Jim Cramer called it “the greatest time in the history of the industry” on Mad Money Thursday night, and the data is screaming the same thing: Applied Materials (NASDAQ:AMAT | AMAT Price Prediction) is up 75% year to date as the AI data center buildout has triggered shortages across every node, every fab, and every piece of capital equipment that touches a wafer. The five names below are the toll collectors of that buildout, and waiting for a pullback has been the most expensive trade of 2026.
1. Onto Innovation: The Metrology Sleeper Nobody Is Pricing Right Start with the name nobody at your office mentions. Onto Innovation (NYSE:ONTO) sells the metrology and inspection tools that verify every micro-bump on a high-bandwidth memory stack. Every HBM cube glued onto an NVIDIA Blackwell GPU passes through Onto’s Dragonfly platform before it ships. That is the chokepoint of AI accelerator packaging, and it is the part of the supply chain analysts still underweight.
Q4 2025 was a record at $266.87 million in revenue, but the real catalyst is the volume purchase agreement worth more than $240 million with a leading HBM manufacturer running through 2027. CEO Mike Plisinski said “global AI investment fueling a robust upcycle in semiconductor capital equipment spending” reinforces confidence in outgrowing the broader equipment market in 2026 and beyond, and a cash pile of $639.6 million, up over 200% year over year, gives them dry powder for the next bolt-on.
Onto is up 64% YTD and still carries a roughly $13 billion market cap. That is a rounding error next to the next name on the list, which actually builds the machines carving the trenches Onto inspects.
2. Lam Research: The Etch and Deposition Cash Machine If HBM is the AI memory of choice, Lam Research (NASDAQ:LRCX) is the company physically stacking it. Lam dominates etch and deposition, the two process steps that build the vertical 3D NAND and DRAM structures HBM requires. Every fresh HBM3E and HBM4 capacity announcement from SK hynix, Micron, or Samsung translates into Lam orders.
The March quarter delivered revenue of $5.84 billion, up 23.76% year over year, with non-GAAP EPS of $1.47 beating the $1.36 consensus, the fourth straight earnings beat. Guidance for the June quarter calls for roughly $6.60 billion in revenue, a sequential acceleration that does not happen at a cyclical peak. CEO Tim Archer said “AI-driven demand reshapes the semiconductor industry”, and the 86% YTD move says the market believes him.
Lam is the obvious memory torque trade. The next stock is even more obvious, and it is the one Cramer is pounding the table on.
3. Applied Materials: Cramer’s Stock and Dickerson’s Victory Lap This is the one. AMAT touches more steps in chip fabrication than any other equipment vendor on Earth, and on Mad Money Thursday CEO Gary Dickerson sat across from Cramer and told him “AI is driving incredible computing demand” and “token demand is up like 3x in the last few months”. Cramer noted Dickerson had returned 2,897% for shareholders over his tenure. That is the kind of compounding that happens once a career.
The Q2 FY2026 report backed every word: revenue of $7.91 billion, up 11.4% year over year, non-GAAP EPS of $2.86 against a $2.66 consensus, and management raising its calendar 2026 semiconductor equipment growth outlook from over 20% to more than 30%. Dickerson told Cramer “you’re nowhere near able to meet the demand” even after doubling operational capacity. I have been watching Applied for the better part of a decade, and I have never seen a CEO speak with this much forward visibility on the order book.
The stock is up 180% over the past year. The next name has even fatter margins and arguably an even better moat.
4. KLA: The Toll Collector With Software Margins KLA (NASDAQ:KLAC) owns process control. Roughly 90% of revenue comes from one segment, semiconductor process control, where KLA holds a near-monopoly share. Every wafer at every leading-edge fab gets inspected with a KLA tool. It is the unkillable subscription of semiconductor capex, and the margins prove it.
The March quarter delivered revenue of $3.42 billion with non-GAAP EPS of $9.40 beating the $9.15 consensus, and June quarter guidance calls for non-GAAP gross margin of roughly 62%. Management approved the 17th consecutive annual dividend increase alongside an additional $7 billion buyback authorization. CEO Rick Wallace said KLA is “a key enabler of the AI ecosystem” across foundry/logic, memory, advanced packaging, and services.
KLA is up 59% YTD and trades like a software company because it operates like one. But there is one name that sits a level above even KLA, and without it, none of the supercycle exists.
5. ASML: The Gatekeeper of the Entire Supercycle ASML (NASDAQ:ASML) is the only company on Earth that makes EUV and High NA EUV lithography systems. Every 3nm and 2nm logic chip, every leading-edge HBM die, every NVIDIA, AMD, and Broadcom AI accelerator currently shipping passes through an ASML machine. There is no second source. There is no workaround. If TSMC, Samsung, or Intel wants to build a leading-edge fab, they fly to Veldhoven and get in line.
Q1 2026 delivered revenue of $10.34 billion at a 53.0% gross margin, and management raised the full-year outlook to €36 billion to €40 billion. The 2030 model targets €44 billion to €60 billion in revenue at 56% to 60% gross margin, and the year-end backlog already sits at $45.06 billion. CEO Christophe Fouquet said “demand for chips is outpacing supply” and customers are accelerating capacity expansion plans backed by long-term agreements with their own customers.
ASML is up 51% YTD. It is the single most important industrial company in the world, and the market is just starting to price it that way.
The Setup Onto inspects what Lam etches, Applied deposits, KLA measures, and ASML patterns. Every link in that chain is sold out into 2027. Dickerson told Cramer “this inflection is going to go on for a very long time”. The longer you wait for a clean entry, the more YTD moves like AMAT’s 75% you will be paying up for.
On June 02, 2026, Onto Innovation Inc ONTO shares rose 8.7% today, bringing the current price to $278.02. This price is within a 52-week range of $89.40 to $316.00, showing significant volatility over the past year.
GF Value™ verdict: Current price is $278.02 vs GF Value™ of $185.60, indicating the stock is 49.8% overvalued.GF Score™ of 88/100, signaling a strong overall performance across key metrics.Most notable signal: No insider transactions in the last 3 months, suggesting stability in management actions. Is ONTO Overvalued or Undervalued? The current price of Onto Innovation Inc ONTO is $278.02, which is significantly above the GF Value™ estimate of $185.60. This represents a 49.8% overvaluation, indicating that the stock may not provide a margin of safety for potential investors. The GF Valuation label classifies ONTO as significantly overvalued, which poses risks for those considering entry at this price level.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The substantial difference between the market price and the calculated intrinsic value suggests that ONTO shares may be subject to correction, especially if market sentiment shifts or if the company does not deliver on growth expectations.
How Does ONTO's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 129.9x 36.6x Forward P/E 39.0x - With a current P/E (TTM) of 129.9x, ONTO is trading at a level that is 255% above its 5-year median P/E of 36.6x, indicating that the stock is significantly overvalued compared to its historical valuation metrics. The forward P/E of 39.0x also suggests that even projected earnings do not justify the high current price, which aligns with the overvaluation indicated by the GF Value™ analysis.
What Does ONTO's GF Score™ Tell Us? Metric Rating GF Score™ 88 Financial Strength 8/10 Profitability 8/10 Growth 9/10 Valuation 5/10 Momentum 6/10 ONT's GF Score™ of 88/100 reflects a strong performance in several key areas, particularly in growth (9/10) and financial strength (8/10). However, the valuation rank of 5/10 indicates that the stock may not be attractively priced at its current level. The weakest area is the valuation, which is consistent with the concerns raised by the GF Value™ assessment.
What Are Insiders Doing with ONTO Stock? In the last three months, there have been no insider transactions reported for Onto Innovation Inc. This lack of activity could suggest that insiders are either confident in the company's current valuation and strategy or are waiting for clearer signals before making trades. When insiders are inactive, it may imply a wait-and-see approach regarding the company's future performance.
What This Means for Investors Based on the analysis of GF Value™, Onto Innovation Inc ONTO is currently considered overvalued. The significant gap between the current price and the intrinsic value suggests caution for potential investors who may be considering entry points at these elevated levels.
For the complete analysis, visit the Onto Innovation Inc ONTO stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ONTO's GF Score™?
ONTO's GF Score™ is 88/100, indicating that it has strong performance across key metrics, which has historically correlated with higher long-term returns.
Is ONTO overvalued or undervalued?
ONTO is considered overvalued, with a current price of $278.02 compared to a GF Value™ of $185.60, indicating a significant margin of overvaluation.
What is ONTO's P/E ratio?
ONTO's P/E (TTM) is 129.9x, which is significantly above its 5-year median P/E of 36.6x, confirming that the stock is trading at a much higher valuation compared to its historical norms.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
A month has gone by since the last earnings report for Onto Innovation (ONTO - Free Report) . Shares have lost about 4.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Onto Innovation due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Onto Innovation Q1 Earnings Beat EstimatesOnto Innovation reported first-quarter 2026 earnings per share of $1.42, which beat the Zacks Consensus Estimate by 2.9%. The bottom line compared unfavorably with the prior-year quarter's $1.51. Management expected non-GAAP earnings per share to be between $1.26 and $1.36.
Onto Innovation reported quarterly revenue of $291.9 million, reflecting a 9.5% increase year over year and nearly 10% sequential growth led by rising customer investments in advanced semiconductor manufacturing. The growth was primarily driven by the increased adoption of its inspection and metrology platforms among top logic and memory manufacturers. Demand for AI chips, advanced packaging solutions and high-bandwidth memory continues to boost semiconductor capital expenditures, especially in Asia, where Onto Innovation has expanded its manufacturing footprint.
Customer adoption of the company’s latest systems, including the Dragonfly G5 and Atlas G6 platforms, has been especially promising. These technologies aim to help semiconductor manufacturers improve yields and process control for increasingly complex chip designs. A key highlight from the quarter was the qualification of the Dragonfly G5 inspection system at both a leading 2.5D logic customer and a high-bandwidth memory customer. Onto also announced that its newly launched Atlas G6 system was selected by a second logic customer for gate-all-around metrology applications.
Another major development was Onto Innovation’s collaboration with Rigaku Holdings Corporation, acquiring a 27% stake for about $710 million, with the deal expected to close in the second half of 2026. The partnership expands Onto’s access to advanced X-ray technologies, enhancing its semiconductor inspection and metrology capabilities, and includes the right to appoint a board member. Along with its earlier acquisition of Semilab USA, the move underscores Onto’s strategy to broaden its process control ecosystem and support long-term growth.
Specialty devices and advanced packaging revenues (55% of total revenues) were about $160 million for the quarter. Roughly two-thirds came from advanced packaging, including about $25 million from Semilab, with the remainder driven by specialty devices such as power semiconductors.
Revenues from the Advanced nodes (27.4%) were about $80 million, with roughly 60% coming from memory, primarily DRAM, and the rest from logic.
Revenues from Software and services accounted for the remaining 17.6% of net sales.
Margin DetailsNon-GAAP gross margin improved slightly to 55.7% from 55.1% in the previous-year quarter.
Non-GAAP operating income rose to $77.9 million from $76.5 million in the prior-year quarter. Non-GAAP operating margin was 26.7%, down from 28.7% in the previous-year quarter.
Despite rising input costs, including memory, fuel and shipping, margin performance remained strong, driven largely by benefits from the shift to extended factories.
Total operating expenses for the quarter were $112.9 million compared with $80 million in the previous year quarter.
LiquidityAs of March 31, 2026, the company had $654.2 million in cash, cash equivalents and marketable securities with $214.5 million of total current liabilities compared with $639.6 million and $218.9 million, respectively, as of Jan. 3, 2026.
Accounts receivable were $306.6 million.
The company also generated roughly $26 million in operating cash flow during the quarter.
Q2 Guidance Signals Continued MomentumOnto Innovation expects second-quarter revenues of $320–$330 million, implying about 10% upside to prior estimates at the midpoint and 28% year-over-year growth. Momentum is set to build in the second half, with at least 15% growth over the first half, putting full-year 2026 revenue above $1.3 billion.
Despite headwinds from higher material and fuel costs, along with increased R&D and service investments, Onto Innovation expects continued margin expansion.
The company expects gross margin between 56% and 56.5%, non-GAAP operating margin between 28% and 28.6% and non-GAAP EPS between $1.65 and $1.73.
While monitoring macro and company-specific cost pressures, Onto Innovation remains confident it can expand gross margins by at least 50 basis points in the third and fourth quarters each and exit the year with an operating margin above 30%.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.
VGM ScoresAt this time, Onto Innovation has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Onto Innovation has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Shares of Onto Innovation (ONTO - Free Report) have gained 0.2% over the past four weeks to close the last trading session at $274.76, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $352.14 indicates a potential upside of 28.2%.
The average comprises seven short-term price targets ranging from a low of $330.00 to a high of $370.00, with a standard deviation of $12.86. While the lowest estimate indicates an increase of 20.1% from the current price level, the most optimistic estimate points to a 34.7% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in ONTO. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in ONTOThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 3.5%, as two estimates have moved higher compared to no negative revision.
Moreover, ONTO currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much ONTO could gain, the direction of price movement it implies does appear to be a good guide.
Key Takeaways Onto Innovation will buy a 27% Rigaku stake, gaining advanced X-ray technologies and software revenues.ONTO expects Rigaku benefits to offset lost interest income within a year after closing.Onto Innovation added Semilab, Lumina and lithography assets to expand process control capabilities. One of the key drivers behind Onto Innovation, Inc. (ONTO - Free Report) growth and competitive strength has been its strategic use of acquisitions. Rather than relying solely on internal research and development, the company has expanded its technology portfolio through carefully selected acquisitions that enhance its capabilities, accelerate innovation and strengthen its position across multiple semiconductor manufacturing segments.
In April 2026, Onto partnered with Rigaku Holdings Corp. As part of the deal, Onto will buy a 27% ownership stake in Rigaku for approximately $710 million. The transaction is expected to close in the second half of 2026. This partnership provides Onto with access to a broader range of advanced X-ray technologies, which could sharply enhance its semiconductor inspection and metrology capabilities. Along with Onto’s earlier acquisition of Semilab USA, it is growing its process control ecosystem. These investments may help Onto tackle increasingly complex semiconductor manufacturing challenges while creating additional long-term revenue streams. Although it won’t consolidate Rigaku’s financials, Onto expects the partnership to increase earnings through high-margin Ai Diffract software licensing, higher sales of metrology tools like Atlas G6, and annual dividend income of more than $7 million.
Management expects these benefits to cover the lost interest income from the cash used for the deal within a year of closing. In 2025, Onto completed a $495 million acquisition of key Semilab product lines, adding FAaST, CnCV and MBIR tools to strengthen its inline wafer contamination monitoring, materials analysis and surface charge metrology capabilities. Specialty devices and advanced packaging generated approximately $160 million, or 55% of the first-quarter revenues, with advanced packaging contributing roughly two-thirds, including around $25 million from Semilab.
It has added Lumina to enhance its inspection portfolio. Lumina specializes in laser-based inspection for unpatterned wafers and emerging panel applications. Its patented technology enables high-sensitivity scanning of silicon carbide, gallium nitride and glass substrates and carriers in advanced packaging. This complements the company’s pattern inspection capabilities, addresses critical defect detection and is expected to increase SAM by $250 million annually within three years. Onto also acquired its lithography business from Kulicke and Soffa Industries, Inc. in 2024, gaining key intellectual property, including 24 issued patents and eight pending. This acquisition strengthens Onto’s JetStep panel lithography development and enhances its overall metrology and lithography capabilities.
How are ONTO’s Industry Peers Broadening Market Reach?KLA Corporation's (KLAC - Free Report) product roadmap and customer collaboration continue to translate into measurable market share momentum. KLAC has expanded its technology portfolio through strategic acquisitions, including Orbotech in 2019, which strengthened its presence in flat-panel displays, PCBs and advanced packaging; SPTSTechnologies, which added etch and deposition capabilities; Therma-Wave, which enhanced metrology and process control; and ICOSVisionSystems, which bolstered optical inspection solutions for semiconductor packaging. The company also noted that process control share has risen about 360 basis points since 2021, with gains across mask inspection, optical pattern wafer inspection and electron-beam inspection.
Applied Materials (AMAT - Free Report) expects its packaging revenues to grow more than 50% in 2026, with investments shifting toward its leadership positions in 3D stacking. This outlook is reinforced by Applied Materials’ intent to acquire NEXX business from ASMPT, which would add panel-level electrochemical deposition capabilities and broaden its portfolio for larger-body AI accelerator packages. Management framed packaging as one of the most enabling parts of AI compute systems, which can extend the duration of packaging investment beyond a single memory build cycle. If the acquisition closes and execution remains on track, AMAT can expand its served markets while deepening customer integration.
ONTO Price Performance, Valuation and EstimatesONTO’s shares have soared 154.6% in the past year, outperforming the Zacks Nanotechnology industry’s growth of 153.2% as well as the Zacks Computer and Technology sector and the S&P 500 composite’s growth of 43.5% and 26.7%, respectively.
Image Source: Zacks Investment Research
In terms of forward price/earnings, ONTO’s shares are trading at 31.58X, higher than the industry’s 6.25X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ONTO has moved up for both 2026 and 2027 over the past 60 days.
Image Source: Zacks Investment Research
Onto Innovation currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways ONTO topped Q1 expectations and sees 2026 revenue exceeding $1.3 billion on AI-driven demand.ONTO expects advanced packaging revenue to grow more than 50% in 2026 amid customer wins.ONTO plans a $710M Rigaku stake investment to expand metrology capabilities and licensing revenue. Shares of Onto Innovation, Inc. (ONTO - Free Report) have been one of the standout performers in the semiconductor equipment industry, delivering a remarkable 174.2% gain over the past year, outperforming the Zacks Nanotechnology industry’s growth of 171.5%. The company has outpaced the Zacks Computer and Technology sector and the S&P 500 composite’s growth of 42.8% and 26.3%, respectively.
Image Source: Zacks Investment Research
The stock’s impressive rally has been fueled by booming demand for AI infrastructure, advanced semiconductor packaging technologies, and the company’s expanding role in next-generation chip manufacturing. ONTO’s key competitors include KLA Corporation (KLAC - Free Report) , Camtek Ltd (CAMT - Free Report) and Nova Ltd. (NVMI - Free Report) . KLAC, CAMT and NVMI have grown 145.4%, 121.6% and 121%, respectively, in the same time frame.
Onto Innovation is a leading provider of process control, metrology, inspection and software solutions for semiconductor manufacturing. Its technologies help chipmakers improve yields, detect defects and optimize production across advanced logic, memory, advanced packaging, AI and high-performance computing applications. As chip manufacturing grows more complex, demand for Onto's precision tools continues to rise.
With such a strong run already behind it, investors are now asking a critical question: Does ONTO still have room to climb, or has the market already priced in most of the good news?
AI is Creating a Powerful Tailwind for ONTO StockOnto Innovation started 2026 strongly, surpassing expectations as demand for AI compute, advanced packaging and semiconductor process technologies continues to grow. First-quarter revenue hit $292 million, nearly 10% up sequentially, while second-quarter guidance of $320–$330 million indicates about 28% year-over-year growth. The company anticipates revenue to increase more than 15% sequentially in the second half of 2026, putting it on track to exceed $1.3 billion for the year. This momentum is fueled by customer expansions, rising adoption of new products and a strengthening order backlog.
