Merit Medical Systems (MM3) AI Stock Analysis

Company Guidance

For the 12 months ending December 31, 2026, Merit expects total GAAP net revenue growth in the range of 7.9% to 8.4% year-over-year and 7% to 7.5% year-over-year on a constant currency basis, excluding an expected 80 basis point tailwind to GAAP growth from changes in foreign currency exchange rates; sales of foundational products are expected to increase in the mid-single digits year-over-year and sales of therapeutic products to increase in the low double digits year-over-year, with organic constant currency growth in the range of 7.1% and 7.6%, acquisitions in the range of approximately $18 million to $19 million, DualCap sales of approximately $1.6 million in Q1 of 2026 versus $20.3 million in 2025, and U.S. WRAPSODY CIE revenue of approximately $7 million; non-GAAP diluted earnings per share is expected in the range of $4.33 to $4.37, reflecting expected growth in the range of 13% to 14% year-over-year, with full year 2026 non-GAAP operating margin in the range of 21.2% to 21.4%, up 94 to 116 basis points year-over-year; fourth-quarter total revenue is expected in the range of $418 million to $426 million, representing growth of 6% to 8% year-over-year on a GAAP basis and approximately 6% to 8% on a constant currency basis, organic constant currency growth is expected in the range of 7% to 8%, excluding acquisitions in the range of approximately $1.8 million to $2.9 million and revenue from a divestiture of $4.9 million in the prior year period, non-GAAP operating margins are expected in the range of approximately 21.2% to 22.1%, compared to 21% last year, and non-GAAP EPS in the range of $1.08 to $1.12, compared to $1.04 last year; tariff assumptions remain around $16 million, and for the 3-year period ending December 31, 2026, the company is targeting an organic constant currency revenue CAGR of 5% to 7%, non-GAAP operating margin in the range of 20% to 22% and cumulative free cash flow generation of more than $400 million.