Key Highlights

  • Sales rose 8.4% to $416.2 million, from $384.2 million a year earlier.
  • Net income was $42.3 million, or $0.70 per diluted share, against $27.8 million, or $0.46.
  • Operating income increased to $58.8 million from $42.6 million.
  • Therapeutic sales grew 14.0% to $140.5 million, led by Endoscopy up 32.9%.
  • Cash, cash equivalents and restricted cash were $505.8 million at September 30, 2026.

Sales growth of 8.4% across two product categories

Merit Medical Systems (NASDAQ:MMSI) makes proprietary medical devices used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy. The company filed its Quarterly Report for the period ended September 30, 2026 on October 29, 2026, showing sales of $416.2 million, up $32.1 million, or 8.4%, from $384.2 million.

Foreign currency added $1.1 million to sales after hedging.

Therapeutic platforms outrun the foundational base

Therapeutic sales rose 14.0% to $140.5 million from $123.3 million. Endoscopy grew 32.9% to $23.4 million, Therapeutic OEM rose 31.5% to $13.1 million, Oncology rose 16.4% to $27.1 million, and Cardiac Therapies rose 7.9% to $27.5 million. Renal Therapies slipped 1.9% to $13.6 million.

Foundational sales rose 5.7% to $275.7 million. Vascular Intervention grew 19.7% to $42.4 million on drainage and biopsy products, OEM grew 11.5% to $46.3 million, and Access grew 4.2% to $157.9 million. Procedural Solutions fell 15.9% to $27.2 million, a decline the company tied primarily to the sale of its DualCap product line.

Operating margin widens even as gross margin eases

Gross profit was 48.2% of sales, compared with 48.5% a year earlier, with the company citing unfavorable price variances and higher freight costs. Selling, general and administrative expenses fell to 28.7% of sales from 31.2%, helped by lower legal fees, acquisition-related integration costs and employee termination benefits.

Research and development expense decreased 6.6% to $22.4 million. Operating Income rose to $58.8 million from $42.6 million, equal to 14.1% of sales versus 11.1%.

From operating income to Net Income of $0.70 per share

Other expense narrowed to $3.0 million from $4.1 million. Income tax expense was $13.5 million at an effective rate of 24.2%, compared with $10.8 million and 28.0% a year ago, as share-based compensation and the OBBBA tax law provided greater benefit.

Net income was $42.3 million, or $0.70 per diluted share, compared with $27.8 million, or $0.46.

Nine-month results, View Point and the balance sheet

For the nine months, sales rose 8.5% to $1,217.0 million, and net income rose to $122.1 million, or $2.03 per diluted share, from $90.5 million, or $1.49. Gross margin for the period was 49.4%, which included refunds of $6.9 million for previously paid IEEPA tariffs and a $12.5 million gain on the DualCap sale in February 2026 recorded in other expense.

On April 1, 2026, Merit completed the Acquisition of View Point, adding the OneMark Detection Imaging System and Tissue Markers used to diagnose and localize breast and soft tissue tumors. Commercial sales of OneMark began in the third quarter. Cash from operations for the nine months was $175.2 million, compared with $198.9 million, as inventory Investment of $59.9 million weighed on cash. Outstanding borrowings were $747.5 million, with net available borrowing capacity of $697 million.

What to watch next

The filing offers no numerical outlook, so attention is likely to fall on whether Endoscopy and Oncology keep growing at double-digit rates, how quickly OneMark expands commercial availability through 2026 and 2027, and whether gross margin recovers from 48.2%.