The revenue beat and raised organic sales guidance are positive, but the EPS miss and margin compression from tariffs are significant headwinds. The maintained EBITDA guidance suggests management expects cost pressures to persist. Watch for tariff developments and Q2 margin trajectory; the stock may trade on the EPS miss initially but find support from the guidance raise.
Price Chart
Executive Summary
Medline reported Q1 2026 revenue of $7.35B (+10.7% YoY), beating the $7.16B consensus, but GAAP diluted EPS of $0.16 was a 44.8% miss vs the $0.29 Street estimate. Net income fell 25.8% to $239M and Adjusted EBITDA dropped 10.6% to $776M, both pressured by tariffs and IPO-related costs. The company raised its full-year Organic Sales guidance to 8.5%-9.5% (from 8%-9%) but maintained its $3.5-$3.6B Adjusted EBITDA outlook, signaling margin compression will persist.
Key Financial Metrics
Key Facts
- Q1 2026 net sales $7.352B, up 10.7% YoY from $6.644B, beating consensus of $7.16B
- GAAP diluted EPS $0.16, missing consensus of $0.29 by 44.8%
- Net income $239M, down 25.8% YoY from $322M
- Adjusted EBITDA $776M, down 10.6% YoY from $868M
- Gross margin compressed to 25.0% from 27.5% YoY, driven by tariffs and higher costs
- Operating cash flow $412M, down 39.6% YoY from $682M
- Free cash flow $316M, down 45.9% YoY from $584M
- Raised full-year 2026 Organic Sales guidance to 8.5%-9.5% from 8%-9%
- Maintained full-year 2026 Adjusted EBITDA guidance of $3.5-$3.6B
- Supply Chain Solutions segment net sales grew 15.0% YoY to $3.887B; Medline Brand segment grew 6.2% to $3.465B
Financial Impact
Revenue beat of ~$192M vs consensus but EPS miss of $0.13 per share; net income decline of $83M YoY; Adjusted EBITDA decline of $92M YoY
Risk Factors
- Tariff-driven cost inflation continuing to compress gross margins below 25%
- IPO-related expenses and employee bonuses weighing on near-term profitability
- Operating cash flow decline of 39.6% YoY signals working capital strain from growth
- Maintained EBITDA guidance implies no margin recovery expected in 2026
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0002046386-26-000022 |
| Document: mdln-20260506.htm | 0002046386-26-000022 |
| Document: 0002046386-26-000022-index-headers.html | 0002046386-26-000022 |
| Document: 0002046386-26-000022-index.html | 0002046386-26-000022 |
| Document: 0002046386-26-000022.txt | 0002046386-26-000022 |
| 8-K Data (Synthetic) | 0002046386-26-000022 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 8w ago | 8-K | $36.67 $36.30 | ▼ −1.00% | ▼ −0.39% | $35.44 (−3.35%) |
Aug 5, 2026 8w ago | Press Release | $36.67 $36.30 | ▼ −1.00% | ▼ −0.39% | $35.44 (−3.35%) |
Jul 9, 2026 12w ago | 8-K | $41.04 $35.23 | ▼ −14.16% | ▼ −16.58% | $35.44 (−13.66%) |
Jun 11, 2026 16w ago | Institutional Cluster | $37.13 $40.85 | ▲ +10.02% | ▲ +8.13% | $35.44 (−4.57%) |
Jun 2, 2026 17w ago | 8-K | $33.19 $41.73 | ▲ +25.73% | ▲ +27.30% | $35.44 (+6.76%) |
Jun 1, 2026 17w ago | Insider Cluster | $33.19 $41.73 | ▼ −25.73% | ▼ −27.30% | $35.44 (−6.76%) |
Jun 1, 2026 17w ago | Insider Cluster | $33.19 $41.73 | ▼ −25.73% | ▼ −27.30% | $35.44 (−6.76%) |
May 22, 2026 19w ago | EFFECT | $37.01 $35.31 | ▼ −4.59% | ▼ −3.18% | $35.44 (−4.26%) |
May 22, 2026 19w ago | Press Release | $37.01 $35.31 | ▲ +4.59% | ▲ +3.18% | $35.44 (+4.26%) |
May 20, 2026 19w ago | Press Release | $36.25 $35.94 | ▲ +0.86% | ▲ +1.60% | $35.44 (+2.25%) |
US Market Status
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