Merit Medical Q1 2026 stock analysis: sales up 7%, outlook updated

Key takeaways

• This stock analysis reviews Merit Medical Systems’ first-quarter 2026 results, furnished with a Form 8-K on April 30, 2026.
• Revenue rose 7% to $381.9 million; growth was 5% in constant currency and 3% on a constant currency organic basis.
• GAAP net income was $41.0 million, or $0.68 per share, up 39%; non-GAAP EPS rose 9% to $0.94.
• The company updated 2026 guidance to revenue of $1.612 billion to $1.634 billion and non-GAAP EPS of $4.01 to $4.15.
• Merit sold one product line in February and bought View Point Medical in April for $140 million.

Stock analysis: growth in layers

Merit Medical, a maker of medical devices, reported first-quarter revenue of $381.9 million, up 7% from a year earlier. The headline figure is worth unpacking because the company reports growth on several bases. In constant currency, which removes the effect of exchange rate moves, revenue was $373.9 million, up 5%. On a constant currency organic basis, which also strips out acquisitions and divestitures, growth was 3%, or 4% excluding revenue from a product line the company sold.

That layering tells investors where the growth came from. About two percentage points of the reported gain reflected currency, and part of the remainder reflected changes in the business portfolio rather than underlying demand. The organic figure, at 3% to 4%, is the closest measure of how the existing product range performed.

New reporting categories

Starting this quarter, Merit reorganized its revenue reporting into two categories.

Category (Q1 2026)	Revenue	Reported growth	Constant currency growth
Foundational	$255.5M	+6%	+4%
Therapeutic	$126.4M	+10%	+7%
Total	$381.9M	+7%	+5%

The Therapeutic category, about a third of revenue, grew faster than Foundational on both a reported and constant currency basis. Because the categories are new, comparisons with the company’s earlier cardiovascular and endoscopy breakdowns are not direct.

Margins and earnings

GAAP gross margin was 48.4%, unchanged from a year earlier, while non-GAAP gross margin edged down to 53.2% from 53.4%. Operating margins improved slightly: GAAP operating margin rose to 11.6% from 11.5%, and non-GAAP operating margin rose to 19.7% from 19.3%. Holding gross margin flat while lifting operating margin suggests that operating expenses grew more slowly than revenue.

GAAP net income was $41.0 million, or $0.68 per share, a 39% increase in EPS. Non-GAAP EPS, which adjusts for items the company excludes from its core results, rose 9% to $0.94. The wide gap between the two growth rates indicates that lower non-recurring or non-cash charges contributed to the GAAP increase.

Cash, debt and deals

Free cash flow was $24.7 million, up 26%. Cash and equivalents stood at $488.1 million at quarter-end, up from $446.4 million at December 31, 2025, against total debt of $747.5 million.

The company was active on its portfolio. On February 17, 2026, it sold its DualCap product line for $28 million. On April 1, after the quarter closed, it acquired View Point Medical, maker of the OneMark system, for $140 million. Merit expects the acquisition to dilute 2026 EPS by about $0.05.

Outlook and tariffs

Updated guidance calls for 2026 revenue of $1.612 billion to $1.634 billion, growth of 6% to 8%, and non-GAAP EPS of $4.01 to $4.15, growth of 5% to 8%. Management cited incremental year-over-year headwinds from tariffs but said it expects stable constant currency growth despite uncertainty around trade policy.

What to watch

The points to follow in later quarters are whether organic growth moves above the 3% to 4% range, how quickly View Point Medical contributes to revenue, and whether tariff costs pressure the gross margin that held steady this quarter. Investors comparing medical device stocks may also watch how the new Foundational and Therapeutic categories trend once a year of history is available. This review summarizes the filing and does not offer a valuation view or recommendation.