Key Highlights

  • Net sales of USD 335.6 million slipped 0.7%, though organic constant currency growth reached 6.7% excluding exited gastroenterology products.
  • Adjusted diluted EPS of USD 1.04 compared with USD 1.08 a year earlier; GAAP diluted EPS rose to USD 0.66.
  • Gross margin widened 720 basis points to 56.4% as a year-ago USD 19.7 million inventory write-off dropped out.
  • Full-year adjusted EPS guidance moved to USD 4.54 to USD 4.61, with free cash flow near USD 115 million.

CONMED Corporation (NYSE:CNMD) reported third-quarter 2026 net sales of USD 335.6 million, down 0.7% from USD 337.9 million a year earlier and slightly below a consensus estimate of USD 336.28 million. Adjusted diluted earnings per share were USD 1.04, above a consensus estimate of USD 1.00 and below the USD 1.08 posted in the prior-year quarter. GAAP net income was USD 19.8 million, or USD 0.66 per diluted share, compared with USD 2.9 million, or USD 0.09 per share, a year earlier.

The headline sales decline reflects the company's exit from gastroenterology products, which contributed USD 1.7 million this quarter against USD 26.0 million a year ago. Excluding those products, organic constant currency revenue rose 6.7%. Orthopedic surgery sales grew 7.7% to USD 148.8 million, while general surgery fell 6.5% to USD 186.7 million.

Product Drivers and Margin Expansion

Chief executive Patrick Beyer pointed to three growth platforms. AirSeal insufflation led general surgery, with strong international capital equipment sales and a new expanded US indication for use with da Vinci 5 cannulas. Direct sales of Buffalo Filter smoke evacuation products also grew, partly offset by weaker sales to OEM customers. BioBrace was a key orthopedic driver, and the company secured regulatory clearance for it in Brazil during the quarter.

GAAP gross margin rose to 56.4% from 49.2%, helped by the absence of a USD 19.7 million write-off and a USD 3.7 million consulting charge booked in the year-ago period, along with favorable product mix. Adjusted gross margin was 56.4%, up 40 basis points. Selling and administrative expense fell to 40.7% of sales from 41.5%, while research and development rose to 4.6% of sales on European medical device regulation costs. Interest expense climbed to USD 11.1 million from USD 7.6 million after the June refinancing.

Guidance and Balance Sheet Position

Management narrowed 2026 organic constant currency sales growth to 5.0% to 5.5% from 5.0% to 6.0%. Adjusted EPS guidance moved to USD 4.54 to USD 4.61 from USD 4.48 to USD 4.60, with adjusted gross margin of about 57.5% and an adjusted tax rate near 24.5%. For the fourth quarter, the company guided to net sales of USD 364 million to USD 370 million and adjusted EPS of USD 1.23 to USD 1.30.

At September 30, cash stood at USD 48 million and total debt obligations at USD 815.9 million, with USD 468.5 million of revolver capacity available. The leverage ratio was 2.7 times. The company repurchased 1.2 million shares for USD 49.9 million over nine months and targets about USD 62 million of buybacks for the full year.

Open Items and Reference Points

Four data points frame the next report. The first is fourth-quarter net sales of USD 364 million to USD 370 million, which management tied to organic growth of 5.1% to 6.8%. The second is adjusted EPS of USD 1.23 to USD 1.30 against the full-year range of USD 4.54 to USD 4.61. The third is the remaining 2.250% convertible notes, roughly USD 154.8 million after the repurchase of USD 645.2 million, which mature on June 15, 2027. The fourth is US general surgery, which grew 1.9% domestically, along with the OEM smoke evacuation line that management called more variable.