Advanced Packaging to Become a Long-Term Growth EngineONTO continues to solidify its position in advanced packaging with several key customer wins and technology milestones. It achieved qualification for its Dragonfly G5 system at a leading 2.5D logic customer, with shipments progressing ahead of schedule. Its pipeline now comprises more than 15 applications across more than 10 customers, highlighting broad adoption potential. Advanced packaging revenue is projected to grow more than 50% in 2026, driven by increasing use cases in 2.5D logic, HBM and other advanced packaging technologies. Demand for solutions supporting bumps below six microns in height is rising, especially among OSAT customers, while growing interest in panel-level packaging and heterogeneous integration is expected to lead to a larger production ramp starting in 2027.
Advanced nodes business is also gaining momentum, led by expanding adoption of its Atlas G6 platform and new application opportunities. Following successful customer evaluations, Atlas G6 deployments are increasing across both logic and memory markets. The company also secured a new win in through-silicon via metrology, with shipments expected to begin in the second half of 2026. Growth is being driven by continued investment in advanced logic, improving DRAM demand and an anticipated recovery in the NAND market. As a result, Onto expects its advanced nodes segment to grow approximately 25% in 2026, outperforming broader WFE growth projections in the low-20% range.
Partnerships Strengthen ONTO’s Competitive PositionIt is strengthening its partnership with Rigaku Holdings Corporation through a planned $710 million investment for a 27% stake, expected to close in the second half of 2026. Funded primarily with cash on hand, the deal combines Rigaku’s X-ray expertise with ONTO’s optical metrology capabilities, expanding its technology portfolio. The partnership is expected to generate high-margin licensing revenue from Ai Diffract software, drive additional metrology tool sales and provide annual dividend income. Rigaku’s results will not be consolidated into Onto’s financial statements, though unrealized gains and losses from the investment will be reflected in other income.
Moreover, Onto Innovation's strategic investment in hybrid metrology is aimed at expanding its growth opportunities over the next three to six years. While the initiative is not expected to have a meaningful impact on revenue in 2026, it is positioned to create long-term value through potential interest income, high-margin licensing revenue and increased hybrid metrology system sales. Combined with expected dividend income, the investment is designed to strengthen Onto’s technology leadership and significantly broaden its medium- to long-term growth prospects.
Onto Innovation expects second-quarter revenues of $320–$330 million, implying about 10% upside to prior estimates at the midpoint and 28% year-over-year growth. Despite headwinds from higher material and fuel costs, along with increased R&D and service investments, it expects continued margin expansion. While monitoring macro and company-specific cost pressures, Onto remains confident it can expand gross margins by at least 50 basis points in the third and fourth quarters each and exit the year with an operating margin above 30%.
Image Source: Zacks Investment Research
Despite its strong outlook, ONTO is not without risks. The company generates a significant portion of its revenue from large semiconductor manufacturers, making it sensitive to changes in their capital spending plans. Any slowdown in customer investments could affect revenue growth and order trends. Additionally, Onto operates in a highly competitive market alongside larger industry players with greater resources and global reach. To maintain its competitive position, the company must continue investing in innovation and advancing its technology leadership. The company is weighed down by tariffs, mostly from imported components that make up nearly 90% of its costs, along with added pressure from outbound tariffs.
Positive Estimate Revision Trend for ONTOEarnings estimates for ONTO have moved up for both 2026 and 2027 over the past 60 days.
Image Source: Zacks Investment Research
Valuation ConcernsAfter rising 174% in a year, the stock now trades at a significantly higher valuation multiple than it did previously. In terms of forward price/earnings, ONTO’s shares are trading at 34.12X, higher than the industry’s 6.6X.
Image Source: Zacks Investment Research
KLAC, CAMT and NVMI are trading at multiples of 43.59X, 47.39X and 48.9X, respectively.
Does ONTO Have More Room to Run?The company sits at the intersection of multiple powerful trends like AI, advanced packaging demand, HBM, semiconductor process complexity and data center expansion. These trends are likely to continue in the long run. However, as valuations rise, stock performance will increasingly depend on continued earnings growth and successful execution.
For long-term investors seeking exposure to AI-driven semiconductor infrastructure, Onto Innovation remains a compelling bet. The stock may experience periods of volatility following its massive run-up, but its strong competitive position and exposure to some of the industry's fastest-growing segments suggest the company could still have additional room to run over the coming years.
Currently boasting a Zacks Rank #1 (Strong Buy), ONTO seems to be a value addition for your portfolio. You can see the complete list of today’s Zacks #1 Rank stocks here.
Globus Medical (GMED - Free Report) has been on a downward spiral lately with significant selling pressure. After declining 13.8% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why GMED Could Bounce Back Before LongThe heavy selling of GMED shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 27.24. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering GMED in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 6.3% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, GMED currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Globus Medical (GMED - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this medical device company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Globus Medical is 17%, investors should actually focus on the projected growth. The company's EPS is expected to grow 17% this year, crushing the industry average, which calls for EPS growth of 12.3%.
Impressive Asset Utilization RatioGrowth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric shows how efficiently a firm is utilizing its assets to generate sales.
Right now, Globus Medical has an S/TA ratio of 0.6, which means that the company gets $0.6 in sales for each dollar in assets. Comparing this to the industry average of 0.59, it can be said that the company is more efficient.
While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Globus Medical looks attractive from a sales growth perspective as well. The company's sales are expected to grow 8.4% this year versus the industry average of 5.9%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Globus Medical have been revising upward. The Zacks Consensus Estimate for the current year has surged 6.3% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Globus Medical a Zacks Rank #1 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Globus Medical is a potential outperformer and a solid choice for growth investors.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Globus Medical (GMED - Free Report) Audubon, PA-based Globus Medical, Inc. is a medical device company that develops and commercializes healthcare solutions for patients with musculoskeletal disorders. The company currently has its sales operations distributed across 65 counties worldwide.
GMED is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.16; value investors should take notice.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.21 to $4.66 per share. GMED also boasts an average earnings surprise of +26.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, GMED should be on investors' short list.
Investors with an interest in Medical - Instruments stocks have likely encountered both Globus Medical (GMED - Free Report) and SONOVA HOLDING (SONVY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Globus Medical has a Zacks Rank of #2 (Buy), while SONOVA HOLDING has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GMED is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GMED currently has a forward P/E ratio of 17.16, while SONVY has a forward P/E of 18.33. We also note that GMED has a PEG ratio of 1.68. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SONVY currently has a PEG ratio of 3.73.
Another notable valuation metric for GMED is its P/B ratio of 2.29. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SONVY has a P/B of 4.9.
These are just a few of the metrics contributing to GMED's Value grade of B and SONVY's Value grade of C.
GMED is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GMED is likely the superior value option right now.
On May 20, 2026, Globus Medical Inc GMED shares rose 5.1% today, reaching a current price of $84.03. The stock is trading within a 52-week range of $51.79 to $101.40.
GF Value™ verdict: Current price of $84.03 is 14.6% below GF Value™ of $98.34.GF Score™ of 97/100 indicates a strong overall financial health and performance.Notable signal: Insider activity shows $1.9M in sales over the last three months with no buying. Is GMED Overvalued or Undervalued? The current price of Globus Medical Inc GMED at $84.03 is 14.6% below its GF Value™ estimate of $98.34, suggesting that the stock is undervalued. This creates a margin of safety for potential investors, as the GF Value™ assessment indicates a fair value that significantly exceeds the current trading price. The GF Valuation label marks GMED as "Modestly Undervalued," which signals a potential opportunity for growth. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
While the undervaluation presents an opportunity, it is essential to consider the risks associated with investing in a stock that has seen recent insider selling activity of $1.9M, which could suggest a lack of confidence among insiders. Overall, the combination of a strong GF Score™ and the undervalued status implies that GMED may have growth potential, but investors should proceed with caution given the insider selling trend.
How Does GMED's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)19.5x43.3x Forward P/E18.4xN/A GMED's current P/E (TTM) of 19.5x is significantly below its 5-year median P/E of 43.3x, indicating that the stock is trading at a much lower valuation compared to its historical performance. The forward P/E of 18.4x further supports the notion that the stock is reasonably priced relative to future earnings expectations. This P/E analysis aligns with the GF Value™ verdict of the stock being undervalued, as it suggests that the market has not fully recognized GMED's earnings potential.
What Does GMED's GF Score™ Tell Us? MetricRating GF Score™97/100 Financial Strength8/10 Profitability9/10 Growth10/10 Valuation8/10 Momentum10/10 The GF Score™ of 97/100 indicates that Globus Medical possesses strong financial health and performance across several key metrics. The highest scores are in Growth (10/10) and Momentum (10/10), reflecting the company’s robust business expansion and positive price trends. However, while the Financial Strength (8/10) and Valuation (8/10) rankings are also solid, they suggest areas where improvements could enhance overall stability. Overall, GMED shows a promising outlook with strong growth potential, but investors should be aware of the moderate financial strength compared to its growth capabilities.
What Are Insiders Doing with GMED Stock? Recent insider activity at Globus Medical indicates a selling trend, with insiders having sold $1.9M worth of shares over the past three months and no buying activity reported. This pattern may suggest a cautious outlook among insiders regarding the stock's near-term performance. While insider selling does not inherently indicate a negative outlook for the company, it can be a signal of potential uncertainty, particularly when combined with the stock's recent price fluctuations.
What This Means for Investors Based on the GF Value™ assessment, Globus Medical Inc GMED is currently undervalued, presenting a potential opportunity for growth. However, the recent insider selling could signal caution, and investors should weigh this factor alongside the stock's strong financial metrics.
For the complete analysis, visit the Globus Medical Inc GMED stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is GMED's GF Score™?
GMED has a GF Score™ of 97/100, indicating strong overall financial health and performance, suggesting a potential for higher long-term returns.
Is GMED overvalued or undervalued?
GMED is currently undervalued, with a GF Value™ estimate of $98.34 compared to its current price of $84.03, representing a 14.6% upside.
What is GMED's P/E ratio?
GMED's P/E (TTM) is 19.5x, which is significantly below its 5-year median P/E of 43.3x, indicating the stock is trading at a lower valuation compared to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Over the past several months, generative AI (GenAI) in the Medical Instruments industry has moved from experimental to operational use. Applications include generating synthetic medical images, simulating disease progression, creating potential drug molecules and simulatingtheir effects, to accelerate the long and costly drug development process. McKinsey’s latest survey of US healthcare leaders highlights several signals of gen AI’s maturation, with about 50% already implementing it across their organizations and more than 80% having deployed their first use cases to end users.
At the same time, regulatory bodies worldwide are adapting to this shift. The European Union AI Act (EU AI Act) 2024 introduced strict requirements for high-risk AI systems, such as AI-based medical software, including risk-mitigation systems, high-quality data sets and clear user information. As of 2025-end, the FDA’s AI/ML-Enabled Medical Devices list includes a cumulative total of more than 1400 devices, satisfying the applicable premarket requirements.
Grand View Research estimates the global AI in the healthcare market to expand at a CAGR of 38.9% from 2026 to 2033, building on a $36.67 billion valuation in 2025. Amid industry wide challenges, companies like Electromed (ELMD - Free Report) , Globus Medical (GMED - Free Report) and Intuitive Surgical (ISRG - Free Report) appear well-positioned to thrive.
Industry Description The Zacks Medical - Instruments industry is highly fragmented, with participants engaged in research and development (R&D) in therapeutic areas. This FDA-regulated sector encompasses a vast array of products, from transcatheter valves and orthopedic devices to advanced imaging equipment and robotics. Recent trends highlight the integration of AI in diagnostics, the expansion of telemedicine, the rise of robotic-assisted surgeries and developments in 3D printing, continuous glucose monitoring systems and gene editing. The rise of GenAI is also reshaping MedTech, from speeding up patient recruitment to optimizing trial designs and improving regulatory processes. The FDA’s Total Product Life Cycle approach supports faster development of safe and effective medical devices critical to public health.
3 Trends Shaping the Future of the Medical Instruments Industry GenAI Revolution: Over the past couple of years, there has been a significant increase in the adoption of GenAI within the medical instrument space, with hyper-personalization being the primary feature of GenAI-driven treatment options. GenAI, while analyzing vast and complex genetic and molecular data, is expected to help healthcare reach new heights in terms of predictive treatment options and smart hospital systems. According to Towards Healthcare, global GenAI in the healthcare market is projected to expand at a CAGR of 35.1% between 2026 and 2035, from a value of $2.65billion in 2025. Growth is being driven by rising demand for AI solutions in the healthcare industry, increasing investments and strategic partnerships between healthcare institutions and AI technology providers, as well as demand for precise and personalized treatment plans. The application of AI in the diagnostics space is growing enormously, with the market expected to witness a CAGR of 46.1% by 2034.
M&A Trend: The medical instrument space has been benefiting from the ongoing merger and acquisition (M&A) trend. It is a known fact that smaller and mid-sized industry players attempt to compete with the big shots through consolidation. The big players attempt to enter new markets through a niche product. According to a J.P. Morgan April 2026 report, medtech M&A activity in 2025 was highly concentrated, with large transactions accounting for the majority of value. At the same time, underlying deal volume remained more stable. Notable transactions in the fourth quarter include Abbott’s acquisition of Exact Sciences for $23 billion and Blackstone and TPG’s take-private deal of Hologic for $18 billion. The insight also states that medtech deal activity totaled $26.6 billion across 38 deals in the first quarter of 2026, including Boston Scientific’s $15 billion agreement to acquire Penumbra and Danaher’s agreement to acquire Masimo for $10 billion.
Business Trend Disruption: The IMF’s April 2026 World Economic Outlook notes that the outbreak of war in the Middle East in February 2026 has interrupted what had been a steady growth trajectory. Assuming a short-lived conflict,global growth is projected at 3.1% in 2026, a downward revision of 0.2 percentage points from its January forecast. Prior to the war, the agency had been preparing to raise its global growth outlook, reflecting continued economic momentum, a tech-investment boom, moderation in trade policy tensions, fiscal support in some countries and accommodating financial conditions. Global headline inflation is expected to rise from 4.1% in 2025 to 4.4% in 2026, before resuming its decline in 2027. Growth slowdown and an increase in inflation are expected to be more pronounced in emerging market and developing economies. The IMF apprehends that fostering adaptability, maintaining credible policy frameworks and reinforcing international cooperation are essential to navigating the current shock.
Zacks Industry Rank Indicates Dull Prospects The Zacks Medical Instruments industry’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates gloomy near-term prospects. The industry, housed within the broader Zacks Medical sector, currently carries a Zacks Industry Rank #139, which places it in the bottom 43% of 243 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
We will present a few stocks that have the potential to outperform the market based on a strong earnings outlook. It is worth taking a look at the industry’s shareholder returns and current valuation first.
Industry Underperforms S&P 500 & Sector The industry has underperformed the Zacks S&P 500 composite and the sector in the past year.
The industry has declined 6.9% against the broader sector’s rise of 4.9%. The S&P 500 has returned 30.3% in a year.
1-Year Price Performance
Image Source: Zacks Investment Research
Industry's Current Valuation On the basis of the forward 12-month price-to-earnings (P/E), which is commonly used for valuing medical stocks, the industry is currently trading at 24.00X compared with the broader industry’s 19.68X and the S&P 500’s 21.85X.
Over the past five years, the industry has traded as high as 41.40X, as low as 24.00X and at the median of 32.12X, as the charts show below.
Price-to-Earnings Forward 12 Months (F12M)
Image Source: Zacks Investment Research
Price-to-Earnings Forward 12 Months (F12M)
Image Source: Zacks Investment Research
3 Stocks to Buy Right Now Electromed: Electromed develops airway clearance products applying High Frequency Chest Wall Oscillation technologies in pulmonary care for patients.Its products are sold in both the homecare market and the hospital market for inpatient use.Electromed delivered its 14th consecutive quarter of year-over-year revenue and profit growth in the first quarter of 2026. With 86% of covered U.S. lives now under contract and manufacturing optimization complete, the company is well-positioned to capture the significant bronchiectasis market opportunity.
The Zacks Consensus Estimate for this Zacks Rank #1 (Strong Buy) company’s 2026 earnings per share (EPS) indicates a 41.2% rise over 2025. The consensus mark for 2026 revenues implies a 15.6% improvement. ELMD has an earnings yield of 3.1% against the industry’s negative 1% yield.
You can see the complete list of today's Zacks #1 Rank stocks here.
Price & Consensus: ELMD
Image Source: Zacks Investment Research
Globus Medical: Globus Medical develops advanced products and procedures to treat a variety of musculoskeletal conditions. The company’s 2023 merger with NuVasive enhanced its global commercial reach and operational capabilities, while the acquisition of Nevro in 2025 positioned it to alter the standard of care in the neuromodulation space. In first-quarter 2026, Globus Medical’s worldwide net sales climbed 27% year over year on a reported basis, while the bottom-line surged 64.7%.
The Zacks Consensus Estimate for this Zacks Rank #1 company’s 2026 EPS calls for 17.1% growth. The consensus mark for 2026 revenues indicates an 8.8% improvement. GMED has an earnings yield of 5.8% against the industry’s negative 1% yield.
Price & Consensus: GMED
Image Source: Zacks Investment Research
Intuitive Surgical: Intuitive Surgical is a renowned name in minimally invasive care and robotic-assisted surgery. The company’s technologies include the da Vinci surgical systems and the Ion endoluminal system. In the first quarter of 2026, worldwide combined procedures grew nearly 17% year over year, with strong performance in the United States and Europe. Intuitive Surgical is also investing in the data and digital infrastructure that underpins its longer-term innovation road map.
The Zacks Consensus Estimate for this Zacks Rank #2 (Buy) company’s 2026 EPS implies year-over-year growth of 16.5%. The consensus mark for 2026 revenues indicates an improvement of 16.5%. ISRG has an earnings yield of 2.4% against the industry’s negative 1% yield.
Price & Consensus: ISRG
Image Source: Zacks Investment Research
Globus Medical (GMED - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Globus Medical is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Globus Medical imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Globus MedicalThis medical device company is expected to earn $4.74 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Globus Medical. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.6%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Globus Medical to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Globus Medical (GMED - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this medical device company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Globus Medical is 17%, investors should actually focus on the projected growth. The company's EPS is expected to grow 19.1% this year, crushing the industry average, which calls for EPS growth of 10.7%.
Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.
Right now, Globus Medical has an S/TA ratio of 0.6, which means that the company gets $0.6 in sales for each dollar in assets. Comparing this to the industry average of 0.59, it can be said that the company is more efficient.
In addition to efficiency in generating sales, sales growth plays an important role. And Globus Medical looks attractive from a sales growth perspective as well. The company's sales are expected to grow 8.8% this year versus the industry average of 5.7%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Globus Medical have been revising upward. The Zacks Consensus Estimate for the current year has surged 6.3% over the past month.
Bottom LineGlobus Medical has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Globus Medical is a potential outperformer and a solid choice for growth investors.
Key Takeaways GMED Q1 earnings jumped 64.7% as revenue and margins topped expectations on integration leverage.Globus Medical posted double-digit Spine growth and 30.4% Trauma growth across key products.GMED reaffirmed 2026 revenue guidance and raised EPS outlook as synergies expand margins. Globus Medical (GMED - Free Report) is leaning into its post-merger scale as it works to widen its share in musculoskeletal procedures. Management continues to emphasize share capture across core categories, supported by a portfolio that spans spine, orthopedics and enabling technologies.
First-quarter 2026 execution reinforced that setup. Profitability improved as integration initiatives flowed through margins, while category momentum in spine, trauma and enabling technologies remained intact.
GMED’s Post-Merger Setup in MusculoskeletalGlobus Medical is using the NuVasive combination to extend its reach across musculoskeletal solutions. The company now brings together engineering depth with a broader commercial footprint in training and surgeon relationships, positioning it to outpace market growth and convert scale into cash generation over time.
