.79%. In the last reported quarter, it posted an earnings surprise of 20.75%.

Estimates for Phibro Animal Health’s third-quarter fiscal 2026 EPS have remained constant at 72 cents in the past 30 days. Shares of the company have risen 45.3% in the year-to-date period against the industry’s 18.8% decline. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.15%. In the last reported quarter, it delivered an earnings surprise of 26.09%.

Cardinal Health shares have remained flat in the year-to-date period. Estimates for the company’s third-quarter 2026 EPS have decreased 1 cent to $2.80 in the past 30 days. CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 9.30%. In the last reported quarter, it posted an earnings surprise of 10.04%.

LARGO, Fla.--(BUSINESS WIRE)--CONMED Corporation (NYSE: CNMD) today announced the appointment of Celine Martin and Jeff Mirviss to its Board of Directors (“Board”), effective July 1, 2026. Ms. Martin will serve as a member of the Audit Committee and the Strategy Committee, and Mr. Mirviss will serve as a member of the Compensation Committee and the Corporate Governance and Nominating Committee. In connection with these appointments, CONMED is increasing the size of its Board to include a total of nine directors.

“My fellow directors and I are delighted to welcome Celine Martin and Jeff Mirviss to the Board, both highly accomplished leaders with extensive experience developed at two of the largest companies in the healthcare industry,” said LaVerne Council, Chair of CONMED’s Board of Directors. “Celine joins our Board following a 30-year career at Johnson & Johnson, with deep global leadership experience in MedTech and a track record of driving innovation and growth. Likewise, Jeff possesses nearly 30 years of experience at Boston Scientific, where he led complex, global medical device businesses with operational and commercial excellence. Their insight and expertise will be invaluable to the Board as we advance CONMED’s long‑term strategy.”

“Celine and Jeff are outstanding additions to the Board,” said Patrick Beyer, President and Chief Executive Officer of CONMED. “Celine’s global strategic leadership and experience scaling high growth medical technology businesses, combined with Jeff’s expertise in portfolio leadership and execution across large, global organizations, will strengthen our governance and support our continued focus on delivering long‑term value for patients, customers, and shareholders.”

Over three decades at Johnson & Johnson, both in the U.S. and internationally, Ms. Martin played a vital role in advancing the ambition of J&J MedTech, developing new categories and advancing standard of care for atrial fibrillation, stroke, and minimally invasive surgery. Most recently, she served as Company Group Chairman leading the Cardiovascular & Specialty Solutions (“CSS”) Group from 2022 to 2025. As a member of the J&J MedTech leadership team, she ran a diverse portfolio of high growth businesses including Electrophysiology, Neurovascular Intervention, Ear Nose and Throat, and Breast Aesthetics. Before that, Ms. Martin led the Ethicon Endo Surgery business where she was instrumental in establishing the Robotic and Digital Surgery portfolio foundations. Ms. Martin holds an MBA from Wake Forest University and a graduate degree in marketing from Normandy Business School. Ms. Martin also serves on the Board of Directors at H.B. Fuller.

Mr. Mirviss brings more than 35 years of healthcare industry leadership experience. Most recently, he served as Executive Vice President and Global President of Peripheral Interventions at Boston Scientific from 2020 to 2025, where he led a multi-billion dollar global business focused on therapies for vascular disease and cancer. In this role, he also had leadership responsibility for the Company’s Latin America and Canada regions, as well as its Government Affairs function. Previously, Mr. Mirviss served as Senior Vice President and Global President of Peripheral Interventions from 2013 to 2020, and as Global President of Peripheral Interventions from 2011 to 2013. Prior to these roles, Mr. Mirviss held positions of increasing responsibility at Boston Scientific, including Group Vice President of Global Marketing for the Company’s Cardiology, Rhythm and Vascular businesses. Mr. Mirviss holds a B.I.S. in Marketing from the University of Minnesota and an MBA from the University of St. Thomas.

About CONMED Corporation

CONMED is a medical technology company that provides devices and equipment for surgical procedures. The Company’s products are used by surgeons and other healthcare professionals in a variety of specialties including orthopedics, general surgery, gynecology, and thoracic surgery. For more information, visit www.conmed.com.

