Earnings

Operating income was $20.91 billion, versus $3.89 billion a year earlier. The company said both figures include a gain on digital assets of the same size, $20.91 billion and $3.89 billion respectively, so the software operations did not add to the headline figure on …

Net sales were $147.2 million, a decrease of $5.2 million, or 3%, from $152.4 million. Pricing added $1.0 million, which only partly offset a $6.2 million impact from lower customer production volumes.

MedSurg and Neurotechnology sales were $3.7 billion, up 9.2%, with organic growth of 9.1%. Orthopaedics sales were $2.9 billion, up 5.7% as reported and 5.9% in constant currency.

Operating earnings were $21.2 million, compared with an operating loss of $60.2 million. Net earnings were $20.9 million, or $0.35 per diluted share, versus a net loss of $45.1 million, or $(0.80) per share, in the prior year quarter.

Net income was $100.7 million, an increase of $9.7 million from $91.0 million in fiscal 2025. Chairman and CEO Marc Stefanski said the year passed the $100 million mark, driven by margin improvement and a 39% increase in mortgage loan originations.

Diluted EPS grew 29.7% year over year, outpacing the 14.3% rise in net income on a calculated basis. The gap reflects a smaller share count, with weighted diluted shares at 41.1 million versus 46.5 million.

Gross merchandise value was $641.5 million, versus $519.8 million, which is about 23.4% higher on a calculated basis. Orders rose 15% to 1.02 million, and average order value climbed 8% to $629 from $584. Active buyers reached 1.152 million, up from 1.024 million.