That scale advantage matters because the portfolio is wide. Musculoskeletal Solutions includes implantable devices, biologics, accessories and specialized instruments used across spinal, orthopedic and neurosurgical procedures, while Enabling Technologies adds imaging, navigation and robotic-assisted systems that support workflow and precision.
Globus Medical Q1 2026 Beat Shows Operating LeverageFirst-quarter 2026 results highlighted a cleaner integration picture. Adjusted earnings were $1.12 per share, up 64.7% year over year and ahead of the consensus estimate, while revenue of $759.9 million also beat expectations.
Profitability moved the right way as the company absorbed higher spending. Operating income rose 55.0% to $150.4 million, and operating margin expanded 358 basis points to 19.8%, reflecting operating leverage on higher volume. Gross margin also expanded 280 basis points to 66.4%.
Integration is showing up in the underlying margin profile. Management pointed to operating leverage as common systems roll out and production is brought in-house, with adjusted EBITDA margin at 32.3% and adjusted gross margin at 69.2% in the quarter.
The company also holds a solid track record of surpassing earnings estimates.
Image Source: Zacks Investment Research
GMED Spine and Trauma Gains Point to Share CaptureThe clearest signal in the quarter was the breadth of category wins. U.S. Spine posted its third straight quarter of 10% growth, with double-digit growth across standard fixation, minimally invasive surgery pedicle screws, expandable transforaminal lumbar interbody fusion, anterior lumbar interbody fusion, posterior cervical and cervical plating.
Trauma also stood out. Revenue in the segment increased 30.4% on continued adoption of the core trauma line and the Precice limb lengthening portfolio, with ANTHEM Elbow exceeding expectations and prompting additional set shipments into the field in the second quarter.
Geography reinforced the message. U.S. revenue grew 25% to $604.9 million, while international revenue rose 35.6% to $155.0 million, supported by International Spine growth of 16.4% as reported. The combination suggests share capture is not confined to a single product line or region.
Globus Medical Robotics Pull-Through and New ClearancesEnabling Technologies remains a strategic lever because it can drive implant pull-through. Management described Excelsius GPS as supporting cross-selling as surgeons move toward a more integrated workflow. Enabling Technologies revenue increased 21.1% year over year in the first quarter.
The commercial model is evolving in a way that can deepen recurring revenue streams. Management noted a mix shift toward leases and rentals versus outright system sales. Over time, that approach can broaden the installed base and increase recurring revenues tied to implants, disposables, service and case coverage, even if capital revenue timing becomes less linear quarter to quarter.
Product cadence is also reinforcing the ecosystem. Early in the second quarter, the company received two FDA 510(k) clearances for a patient-specific lumbar interbody spacer system and patient-specific rods, both designed to integrate with the Excelsius suite and surgeon planning software.
GMED Guidance and Margin Targets Set 2026 MilestonesManagement reaffirmed full-year 2026 revenue guidance of $3.18-$3.22 billion. At the same time, it raised adjusted diluted earnings guidance to $4.70-$4.80, signalling confidence that margin expansion can outpace topline growth as synergies and manufacturing initiatives progress.
The margin roadmap remains central to the longer-term thesis. Management reiterated a long-term adjusted gross margin target in the mid-70s and expects 69%-70% for full-year 2026 as manufacturing and supply-chain initiatives advance. GMED also trades at a forward, 12-month earnings multiple of 16.94X, lower than its median and the industry average.
Image Source: Zacks Investment Research
For investors comparing options in medical devices, it is useful to note that large-cap peer Stryker Corporation (SYK - Free Report) currently carries a Zacks Rank #3 (Hold). Teleflex Incorporated (TFX - Free Report) , another medical technology name, also has a Zacks Rank #3 (Hold). GMED’s Zacks Rank #1 (Strong Buy) sets it apart on the Zacks framework.
You can see the complete list of today's Zacks #1 Rank stocks here.
Globus Medical Key Risks to Track Through 2026Higher input costs, compensation pressure and integration-related restructuring costs can create variability, especially when the long-term margin target leaves a limited buffer if costs move faster than pricing. Management also highlighted “new and enhanced” robotic competitors entering the market, a development that can raise discounting risk on enabling technology and related implants, while the lease-and-rental mix can make capital revenue less predictable.
Foreign exchange can materially affect reported results, and the Nevro integration is expected to remain lumpy as sales coverage is rebuilt and trading protocols tighten, with timing risk around when performance normalizes in the second half of 2026.
Key Takeaways TMDX is expanding its OCS platform and advancing kidney transplant development for long-term growth.TransMedics posted solid Q1 2026 results driven by strong OCS volume and logistics growth.TMDX gross margin fell 331 basis points as investments and logistics revenue weighed on results. TransMedics Group, Inc. (TMDX - Free Report) is well-poised for growth in the coming quarters, courtesy of its strength in Organ Care System (OCS) technology. The optimism, led by decent first-quarter 2026 results, is expected to contribute further. However, concerns due to gross margin pressure persist.
This Zacks Rank #3 (Hold) company has lost 42.3% in the year-to-date period compared with 17.7% decline in the industry. The S&P 500 has witnessed 10.3% growth in the said time frame.
The renowned organ transplant therapy provider has a market capitalization of $2.44 billion. TransMedics’ earnings yield of 2.63% compares favorably with the industry’s negative 3%. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missed once, with the average surprise being 39.37%.
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Factors Favoring TMDX’s GrowthRobust Pipeline Supporting Growth: TransMedics continues to advance its long-term growth strategy through the development of next-generation OCS systems and expansion into new organ markets. The company is progressing its Gen 3.0 multi-organ platform for heart, lung and liver, featuring upgraded hardware, software and a redesigned perfusion system aimed at improving usability, reliability and operational efficiency while reducing supply chain complexity.
Clinical expansion efforts remain focused on the ENHANCE Heart and DENOVO Lung programs, with the newly introduced CHOPS active cooling device expected to support trial execution and potentially broaden the company’s commercial product portfolio over time. Beyond cardiothoracic transplants, management continues to position the kidney as a major long-term opportunity, with the OCS Kidney platform under active development and a U.S. IDE submission targeted for early 2027. The company is also enhancing its broader NOP ecosystem and digital infrastructure to improve scalability, workflow efficiency and coordination across transplant centers.
Strength in OCS Technology Driving Adoption: TransMedics’ OCS revolutionizes organ transplantation by replacing passive cold storage with a dynamic, physiologic approach that perfuses donor organs with warm, oxygenated, nutrient-rich blood. This innovation minimizes ischemic injury, allows real-time organ assessment and significantly increases the viability of organs, especially hearts and lungs, donated after circulatory death, that would otherwise go unused.
As the only FDA-approved, portable platform offering warm perfusion for heart, lung and liver transplants, the OCS standardizes care, reduces post-transplant complications and sets a new clinical benchmark in organ preservation. This positions TransMedics as a leader in the multi-billion-dollar transplant market with limited competition.
Decent Q1 Results: TransMedics delivered solid first-quarter 2026 results, driven by strong OCS case volume growth, expanding clinical adoption and continued momentum in logistics services. Growth was supported by strong liver performance, steady heart adoption and higher aviation fleet utilization within the integrated National OCS Program (NOP).
While profitability remained pressured by elevated investments in expansion and clinical programs, the company continues to execute well on its long-term growth strategy. Management remains focused on advancing the ENHANCE Heart and DENOVO Lung programs, expanding internationally and developing the OCS Kidney platform, which represents a significant long-term growth opportunity.
A Factor That Can Offset the Gains for TMDXGross Margin Under Pressure: TransMedics’ gross margin remained under pressure in the first quarter of 2026 as the company continued scaling its integrated NOP infrastructure and investing aggressively in future growth initiatives. Gross margin came in at approximately 58%, down 331 basis points year over year, primarily due to higher internal supply chain activity tied to NOP inventory replenishment, investments supporting the ENHANCE and DENOVO clinical programs and continued expansion of the NOP network.
The growing contribution from lower-margin logistics and service revenues also weighed on blended margin performance. Management noted that certain one-time items further pressured margins during the quarter. The company expects near-term gross margins to remain range-bound around current levels as it continues investing in international expansion, technology upgrades and logistics infrastructure before scale efficiencies and operating leverage more meaningfully materialize.
Estimate TrendTransMedics is witnessing a negative earnings estimate revision trend for 2026. In the past 30 days, the Zacks Consensus Estimate for its earnings moved 61 cents south to $1.85 per share.
The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pegged at $184.6 million, indicating a 17.3% improvement from the year-ago quarter’s reported number.
Key PicksSome better-ranked stocks from the same medical industry are Pacific Biosciences of California (PACB - Free Report) , Globus Medical (GMED - Free Report) and Biodesix (BDSX - Free Report) .
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%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PACB’s earnings are estimated to decline at a rate of 12.2% against the industry’s 16.9% growth in 2027. The company beat earnings estimates in each of the trailing four quarters, with the average surprise being 29.76%.
Globus Medical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 adjusted earnings per share of $1.12, which outpaced the Zacks Consensus Estimate by 21.7%. Revenues of $760 million surpassed the Zacks Consensus Estimate by 4%.
GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% rise. The company beat earnings estimates in each of the trailing four quarters, with the average surprise being 26.26%.
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 13.4% rise. The company beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 25.56%.
Key Takeaways GMED is shifting robotics deals to leases and rentals to expand recurring revenue streams.Excelsius GPS adoption and new FDA-cleared implants support GMED's integrated workflow expansion.GMED posted 27% Q1 revenue growth and raised 2026 adjusted EPS guidance to $4.70-$4.80. Globus Medical (GMED - Free Report) is changing how it monetizes surgical robotics. Management is steering enabling technologies toward leases and rentals instead of outright sales. That can lower upfront revenue recognition and make quarterly results less predictable. The aim is to widen the installed base and grow recurring revenue tied to implants, disposables, service and case coverage.
GMED sports a Zacks Rank #1 (Strong Buy). In the past year, the stock has climbed 39.3%, outperforming its industry’s 7.8% fall.
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GMED’s Shift to Leases and Rentals Changes the ModelThe shift is happening alongside strong top-line momentum. In the first quarter of 2026, revenue rose 27% year over year to $759.9 million, while base business sales excluding Nevro increased 13.2%. Those results suggest the company can push a new commercialization model without losing demand.
Management described continued deal activity in enabling technologies, but with a pipeline shifting toward leases and rentals. A sale recognizes more revenue upfront, while a lease spreads it over time. That is why capital revenue timing can become less linear even when demand is healthy.
Strategically, the company is trading cleaner quarterly optics for a larger footprint. More systems in the field can support recurring streams tied to implants, disposables, service and case coverage, turning placements into a gateway for downstream pull-through.
Globus Medical Builds a Workflow Around Excelsius GPSThe commercial logic centers on Excelsius GPS. Management said the platform supports implant pull-through and cross-selling as surgeons adopt a more integrated workflow. The objective is to make the company’s tools part of repeatable steps that favor the broader portfolio.
In the first quarter of 2026, Enabling Technologies revenue increased 21.1% year over year, a near-term indicator that adoption is building. If the installed base expands through leases and rentals, the workflow linkage to ongoing procedures becomes the value driver.
GMED Patient-Specific Implants Add a New DifferentiatorTwo early second-quarter Food and Drug Administration 510(k) clearances add to the platform thesis. The company received clearance for a patient-specific lumbar interbody spacer system and for patient-specific rods, both designed to integrate with the Excelsius suite and surgeon planning software.
That integration reinforces the roadmap of linking planning, enabling technology and implants into a single workflow. Patient-specific products can deepen account relationships and lift procedure-level pull-through over time.
Globus Medical Synergies Aim to Lift Margins Over TimeNuVasive integration is positioned to provide operating leverage through common systems and more in-house production. As of Dec. 31, 2025, the company reported $200 million of NuVasive synergies, nearly a year ahead of schedule. Additional benefits are expected as international integrations are finalized in the back half of 2026.
Profitability is already moving in that direction. Adjusted gross margin was 69.2%, and adjusted EBITDA margin was 32.3% in the first quarter of 2026. Management reiterated a long-term adjusted gross margin target in the mid-70s and expects 69% to 70% for full-year 2026. It also raised full-year 2026 adjusted earnings per share guidance to $4.70-$4.80 while reaffirming revenue guidance of $3.18-$3.22 billion.
In terms of valuation, GMED trades at a forward, 12-month price/earnings (P/E) of 16.92x, lower than its median and industry average.
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GMED Nevro Rebuild Is a Wild Card for 2026 ResultsNevro remains the largest swing factor. In the first quarter of 2026, Nevro contributed $82.7 million of revenue, down $17.1 million from the prior quarter. Management expects lumpiness in the first 24 months while recruiting and retraining the sales organization, targeting a return to a more historical run-rate late in the second half of 2026.
Until that rebuild stabilizes, consolidated growth can look uneven even if the core musculoskeletal franchise is performing well. Investors will want to see sales coverage rebuild without disrupting customer behavior as trading protocols tighten.
Globus Medical Watchlist for Risks and Timing LumpsThe practical watchlist starts with quarterly variability tied to the enabling-technology mix shift. Leases and rentals can broaden adoption, but they reduce upfront recognition versus outright sales and can make comparisons less predictable.
Competition is the second risk. Management noted that new and enhanced robotic competitors are entering the market, which could drive discounting on enabling technology and related implants to protect account access. Stryker Corporation (SYK - Free Report) and Teleflex Incorporated (TFX - Free Report) both hold a Zacks Rank #3 (Hold), underscoring how quickly pricing pressure can rise when peers stay aggressive. You can see the complete list of today's Zacks #1 Rank stocks here.
Margin sensitivity and foreign exchange volatility round out the list. The long-term gross margin objective in the mid-70s leaves a limited cushion if cost inflation rises faster than pricing. International net sales were $155.0 million in the first quarter of 2026, and a $2.1 million foreign currency transaction loss affected other income and expenses, showing how currency can move reported results.
NEW YORK, June 1, 2026 /PRNewswire/ -- Purcell & Lefkowitz LLP announces that it is investigating Globus Medical, Inc. (NYSE: GMED) on behalf of the company's shareholders. The investigation seeks to determine whether Globus Medical's directors breached their fiduciary duties in connection with recent corporate actions.
If you are a shareholder of Globus Medical and are interested in obtaining additional information about your rights and options, please visit us at: https://pjlfirm.com/globus-medical-inc/
You may also contact Robert H. Lefkowitz, Esq. either via email at [email protected] or by telephone at 212-725-1000. One of our attorneys will personally speak with you about the case at no cost or obligation.
Purcell & Lefkowitz LLP is a law firm exclusively committed to representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty and other types of corporate misconduct. For more information about the firm and its attorneys, please visit https://pjlfirm.com. Attorney advertising. Prior results do not guarantee a similar outcome.
Key Takeaways GMED ended Q1 2026 debt-free with about $560.9M cash and $68.9M in short-term marketable securities. Globus Medical generated $202.4M in Q1 operating cash flow, supporting growth investments. GMED had $390M left under its share repurchase authorization as of March 31, 2026. Globus Medical (GMED - Free Report) maintains a strong balance sheet and liquidity position, providing significant financial flexibility to execute its growth strategy. As of the end of the first quarter of 2026, the company held approximately $560.9 million in cash and $68.9 million in short-term marketable securities.
GMED remains debt-free, preserving its ability to invest in research and development, expand its sales force and enhance manufacturing capacity without relying on external financing. The absence of debt also lowers financial risk and eliminates interest expense obligations, enabling management to direct capital toward higher-return growth initiatives.
The company's liquidity position is also being strengthened through internally generated cash flow. During the first quarter, it generated $202.4 million in operating cash flow, reflecting the strong profitability.
The company had $390 million remaining under its share repurchase authorization as of March 31, 2026, providing additional flexibility to return capital to shareholders while helping offset share dilution.
Globus Medical's debt-free balance sheet, nearly $630 million in highly liquid assets and robust operating cash flow position the company well to execute its growth strategy. These financial strengths could serve as important drivers of future market-share gains and margin expansion.
Peer UpdateZimmer Biomet (ZBH - Free Report) ended first-quarter 2026 with cash and cash equivalents of $424.2 million. Debt remained elevated, with total debt of $7.47 billion and net debt of $7.05 billion. The current portion of long-term debt increased to $1.18 billion, reflecting upcoming maturities.
ZBH continued returning capital to shareholders through $250 million of share repurchases during the quarter, a move that may reduce near-term balance-sheet flexibility as the company funds integration efforts and commercial investments. At the end of the first quarter, Zimmer Biomet's debt-to-capital ratio stood at a moderately elevated 37.1%.
Teleflex (TFX - Free Report) exited the first quarter of 2026 with cash and cash equivalents of $309.4 million. TFX’s short-term debt was $103 million, much lower than the cash level. However, long-term borrowings in the quarter were $2.51 billion. Teleflex’s debt-to-capital ratio is 45.9% for the first quarter, implying a relatively high leverage profile that could limit financial flexibility.
GMED’s Stock Price PerformanceOver the past year, Tempus’ shares have surged 30.7%, outperforming the industry’s 6.5% decline.
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GMED’s ValuationGMED currently trades at a forward 12-month Price-to-Sales (P/S) of 3.21X compared with the industry median of 4.52X.
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GMED Stock Estimate TrendIn the past 30 days, Tempus AI's EPS estimate for 2026 has moved north to $4.74.
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GMED currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
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Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Globus Medical (GMED - Free Report) Audubon, PA-based Globus Medical, Inc. is a medical device company that develops and commercializes healthcare solutions for patients with musculoskeletal disorders. The company currently has its sales operations distributed across 65 counties worldwide and sells through a mix of direct sales representatives and independent distributors.
GMED is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.88; value investors should take notice.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.28 to $4.74 per share. GMED boasts an average earnings surprise of +26.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, GMED should be on investors' short list.
Investors interested in stocks from the Medical - Instruments sector have probably already heard of Globus Medical (GMED) and Penumbra (PEN). But which of these two companies is the best option for those looking for undervalued stocks?
Shares of Globus Medical (GMED - Free Report) have gained 2.6% over the past four weeks to close the last trading session at $80, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $111.08 indicates a potential upside of 38.9%.
The mean estimate comprises 12 short-term price targets with a standard deviation of $11.15. While the lowest estimate of $87.00 indicates an 8.8% increase from the current price level, the most optimistic analyst expects the stock to surge 53.8% to reach $123.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in GMED. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in GMEDThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 6.3%, as four estimates have moved higher compared to no negative revision.
Moreover, GMED currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much GMED could gain, the direction of price movement it implies does appear to be a good guide.
Key Takeaways GMED Q1 2026 worldwide net sales rose 27%, while base business sales increased 13.2%. GMED posted a third straight quarter of 10% U.S. Spine growth; International Spine grew 16.4%. GMED trauma revenues climbed 30.4%, driven by core trauma adoption and the Precice portfolio. According to a report by Market Research Intellect, the musculoskeletal system market was valued at $15.6 billion in 2025 and is projected to witness a CAGR of 11.96% from 2026 to 2033, reaching an estimated $38.52 billion by 2033. This creates a favorable setup for Globus Medical’s (GMED - Free Report) broad implant portfolio across spine and orthopedics.
In the first quarter of 2026, worldwide net sales rose 27% year over year, while base business sales, excluding Nevro, increased 13.2%.
U.S. Spine marked its third straight quarter of 10% growth, with double-digit growth cited across standard fixation, minimally invasive surgery pedicle screws, expandable transforaminal lumbar interbody fusion, anterior lumbar interbody fusion, posterior cervical and cervical plating. International Spine grew 16.4% as reported in the first quarter.