Forward-Looking Statements

This press release may contain forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties, which could cause actual results, performance, or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures. For example, in addition to general industry and economic conditions, factors that could cause actual results to differ materially from those in the forward-looking statements may include, but are not limited to the risk factors discussed in the Company's Annual Report on Form 10-K for the full year ended December 31, 2025, listed under the heading Forward-Looking Statements in the Company’s most recently filed Form 10-Q and other risks and uncertainties, which may be detailed from time to time in reports filed by CONMED with the SEC. Any and all forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The Company believes that all forward-looking statements made by it have a reasonable basis, but there can be no assurance that management’s expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct.

Key Takeaways Cardinal Health's Other Growth Businesses revenues rose 34% to $1.7 billion in fiscal Q3.CAH saw NPHS growth fueled by theranostics demand and At-Home Solutions expansion.CAH's OptiFreight revenues rose nearly 20%, boosting higher-margin growth exposure. Cardinal Health’s (CAH - Free Report) fiscal third-quarter results suggest that the company’s “Other Growth Businesses” are evolving from complementary assets into a meaningful profit engine, underscoring management’s strategy to diversify beyond its traditionally low-margin pharmaceutical distribution business.

In the third quarter of fiscal 2026, revenues from the segment surged 34% to $1.7 billion, while segment profit climbed at an even faster rate of 52%, highlighting the increasing earnings leverage of these higher-margin operations.

The momentum was broad-based, with strength coming from Nuclear and Precision Health Solutions (NPHS), At-Home Solutions and OptiFreight Logistics. NPHS continued to benefit from rapid adoption of theranostics, where revenues gained more than 30%, supported by Cardinal Health’s investments in isotope production capabilities and rising demand for targeted cancer therapies. Management emphasized growing engagement with pharmaceutical innovators, which includes the Actinium-225 platform that is already supporting more than 15 clinical trials globally.

At-Home Solutions is benefiting from the secular shift of healthcare services toward home-based care. Demand remained strong, aided by the successful integration of the Advanced Diabetes Supply (ADS) acquisition. Cardinal Health has now onboarded nearly 500,000 new patients and about 1,000 employees. The company is also migrating ADS volumes into its distribution centers, creating scale efficiencies and a stronger chronic-care platform. The business is also generating synergies with pharma through its ContinuCare Pathway program, which now serves 165,000 patients.

OptiFreight Logistics added another layer of growth, with revenues increasing nearly 20%, reflecting rising demand for cost-efficient healthcare logistics solutions. Together, these businesses are not only diversifying Cardinal Health’s revenue mix but also expanding exposure to faster-growing, higher-margin healthcare niches — potentially making them an increasingly important driver of long-term profitability.

Peer UpdateAlign Technology’s (ALGN - Free Report) future growth appears increasingly tied to deeper penetration of digital orthodontics and improved operating leverage. In the first quarter of 2026, the company reported record clear aligner shipments of 686,000 cases, supported by double-digit growth in international markets, especially APAC, EMEA and Latin America, while North America stabilized.

Future demand drivers for ALGN include expanding adoption among teens and children through products such as Invisalign First and Palatal Expander. Apart from product adoption, growing DSO partnerships, and financing initiatives are improving affordability and case conversion. Align Technology’s profitability is likely to be driven by AI-enabled treatment planning, lower refinement rates, operational efficiencies and higher-margin product configurations requiring fewer aligners, supporting sustained margin expansion.

CONMED’s (CNMD - Free Report) long-term growth and profitability outlook is likely to be driven by its focused portfolio strategy and higher-margin surgical platforms. Following the strategic divestiture of its gastroenterology business, management is concentrating resources on AirSeal, Buffalo Filter and BioBrace, which target attractive growth categories in the healthcare segment.

AirSeal should benefit from increasing robotic and laparoscopic surgeries, where penetration is still low. The U.S. laparoscopic procedures exceed 3 million annually, representing significant growth opportunity. Buffalo Filter has a favorable tailwind from expanding smoke-free operating room legislation, while BioBrace adoption continues to strengthen as surgeons embrace biologic soft-tissue repair solutions. Improving supply-chain reliability and a richer product mix should also support margin expansion and profit recovery.

