The massive EPS miss and margin compression from tariffs and IPO costs will likely drive significant selling pressure. Watch the earnings call for color on tariff mitigation and whether the raised organic sales guidance can sustain if margins continue deteriorating. The maintained $3.5-$3.6B EBITDA guidance provides a floor but does not offset the earnings disappointment.
Price Chart
Executive Summary
Medline reported Q1 2026 GAAP EPS of $0.01, a 96.6% miss vs consensus of $0.29, and net income fell 25.8% YoY to $239M. Revenue beat at $7.4B (+10.7% YoY) vs $7.16B consensus, and the company raised full-year organic sales guidance to 8.5%-9.5%. However, the massive EPS miss, declining margins (gross margin 25.0% vs 27.5% YoY), and operating cash flow drop of 39.6% overshadow the top-line beat.
Key Financial Metrics
Key Facts
- GAAP diluted EPS of $0.01 vs consensus $0.29 — a 96.6% miss
- Net income fell 25.8% YoY to $239M; net income margin compressed to 3.3% from 4.8%
- Revenue of $7.4B beat consensus of $7.16B (+10.7% YoY)
- Gross margin declined 250 bps to 25.0% from 27.5% due to tariff impact and higher COGS
- Adjusted EBITDA fell 10.6% YoY to $776M; Adjusted EBITDA margin 10.6% vs 13.1%
- Operating cash flow dropped 39.6% to $412M; Free Cash Flow down 45.9% to $316M
- Raised full-year 2026 organic sales growth guidance to 8.5%-9.5% (from 8%-9%)
- Maintained Adjusted EBITDA guidance of $3.5-$3.6B
- IPO-related expenses of $27M and employee bonus weighed on earnings
Financial Impact
EPS miss of $0.28 vs consensus; net income decline of $83M YoY; operating cash flow decline of $270M YoY
Risk Factors
- Tariff impact on COGS may persist or worsen, further compressing margins
- IPO-related expenses and employee bonuses may recur in subsequent quarters
- Operating cash flow decline signals weakening cash generation despite revenue growth
- High net leverage of 3.1x limits financial flexibility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3288704 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 8w ago | 8-K | $36.67 $36.30 | ▼ −1.00% | ▼ −0.39% | $35.61 (−2.88%) |
Aug 5, 2026 8w ago | Press Release | $36.67 $36.30 | ▼ −1.00% | ▼ −0.39% | $35.61 (−2.88%) |
Jul 9, 2026 12w ago | 8-K | $41.04 $35.23 | ▼ −14.16% | ▼ −16.58% | $35.61 (−13.23%) |
Jun 11, 2026 16w ago | Institutional Cluster | $37.13 $40.85 | ▲ +10.02% | ▲ +8.13% | $35.61 (−4.09%) |
Jun 2, 2026 17w ago | 8-K | $33.19 $41.73 | ▲ +25.73% | ▲ +27.30% | $35.61 (+7.29%) |
Jun 1, 2026 17w ago | Insider Cluster | $33.19 $41.73 | ▼ −25.73% | ▼ −27.30% | $35.61 (−7.29%) |
Jun 1, 2026 17w ago | Insider Cluster | $33.19 $41.73 | ▼ −25.73% | ▼ −27.30% | $35.61 (−7.29%) |
May 22, 2026 19w ago | EFFECT | $37.01 $35.31 | ▼ −4.59% | ▼ −3.18% | $35.61 (−3.78%) |
May 22, 2026 19w ago | Press Release | $37.01 $35.31 | ▲ +4.59% | ▲ +3.18% | $35.61 (+3.78%) |
May 20, 2026 19w ago | Press Release | $36.25 $35.94 | ▲ +0.86% | ▲ +1.60% | $35.61 (+1.77%) |
US Market Status
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