Trauma revenues increased 30.4% in the quarter, aided by continued adoption of the core trauma line and the Precice limb lengthening portfolio, with ANTHEM Elbow continuing to exceed expectations, prompting the company to ship additional sets to the field in the second quarter.
Peer UpdateZimmer Biomet (ZBH - Free Report) continues to see stable demand across the global musculoskeletal market, supported by procedure volumes and ongoing new product adoption. While pricing remains a key swing factor, the first-quarter 2026 performance suggests end markets have remained resilient.
In the first quarter, large joints sales remained positive. Hips net sales were up 3.2% organically and total Knees net sales increased 1.8% organically. International net sales grew 4.2% at constant currency and 2.5% organically, reflecting healthy demand trends despite varying performance across countries.
Stryker’s (SYK - Free Report) long-term growth potential is underpinned by a vast and expanding total addressable market across its Orthopaedics business. Mako remains central to Stryker’s orthopaedics strategy and supports recurring pull-through from implants, consumables, and service.
In the first quarter of 2026, the company reported a record first-quarter performance for Mako installations in both the United States and international markets, supported by high and rising utilization rates. Management also highlighted positive surgeon feedback for Mako Shoulder and expects a full launch of Mako 4 in mid-2026. The launch is anticipated to broaden the range of procedures performed on the platform and further support utilization growth.
GMED’s Stock Price PerformanceOver the past year, GMED shares have surged 33.5%, outperforming the industry’s 6.0% decline.
Image Source: Zacks Investment Research
GMED’s ValuationGMED currently trades at a forward 12-month Price-to-Sales (P/S) of 3.30X compared with the industry median of 4.76X.
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GMED Stock Estimate TrendIn the past 30 days, GMED's EPS estimate for 2026 has moved north to $4.74.
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GMED currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BERKELEY, CA, June 12, 2026 (GLOBE NEWSWIRE) -- Profusa, Inc. (Nasdaq: PFSA), a digital health company pioneering next-generation biosensing technologies, today announces that it has submitted its response package to questions received from its European Notified Body, GMED, following the successful completion of the Stage 1 and Stage 2 quality system and technical documentation assessments conducted by GMED as part of the MDR conformity assessment process for the Lumee® Oxygen Platform.
The response package included updates across multiple aspects of the MDR submission, including technical documentation, quality system evidence, clinical evaluation activities, and supporting validation information.
The submission represents an important step in the Company's ongoing efforts to obtain CE Mark certification for the Lumee Oxygen Platform and supports Profusa's broader strategy to commercialize the technology in Europe.
"Submitting our responses to GMED marks another meaningful milestone in the CE Mark review process," said Ben Hwang, Ph.D., Profusa’s Chairman and Chief Executive Officer. "We appreciate GMED's continued engagement throughout the assessment and remain committed to working collaboratively with the agency as it completes its review. We believe the Lumee Oxygen Platform has the potential to address a significant unmet need by providing clinicians with continuous, real-time tissue oxygen monitoring, and we look forward to advancing toward European commercialization."
The CE Mark review process remains ongoing, and there can be no assurance regarding the timing or outcome of GMED's assessment. Profusa will continue to support the review process and provide updates on material regulatory milestones as appropriate.
About the Lumee® Oxygen Platform
The Lumee Oxygen Platform is designed to provide continuous, real-time monitoring of tissue oxygen levels through Profusa's proprietary tissue-integrated biosensor technology. The platform is intended to provide clinicians with objective tissue perfusion data that may support treatment decision-making and patient monitoring.
About Profusa
Based in Berkeley, CA, Profusa is a commercial stage digital health company led by visionary scientific founders, an experienced management team and a world-class board of directors in the development of a new generation of tissue-integrated sensors to detect and continuously transmit actionable, medical-grade data for personal and medical use. With its long-lasting, injectable and affordable biosensors and its intelligent data platform, Profusa aims to provide people with a personalized biochemical signature rooted in data that clinicians can trust and rely on.
“LUMEE”, “PROFUSA” and the PROFUSA logo are registered trademarks of Profusa, Inc. in the United States, Canada, European Union, China, Japan, South Korea and Australia.
For more information, visit https://profusa.com.
Special Note Regarding Forward-Looking Statements
Certain statements in this press release may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or future financial or operating performance of Profusa, including statements regarding the proposed acquisition, the anticipated launch of PanOmics DX™, and Profusa’s strategic plans. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “propose,” “seek,” “should,” “strive,” “will,” or “would” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which may be beyond the control of Profusa and could cause actual results to differ materially from those expressed or implied by such forward-looking statements including, without limitation, risks related to the Company's planned European and U.S. product launches, the risk that such product launches may not result in revenue at the levels anticipated, the risk that customer demand may be less than expected, and risks relating to the Company’s withdrawal of the Registration Statement and conducting a smaller offering of its securities. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Profusa and its management, are inherently uncertain. Profusa cautions you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. There are risks and uncertainties described more fully in the Company's public filings made by Profusa from time to time with the SEC. These filings may identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Profusa cannot assure you that the forward-looking statements in this communication will prove to be accurate.
No Offer or Solicitation
This communication is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”), or in a transaction exempt from the registration requirements of the Securities Act.
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NEW YORK, March 25, 2026 /PRNewswire/ -- Purcell & Lefkowitz LLP announces that it is investigating ICU Medical, Inc. (NASDAQ: ICUI) on behalf of the company's shareholders. The investigation seeks to determine whether ICU Medical's directors breached their fiduciary duties in connection with recent corporate actions.
If you are a shareholder of ICU Medical, Inc. and are interested in obtaining additional information about your rights and options, please visit us at: https://pjlfirm.com/icu-medical-inc/
You may also contact Robert H. Lefkowitz, Esq. either via email at [email protected] or by telephone at 212-725-1000. One of our attorneys will personally speak with you about the case at no cost or obligation.
Purcell & Lefkowitz LLP is a law firm exclusively committed to representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty and other types of corporate misconduct. For more information about the firm and its attorneys, please visit https://pjlfirm.com. Attorney advertising. Prior results do not guarantee a similar outcome.
Sanara MedTech (NASDAQ:SMTI – Get Free Report) and ICU Medical (NASDAQ:ICUI – Get Free Report) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.
Insider and Institutional Ownership 8.1% of Sanara MedTech shares are owned by institutional investors. Comparatively, 96.1% of ICU Medical shares are owned by institutional investors. 42.6% of Sanara MedTech shares are owned by company insiders. Comparatively, 1.5% of ICU Medical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations This is a summary of recent ratings and target prices for Sanara MedTech and ICU Medical, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Sanara MedTech 1 1 1 0 2.00 ICU Medical 1 1 2 1 2.60 Sanara MedTech currently has a consensus price target of $36.00, indicating a potential upside of 108.82%. ICU Medical has a consensus price target of $179.33, indicating a potential upside of 45.43%. Given Sanara MedTech’s higher possible upside, research analysts clearly believe Sanara MedTech is more favorable than ICU Medical.
Volatility & Risk Sanara MedTech has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, ICU Medical has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.
Earnings & Valuation This table compares Sanara MedTech and ICU Medical”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Sanara MedTech $103.12 million 1.53 -$37.56 million ($4.23) -4.08 ICU Medical $2.23 billion 1.38 $730,000.00 $0.02 6,165.50 ICU Medical has higher revenue and earnings than Sanara MedTech. Sanara MedTech is trading at a lower price-to-earnings ratio than ICU Medical, indicating that it is currently the more affordable of the two stocks.
Profitability This table compares Sanara MedTech and ICU Medical’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Sanara MedTech -36.42% -20.73% -5.14% ICU Medical 0.03% 7.33% 3.72% Summary ICU Medical beats Sanara MedTech on 11 of the 15 factors compared between the two stocks.
About Sanara MedTech (Get Free Report)
Sanara MedTech Inc., a medical technology company, develops, markets, and distributes surgical, wound, and skincare products and services to physicians, hospitals, clinics, and post-acute care settings in the United States. The company offers CellerateRX Surgical, a medical hydrolysate of Type I bovine collagen indicated for the management of surgical, traumatic, and partial- and full-thickness wounds, as well as first- and second-degree burns; and HYCOL, a medical hydrolysate of Type I bovine collagen intended for the management of full and partial thickness wounds, including pressure ulcers, venous and arterial leg ulcers, and diabetic foot ulcers. It also provides BIAKOS Antimicrobial Skin and Wound Cleanser, a patented product that contains synergistic ingredients that have been shown to impact mature biofilm microbes; BIAKOS Antimicrobial Wound Gel, an antimicrobial hydrogel wound dressing that helps against planktonic microbes, as well as immature and mature biofilms; and BIAKOS Antimicrobial Skin and Wound Irrigation Solution. In addition, it develops BIASURGE, a no-rinse surgical solution used for wound irrigation; FORTIFY TRG, a freeze-dried, multi-layer small intestinal submucosa extracellular matrix sheet; FORTIFY FLOWABLE extracellular matrix, an advanced wound care device; TEXAGEN, a multi-layer amniotic membrane allograft used as an anatomical barrier with robust handling that can be sutured for securement; and VIM Amnion Matrix, a homologous wound covering product. Sanara MedTech Inc. was incorporated in 2001 and is based in Fort Worth, Texas.
About ICU Medical (Get Free Report)
ICU Medical, Inc., together with its subsidiaries, develops, manufactures, and sells medical devices used in infusion therapy, vascular access, and vital care applications worldwide. Its infusion therapy products include needlefree products under the MicroClave, MicroClave Clear, and NanoClave brands; Neutron catheter patency devices; ChemoClave and ChemoLock closed system transfer devices, which are used to limit the escape of hazardous drugs or vapor concentrations, block the transfer of environmental contaminants into the system, and eliminates the risk of needlestick injury; Tego needle free connectors; Deltec GRIPPER non-coring needles for portal access; and ClearGuard, SwabCap, and SwabTip disinfection caps. The company provides IV therapy and diluents, such as sodium chloride, dextrose, balanced electrolyte solutions, lactated ringer's, ringer's, mannitol, sodium chloride/dextrose, and sterile water; and irrigation solutions comprising sodium chloride and sterile water irrigation, physiologic solutions, ringer's irrigation, acetic acid irrigation, glycine irrigation, sorbitol-mannitol irrigation, flexible containers, and pour bottle options. It offers infusion pumps under the Plum 360 and Plum Duo brands; ambulatory and syringe infusion hardware products; IV mediation safety software, including ICU Medical MedNet, an enterprise-class medication management platform; LifeShield and PharmGuard medication infusion safety software; hemodynamic monitoring products; anesthesia systems and devices, breathing circuits, ventilation, respiratory, and specialty airway products; temperature management solutions; anesthesia/pain management trays and components; and professional services. The company's customers include acute care hospitals, wholesalers, ambulatory clinics, and alternate site facilities, including outpatient clinics, home health care providers, and long-term care facilities. ICU Medical, Inc. was founded in 1984 and is based in San Clemente, California.
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ICU Medical is positioned for margin expansion as Smiths Medical integration and remediation costs subside, with upcoming product launches supporting growth. ICUI is gaining share in infusion pumps and consumables, leveraging product differentiation and rebounding from past compliance issues. Management targets net debt/EBITDA below 2.0x, opening the door for increased capital returns via buybacks or dividends within a couple of years.
ICU Medical (NASDAQ:ICUI) executives highlighted the company’s evolution into what CEO Vivek Jain described as “the world’s only pure-play infusion company” during a fireside chat at the 25th Annual Needham Healthcare Conference, while also addressing pricing dynamics, product roadmaps, macro pressures, and capital allocation priorities.
Company evolution and investment positioning Jain said ICU Medical has shifted materially from its roots as an OEM parts supplier to Hospira roughly eight years ago. Following acquisitions including Pursuit Vascular, Hospira, and Smiths, along with divestitures and joint venture actions, he said the company now participates across infusion modalities and geographies with a newer technology portfolio in a consolidated market.
Jain also pointed to steps taken to reshape the portfolio and improve returns, including moving the company’s “lowest ROIC, most capital-intensive business of IV Solutions” into a joint venture, which he said removed it from ICU Medical’s P&L. He added that the company is nearing the point where transaction-related “cleanup money”—including restructuring, integration, and quality remediation—begins to subside.
Consumables: growth drivers and pricing cadence Discussing the roughly “$1 billion-ish” Consumables segment, Jain characterized it as ICU Medical’s core business—components used to deliver medication around an infusion pump in an “open system.” He broke the segment into four areas: legacy infusion therapy, specialty oncology, vascular access (from Smiths), and a smaller tracheostomy business.
Jain said the legacy portion—about “75%-80%” of Consumables—has grown “5%, 6%, 7% a year for half a decade,” driven by a combination of efforts including regaining price to offset inflation from 2022 and 2023, developing niche categories such as dialysis, winning business alongside pump placements, and international growth during periods of national shortages.
On pricing, Jain said the company’s contract structure with large group purchasing organizations (GPOs) affects timing. He noted that new contracts began in early 2025, as the company sought to recoup inflation impacts, and that 2026 is effectively “a year off from a contractual perspective.” He said price escalators begin contributing again next year due to the way contracts were structured, but emphasized they are fixed escalators rather than being tied to CPI or PPI.
Jain also highlighted oncology as “expensive plumbing,” focused on safely handling hazardous or high-cost drugs. He said ICU Medical benefits from designing components that integrate across hospital workflows—pharmacy to nursing floor—particularly when used with ICU Medical’s pump systems.
On inventory behavior, Jain said ICU Medical has not typically discussed destocking in Consumables, noting it is difficult to see what hospitals hold, while wholesalers generally carry around “30 days or 45 days.” He added that hoarding can occur during national shortages, as seen in IV Solutions, but said the company has not experienced the same dynamic in Consumables.
Infusion Systems: LVP strategy, refresh cycle, and LifeShield Jain said large volume parenteral (LVP) pumps are the most valuable component of the Infusion Systems business. After the Smiths transaction, he said ICU Medical now participates across LVP, ambulatory, and syringe pump modalities, which he called important to positioning the LVP franchise.
He outlined two value creation paths in LVP: taking competitive share as older devices in the market require replacement, and refreshing ICU Medical’s own installed base. Jain said ICU Medical’s devices launched around 2016 and 2017 and are “finally getting old,” creating an opportunity to introduce new technology at higher price points and margins. He said customer discussions are in the “very early stages” and could extend over “two or three or four years.”
On product lineup, Jain said Plum Duo was designed to address criticisms of legacy Hospira devices—clinically robust and accurate, but “clunky” with limited ability to deliver multiple drugs and an unattractive form factor. He described Plum Duo as modern, multiplexed, and space-efficient. He said Plum Solo was designed as a replacement for Plum 360 in single-tubing use cases, allowing ICU Medical to serve a broader range of customer needs. Jain added that many hospitals are becoming “mixed houses,” using higher-complexity devices in critical care and Solo in med-surg settings, and he emphasized shared interface, software, and tubing compatibility across the platform.
Jain also addressed the timing of updated syringe and ambulatory pumps, saying regulatory expectations have risen and additional testing is needed, particularly around “the interaction between the disposables and device.” He declined to give a precise timeline but said the work is progressing. He added that timing is not holding back LVP decisions because customers making LVP commitments evaluate a multi-year “technology roadmap,” and noted that existing syringe and ambulatory pumps are available today, though not the most modern versions.
On software, Jain said LifeShield’s key differentiator is unifying drug libraries and management across modalities in a single platform, reducing the need for customers to run separate systems. He said LifeShield is cloud-deployed without on-prem infrastructure and includes analytics and workflow applications the company hopes to monetize over time. Jain said customers already pay subscriptions for infusion software, and the open question is whether improved technology supports repricing as customers upgrade; he noted competitive wins have accepted higher-value software pricing than ICU Medical historically charged.
Jain estimated that roughly “20% of the market in the U.S.” is “really interoperable today,” and said broader adoption is likely but could take another decade.
Vital Care and IV Solutions JV update Jain said ICU Medical is “very proud” of the IV Solutions joint venture with Otsuka, calling the partner “deeply committed.” He said the JV enables investments ICU Medical could not afford alone and provides customers greater operational certainty, including “global redundancy,” along with the prospect of future technologies coming to the U.S. market.
On the Vital Care segment, Jain said the portfolio includes multiple product categories, some of which are in more fragmented and competitive markets. He said part of the strategy is to exit offerings that are “value destructive,” even if that creates a near-term revenue headwind, with the goal of improving reliability and profitability. He added that ICU Medical’s ability to evaluate broader portfolio actions was constrained until a warning letter was removed; he said that occurred in February, enabling the company to spend more time determining what to do with remaining assets.
Macro impacts, tariffs, and capital allocation Addressing oil sensitivity, company representatives said the most direct impact is freight expense tied to diesel prices. They estimated that a $10 increase in the price of a barrel of oil equates to about “a $2 million annualized P&L expense” for ICU Medical’s core business, with a similar impact at the joint venture level, of which ICU Medical owns 40%. They added resins may be affected secondarily, but with less obvious correlation and more lag than diesel.
On tariffs, executives said the company expects to pursue refunds for “the entire amount of the IEEPA tariffs” paid to date—about “$30 million”—over the next several months as the process is finalized. They said Section 122 tariffs replaced IEEPA following the Supreme Court ruling and are “probably a slight benefit” versus prior IEEPA rates, though currency volatility has been a headwind. The company said it is awaiting clarity on a permanent tariff structure after the Section 122 tariffs expire during the summer.
On integration, Jain said Smiths Medical integration is “operationally reaching conclusion,” citing plant closures in the first quarter and an ERP conversion for Europe and the Middle East, with a “small bit left to do in Asia.” He said some economic benefits will lag and begin flowing toward the end of the year, annualizing into next year, and that remaining work includes approvals for legacy Smiths pumps and capturing full logistics, operations, and IT consolidation benefits.
In a financial discussion, company representatives reiterated expectations that gross margin would average about 41% for the year and exit higher, supported by synergy annualization, mid-single-digit growth in the two core segments aiding absorption, and price increases returning beginning in 2027 if inflation stabilizes. They also pointed to potential SG&A leverage as a driver of EBITDA margin expansion.
On capital allocation, executives said leverage has declined to around 2.5x and the company continues to target 2x net leverage, which they believe can be achieved organically by year-end and potentially faster with a transaction involving a Vital Care product line. Once at that level, they said the priority shifts toward share repurchases, with a timeline of “beginning of next year.” Jain added that ICU Medical does not believe it needs to allocate capital to external acquisitions, citing internal R&D capabilities, and said returning capital on a small share count “can drive a lot of value.”
About ICU Medical (NASDAQ:ICUI) ICU Medical, Inc, together with its subsidiaries, develops, manufactures, and sells medical devices used in infusion therapy, vascular access, and vital care applications worldwide. Its infusion therapy products include needlefree products under the MicroClave, MicroClave Clear, and NanoClave brands; Neutron catheter patency devices; ChemoClave and ChemoLock closed system transfer devices, which are used to limit the escape of hazardous drugs or vapor concentrations, block the transfer of environmental contaminants into the system, and eliminates the risk of needlestick injury; Tego needle free connectors; Deltec GRIPPER non-coring needles for portal access; and ClearGuard, SwabCap, and SwabTip disinfection caps.
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NEW YORK, April 16, 2026 /PRNewswire/ -- Purcell & Lefkowitz LLP announces that it is investigating ICU Medical, Inc. (NASDAQ: ICUI) on behalf of the company's shareholders. The investigation seeks to determine whether ICU Medical's directors breached their fiduciary duties in connection with recent corporate actions.
