Conmed (CNMD) Q3 2026 Earnings Report

The call was broadly positive. Third-quarter organic revenue growth was 6.7%, both major product lines grew organically, AirSeal, direct Buffalo Filter, and BioBrace performed well, and adjusted EPS exceeded expectations with higher full-year EPS guidance. The main negatives were declining reported revenue and adjusted EPS, lower free cash flow, weaker U.S. orthopedic and OEM smoke-evacuation sales, higher interest expense, tariff exposure, and a narrowed high end of revenue guidance. Overall, the highlights significantly outweighed the lowlights.

For full year 2026, ConMed expects at least 5% organic constant currency revenue growth, with net sales growth of 5% to 5.5%, GI revenue of approximately $20 million, and changes in foreign currency exchange rates representing a tailwind to GAAP results of approximately $9 million; non GAAP adjusted diluted earnings per share are expected in the range of $4.54 to $4.61, adjusted gross margin of approximately 57.5%, adjusted interest expense of approximately $33.7 million, adjusted effective tax rate of approximately 24.5%, free cash flow of approximately $115 million, weighted average shares outstanding of 30.2 million, and $62 million allocated to share repurchase. Fourth-quarter guidance is GAAP net sales of between $364 million and $370 million, organic constant currency growth in the range of 5.1% to 6.8% excluding expected GI revenue of approximately $3.7 million and an FX tailwind of approximately $650 thousand, and adjusted EPS of between $1.23 and $1.30; the company also expects a $0.35 tariff impact ignoring the tariff refunds and 50 to 100 basis points of gross margin expansion with and without the refund.