Merit Medical Systems Inc. presented its strategic review and full‑year 2026 outlook at the Wells Fargo 21st Annual Healthcare Conference on Sept. 10. The company, valued at about $5.2 billion with a price‑to‑earnings multiple of 35.7, closed at $85.37 on the prior trading day and was trading at $85.50 after hours.
For the second quarter, Merit reported organic constant‑currency revenue growth of 9%. Management reaffirmed guidance for 2026 that calls for organic constant‑currency revenue growth of 7% to 7.5%, an operating margin of 21% to 21.5% and earnings‑per‑share growth of 11% to 14%. The outlook includes a $6.9 million tariff‑refund benefit, roughly $0.09 per share and equivalent to 40 basis points of margin.
The strategic review examines eight platforms, each representing roughly $100 million to $500 million of business. The OEM platform, which saw a 14% decline in Q1 2026 followed by a 15% rebound in Q2, is expected to deliver mid‑ to high‑single‑digit growth for the full year and now includes an early‑stage distribution agreement with Medtronic. The embolic platform, generating about $80 million in revenue, highlighted gastric artery embolization and prostatic artery embolization at the CIRSE conference. On the oncology side, the OneMark system is projected to reach $14 million to $16 million in sales in 2027, expanding the addressable market three‑ to four‑fold versus the SCOUT product.
China and the broader Asia‑Pacific region account for roughly 10% of Merit’s sales. The company expects flat year‑over‑year performance in the region for 2026, citing volume‑based procurement pricing and heightened competition.
Street consensus had anticipated about 6% compound annual revenue growth, a 50‑basis‑point margin expansion and 9% EPS growth. Merit’s recent twelve‑month revenue increase of 10.2% exceeds those expectations. Historical long‑range plans, such as the Foundations for Growth and Continuing Growth Initiative, targeted 5%‑7% revenue CAGR and delivered up to 950 basis points of margin expansion at the high end.
CEO Martha Aronson emphasized the review’s openness, stating, “Everything’s on the table. There are no sacred cows.” She added that the transition from founder‑led leadership is “evolution, not revolution.” CFO Raul Parra highlighted confidence in margin growth, noting, “There is nobody sitting at Merit Medical thinking that we can’t grow our operating margins,” and dismissed concerns about procedure volumes, saying the company has not seen any slowdown. Regarding China, Aronson said, “I think the answer is you either decide to lean in or you really get out… my vote is we are leaning in.”
The company plans to release a formal long‑range plan by the February 2027 earnings call at the latest, potentially earlier, to provide further detail on growth initiatives and capital allocation.