If you are a shareholder of ICU Medical, Inc. and are interested in obtaining additional information about your rights and options, please visit us at: https://pjlfirm.com/icu-medical-inc/
You may also contact Robert H. Lefkowitz, Esq. either via email at [email protected] or by telephone at 212-725-1000. One of our attorneys will personally speak with you about the case at no cost or obligation.
Purcell & Lefkowitz LLP is a law firm exclusively committed to representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty and other types of corporate misconduct. For more information about the firm and its attorneys, please visit https://pjlfirm.com. Attorney advertising. Prior results do not guarantee a similar outcome.
April 23, 2026 08:30 ET | Source: ICU Medical, Inc.
SAN CLEMENTE, Calif., April 23, 2026 (GLOBE NEWSWIRE) -- ICU Medical, Inc. (Nasdaq: ICUI), a leader in the development, manufacture and sale of innovative medical products, today announced the time of its first quarter 2026 earnings release and conference call.
The Company will release its first quarter 2026 results on Thursday, May 7, 2026 at approximately 4:00 p.m. ET (1:00 p.m. PT) and will be conducting a conference call concerning those results at 4:30 p.m. ET (1:30 p.m. PT) on Thursday, May 7, 2026. The call can be accessed at 1-800-343-4136, conference ID “ICUMED”. The conference call will be simultaneously available by webcast, which can be accessed by going to the Company's website at www.icumed.com, clicking on the Investors tab, clicking on the Webcast icon and following the prompts. The webcast will also be available by replay.
About ICU Medical
ICU Medical (Nasdaq: ICUI) is a global leader in infusion systems, infusion consumables and high-value critical care products used in hospital, alternate site and home care settings. Our team is focused on providing quality, innovation and value to our clinical customers worldwide. ICU Medical is headquartered in San Clemente, California. More information about ICU Medical can be found at www.icumed.com.
CONTACT:
ICU Medical
Brian Bonnell, Chief Financial Officer
(949) 366-2183
ICR, Inc.
John Mills, Managing Partner
(646) 277-1254
On April 29, 2026, ICU Medical Inc ICUI shares fell 4.6% today, bringing the current price to $115.45. This decline is part of a larger trend, with the stock down 19.1% year-to-date and 15.9% over the past year. The shares have experienced a 52-week range between $107.00 and $160.29.
GF Value™ verdict: Current price of $115.45 is 9.0% below the GF Value™ estimate of $126.92.GF Score™ of 86/100 indicates a strong overall ranking, suggesting solid potential for long-term returns.Most notable signal: There have been no insider transactions in the last 3 months. Is ICUI Overvalued or Undervalued? According to the GF Value™, ICU Medical Inc is currently undervalued with a margin of safety of 9.0%. The current price of $115.45 is below the estimated fair value of $126.92, which suggests that the stock may present an opportunity for investors. However, with the GF Valuation label indicating that the stock is fairly valued, it is essential to consider other factors that could impact this assessment.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the stock appears to be undervalued based on the GF Value™, investors should remain cautious about potential risks, including the recent downward trend in share prices and market volatility.
How Does ICUI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 5772.5x 51.2x Forward P/E 14.2x N/A ICU Medical's current P/E ratio of 5772.5x is significantly above its 5-year median P/E of 51.2x, indicating that the stock is trading at an exceptionally high valuation compared to its historical average. This P/E analysis contradicts the GF Value™ verdict, suggesting that while the stock might be undervalued according to the GF Value™, the high P/E ratio raises concerns about its valuation consistency over time.
What Does ICUI's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).
Metric Rating GF Score™ 86 Financial Strength 5/10 Profitability 8/10 Growth 7/10 Valuation 9/10 Momentum 7/10 ICU Medical's GF Score™ of 86 indicates a strong overall performance, particularly in Profitability (8/10) and Valuation (9/10). However, the Financial Strength rating of 5/10 suggests that there are areas for improvement in terms of the company's balance sheet stability. The combination of these scores points to a company that, while profitable and reasonably valued, may face challenges in financial robustness.
What Are Insiders Doing with ICUI Stock? There have been no insider transactions in the last 3 months for ICU Medical Inc. This lack of activity could suggest that insiders are not currently confident in the stock's immediate prospects or are awaiting clearer signals before making moves. This neutrality can be interpreted as a sign of caution among insiders regarding the company's future performance.
What This Means for Investors Based on the GF Value™ assessment, ICU Medical Inc is currently undervalued with a price of $115.45 against a fair value estimate of $126.92. However, investors should take into account the high current P/E ratio compared to historical values and the absence of insider activity, which introduces a level of uncertainty to the investment case.
For the complete analysis, visit the ICU Medical Inc ICUI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ICUI's GF Score™?
ICU Medical Inc has a GF Score™ of 86/100, indicating a strong overall ranking with solid potential for long-term returns.
Is ICUI overvalued or undervalued?
ICU Medical Inc is undervalued according to the GF Value™, with a current price 9.0% below the estimated fair value.
What is ICUI's P/E ratio?
ICU Medical's P/E (TTM) ratio is 5772.5x, which is significantly above its historical 5-year median P/E of 51.2x, indicating a high current valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
The market expects ICU Medical (ICUI - Free Report) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis medical device maker is expected to post quarterly earnings of $1.78 per share in its upcoming report, which represents a year-over-year change of +3.5%.
Revenues are expected to be $519.93 million, down 13.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.13% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for ICU Medical?For ICU Medical, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -5.06%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that ICU Medical will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that ICU Medical would post earnings of $1.68 per share when it actually produced earnings of $1.91, delivering a surprise of +13.69%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ICU Medical doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerPerrigo (PRGO - Free Report) , another stock in the Zacks Medical - Products industry, is expected to report earnings per share of $0.39 for the quarter ended March 2026. This estimate points to a year-over-year change of -35%. Revenues for the quarter are expected to be $1.01 billion, down 3.1% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Perrigo has been revised 0.7% up to the current level. Nevertheless, the company now has an Earnings ESP of -41.03%, reflecting a lower Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Perrigo will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
SAN CLEMENTE, Calif., May 07, 2026 (GLOBE NEWSWIRE) -- ICU Medical, Inc. (Nasdaq:ICUI), a leader in the development, manufacture and sale of innovative medical products, today announced financial results for the quarterly period ended March 31, 2026.
First Quarter 2026 Results
The following year-over-year results reflect the strategic divestiture of the IV Solutions business on May 1, 2025. First quarter 2026 GAAP revenue declined 12% year-over-year; however, excluding the impact of the IV Solutions divestiture and foreign currency, non-GAAP organic revenue increased 1%.
First quarter 2026 GAAP revenue was $530.2 million, as compared to $604.7 million in the same period in the prior year. GAAP gross profit for the first quarter of 2026 was $206.2 million, as compared to $210.1 million in the same period in the prior year. GAAP gross margin for the first quarter of 2026 was 39%, as compared to 35% in the same period in the prior year. GAAP net income for the first quarter of 2026 was $30.1 million, or $1.20 per diluted share, as compared to GAAP net loss of $(15.5) million, or $(0.63) per diluted share, for the first quarter of 2025. Adjusted diluted earnings per share for the first quarter of 2026 was $1.97 as compared to $1.72 for the first quarter of 2025. Adjusted EBITDA was $98.7 million for the first quarter of 2026 as compared to $99.4 million for the first quarter of 2025.
Adjusted EBITDA and adjusted diluted earnings per share are measures calculated and presented on the basis of methodologies other than in accordance with GAAP. Please refer to the Use of Non-GAAP Financial Information following the financial statements herein for further discussion and reconciliations of these measures to GAAP measures.
Vivek Jain, ICU Medical’s Chief Executive Officer, said, “First quarter results were generally in line with our expectations."
Revenues by product line for the three months ended March 31, 2026 and 2025 were as follows (in millions):
Three months ended
March 31,
Product Line 2026 2025 $ ChangeConsumables $ 278.3 $ 266.2 $ 12.1 Infusion Systems 179.6 166.3 13.3 Vital Care* 72.3 172.2 (99.9)Total** $ 530.2 $ 604.7 $ (74.5) *On May 1, 2025, we disposed of our IV Solutions business which was included within our Vital Care product line. Vital Care includes contract manufacturing revenue of $4.5 million for the three months ended March 31, 2026, as compared to $5.2 million for the three months ended March 31, 2025.
** Totals may differ from the income statement due to the rounding of product lines.
Conference Call
The Company will host a conference call to discuss its first quarter financial results, today at 4:30 p.m. ET (1:30 p.m. PT). The call can be accessed at (800) 343-4136, conference ID "ICUMED". The conference call will be simultaneously available by webcast, which can be accessed by going to the Company's website at www.icumed.com, clicking on the Investors tab, clicking on Event Calendar and clicking on the Webcast icon and following the prompts. The webcast will also be available by replay.
About ICU Medical
ICU Medical (Nasdaq: ICUI) is a global leader in infusion systems, infusion consumables and high-value critical care products used in hospital, alternate site and home care settings. Our team is focused on providing quality, innovation and value to our clinical customers worldwide. ICU Medical is headquartered in San Clemente, California. More information about ICU Medical can be found at www.icumed.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as “aim,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” or the negative thereof or comparable terminology and may include (without limitation) information regarding the Company's expectations, goals and intentions regarding the future and financial outlook for 2026. These forward-looking statements are based on management's current expectations, estimates, forecasts and projections about the Company and assumptions management believes are reasonable, all of which are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements. These risks and uncertainties include, but are not limited to: risks from doing business in foreign countries, including related to tariffs and other barriers to trade; the Company’s ability to compete successfully, including with larger international companies and established local companies; decreased demand for the Company's products; costs related to product development; cost volatility or potential loss of supply of raw materials due to our dependence on single and limited source third-party suppliers; ability to achieve operating efficiencies; risks related to significant sales through our distributors; inflation and foreign currency exchange rates; impacts from global macroeconomic and geopolitical conditions, including from escalated conflicts in the Middle East and associated disruptions to shipping and increased oil costs; healthcare costs and reimbursement levels; disruptions at the FDA and other governmental agencies; damage at the Company’s manufacturing or supply facilities; risks associated with the IV Solutions joint venture and the Smiths Medical integration; risks associated with the timing and resolution of the 2025 warning letter; risks related to protection of our information technology systems and compliance with privacy laws and regulations; risks related to our intellectual property; and the other important factors described under “Risk Factors” in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and our subsequent filings with the SEC, including, without limitation, in the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026. Forward-looking statements contained in this press release are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise unless required by law.
ICU MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands) March 31,
2026 December 31,
2025 ASSETS CURRENT ASSETS: Cash and cash equivalents$ 288,330 $ 307,963 Accounts receivable, net of allowance for doubtful accounts 201,077 180,515 Inventories 605,590 615,859 Prepaid expenses and other current assets 118,248 86,217 TOTAL CURRENT ASSETS 1,213,245 1,190,554 PROPERTY, PLANT AND EQUIPMENT, net 445,135 451,817 OPERATING LEASE RIGHT-OF-USE ASSETS 50,792 54,470 GOODWILL 1,485,561 1,499,754 INTANGIBLE ASSETS, net 598,968 633,559 DEFERRED INCOME TAXES 25,648 25,891 OTHER ASSETS 63,496 62,877 INVESTMENTS IN UNCONSOLIDATED AFFILIATES 130,918 131,586 TOTAL ASSETS$ 4,013,763 $ 4,050,508 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable$ 173,982 $ 154,374 Accrued liabilities 314,570 315,337 Current portion of long-term debt 18,750 18,750 Income tax payable 10,602 10,400 TOTAL CURRENT LIABILITIES 517,904 498,861 LONG-TERM DEBT 1,261,826 1,265,917 OTHER LONG-TERM LIABILITIES 82,333 89,536 DEFERRED INCOME TAXES 14,514 37,756 INCOME TAX LIABILITY 25,258 34,613 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY: Convertible preferred stock, $1.00 par value; Authorized — 500 shares; Issued and outstanding — none — — Common stock, $0.10 par value; Authorized — 80,000 shares; Issued —25,186 and 24,688 shares at March 31, 2026 and December 31, 2025, respectively, and outstanding — 24,993 and 24,688 shares at March 31, 2026 and December 31, 2025, respectively 2,519 2,469 Additional paid-in capital 1,465,467 1,465,118 Treasury stock, at cost (25,183) (22)Retained earnings 721,022 690,890 Accumulated other comprehensive loss (51,897) (34,630)TOTAL STOCKHOLDERS' EQUITY 2,111,928 2,123,825 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$ 4,013,763 $ 4,050,508 ICU MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
Three months ended
March 31, 2026 2025 TOTAL REVENUES$ 530,225 $ 604,702 COST OF GOODS SOLD 323,999 394,593 GROSS PROFIT 206,226 210,109 OPERATING EXPENSES: Selling, general and administrative 154,566 157,233 Research and development 21,280 23,291 Restructuring, strategic transaction and integration 16,801 16,697 TOTAL OPERATING EXPENSES 192,647 197,221 INCOME FROM OPERATIONS 13,579 12,888 INTEREST EXPENSE, net (16,494) (22,031)OTHER EXPENSE, net (1,060) (1,763)LOSS BEFORE INCOME TAXES AND EQUITY IN LOSSES OF UNCONSOLIDATED AFFILIATES (3,975) (10,906)BENEFIT (PROVISION) FOR INCOME TAXES 34,714 (4,570)NET INCOME (LOSS) FROM CONSOLIDATED COMPANIES 30,739 (15,476)EQUITY IN LOSSES OF UNCONSOLIDATED AFFILIATES (607) — NET INCOME (LOSS)$ 30,132 $ (15,476)NET INCOME (LOSS) PER SHARE Basic$ 1.22 $ (0.63)Diluted$ 1.20 $ (0.63)WEIGHTED AVERAGE NUMBER OF SHARES Basic 24,764 24,539 Diluted 25,182 24,539 ICU MEDICAL, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
Three months ended
March 31, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss)$ 30,132 $ (15,476)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 50,027 49,445 Noncash lease expense 4,173 4,475 Stock compensation 14,011 12,179 Loss on disposal of property, plant and equipment and other assets 136 1,696 Debt issuance costs amortization 774 1,700 Undistributed equity in loss of unconsolidated affiliates 607 — Other 2,989 9,214 Changes in operating assets and liabilities, net of amounts acquired: Accounts receivable (24,145) 22,439 Inventories 6,088 (8,224)Prepaid expenses and other current assets (14,347) (8,464)Other assets (2,363) (6,815)Accounts payable 20,150 32,099 Accrued liabilities (9,846) (36,343)Income taxes, including excess tax benefits and deferred income taxes (39,477) (6,598)Net cash provided by operating activities 38,909 51,327 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment (11,302) (14,621)Deposit received for the sale of a business 2,000 — Proceeds from sale of assets 1 42 Intangible asset additions (1,908) (2,232)Net cash used in investing activities (11,209) (16,811)CASH FLOWS FROM FINANCING ACTIVITIES: Principal repayments of long-term debt (4,688) (47,750)Proceeds from exercise of stock options — 133 Payments on finance leases (658) (328)Tax withholding payments related to net share settlement of equity awards (38,776) (8,391)Net cash used in financing activities (44,122) (56,336)Effect of exchange rate changes on cash (3,211) 2,958 NET DECREASE IN CASH AND CASH EQUIVALENTS (19,633) (18,862)CASH AND CASH EQUIVALENTS, beginning of period 307,963 308,566 CASH AND CASH EQUIVALENTS, end of period$ 288,330 $ 289,704
Use of Non-GAAP Financial Information
This press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The non-GAAP financial measures should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. There are material limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled non-GAAP financial measures used by other companies, including peer companies. Our management believes that the non-GAAP data provides useful supplemental information to management and investors regarding our performance and facilitates a more meaningful comparison of results of operations between current and prior periods. We use non-GAAP financial measures in addition to and in conjunction with GAAP financial measures to analyze and assess the overall performance of our business, in making financial, operating and planning decisions, and in determining executive incentive compensation.
The non-GAAP financial measures as shown in the tables below, exclude special items because they are highly variable or unusual and impact year-over-year comparisons.
For the three months ended March 31, 2026 and 2025, special items include the following:
Contract manufacturing: We manufacture certain products or product components in accordance with manufacturing services agreements. We do not include the contract revenue in our adjusted revenue, or any gross profit impact in our adjusted gross profit as the commercial relationship under these types of agreements are originally negotiated contemporaneously with a business combination or other transactions and are not indicative of normal market transactions.
Stock compensation expense: Stock-based compensation is generally fixed at the time the stock-based instrument is granted and amortized over a period of several years. The value of our restricted stock awards is determined using the grant date stock price, which may not be indicative of our operational performance over the expense period. Additionally, in order to establish the fair value of performance-based stock awards, which are currently an element of our ongoing stock-based compensation, we are required to apply judgment to estimate the probability of the extent to which performance objectives will be achieved. Based on the above factors, we believe it is useful to exclude stock-based compensation in order to better understand our operating performance.
Intangible asset amortization expense: We do not acquire businesses or capitalize certain patent costs on a predictable cycle. The amount of purchase price allocated to intangible assets and the term of amortization can vary significantly and are unique to each acquisition. Capitalized patent costs can vary significantly based on our current level of development activities. We believe that excluding amortization of intangible assets provides the users of our financial statements with a consistent basis for comparison across accounting periods.
Restructuring, strategic transaction and integration: We incur restructuring and strategic transaction charges that result from events, which arise from unforeseen circumstances and/or often occur outside of the ordinary course of our ongoing business. Although these events are reflected in our GAAP financial statements, these unique transactions may limit the comparability of our ongoing operations with prior and future periods.
Settlements: Occasionally, we are involved in contract renegotiations or other events that may result in one-time settlements. We exclude these settlements as they have no direct correlation to the operation of our ongoing business.
Quality system and product-related remediation: We exclude certain quality system and product-related remediation charges in determining our non-GAAP financial measures as they may limit the comparability of our ongoing operations with prior and future periods and distort the evaluation of our normal operating performance.
Noncash release of loss on contract provision: We provide certain services under fixed priced arrangements in accordance with a transition services arrangement. We do not include the loss on contract provision or subsequent release net of the related interest accretion as a result of providing those services in our non-GAAP financial measures as the agreement was negotiated contemporaneously with a disposition and is not indicative of a normal market transaction. The loss provision and subsequent release is a non-recurring noncash adjustment that if included may limit the comparability of our ongoing operations with prior and future periods.
From time to time in the future, there may be other items that we may exclude if we believe that doing so is consistent with the goal of providing useful information to investors and management.
In addition to the above special items, Adjusted EBITDA additionally excludes the following items from net income:
Depreciation expense: We exclude depreciation expense in deriving adjusted EBITDA because companies utilize productive assets of different ages and the depreciable lives can vary significantly resulting in considerable variability in depreciation expense among companies.
Interest, net: We exclude interest in deriving adjusted EBITDA as interest can vary significantly among companies depending on a company's level of income generating instruments and/or level of debt.
Taxes: We exclude taxes in deriving adjusted EBITDA as taxes are deemed to be non-core to the business and may limit the comparability of our ongoing operations with prior and future periods and distort the evaluation of our normal operating performance.
Adjusted Diluted EPS excludes from diluted EPS, net of tax, the special items listed above. The tax effect on the special items is calculated using the specific tax rate applied to each adjustment based on the nature of the item/or the tax jurisdiction in which the item has been recorded. Additionally, adjusted diluted EPS may exclude the income tax impact of certain non-recurring discrete tax items that are not reflective of income tax expense/benefit incurred as a result of current period earnings/ loss, as well as the impact of certain deferred tax valuation allowances when assessed against non-GAAP profitability.
