Merit Medical Systems (NASDAQ:MMSI) Issues Quarterly Earnings Results

Merit Medical Systems (NASDAQ:MMSI) posted its quarterly earnings results on Tuesday. The medical instruments supplier reported $1.04 EPS for the quarter, beating the consensus estimate of $0.96 by $0.08, FiscalAI reports. The company had revenue of $393.94 million during the quarter, compared to analysts’ expectations of $390.77 million. Merit Medical Systems had a return on equity of 14.06% and a net margin of 8.48%.The firm’s revenue was up 10.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.93 EPS. Merit Medical Systems updated its FY 2026 guidance to 4.010-4.150 EPS.

Here are the key takeaways from Merit Medical Systems’ conference call:

• Merit reported a strong Q4 and full-year 2025 with Q4 revenue of $393.9M (up 10% constant currency), a record Q4 free cash flow of $74M, FY2025 free cash flow of ~$216M, and non-GAAP operating margin of 21%, all above prior guidance.
• The company set 2026 guidance for total revenue growth of 6–8% GAAP (5–7% constant currency), non-GAAP EPS of $4.01–$4.15, modest operating-margin expansion, and at least $200M of free cash flow with ~$90M CapEx planned.
• Headwinds include an assumed 12‑month tariff impact of about $15M (noting further tariff risk from recent policy actions), softer OEM demand/seasonal destocking (notably outside the U.S. and China), and the sale of the DualCap line ( $28M) which is expected to be ~140 bps of headwind to 2026 constant-currency revenue.
• Commercial rollout of WRAPSODY is in early innings; Merit expects about $7M of U.S. revenue in 2026 (implying low‑to‑mid single‑digit market penetration) and sees WRAPSODY as a longer‑term platform opportunity, but near‑term contribution is modest (~25 bps to 2026 growth).
• Under new CEO leadership Merit is reorganizing around cross‑functional platforms, reaffirmed its Continued Growth Initiative targets (3‑yr organic CAGR 5–7%, 20–22% operating margin, >$400M cumulative FCF) and signaled disciplined appetite for strategic M&A to complement internal R&D.

Merit Medical Systems Stock Up 0.4%

NASDAQ MMSI traded up $0.31 on Thursday, reaching $79.54. The company had a trading volume of 139,495 shares, compared to its average volume of 729,974. The company has a debt-to-equity ratio of 0.48, a current ratio of 4.28 and a quick ratio of 2.86. Merit Medical Systems has a 1 year low of $77.62 and a 1 year high of $107.27. The firm has a 50-day moving average of $83.92 and a 200-day moving average of $84.94. The firm has a market capitalization of $4.72 billion, a PE ratio of 37.51, a P/E/G ratio of 2.24 and a beta of 0.61.

Merit Medical Systems News Roundup

Here are the key news stories impacting Merit Medical Systems this week:

• Positive Sentiment: Merit reported better‑than‑expected Q4 results: $1.04 EPS vs. $0.96 consensus, revenue $393.9M (up 10.9% y/y), and expanding margins — results investors view as evidence of underlying growth and operational leverage. Merit Medical Q4 Earnings & Revenues Beat Estimate, Margins Expand
• Positive Sentiment: Management set FY‑2026 EPS guidance of $4.01–$4.15, above the Street consensus (~$3.73), signaling revenue growth and margin expectations that support a higher valuation if execution continues. Earnings release & guidance
• Positive Sentiment: Barrington Research raised its price target to $109 and kept an “outperform” rating, reflecting bullish view on upside from recent results and guidance. Barrington Research raises PT
• Neutral Sentiment: Analyst commentary (Needham) kept a Buy rating based on the Q4 beat and stronger 2026 outlook, even though the firm trimmed its price target to $101 — a sign of confidence in fundamentals despite a more conservative valuation. Needham note on PT cut
• Neutral Sentiment: Company slide deck and earnings call materials are available for investors to review details on geographic mix, Cardiovascular strength, and the planned divestiture of DualCap as part of portfolio optimization. Slide deck / press release
• Negative Sentiment: Wells Fargo downgraded MMSI from Overweight to Equal Weight and cut its target to $78, flagging valuation/headwinds that could pressure near‑term sentiment. Wells Fargo downgrade

Wall Street Analyst Weigh In

Several brokerages recently commented on MMSI. Wells Fargo & Company lowered shares of Merit Medical Systems from an “overweight” rating to an “equal weight” rating and dropped their price target for the stock from $95.00 to $78.00 in a research report on Thursday. BTIG Research began coverage on Merit Medical Systems in a report on Friday, February 6th. They set a “buy” rating and a $107.00 price objective for the company. Robert W. Baird set a $108.00 target price on Merit Medical Systems in a report on Tuesday, December 16th. Weiss Ratings restated a “hold (c)” rating on shares of Merit Medical Systems in a research note on Monday, December 29th. Finally, Canaccord Genuity Group lifted their price objective on Merit Medical Systems from $93.00 to $99.00 and gave the company a “buy” rating in a research note on Wednesday, December 17th. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Merit Medical Systems currently has an average rating of “Moderate Buy” and an average price target of $103.33.

Institutional Investors Weigh In On Merit Medical Systems

A number of large investors have recently added to or reduced their stakes in the company. State Street Corp increased its stake in Merit Medical Systems by 1.5% during the 4th quarter. State Street Corp now owns 2,231,048 shares of the medical instruments supplier’s stock worth $196,645,000 after buying an additional 32,459 shares during the period. Fuller & Thaler Asset Management Inc. grew its stake in shares of Merit Medical Systems by 12.7% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 2,077,796 shares of the medical instruments supplier’s stock valued at $183,137,000 after acquiring an additional 234,682 shares in the last quarter. Wellington Management Group LLP increased its position in shares of Merit Medical Systems by 7.0% during the fourth quarter. Wellington Management Group LLP now owns 1,327,013 shares of the medical instruments supplier’s stock worth $116,963,000 after acquiring an additional 86,504 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Merit Medical Systems by 4.0% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,225,013 shares of the medical instruments supplier’s stock worth $107,974,000 after acquiring an additional 47,151 shares in the last quarter. Finally, Morgan Stanley boosted its holdings in Merit Medical Systems by 17.6% in the fourth quarter. Morgan Stanley now owns 1,140,390 shares of the medical instruments supplier’s stock valued at $100,514,000 after purchasing an additional 170,517 shares during the last quarter. 99.66% of the stock is owned by institutional investors and hedge funds.

Merit Medical Systems Company Profile

Merit Medical Systems, Inc is a global manufacturer and marketer of a broad range of medical devices used in diagnostic and interventional procedures. The company’s product portfolio encompasses vascular access, drainage, embolotherapy, and interventional oncology devices, as well as radiofrequency ablation systems and hemostasis solutions. These products serve physicians and hospitals in critical care settings and support minimally invasive treatment options across multiple specialties, including cardiology, radiology, oncology, neurology and endoscopy.

Founded in 1987 by Fred Lampropoulos, Merit Medical Systems has grown through both organic development and targeted acquisitions to expand its technology offerings and geographic reach.