CAH’s Price Performance, Valuation and EstimatesShares of CAH have lost 2.4% so far this year compared with the industry’s 8.2% decline.

Image Source: Zacks Investment Research

From a valuation standpoint, Cardinal Health trades at a forward price-to-earnings ratio of 16.98, above the industry average. It is also higher than its five-year median of 13.72. CAH carries a Value Score of A.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Cardinal Health’s fiscal 2026 earnings implies a 30.1% rise from the year-ago period’s level, followed by 11.4% expected growth in fiscal 2027.

Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways CONMED exited its GI portfolio to focus on higher-growth platforms with stronger margin potential.AirSeal's installed base tops 10,000 systems, with significant room for laparoscopic adoption.BioBrace gains traction in soft tissue repair, backed by growing clinical evidence and studies. CONMED Corporation (CNMD - Free Report) is well-positioned for growth on the back of rising adoption of its high-margin, differentiated platforms like AirSeal, Buffalo Filter and BioBrace. The company’s long-term prospects seem good as robotic procedure volume rises, coupled with the expanding penetration of Ambulatory Surgery Centers. Moreover, improving supply-chain bottlenecks should drive top- and bottom-line growth.

CONMED is facing tariff headwinds that are unfavorably impacting its earnings per share (EPS) and revenue expansion. Higher operating expense investments remain a concern.

Shares of this Zacks Rank #3 (Hold) company have lost 12.1% in the year-to-date period, underperforming the industry’s 9.2% decline and the S&P 500 Index’s 11.1% return.

Image Source: Zacks Investment Research

CONMED, a renowned global medical products manufacturer specializing in surgical instruments and devices, has a market capitalization of $1.07 billion. The company projects 5.1% earnings growth over the next five years.

The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 5.38%.

Factors Favoring CNMD StockStrategic Portfolio Simplification Should Improve Growth and Margin Quality: CONMED’s decision to fully exit its gastroenterology (GI) product portfolio represents a significant strategic shift toward higher-growth and higher-margin businesses. Management emphasized that the divestiture allows the company to redirect capital, commercial resources and management attention toward AirSeal, Buffalo Filter and BioBrace — three platforms with stronger competitive positioning and better long-term economics. While the GI business historically contributed to revenue generation, it carried lower strategic relevance and diluted growth rates. By concentrating investments on minimally invasive surgery, smoke evacuation and orthopedic soft tissue repair, CONMED is creating a more focused portfolio that should support faster organic growth, improved margin expansion and a clearer investment narrative over the next several years.

AirSeal Continues to Benefit From Multiple Structural Growth Drivers: AirSeal remains one of CONMED’s most important growth assets, supported by both robotic surgery expansion and underpenetrated laparoscopic procedures. The company now has an installed base exceeding 10,000 systems globally, providing recurring disposable revenues and strong surgeon familiarity. Beyond robotics, management highlighted that AirSeal is currently utilized in only 6-7% of the more than three million laparoscopic procedures performed annually in the United States, suggesting a substantial runway for adoption. CONMED placed more than 50% additional AirSeal units into the market compared with the prior-year quarter, which should support future disposable utilization. This combination of installed-base growth and low market penetration creates an attractive long-term growth profile.

BioBrace Emerging as a Differentiated Orthopedic Growth Platform: BioBrace continues to gain traction as a next-generation soft tissue repair technology and is increasingly becoming a cornerstone of CONMED’s orthopedic strategy. The implant uniquely combines structural reinforcement with biologic healing support, differentiating it from competing repair solutions. Management noted that surgeons are expanding the use of BioBrace across both primary repairs and more complex procedures, with more than 30 published studies strengthening clinical confidence. Additionally, the ongoing 268-patient randomized controlled trial could provide a powerful clinical catalyst. The trial is expected to complete enrollment in 2026. As orthopedic surgeons increasingly prioritize biologic augmentation and durability of repair outcomes, BioBrace appears well-positioned to capture share within a large and growing sports medicine market.