We also present Free cash flow as a non-GAAP financial measure as management believes that this is an important measure for use in evaluating overall company financial performance as it measures our ability to generate additional cash flow from business operations. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited and does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as supplemental to our entire statement of cash flows.
We also present organic revenue growth as a non-GAAP financial measure as management believes that this measure provides a more representative view of the Company's underlying growth trajectory by excluding the impact of revenue from non-arm's length transactions, the impact of foreign currency and the revenue associated with acquisitions and divestitures. We calculate constant currency revenue by translating current period foreign currency revenue at prior period comparable exchange rates and we calculate the constant currency growth percentages by dividing the current period constant currency revenue by the prior year comparable period revenue.
The following tables reconcile our non-GAAP financial measures for the periods presented:
ICU MEDICAL, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
(In thousands)
Adjusted EBITDA Three months ended
March 31, 2026 2025 GAAP net income (loss)$ 30,132 $ (15,476) Non-GAAP adjustments: Interest, net 16,494 22,031 Stock compensation expense 14,011 12,179 Depreciation and amortization expense 50,027 49,445 Restructuring, strategic transaction and integration 16,801 16,697 Settlements 15 — Quality system and product-related remediation 7,407 9,980 Noncash release of loss on contract provision (1,120) — Gross profit on contract manufacturing (374) — (Benefit) provision for income taxes (34,714) 4,570 Total non-GAAP adjustments 68,547 114,902 Adjusted EBITDA$ 98,679 $ 99,426 ICU MEDICAL, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)
(In thousands, except percentages and per share data) The Company’s U.S. GAAP results for the three months ended March 31, 2026 included special items which impacted the U.S. GAAP measures as follows: Total revenuesGross profitSelling, general and administrativeResearch and developmentRestructuring, strategic transaction and integrationLoss from operationsInterest expense, net
(Loss) income before income taxes and equity in loss of unconsolidated affiliates
Benefit (Provision) for income taxesNet income from consolidated companiesEquity in loss of unconsolidated affiliatedNet income (loss) Diluted earnings (loss) income per shareReported (GAAP)$ 530,225 $ 206,226 $ 154,566 $ 21,280 $ 16,801 $ 13,579 $ (16,494)$ (3,975)$34,714 $ 30,739 $ (607)$ 30,132 $ 1.20 Reported percent of total revenues or (percent of income (loss) before income taxes and equity in earnings of unconsolidated affiliates) 39% 29% 4% 3% 3% (3)% (1)% 873.3% 6% Contract manufacturing (4,451) (374) — — — (374) — (374) 92 (282) — (282) (0.01)Stock compensation expense — 1,863 (11,553) (595) — 14,011 — 14,011 (3,401) 10,610 — 10,610 0.42 Amortization expense — 1,265 (31,831) — — 33,096 — 33,096 (8,231) 24,865 — 24,865 0.99 Restructuring, strategic transaction and integration — — — — (16,801) 16,801 — 16,801 (4,126) 12,675 — 12,675 0.50 Settlements — — (15) — — 15 — 15 (4) 11 — 11 — Quality system and product-related remediation — 7,407 — — — 7,407 — 7,407 (1,699) 5,708 — 5,708 0.23 Noncash release of loss on contract provision — — 1,120 — — (1,120) 332 (788) 193 (595) — (595) (0.02)Tax benefit from discrete reserve release and valuation allowance* — — — — — — — — (33,390) (33,390) — (33,390) (1.33)Tax benefit from equity in loss of unconsolidated affiliates — — — — — — — — (149) (149) 149 — — Adjusted (Non-GAAP)**$ 525,774 $ 216,387 $ 112,287 $ 20,685 $ — $ 83,415 $ (16,162)$ 66,193 $ (16,001)$ 50,192 $ (458)$ 49,734 $ 1.97 Adjusted percent of total revenues or (percent of (loss) income before income taxes and equity in loss of unconsolidated affiliates for benefit (provision) for income taxes) 41% 21% 4% —% 16% (3)% 13% 24.2% 10%
______________________
* The Company’s non-GAAP annual effective tax rate is calculated without the tax expense related to the valuation allowance against certain U.S. Federal and State deferred tax assets, as well as, the tax benefit on the release of income tax reserves in foreign jurisdictions for tax years which are no longer subject to an assessment from the local taxing authorities. The valuation allowance was recorded based on an assessment of available positive and negative evidence, including, predominantly, an estimate that we will be in a three-year cumulative U.S. loss position on a GAAP basis as of March 31, 2026. However, based on the same assessment, including, predominantly, our being, in a three-year cumulative U.S. income position on a non-GAAP basis, which excludes the impact of our non-GAAP adjustments, we concluded that recording a valuation allowance would not have been appropriate for non-GAAP reporting. As a result, the tax expense for the valuation allowance was added back to our calculation of non-GAAP annual effective tax rate. Tax reserves were released as a result of the expiration of statute of limitations which resulted in a discrete tax benefit for GAAP purposes. This tax benefit is excluded from our non-GAAP annual effective tax rate to the extent it is not related to on-going business operations.
** Amounts may not foot due to rounding.
ICU MEDICAL, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)(continued)
(In thousands, except percentages and per share data) The Company’s U.S. GAAP results for the three months ended March 31, 2025 included special items which impacted the U.S. GAAP measures as follows: Total revenuesGross profitSelling, general and administrativeResearch and developmentRestructuring, strategic transaction and integrationIncome (loss) from operations(Loss) income before income taxes
Provision for income taxes
Net (loss) income
Diluted (loss) earnings per shareReported (GAAP)$ 604,702 $ 210,109 $ 157,233 $ 23,291 $ 16,697 $ 12,888 $ (10,906)$ (4,570)$ (15,476)$ (0.63)Reported percent of total revenues (or percent of (loss) income before income taxes for benefit (provision) for income taxes) 35% 26% 4% 3% 2% (2)% (41.9)% (3)% Contract manufacturing (5,212) — — — — — — — — Stock compensation expense — 1,683 (9,868) (628) — 12,179 12,179 (2,957) 9,222 0.37 Amortization expense — 1,039 (31,533) — — 32,572 32,572 (8,026) 24,546 0.99 Depreciation expense reduction - assets held for sale classification — (3,223) — — — (3,223) (3,223) 790 (2,433) (0.10)Restructuring, strategic transaction and integration — — — — (16,697) 16,697 16,697 (4,091) 12,606 0.51 Quality system and product-related remediation — 9,980 — — — 9,980 9,980 (2,338) 7,642 0.31 Tax expense from valuation allowance* — — — — — — — 6,402 6,402 0.26 Adjusted (Non-GAAP)**$ 599,490 $ 219,588 $ 115,832 $ 22,663 $ — $ 81,093 $ 57,299 $ (14,790)$ 42,509 $ 1.72 Adjusted percent of total revenues (or percent of (loss) income before income taxes for provision for income taxes) 37% 19% 4% —% 14% 10% 25.8% 7%
_____________
* The Company’s non-GAAP annual effective tax rate is calculated without the tax expense related to the valuation allowance against certain U.S. Federal and State deferred tax assets. The valuation allowance was recorded based on an assessment of available positive and negative evidence, including, predominantly, an estimate that we will be in a three-year cumulative U.S. loss position on a GAAP basis as of March 31, 2025. However, based on the same assessment, including, predominantly, our being, in a three-year cumulative U.S. income position on a non-GAAP basis, which excludes the impact of our non-GAAP adjustments, we concluded that recording a valuation allowance would not have been appropriate for non-GAAP reporting. As a result, the tax expense for the valuation allowance was added back to our calculation of non-GAAP annual effective tax rate.
** Amounts may not foot due to rounding
(1) We manufacture certain products or product components in accordance with manufacturing services agreements. We do not include the contract revenue in our adjusted revenue as the commercial relationship under these types of agreements are originally negotiated contemporaneously with a business combination or other transactions and are not indicative of normal market transactions.
(2) For businesses divested, non-GAAP organic revenue growth excludes prior period revenue associated with the divested business for the same length of time they were not owned by the company in the current year. The divested business prior period revenue in this line item does not include MSA revenue, which is excluded on a separate line.
(3) We exclude the impact of foreign exchange rate changes to show a constant currency comparison of our underlying business performance.
ICU MEDICAL, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited)(continued)
(In thousands)
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Three months ended
March 31, 2026 2025 Net cash provided by operating activities$ 38,909 51,327 Purchase of property, plant and equipment (11,302) (14,621)Proceeds from sale of assets 1 42 Free cash flow$ 27,608 $ 36,748 CONTACT:
ICU Medical, Inc.
Brian Bonnell, Chief Financial Officer
(949) 366-2183
ICU Medical (ICUI - Free Report) came out with quarterly earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.78 per share. This compares to earnings of $1.72 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +10.67%. A quarter ago, it was expected that this medical device maker would post earnings of $1.68 per share when it actually produced earnings of $1.91, delivering a surprise of +13.69%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
ICU Medical, which belongs to the Zacks Medical - Products industry, posted revenues of $525.77 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.12%. This compares to year-ago revenues of $599.49 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
ICU Medical shares have lost about 16.2% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for ICU Medical?While ICU Medical has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for ICU Medical was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.91 on $533.53 million in revenues for the coming quarter and $8.09 on $2.18 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Sanara MedTech Inc. (SMTI - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 12.
This company is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of +90.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Sanara MedTech Inc.'s revenues are expected to be $26.9 million, up 14.8% from the year-ago quarter.
Investors in ICU Medical, Inc. (ICUI - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the May 15, 2026 $100.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for ICU Medical shares, but what is the fundamental picture for the company? Currently, ICU Medical is a Zacks Rank #4 (Sell) in the Medical - Products industry that ranks in the Bottom 38% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $1.93 per share to $1.91 in that period.
Given the way analysts feel about ICU Medical right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Virginia Ruth Sanzone, Vice President and General Counsel at ICU Medical (ICUI +0.41%), reported the sale of 2,447 shares of common stock in an open-market transaction on May 14, 2026, for a total value of approximately $304,000, as detailed in this SEC Form 4 filing.
Transaction summaryMetricValueShares sold (direct)2,447Transaction value$304,000Post-transaction shares (direct)19,460Post-transaction value (direct ownership)$2.4 millionTransaction value based on SEC Form 4 reported price ($124.08); post-transaction value based on May 14, 2026 market close price as reported in the SEC filing ($122.99).
Key questionsHow does the size of this sale compare to Sanzone’s prior trading activity?
This 2,447-share sale is the largest single direct sale Sanzone has made in the trailing twelve months, exceeding the previous two direct sales of 700 and 930 shares respectively, and also surpassing her average direct sale size of ~1,531 shares since March 2024.What proportion of Sanzone’s available shares did this transaction represent?
The sale accounted for 11.17% of her direct holdings at the time, reducing her position from 21,907 to 19,460 shares, consistent with her historical pattern of periodic net selling as available capacity has declined.Were any indirect interests or derivative instruments involved in this transaction?
No; the transaction involved only direct ownership of common stock, with no indirect holdings (such as trusts or LLCs) or derivative securities (such as options) reported in this filing.How does the transaction value relate to recent price performance and current market context?
The shares were sold at $124.08 per share, just above the May 14, 2026 market close of $122.99; as of May 17, 2026, the stock is priced at $118.72, reflecting a one-year total return of -16.03%.Company overviewMetricValueRevenue (TTM)$2.16 billionNet income (TTM)$46.34 millionEmployees15,0001-year price change4.2%* 1-year performance calculated using June 9, 2026 as the reference date.
Company snapshotICUI develops and manufactures infusion therapy devices, IV solutions, infusion pumps, medication safety software, and critical care monitoring systems, marketed under brands such as MicroClave, Plum 360, and Cogent.It generates revenue primarily through the sale of proprietary medical devices and consumables to healthcare providers, leveraging a recurring sales model for consumable products and integrated software solutions.the company serves acute care hospitals, ambulatory clinics, wholesalers, outpatient facilities, home health care providers, and long-term care facilities globally.ICU Medical is a leading global provider of infusion therapy and critical care medical devices, with a diversified product portfolio and a strong presence in hospital and alternate care settings. The company's scale, integrated solutions, and focus on patient safety support its competitive positioning in the healthcare sector. Strategic emphasis on innovation and recurring consumable sales underpins revenue stability and long-term growth potential.
What this transaction means for investorsSanzone's open-market sale is a footnote here. The more relevant question is whether ICUI itself is worth owning. ICU Medical's core business is infusion therapy infrastructure — the pumps, tubing, connectors, and software that hospitals depend on to deliver IV medications safely. The consumables model generates predictable recurring revenue, and the software layer creates meaningful switching costs; hospitals that standardize on ICU Medical's platform don't swap it out easily. The more pressing question is whether the company can convert that stickiness into margin expansion while carrying roughly $1 billion in net debt from the 2022 Smiths Medical acquisition. That debt is the central tension in the thesis right now — with the Fed holding at 3.5–3.75% and rate hike talk creeping back in on the heels of today's 4.2% CPI print, the timeline to the stated 2x leverage target matters more than it did a year ago, and it directly delays any buyback story. The good news is that the Smiths integration is closer to done than it's been — manufacturing consolidation on the two large legacy sites is largely finished, a new pump line with software subscription revenue is coming, and management is targeting a 43% gross margin exit rate. The bad news is that this has been a show-me story for three years, and tariffs add another $40–50 million in headwinds this year alone. Investors weighing a position are essentially betting that execution finally catches up to the promise in a macro environment that doesn't reward patience cheaply. For me there are more headwinds than I’d like to see if I were starting a position. If you own if and believe the long term thesis it may be worth keeping an eye on.
If you’d like to learn more about the healthcare sector, check out this article covering the big players in this space.
Seena Hassouna has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Valuation Assessment of Raymond James Financial Inc RJF On April 16, 2026, Raymond James Financial Inc (RJF) shares fell 3.1% to a current price of $150.86. This decline comes amid a broader context where the stock has seen a 52-week range between $129.47 and $177.66.
GF Value™ verdict: RJF is currently priced at $150.86, which indicates it is 6.1% undervalued compared to the GF Value™ estimate of $160.67.GF Score™: The stock has a GF Score™ of 85/100, indicating a strong potential for long-term returns based on historical backtests.Notable signal: Insider activity shows that insiders sold $5.0 million in shares over the last three months, with no buying activity reported. Is RJF Overvalued or Undervalued? Raymond James Financial Inc RJF is currently trading at $150.86, which is below its GF Value™ estimate of $160.67, representing a margin of safety of approximately 6.1%. This valuation suggests that RJF is undervalued, presenting a potential opportunity for investors if the company's financial performance aligns with growth expectations. The GF Valuation label indicates that the stock is fairly valued, which further underscores the need for careful consideration of the current market conditions and company fundamentals before making any investment decisions. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does RJF's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 14.8x 14.9x Forward P/E 12.8x N/A The current P/E (TTM) of RJF stands at 14.8x, which is slightly below its 5-year median P/E of 14.9x. The forward P/E of 12.8x indicates that the stock is trading at a lower valuation than its historical averages. This P/E analysis aligns with the GF Value™ verdict, suggesting that RJF is undervalued relative to both its historical performance and future earnings expectations.
What Does RJF's GF Score™ Tell Us? Metric Rating GF Score™ 85 Financial Strength 4/10 Profitability 6/10 Growth 9/10 Valuation 9/10 Momentum 7/10 The GF Score™ of 85/100 indicates a strong overall performance, particularly in the areas of Growth and Valuation, where RJF scores 9/10 in both categories. However, the Financial Strength score of 4/10 suggests some weaknesses in this area, which could pose risks if market conditions worsen. Overall, the analysis shows that while RJF is positioned well for growth potential, its financial stability requires careful monitoring.
What Are Insiders Doing with RJF Stock? In recent months, insider activity at Raymond James Financial Inc has shown a selling trend, with insiders selling $5.0 million worth of shares. This lack of insider buying may raise concerns about the company's near-term prospects and could potentially signal that insiders do not anticipate significant positive changes in the stock price in the immediate future. The absence of buying activity from insiders may warrant closer scrutiny for potential investors.
What This Means for Investors Based on the current valuation metrics and GF Value™, Raymond James Financial Inc RJF appears to be undervalued, with a potential upside given its GF Value™ estimate. However, the mixed signals from insider activity may suggest caution. It is essential for investors to consider both the valuation and the broader market context before making any investment decisions.
For the complete analysis, visit the Raymond James Financial Inc RJF stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is RJF's GF Score™?
RJF has a GF Score™ of 85/100, indicating a strong potential for long-term returns based on historical performance metrics.
Is RJF overvalued or undervalued?
According to GF Value™, RJF is currently undervalued with an estimated fair value of $160.67, compared to its current price of $150.86.
What is RJF's P/E ratio?
RJF's P/E (TTM) is 14.8x, which is slightly below its 5-year median P/E of 14.9x, indicating that the stock is trading at a lower valuation than its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Wall Street analysts expect Raymond James Financial, Inc. (RJF - Free Report) to post quarterly earnings of $2.76 per share in its upcoming report, which indicates a year-over-year increase of 14.1%. Revenues are expected to be $3.75 billion, up 10.1% from the year-ago quarter.
Over the last 30 days, there has been a downward revision of 3.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain Raymond James Financial metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts predict that the 'Revenues- Account and service fees' will reach $305.94 million. The estimate indicates a year-over-year change of -4.7%.
The consensus among analysts is that 'Revenues- Other' will reach $41.80 million. The estimate indicates a year-over-year change of +4.5%.
The combined assessment of analysts suggests that 'Revenues- Investment banking' will likely reach $215.49 million. The estimate indicates a change of -0.2% from the prior-year quarter.
The consensus estimate for 'Revenues- Asset management and related administrative fees' stands at $2.02 billion. The estimate indicates a change of +17% from the prior-year quarter.
It is projected by analysts that the 'Net interest Income' will reach $539.81 million. The estimate indicates a year-over-year change of +28.8%.
Analysts' assessment points toward 'Net Revenues- Total brokerage revenues' reaching $626.72 million. The estimate points to a change of +8.1% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- Interest income' of $965.70 million. The estimate points to a change of +0.3% from the year-ago quarter.
According to the collective judgment of analysts, 'Total Interest-Earning Assets' should come in at $82.53 billion. The estimate is in contrast to the year-ago figure of $76.15 billion.
Based on the collective assessment of analysts, 'Private Client Group assets in Fee-based Accounts' should arrive at $1.05 billion. Compared to the current estimate, the company reported $872.80 million in the same quarter of the previous year.
Analysts forecast 'Tier 1 Leverage Ratio' to reach 12.5%. Compared to the current estimate, the company reported 13.3% in the same quarter of the previous year.
Analysts expect 'Private Client Group Asset Under Management' to come in at $1.71 billion. Compared to the present estimate, the company reported $1.48 billion in the same quarter last year.
The average prediction of analysts places 'Assets Under Management' at $284.75 billion. The estimate compares to the year-ago value of $245.00 billion.
View all Key Company Metrics for Raymond James Financial here>>>
Over the past month, Raymond James Financial shares have recorded returns of +5.6% versus the Zacks S&P 500 composite's +5.2% change. Based on its Zacks Rank #3 (Hold), RJF will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways Raymond James to report fiscal Q2 (ended March 31) on April 22; earnings seen at $2.76 and sales at $3.75B.RJF trading revenues are expected to be strong as client activity and volatility jumped.Raymond James' NII estimate is $539.8M, up 28.8% year over year, with lending and steadier deposit costs. Raymond James (RJF - Free Report) is set to announce second-quarter fiscal 2026 (ended March 31) results on April 22, after market close. The company’s earnings and revenues are expected to have risen on a year-over-year basis.
