CNMD · CONMED Corporation

CONMED's Q1 2026 results showed resilience amid the strategic exit of certain GI products, which reduced sales by $15.5 million overall, $15.2 million domestically, and $0.3 million internationally. Total sales declined 1.3% reported and 2.9% constant currency to $317.0 million, with domestic revenue down 5.8% to $173.0 million and international up 4.7% reported (1.0% constant currency) to $144.0 million. Orthopedic Surgery sales grew 6.8% reported to $147.7 million, while General Surgery fell 7.4% to $169.3 million, reflecting the GI divestiture impact. Gross margin expanded to 57.9% from 55.3%, driven by lower cost of sales ($133.6 million vs $143.5 million), and operating margin improved to 8.0% from 5.0%, with operating income rising to $25.4 million from $16.0 million. GAAP net income surged to $13.8 million ($0.45 diluted EPS) from $6.0 million ($0.19), while adjusted diluted EPS was $0.89 versus $0.95. Adjusted EBITDA was $56.4 million (17.8% margin) compared to $61.3 million (19.1%). Management highlighted continued momentum from 2025, focusing resources on higher-growth areas like minimally invasive surgery, smoke evacuation, and orthopedic soft tissue repair. They raised FY2026 organic constant currency revenue growth guidance (excluding GI) to 5.0%-6.5% from 4.5%-6.0%, with reported revenue now $1.350-$1.375 billion incorporating 40-50 bps FX tailwind and lower GI revenue of $14.5-$17.5 million post-divestiture. Adjusted diluted EPS guidance of $4.30-$4.45 was reaffirmed despite higher interest expense from planned debt refinancing. A conference call was held on April 29, 2026, at 4:30 p.m. ET.