Supply Chain Recovery Creating Opportunity for Market Share Recapture: After several years of operational challenges, CONMED appears to be making meaningful progress in restoring supply chain reliability. Management stated that improvements achieved in late 2025 have been sustained through the first quarter of 2026, enabling orthopedic sales teams to become more proactive with customers rather than focusing primarily on product availability issues. Orthopedics delivered mid-single-digit growth for the third consecutive quarter, supported by improved service levels and stronger execution. Management believes customer relationships remained intact during supply disruptions, creating an opportunity to gradually regain lost business as contracts renew. A more reliable supply chain should not only support revenue growth but also improve operational leverage and customer confidence over time.

Downsides of CNMD StockRising Debt Costs Could Become a Meaningful Earnings Headwind: CONMED faces increasing financing costs as it refinances upcoming debt obligations. Management indicated that replacing expected convertible financing with traditional bank debt will increase interest expense and create at least a 10-cent EPS headwind in 2026, with potential implications extending into 2027. Long-term debt stood at approximately $860 million, while leverage remains around 3.1x EBITDA. Although management emphasized strong banking relationships and liquidity access, higher borrowing costs reduce financial flexibility and may limit future capital deployment options. In an environment where medtech valuations remain depressed and interest rates elevated, refinancing risk could continue to weigh on earnings growth and shareholder returns.

Smoke Evacuation Growth Still Being Offset by Weak OEM Performance: Buffalo Filter remains a compelling long-term opportunity, particularly as more states adopt smoke-free operating room legislation. However, near-term growth continues to be constrained by weakness in the OEM smoke evacuation business, which management described as a “meaningful headwind” during the first quarter. The OEM portion remains volatile and lumpy, creating quarterly revenue fluctuations that can mask the stronger performance of the direct smoke business. While management expects direct smoke evacuation to increasingly dominate the revenue mix over time, the transition period could create uneven growth patterns. Investors may therefore continue to see variability in reported performance despite favorable long-term legislative and clinical adoption trends.

Inflationary and Cost Pressures Could Limit Margin Expansion: Management acknowledged ongoing cost inflation across several key inputs, including oil-based materials, precious metals and medical device components. Although CONMED currently believes these pressures are incorporated into guidance and manageable through supplier negotiations and pricing actions, the company remains vulnerable to broader macroeconomic and geopolitical developments. Gross margin improved 100 basis points in the first quarter, aided by a favorable product mix, but sustaining that improvement may become increasingly difficult if commodity inflation accelerates or supply chain costs rise further. Given the company’s ongoing investment cycle and refinancing-related interest expense pressures, any inability to offset cost inflation could constrain future margin expansion and earnings growth.

Estimate TrendCONMED is witnessing a stable estimate revision trend for 2026. In the past 60 days, the Zacks Consensus Estimate for earnings has improved 2 cents to $4.38 per share.

The Zacks Consensus Estimate for second-quarter fiscal 2026 revenues and EPS is pegged at $337.2 million and $1.10, suggesting 1.5% and 4.4% declines, respectively, from the year-ago reported numbers.

Stocks to ConsiderSome better-ranked stocks from the broader medical space are Pacific Biosciences of California (PACB - Free Report) , Globus Medical (GMED - Free Report) and Biodesix (BDSX - Free Report) .

Globus Medical, sporting a Zacks Rank #1 (Strong Buy) at present, reported first-quarter 2026 adjusted EPS of $1.12, which outpaced the Zacks Consensus Estimate by 21.7%. Revenues of $760 million surpassed the Zacks Consensus Estimate by 4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% appreciation. The company beat earnings estimates in each of the trailing four quarters, with the average surprise being 26.26%.

Pacific Biosciences of California, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2026 adjusted loss per share of 12 cents, which surpassed the Zacks Consensus Estimate by 29.4%. Revenues of $37 million missed the Zacks Consensus Estimate by 9.3%.

PACB’s earnings are estimated to improve at a rate of 22.6% compared with the industry’s 13.3% growth in 2026. The company beat earnings estimates in each of the trailing four quarters, with the average surprise being 29.76%.

Biodesix, currently carrying a Zacks Rank of 2, reported a first-quarter 2026 adjusted loss per share of 81 cents, which beat the Zacks Consensus Estimate by 35.71%. Revenues of $26 million beat the Zacks Consensus Estimate by 12.3%.

BDSX has an estimated earnings growth rate of 36% for 2026 compared with the industry’s 12.5% return. The company beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 25.56%.