In the last reported quarter, RJF’s earnings surpassed the Zacks Consensus Estimate. Results benefited primarily from an increase in revenues and robust growth in assets under administration balances. However, higher expenses were the undermining factor.
Raymond James does not have an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in only two of the trailing four quarters, with the average beat being 1.85%.
The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings is currently pegged at $2.76, unchanged over the past seven days. The figure indicates an increase of 14.1% from the year-ago quarter.
The consensus estimate for sales of $3.75 billion suggests 10.2% year-over-year growth.
Management expects fiscal second-quarter asset management and related administrative fees to grow 1% sequentially, driven by 3% rise in PCG assets and fee-based accounts at quarter's end, partially offset by the impact of two fewer billing days in the quarter.
Factors to Impact Raymond James’ Q2 EarningsInvestment Banking (IB) Fees: Deal-making activity was robust in the to-be-reported quarter despite the Middle Eastern conflict and the ensuing uncertainty about its impact on the economy in the last month of the quarter. While global mergers and acquisitions (M&As) volume declined year over year, deal value rose as big transactions dominated the space. Unlike 2025, when President Donald Trump’s announcement of ‘Liberation Day’ tariff plans led to the deal drought for several months, this time, companies acknowledged that volatility is part of life, and they will have to do business around it. Lower capital costs and a focus on scale and AI integration drove the M&As. Thus, Raymond James’ advisory fees are expected to have been positively impacted.
The quarter saw decent IPO activity, with issuance volume improving despite fewer companies getting listed. On the other hand, global bond issuance volume was solid. Thus, RJF’s underwriting fees are expected to have been positively impacted.
The consensus estimate for RJF’s IB fees is pegged at $215.5 million, relatively stable on a year-over-year basis.
Trading Revenues: The performance of RJF’s trading business is expected to have been strong in the to-be-reported quarter, supported by increased client activity and market volatility. Major factors that influenced trading business in the quarter included shifting expectations around AI, rising geopolitical tensions, particularly concerns over the Middle East and the risk of an oil shock, persistent inflation concerns and uncertainty around the Fed’s monetary policy stance. Volatility was high in equity markets and other asset classes, including commodities, bonds and foreign exchange.
Net Interest Income (NII): The Federal Reserve kept interest rates unchanged in the quarter. However, relatively lower rates, a solid lending scenario and stabilizing funding/deposit costs are expected to have offered much-needed support. Hence, Raymond James’ NII might have witnessed a modest improvement in the quarter.
The Zacks Consensus Estimate for NII is pegged at $539.8 million, indicating a year-over-year jump of 28.8%.
Including the full impact of the October and December 2025 rate cuts and assuming unchanged quarter-end balances (net of the $1.8 billion fiscal second-quarter fee billing collections), management expects the aggregate of NII and RJBDP third-party fees in the second fiscal quarter to decline 3% sequentially.
Expenses: Raymond James consistently hires advisors and invests in franchises. Thus, overall expenses are expected to have increased in the to-be-reported quarter. Due to a highly competitive environment and inflationary pressure, expenses are likely to have risen.
Major Developments During the QuarterIn March, Raymond James completed the acquisition of a majority interest in GreensLedge Holdings LLC, a boutique investment bank recognized for its expertise in structured credit and securitization. Founded in 2008, GreensLedge is known for advising on and arranging CLOs, CDOs, Rated Feeders, CFOs, ABS and a range of debt offerings.
In January, Raymond James agreed to acquire Clark Capital Management Group, a Philadelphia-based asset management company with more than $46 billion in discretionary assets under management and non-discretionary assets. The deal is anticipated to close by the third quarter of 2026 and is subject to regulatory approvals and closing conditions. Clark Capital has established a powerful brand and provides wealth-oriented investment solutions.
What the Zacks Model Unveils for Raymond JamesOur proven model does not conclusively predict that RJF will beat the Zacks Consensus Estimate this time. This is because it doesn’t have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Raymond James is 0.00%.
Zacks Rank: The company currently has a Zacks Rank #3.
Finance Stocks Worth ConsideringHere are a couple of finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
Capital One (COF - Free Report) is scheduled to report quarterly results on April 21. The company has an Earnings ESP of +1.76% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past seven days, the Zacks Consensus Estimate for Capital One’s quarterly earnings has been lowered to $4.61.
The Earnings ESP for East West Bancorp (EWBC - Free Report) is +0.44%, and it carries a Zacks Rank #3. The company is also slated to report first-quarter 2026 results on April 21.
Over the past seven days, the Zacks Consensus Estimate for East West Bancorp’s quarterly earnings has remained unchanged at $2.46.
Raymond James Financial is an American multinational independent investment bank and financial services company. The company has already increased its dividend for 14 consecutive years. Its 10-year dividend growth rate of 15.3% is impressive. Raymond James has an outstanding financial position. Its long-term debt/equity ratio is 0.3. As good as that is, it belies the company's true financial strength.
ST. PETERSBURG, Fla., April 22, 2026 (GLOBE NEWSWIRE) --
Record quarterly net revenues of $3.86 billion, up 13% over the prior year’s fiscal second quarter and 3% over the preceding quarterQuarterly net income available to common shareholders of $542 million, or $2.72 per diluted share; quarterly adjusted net income available to common shareholders of $564 million(1), or $2.83 per diluted share(1)Domestic Private Client Group net new assets(2) of $23.0 billion for the fiscal second quarter, or annualized growth from beginning of quarter assets of 5.8%Client assets under administration of $1.76 trillion, up 15% over March 2025 and down 1% compared to December 2025Record quarter-end Private Client Group assets in fee-based accounts of $1.04 trillion, up 20% over March 2025 and up slightly over December 2025Record net bank loans of $54.8 billion; Securities-based loans of $23.0 billion, up 31% over March 2025 and 6% over December 2025Annualized return on common equity and annualized adjusted return on tangible common equity of 17.3% and 20.9%(1), respectively, for the fiscal second quarter Raymond James Financial, Inc. (NYSE: RJF) today reported net revenues of $3.86 billion and net income available to common shareholders of $542 million, or $2.72 per diluted share, for the fiscal second quarter ended March 31, 2026. Quarterly adjusted net income available to common shareholders, which excluded $22 million of acquisition-related expenses, net of tax, was $564 million(1), or $2.83 per diluted share(1).
“We generated record results for the first half of the fiscal year by leveraging the firm’s expertise and resources to support advisors and their clients during this period of market uncertainty. Our ongoing focus and disciplined execution have led to record PCG fee-based assets and annualized net new asset growth of 7% for the first half of the fiscal year,” said CEO Paul Shoukry. “We continue to develop industry-leading technology solutions, including increasing AI integration, to improve efficiency and provide our financial professionals with more time to serve their clients. Looking ahead, financial advisor recruiting activity across all our affiliation options remains robust, and the investment banking pipeline continues to be strong.”
Record quarterly net revenues increased 13% over the prior year’s fiscal second quarter, largely driven by continued growth in asset management and related administrative fees which increased 17% to over $2.0 billion. Compared to the preceding quarter, net revenues reflect strong growth in investment banking revenues and higher brokerage revenues. Quarterly pre-tax income increased 1% over the preceding quarter while net income available to common shareholders decreased 4% due to a higher effective tax rate. For the fiscal second quarter, annualized return on common equity and annualized adjusted return on tangible common equity were 17.3% and 20.9%(1), respectively.
For the first six months of the fiscal year, record net revenues of $7.59 billion increased 9%, record earnings per diluted share of $5.51 increased 6%, and record adjusted earnings per diluted share of $5.69(1) increased 6% over the first six months of fiscal 2025. The Private Client Group and Asset Management segments generated record net revenues in the first six months of fiscal 2026. The Asset Management and Bank segments produced record pre-tax income during the same period. Annualized return on common equity was 17.7% and annualized adjusted return on tangible common equity was 21.2%(1).
Segment Results
Private Client Group
Record quarterly net revenues of $2.81 billion, up 13% over the prior year’s fiscal second quarter and 2% over the preceding quarterQuarterly pre-tax income of $416 million, down 3% compared to the prior year’s fiscal second quarter and 5% compared to the preceding quarterDomestic Private Client Group net new assets(2) of $23.0 billion for the fiscal second quarter, or annualized growth from beginning of the quarter assets of 5.8%Private Client Group assets under administration of $1.70 trillion, up 15% over March 2025 and down 1% compared to December 2025 Record quarter-end Private Client Group assets in fee-based accounts of $1.04 trillion, up 20% over March 2025 and up slightly over December 2025Total clients’ domestic cash sweep and Enhanced Savings Program balances of $57.8 billion, approximating the prior year’s fiscal second quarter level and down 1% compared to the preceding quarter Quarterly net revenues rose 13% year-over-year primarily driven by higher asset management and related administrative fees which grew 17% to $1.71 billion, mainly due to market appreciation and net inflows into PCG fee-based accounts. Pre-tax income declined year-over-year primarily due to the impact of lower interest-related revenues and certain costs associated with our continued investments in growth.
Capital Markets
Quarterly net revenues of $464 million, up 17% over the prior year’s fiscal second quarter and 22% over the preceding quarterQuarterly investment banking revenues of $272 million, up 31% over the prior year’s fiscal second quarter and 36% over the preceding quarter Quarterly pre-tax income of $51 million Quarterly net revenues increased 17% over the prior year period, driven predominantly by higher debt and equity underwriting revenues. Sequentially, quarterly net revenues grew 22% largely due to higher debt and equity underwriting revenues, M&A and advisory revenues and fixed income brokerage revenues. During the quarter, we completed the acquisition of GreensLedge Holdings LLC.
Asset Management
Record quarterly net revenues of $327 million, up 13% over the prior year’s fiscal second quarter and just above the preceding quarter Quarterly pre-tax income of $137 million, up 13% over the prior year’s fiscal second quarter and down 4% compared to the preceding quarterRecord quarter-end financial assets under management of $282.4 billion, up 15% over March 2025 and 1% over December 2025 Record quarterly net revenues increased 13% year-over-year largely driven by higher financial assets under management due to market appreciation and net inflows into fee-based accounts in the Private Client Group.
Bank
Quarterly net revenues of $486 million, up 12% over the prior year’s fiscal second quarter and approximating the preceding quarter levelQuarterly pre-tax income of $166 million, up 42% over the prior year’s fiscal second quarter and down 4% compared to the preceding quarterRecord net bank loans of $54.8 billion, up 14% over March 2025 and 3% over December 2025Bank segment net interest margin (“NIM”) of 2.81% for the quarter, up 14 basis points over the prior year’s fiscal second quarter and unchanged from the preceding quarter Net bank loans grew 14% over the prior year quarter, driven by continued growth in securities-based and residential mortgage loans, which rose by 31% and 10%, respectively. Bank segment net interest income increased 13% over the prior year quarter due to loan growth, lower funding costs driven by the decline in short-term interest rates, and a favorable mix shift in assets. NIM remained stable with the preceding quarter at 2.81%. The credit quality of the loan portfolio remains strong.
Other Matters
The effective tax rate for the quarter was 26.0%, which includes the unfavorable impact of nondeductible losses in the corporate-owned life insurance portfolio in the quarter.
During the fiscal second quarter, the firm repurchased $400 million of common stock at an average price of $155 per share, and paid $81 million to redeem preferred stock. As of March 31, 2026, $1.5 billion remained available under the Board’s approved common stock repurchase authorization. At the end of the quarter, the total capital ratio was 24.0%(3) and the tier 1 leverage ratio was 12.4%(3), both well above regulatory requirements.
A conference call to discuss the results will take place today, Wednesday, April 22, at 5:00 p.m. ET. The live audio webcast, and the presentation which management will review on the call, will be available at www.raymondjames.com/investor-relations/financial-information/quarterly-earnings. An audio replay of the call will be available at the same location for 30 days. For a listen-only connection to the conference call, please dial: 888-330-3573 (conference code: 3778589).
Click here to view full earnings results, earnings supplement, and earnings presentation.
About Raymond James Financial, Inc.
Raymond James Financial, Inc. (NYSE: RJF) is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. Total client assets are $1.76 trillion. Public since 1983, the firm is listed on the New York Stock Exchange under the symbol RJF. Additional information is available at www.raymondjames.com.
Forward-Looking Statements
Certain statements made in this press release may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions (including changes in interest rates and inflation), demand for and pricing of our products (including cash sweep and deposit offerings), anticipated timing and benefits of our acquisitions, and our level of success integrating acquired businesses, anticipated results of litigation, regulatory developments, and general economic conditions. In addition, future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our most recent Annual Report on Form 10-K, and subsequent Quarterly Report on Form 10-Q and Current Reports on Form 8-K, which are available at www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.
On April 22, 2026, Raymond James Financial Inc RJF released its 8-K filing for the fiscal second quarter ended March 31, 2026, posting record net revenues of $3.86 billion and diluted EPS of $2.72. The company reported adjusted diluted EPS of $2.83. Raymond James Financial Inc (RJF) is a diversified financial services firm that provides wealth management, investment banking, asset management, and capital markets services to individuals, corporations, and municipalities. Its wealth management franchise generates the bulk of revenues and earnings through a network of more than 8,900 advisors who managed over $1.7 trillion in client assets as of fiscal year-end 2025, with over 90% of revenue derived in the United States.
The company’s diluted EPS was $2.72, which is above the estimated EPS of 2.71. Adjusted diluted EPS was $2.83, which is above the estimated EPS of 2.71. Net revenues were $3,859 million, which is below the estimated revenue of $3,867.15 million.
Quarter highlights and why they matter Raymond James Financial Inc RJF delivered record quarterly net revenues, up 13% year over year and 3% sequentially, supported by a 17% rise in asset management and related administrative fees to $2.02 billion. Investment banking revenues increased 29% year over year and 34% sequentially to $279 million, reflecting stronger activity in debt and equity underwriting and improved advisory trends.
At quarter end, client assets under administration were $1.76 trillion, up 15% from March 2025 and down 1% from December 2025, underscoring both market sensitivity and the firm’s asset gathering. Domestic Private Client Group net new assets were $23.0 billion, representing a 5.8% annualized growth rate from beginning-of-quarter assets. Record fee-based assets reached $1.04 trillion, up 20% from March 2025 and slightly higher than December 2025. These fee-based balances are important to asset and wealth managers because they drive recurring revenue streams and help smooth earnings through market cycles.
Selected metrics Metric Q2 FY2026 YoY change QoQ change Net revenues $3,859M +13% +3% Pre-tax income $735M +10% +1% Net income to common $542M +10% (4)% Diluted EPS (GAAP) $2.72 +15% (3)% Adjusted diluted EPS $2.83 +17% (1)% Asset mgmt & admin fees $2,016M +17% +1% Total brokerage revenues $643M +11% +5% Investment banking revenues $279M +29% +34% Client assets under administration $1.76T +15% vs Mar-2025 (1)% vs Dec-2025 PCG fee-based assets $1.04T +20% vs Mar-2025 Up slightly vs Dec-2025 Domestic PCG net new assets $23.0B — — Net bank loans $54.8B +14% vs Mar-2025 +3% vs Dec-2025 Securities-based loans $23.0B +31% vs Mar-2025 +6% vs Dec-2025 Bank NIM 2.81% +14 bps Unchanged Return on common equity 17.3% Up from 16.4% Down from 18.0% Effective tax rate 26.0% ~Flat vs 26.2% Up from 22.7%Management commentaryWe generated record results for the first half of the fiscal year by leveraging the firm’s expertise and resources to support advisors and their clients during this period of market uncertainty. Our ongoing focus and disciplined execution have led to record PCG fee-based assets and annualized net new asset growth of 7% for the first half of the fiscal year.We continue to develop industry-leading technology solutions, including increasing AI integration, to improve efficiency and provide our financial professionals with more time to serve their clients. Looking ahead, financial advisor recruiting activity across all our affiliation options remains robust, and the investment banking pipeline continues to be strong.Income statement and margin dynamics Total revenues were $4.26 billion, while interest expense declined 9% year over year and 9% sequentially, resulting in net revenues of $3.86 billion. Compensation, commissions and benefits rose 15% year over year to $2.54 billion, lifting the total compensation ratio to 65.8% from 64.8% a year ago. Pre-tax margin was 19.0%, down from 19.7% a year ago and 19.5% in the prior quarter, reflecting higher compensation and continued investment in growth. The effective tax rate rose to 26.0%, up from 22.7% in the prior quarter, which contributed to a 4% sequential decline in net income to common despite higher pre-tax income.
For the first six months of fiscal 2026, net revenues were $7.59 billion, up 9% year over year. Diluted EPS was $5.51, up 6% year over year. Adjusted diluted EPS was $5.69, up 6% year over year. Diluted EPS of $5.51 compares to the annual EPS estimate of 11.48. Net revenues of $7,594 million compare to the annual revenue estimate of 15,718.50 million.
Segment performance Private Client Group: Net revenues were a record $2.81 billion, up 13% year over year and 2% sequentially, led by a 17% increase in asset management and related administrative fees to $1.71 billion. Pre-tax income declined 3% year over year and 5% sequentially, pressured by lower interest-related revenues and growth investments. Total domestic sweep and Enhanced Savings balances were $57.8 billion, roughly flat year over year and down 1% sequentially.
Capital Markets: Net revenues were $464 million, up 17% year over year and 22% sequentially. Investment banking revenues were $272 million, up 31% year over year and 36% sequentially, as debt and equity underwriting improved, complemented by gains in advisory and fixed income brokerage. The company completed the acquisition of GreensLedge Holdings LLC during the quarter.
Asset Management: Segment net revenues reached a record $327 million, up 13% year over year and slightly above the prior quarter. Pre-tax income was $137 million, up 13% year over year and down 4% sequentially. Quarter-end financial assets under management were a record $282.4 billion, up 15% from March 2025 and up 1% from December 2025, benefiting from market appreciation and net inflows into fee-based accounts.
Bank: Net revenues were $486 million, up 12% year over year and approximately flat sequentially. Pre-tax income was $166 million, up 42% year over year and down 4% sequentially. Net bank loans reached a record $54.8 billion, driven by securities-based and residential mortgage growth. Net interest margin was 2.81%, up 14 basis points year over year and unchanged sequentially, supported by loan growth, lower funding costs, and a favorable asset mix. Credit quality remained strong.
Balance sheet, capital, and shareholder returns Raymond James Financial Inc RJF maintained robust capital levels, with a total capital ratio of 24.0% and a tier 1 leverage ratio of 12.4%, both above regulatory requirements. During the quarter, the company repurchased $400 million of common stock at an average price of $155 per share and redeemed $81 million of preferred stock. As of March 31, 2026, $1.5 billion remained available under the repurchase authorization. These actions highlight ongoing capital return capacity while supporting growth in fee-based assets and bank lending.
Why the quarter matters to investors The quarter underscores the firm’s core strength in fee-based wealth management and asset gathering, which deliver recurring revenues and earnings resilience. The rebound in investment banking added cyclical upside. However, a higher compensation ratio and the elevated tax rate constrained margin expansion, and lower interest-related revenues in wealth management remain a headwind. Client assets under administration declined 1% sequentially, reflecting market sensitivity that can affect near-term fee levels. Even so, record fee-based assets, consistent net new asset growth, and expanding securities-based lending provide multiple revenue drivers aligned with the asset and wealth management industry’s secular trends.
