CONMED Corp (NYSE:CNMD) reported fourth-quarter financial results that presented a mixed picture for investors, leading to a muted initial market reaction. The medical technology company delivered a solid earnings beat but fell just short on the top line, while its full-year outlook introduced a note of caution.
Quarterly Performance vs. Estimates
CONMED’s fourth quarter of 2025 was characterized by steady sales growth and stronger-than-expected profitability, though revenue narrowly missed Wall Street’s targets.
- Revenue: Sales reached $373.2 million, marking a 7.9% year-over-year increase. However, this figure came in slightly below the analyst consensus estimate of approximately $374.1 million.
- Earnings Per Share (Adjusted): The company reported adjusted diluted EPS of $1.43, which comfortably exceeded the average analyst estimate of $1.35. This represents a 6.7% increase from the $1.34 reported in the prior-year quarter.
The earnings beat was driven in part by a significant expansion in gross margin, which rose to 58.5% for the quarter, up 120 basis points from 57.3% in Q4 2024. This helped offset a substantial year-over-year increase in selling and administrative expenses, which the company attributed to higher litigation-related costs.
Geographic and Segment Breakdown
A key highlight of the quarter was the stark divergence between domestic and international growth, with international markets carrying the momentum.
- Domestic Revenue: Increased a modest 1.4% year-over-year.
- International Revenue: Surged 17.0% as reported, or 15.4% on a constant-currency basis.
By product category, single-use products, which represent the bulk of sales, grew 7.8%, while capital products saw an 8.2% increase.
Full-Year 2025 Results and 2026 Outlook
For the full year 2025, CONMED reported sales of $1.37 billion, up 5.2%, and adjusted EPS of $4.59, a 10% increase from 2024.
Management’s guidance for 2026 is where investor sentiment appears to have cooled. The company expects:
- Full-Year 2026 Revenue: Between $1.345 billion and $1.375 billion.
- Full-Year 2026 Adjusted EPS: In the range of $4.30 to $4.45.
This revenue guidance, with a midpoint of $1.36 billion, falls approximately 0.7% below the current analyst consensus estimate of about $1.41 billion. The EPS guidance midpoint of $4.38 also sits below the analyst consensus of $4.59 for the full year. The company noted its outlook excludes sales of its gastroenterology products and includes an expected currency tailwind of about $0.10 per share.
Market Reaction and Analysis
Following the earnings release, CONMED’s stock showed little movement in after-hours trading. This neutral reaction likely reflects the market balancing the positive EPS surprise and strong international growth against the slight revenue miss and a forward outlook that suggests a potential deceleration in growth and profitability compared to analyst expectations.
The company’s emphasis on "steady execution" and a "sharpened strategic focus" for 2026, particularly in minimally invasive surgery, smoke evacuation, and orthopedic soft tissue repair, points to a period of operational discipline rather than aggressive expansion.
Conclusion
CONMED’s Q4 results demonstrate the resilience of its underlying business, particularly overseas, and an ability to manage costs to deliver bottom-line outperformance. However, the conservative guidance for the coming year introduces uncertainty about the near-term growth trajectory, leading to a cautious stance from investors. The coming quarters will be critical for assessing whether the company’s strategic initiatives can reaccelerate growth to meet or exceed market expectations.
For a detailed look at CONMED’s historical earnings and future estimates, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