GuruFocus Valuation Check The GF Value for Raymond James Financial Inc RJF is $161.13 versus a current price of $154.41, indicating the shares appear 4.2% undervalued based on GuruFocus’ proprietary model. This suggests a modest discount relative to estimated intrinsic value.
The company’s GF Score is 86/100, which is considered strong. A 9/10 Growth Rank points to healthy top-line and bottom-line expansion potential, while a 6/10 Profitability Rank indicates solid, though not peak, margin efficiency for the group. Financial Strength is 5/10, consistent with a diversified financial firm balancing lending growth, capital requirements, and shareholder returns. Predictability at 5 stars and a Moat Score of 6/10 suggest historically consistent operating performance and a competitive position supported by scale in wealth management and capital markets.
Insiders sold approximately $5.0 million of stock over the last three months with no reported insider buying, a data point that can be interpreted as a note of caution for near-term sentiment. For a deeper dive, visit the Raymond James Financial Inc stock page on GuruFocus.
Explore the complete 8-K earnings release (here) from Raymond James Financial Inc for further details.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Raymond James Financial, Inc. (RJF - Free Report) came out with quarterly earnings of $2.83 per share, beating the Zacks Consensus Estimate of $2.76 per share. This compares to earnings of $2.42 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.69%. A quarter ago, it was expected that this company would post earnings of $2.83 per share when it actually produced earnings of $2.86, delivering a surprise of +1.06%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Raymond James Financial, which belongs to the Zacks Financial - Investment Bank industry, posted revenues of $3.86 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.95%. This compares to year-ago revenues of $3.4 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Raymond James Financial shares have lost about 3.8% since the beginning of the year versus the S&P 500's gain of 3.2%.
What's Next for Raymond James Financial?While Raymond James Financial has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Raymond James Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.89 on $3.78 billion in revenues for the coming quarter and $11.73 on $15.39 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Bank is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Evercore (EVR - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on April 29.
This investment bank is expected to post quarterly earnings of $5.57 per share in its upcoming report, which represents a year-over-year change of +59.6%. The consensus EPS estimate for the quarter has been revised 17% lower over the last 30 days to the current level.
Evercore's revenues are expected to be $1.23 billion, up 75.4% from the year-ago quarter.
Raymond James Financial, Inc. (RJF - Free Report) reported $3.86 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 13.4%. EPS of $2.83 for the same period compares to $2.42 a year ago.
The reported revenue represents a surprise of +2.95% over the Zacks Consensus Estimate of $3.75 billion. With the consensus EPS estimate being $2.76, the EPS surprise was +2.69%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Raymond James Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Interest Margin: 2.8% versus 2.7% estimated by two analysts on average.Assets Under Management: $282.4 billion versus $284.75 billion estimated by two analysts on average.Private Client Group Asset Under Management: $1.7 billion compared to the $1.71 billion average estimate based on two analysts.Total Interest-Earning Assets: $82.41 billion versus $82.53 billion estimated by two analysts on average.Revenues- Asset management and related administrative fees: $2.02 billion compared to the $2.02 billion average estimate based on three analysts. The reported number represents a change of +16.9% year over year.Revenues- Interest income: $960 million compared to the $965.7 million average estimate based on three analysts. The reported number represents a change of -0.3% year over year.Revenues- Investment banking: $279 million compared to the $215.49 million average estimate based on three analysts. The reported number represents a change of +29.2% year over year.Net interest Income: $557 million compared to the $539.81 million average estimate based on three analysts. The reported number represents a change of +32.9% year over year.Revenues- Other: $53 million versus $41.8 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +32.5% change.Net Revenues- Total brokerage revenues: $643 million compared to the $626.72 million average estimate based on three analysts. The reported number represents a change of +10.9% year over year.Revenues- Account and service fees: $311 million compared to the $305.94 million average estimate based on three analysts. The reported number represents a change of -3.1% year over year.Private Client Group- Asset Management and Related Administrative Fees: $1.71 billion compared to the $1.72 billion average estimate based on two analysts. The reported number represents a change of +17.4% year over year.View all Key Company Metrics for Raymond James Financial here>>>
Shares of Raymond James Financial have returned +6.3% over the past month versus the Zacks S&P 500 composite's +8.6% 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.
Raymond James Financial Inc (RJF) Q2 2026 Earnings Call Highlights: Record Revenues and Strategic Investments in AI Raymond James Financial Inc (RJF) reports a strong quarter with record revenues and significant investments in technology to drive future growth. Summary
Revenue: Record quarterly revenues of $3.86 billion, up 13% year-over-year and 3% sequentially.Pre-tax Income: $735 million, a 10% increase from the prior-year quarter and 1% above the preceding quarter.Net Income: $542 million, with earnings per diluted share of $2.72.Adjusted Net Income: $564 million, resulting in adjusted earnings per diluted share of $2.83.Pre-tax Margin: 19%, with an adjusted pre-tax margin of 19.7%.Return on Common Equity: Annualized return of 17.3%.Return on Tangible Common Equity: Annualized adjusted return of 20.9%.Client Assets Under Administration: $1.7 trillion, a 15% year-over-year increase.Net New Assets: $23 billion, representing a 5.8% annualized growth rate.Bank Loans: Record $54.8 billion, with a 31% year-over-year increase in securities-based lending balances.Share Repurchase: $400 million of common stock repurchased at an average price of $155 per share.Tier 1 Leverage Ratio: 12.4%.Compensation Expense: $2.54 billion, with a total compensation ratio of 65.8%.Non-compensation Expenses: $583 million, a 10% increase year-over-year.Total Assets: $91.9 billion, a 3% increase from the preceding quarter.
Release Date: April 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Raymond James Financial Inc RJF reported record quarterly revenues of $3.86 billion, a 13% increase over the prior-year quarter.The Private Client Group ended the quarter with $1.7 trillion of client assets under administration, reflecting a 15% year-over-year growth.The company recruited financial advisors with trailing 12-month production totaling $141 million and nearly $21 billion of client assets, marking the second highest quarterly result in its history.Raymond James Financial Inc (RJF) is investing over $1.1 billion annually in technology, including AI, to enhance efficiencies and client experience.The Capital Markets segment saw improved results, driven by stronger investment banking revenues and a robust pipeline for future growth. Negative Points Client assets under administration in the Private Client Group were slightly down compared to the preceding quarter.The pretax income in the Private Client Group declined 3% year over year due to the impact of interest rate reductions.Net interest income in the Bank segment was nearly offset by the impact of two fewer interest-earning days and prior quarter interest rate cuts.Non-compensation expenses increased by 10% over the year-ago quarter, reflecting higher operational costs.The effective tax rate for the quarter was 26%, higher than the estimated rate for fiscal 2026, due to nondeductible losses on the corporate-owned life insurance portfolio. Q & A Highlights Q: Can you discuss the competitive environment in the Private Client Group (PCG) and your confidence in the recruiting pipeline?
A: Paul Shoukry, CEO: Our confidence is driven by the volume of home office visits and new commitments from prospective advisers. We're seeing an uptick in our employee affiliation option. Despite competitive pressures, our focus remains on being the best destination for financial advisers and their clients, which has led to strong retention and recruiting momentum.
Q: How do you view the impact of AI on your business, particularly regarding cash sweep optimization?
A: Paul Shoukry, CEO: AI is seen as a net positive, helping advisers provide more personalized advice. The industry has already seen cash balances move to higher-yielding alternatives without AI. We don't see AI as a significant incremental threat to our business model, as personal relationships remain crucial.
Q: Can you elaborate on your technology spending priorities and how you gauge the success of AI initiatives?
A: Paul Shoukry, CEO: The majority of our $1.1 billion technology spend focuses on the Private Client Group. Success is gauged through feedback from our Technology Advisory Council, composed of financial advisers. Our technology is designed to support advisers and enhance client relationships.
Q: What is the outlook for your Capital Markets pipeline, and how does it compare to earlier in the year?
A: Paul Shoukry, CEO: We have a strong investment banking pipeline, with March being particularly strong. Despite market volatility, we have motivated buyers and sellers, and our platform and expertise position us well to convert this pipeline into revenues.
Q: How do you see AI impacting long-term profitability and margins?
A: Paul Shoukry, CEO: While AI offers potential for efficiency and productivity gains, it's too early to quantify its impact on margins. We're exploring agentic AI for process improvements, but specific margin benefits are still preliminary.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways RJF Q2 earnings beat estimates, with adjusted EPS up 16.9% y/y.Record net revenues rose 13.4% y/y, driven by growth across all major segments.Expenses climbed 14.3% y/y, reflecting increases across nearly all cost components. Raymond James’ (RJF - Free Report) second-quarter fiscal 2026 (ended March 31) adjusted earnings of $2.83 per share beat the Zacks Consensus Estimate of $2.76. Also, the bottom line increased 16.9% from the prior-year quarter.
Results benefited primarily from an increase in revenues to record levels. Robust growth in assets under administration balances further supported results. However, an increase in expenses was a headwind.
Net income available to common shareholders (GAAP basis) was $542 million or $2.72 per share, up from $493 million or $2.36 in the prior-year quarter.
RJF’s Revenues Improve, Expenses RiseNet revenues were a record $3.86 billion, up 13.4% year over year. The top line beat the Zacks Consensus Estimate of $3.75 billion.
Segment-wise, in the reported quarter, the Private Client Group recorded 13% year-over-year growth in net revenues. Asset Management’s net revenues also rose 13%, while Capital Markets’ top line increased 17%. Bank registered a rise of 12% from the prior year's net revenues, while Others recorded negative revenues.
Non-interest expenses jumped 14.3% from the prior-year quarter to $3.12 billion. The increase was due to a rise in all cost components except for bank loan provision for credit losses.
As of March 31, 2026, client assets under administration were $1.76 trillion, up 15% from the prior-year period. Financial assets under management of $282.4 billion grew 15% year over year.
RJF’s Balance Sheet & Capital Ratios StrongAs of March 31, 2026, Raymond James had total assets of $91.9 billion, up 3% from the prior-quarter end. Total common equity was $12.6 billion, up 1% from the previous quarter.
Book value per share was $64.58, up from $59.74 as of March 31, 2025.
As of March 31, 2026, the total capital ratio was 24%, down from 24.8% as of March 31, 2025. The Tier 1 capital ratio was 22.9% compared with 23.5% as of March 31, 2025.
Return on common equity (annualized basis) was 17.3% at the end of the reported quarter compared with 16.4% a year ago.
Update on Raymond James’ Share RepurchasesIn the reported quarter, RJF repurchased shares worth $400 million at an average price of $155 per share.
As of March 31, 2026, $1.5 billion remained available under the repurchase authorization.
Our Take on Raymond JamesRaymond James’ global diversification efforts, along with its strategic acquisitions (completed the buyout of a majority interest in GreensLedge Holdings in March 2026 and announced a deal to acquire Clark Capital Management Group in January), are expected to keep supporting top-line growth in the near term. Also, a robust capital markets business is a positive for the company. However, elevated operating expenses remain a major concern.
Currently, Raymond James carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of RJF’s PeersMorgan Stanley’s (MS - Free Report) first-quarter 2026 earnings were $3.43 per share, which outpaced the Zacks Consensus Estimate of $3.06. The bottom line jumped 32% from the prior-year quarter.
Morgan Stanley’s results benefited from robust client engagement, strength in investment banking and trading activities, as well as growth in net interest income.
Charles Schwab’s (SCHW - Free Report) first-quarter 2026 adjusted earnings of $1.43 per share outpaced the Zacks Consensus Estimate of $1.38. The bottom line soared 38% year over year.
SCHW’s results benefited from the robust performance of the asset management business and an increase in trading revenues. Higher net interest revenues and solid brokerage account numbers were other positives. However, an increase in expenses was the undermining factor.
Raymond James Financial (NYSE:RJF) reported record fiscal second-quarter 2026 results, with management emphasizing resilient performance amid a “challenging and volatile market environment,” continued advisor recruiting momentum, and record balances in key areas including bank loans and fee-based assets.
Record revenue and earnings metrics CEO Paul Shoukry said the firm’s performance reflected “disciplined execution” and a focus on being “the absolute best firm for financial professionals and their clients.” For the quarter, Raymond James posted record quarterly revenues of $3.86 billion, up 13% from the prior-year period and 3% from the preceding quarter. Pre-tax income totaled $735 million, up 10% year-over-year and 1% sequentially.
CFO Butch Oorlog reported net income available to common shareholders of $542 million, or $2.72 per diluted share. Adjusted results, excluding acquisition-related expenses, were $564 million and $2.83 per diluted share. The firm’s pre-tax margin was 19%, with an adjusted pre-tax margin of 19.7%. Oorlog said annualized return on common equity was 17.3% and annualized adjusted return on tangible common equity was 20.9%.
Private Client Group: asset growth, recruiting strength, and margin headwinds Raymond James ended the quarter with $1.7 trillion of Private Client Group (PCG) client assets under administration, “down slightly” versus the preceding quarter but up 15% year-over-year, Shoukry said. Domestic net new assets were $23 billion, representing a 5.8% annualized growth rate for the quarter.
Recruiting remained a focal point. Shoukry said the firm recruited advisors into its domestic independent contractor and employee channels with trailing 12-month production of $141 million and nearly $21 billion of client assets at their prior firms, calling it the “second highest quarterly result” in company history for both recruited production and assets.
During Q&A, Shoukry attributed confidence in the recruiting pipeline to home office visit volume and “the volume of new commits of prospective advisors across our affiliation options,” adding the company is seeing “an uptick of commits in our employee affiliation option as well.” He also described private equity as having been “competitive over the last five years,” and said he had heard of firms that attempted to raise capital in recent months but were unable to do so, which he suggested could influence valuations and potentially become a future catalyst for advisor movement.
Financially, PCG generated pre-tax income of $416 million on record net revenues of $2.81 billion. Oorlog said PCG pre-tax income declined 3% year-over-year primarily due to interest rate reductions over the past year that reduced “non-compensable revenues.” Shoukry also noted that lower short-term rates create a spread-driven headwind to PCG margins as rates decline.
Asked about PCG compensation dynamics, Shoukry pointed to a mix shift in recruiting toward the independent channel, where payouts are higher because advisors cover their own overhead costs, and noted tiered payout grids can increase as production rises.
Capital Markets and Asset Management: improved banking activity and inflows Capital Markets results improved during the quarter. Shoukry said the segment benefited from stronger investment banking revenues and highlighted “a particularly strong performance in the month of March.” Oorlog reported Capital Markets net revenues of $464 million and pre-tax income of $51 million, with year-over-year and sequential growth driven by higher debt and equity underwriting, plus higher M&A and advisory revenues.
Shoukry said the investment banking pipeline was “very promising,” citing activity levels and engagement letters signed, though he cautioned the firm does not know when pipelines will convert to revenues. He said much of the pipeline is driven by financial sponsors, describing “motivated buyers and sellers,” with buyers holding “capital and dry powder” and sellers often beyond original holding periods.
In Asset Management, Shoukry said net inflows into managed fee-based programs within PCG were strong, and Raymond James Investment Management also posted positive net inflows. Oorlog reported Asset Management pre-tax income of $137 million on record net revenues of $327 million, attributing results largely to higher assets under management from market appreciation and “strong net inflows into PCG fee-based accounts.”
Oorlog said asset management and related administrative fees totaled $2.02 billion, up 17% year-over-year and 1% sequentially, and that record PCG fee-based assets ended the quarter at $1.04 trillion, up 20% year-over-year. Looking ahead, he said the firm expects fiscal third-quarter asset management and related administrative fees to be higher by approximately 1% from the second quarter level, driven by one additional billing day and slightly higher quarter-end balances.
Banking: record loans, stable credit, and cash sweep trends Raymond James ended the quarter with record loans of $54.8 billion. Shoukry said growth was “primarily driven by continued outstanding growth in securities-based lending balances,” which increased more than $5 billion, or 31%, year-over-year and 6% sequentially. He added that credit quality “continues to be strong.”
Oorlog reported Banking net revenues of $486 million and pre-tax income of $166 million. He said net interest income increased marginally from the prior quarter, with loan growth largely offset by two fewer interest-earning days and the full-quarter impact of prior-quarter interest rate cuts.
On client cash balances, Oorlog said domestic cash sweep and Enhanced Savings Program balances ended the quarter at $57.8 billion, down 1% sequentially and representing 3.7% of domestic PCG client assets. Based on April activity, he said balances declined due to collection of record quarterly fee billings of approximately $1.9 billion and seasonal tax activity.
During Q&A, Shoukry addressed investor concerns about “agentic AI” tools potentially optimizing cash and pressuring sweep balances. He said the shift into higher-yielding alternatives has been underway since rates rose and “doesn’t require AI,” pointing to offerings such as the Enhanced Savings Program and access to institutional share classes of prime money market funds. Shoukry said sweep balances have “stabilized over the last several quarters,” aside from billing and tax season effects, and he did not see “much more of an incremental threat” from AI in the advised channel.
Technology investment, AI initiatives, acquisitions, and capital return Shoukry reiterated more than $1.1 billion in annual technology spending, saying the “vast majority” is focused on PCG, which he described as a differentiator because the firm does not have to prioritize areas like credit cards and payments. He cited an internal AI operations agent—also referenced later as a solution called “Ray”—that provides natural-language guidance on operational questions and is being piloted with a few hundred advisors and teams, with “extremely positive” early feedback.
On the margin impact of AI, Shoukry said it is “hard to dimension the actual margin impact at this juncture,” calling it “too preliminary” to provide specific cost-reduction or margin-benefit estimates. He framed AI’s long-term benefit as helping advisors deliver more tailored advice while reducing administrative burdens, while arguing that personal client relationships remain central to the advised model.
On M&A, Shoukry said the firm remains committed to enhancing its platform through hiring and acquisitions, citing GreensLedge, which closed late in the quarter, and Clark Capital, which is expected to close in the current quarter. Asked about the potential for a larger deal, Shoukry said the challenge is that “a lot of great competitors…haven’t necessarily been for sale,” adding the firm prefers to “invite other firms to the Raymond James family” rather than pursuing “takeovers.”
Capital actions also featured prominently. Shoukry said the firm repurchased $400 million of common stock at an average share price of $155 and ended the quarter with a Tier 1 leverage ratio of 12.4%. Oorlog said the company returned $507 million to shareholders during the quarter through dividends and buybacks and redeemed all outstanding Series B preferred stock in January for $81 million. Over the past 12 months, Oorlog said the firm repurchased $1.6 billion of common shares and returned over $2 billion to common shareholders including dividends, representing a combined return of 94% of earnings.
Looking ahead on taxes, Oorlog said the quarter’s effective tax rate was 26%, including an unfavorable impact from non-deductible losses on the corporate-owned life insurance portfolio. He maintained an estimated fiscal 2026 effective tax rate of approximately 24% to 25%.
In closing remarks, Shoukry said the company delivered record revenues and record pre-tax income in the first half of the fiscal year and entered the third quarter with “record PCG fee-based assets under administration, record bank loans,” robust recruiting activity, and a strong investment banking pipeline.
About Raymond James Financial (NYSE:RJF) Raymond James Financial is a diversified financial services firm headquartered in St. Petersburg, Florida. Founded in 1962, the company provides a range of services to individual investors, businesses and institutions through a combination of wealth management, capital markets, investment banking, asset management, banking and trust services. Its business model centers on a network of financial advisors and broker-dealer operations that deliver personalized financial planning, investment advisory services and brokerage solutions.
The firm’s core offerings include private client wealth management delivered by independent and employee advisors, equity and fixed-income research, institutional sales and trading, and investment banking services such as mergers and acquisitions advisory and capital raising.
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