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CONMED Corporation Reports Second Quarter 2026 Financial Results; Updates Full Year 2026 Guidance

CONMED Corporation Reports Second Quarter 2026 Financial Results; Updates Full Year 2026

Conmed CorporationJuly 29, 20264
CONMED Corporation Reports Second Quarter 2026 Financial Results; Updates Full Year 2026 Guidance

About this update from Conmed Corporation

CONMED Corporation (NYSE: CNMD) today reported financial results for the second quarter ended June 30, 2026 and updated its financial guidance for the full year ending 2026. Second Quarter 2026 Highlights (1) Sales of $343.5 million increased 0.3% year-over-year as reported and decreased 0.5% on a constant currency (2) basis. Excluding the impact of the Company’s previously announced strategic exits of GI product offerings, net sales increased 6.0% on an organic constant currency (2) (3) basis. Domestic sales decreased 8.0% as reported and increased 2.5% on an organic (2)(3) basis. International sales increased 10.8% as reported, increased 8.9% on a constant currency (2) basis, and increased 9.9% on an organic constant currency (2)(3) basis. Diluted earnings per share (GAAP) were $0.77, up 11.6%. Adjusted diluted earnings per share (2) were $1.38, up 20.0%. Both diluted earnings per share (GAAP) and adjusted diluted earnings per share (2) included a $0.21 benefit from IEEPA tariff refunds. Second Quarter 2026 and Recent Operational Announcements On May 20, 2026, the Company announced the appointment of Celine Martin and Jeff Mirviss to the Board of Directors, effective July 1, 2026. On June 17, 2026, the Company announced the appointment of John E. Gallagher as Chief Financial Officer, effective July 15, 2026. On July 22, 2026, the Company announced the AirSeal ® Robotic Solution is now indicated for use with Intuitive’s 8 mm hex cannulas used as part of the Intuitive da Vinci 5 platform. "We delivered a strong second quarter, with organic constant currency net sales growth and adjusted diluted EPS that exceeded our stated expectations," said Patrick J. Beyer, CONMED’s President and Chief Executive Officer. "Our net sales performance on an organic constant currency basis reflected year-over-year growth across both our Orthopedic Surgery and General Surgery product lines, as our team continued to advance our key growth platforms: AirSeal, Buffalo Filter, and BioBrace. In tandem, we made meaningful progress on several strategic priorities during the quarter, including: completing the strategic exits of our gastroenterology product offerings in keeping with our portfolio optimization strategy, refinancing a portion of our debt, and further strengthening our leadership with key appointments to our Board and executive team." Mr. Beyer continued: "We are updating our financial guidance for the full year 2026 today to reflect both our second quarter performance and our updated outlook for the balance of the year. Looking ahead, our team remains focused on disciplined execution as we continue to position CONMED for quality, long-term growth and value creation." 2026 Financial Guidance The Company is updating its full year 2026 financial guidance to reflect its second quarter performance and updated outlook for the second half of 2026. For the twelve months ended December 31, 2026, the Company now expects: Dollars in millions, except per share figures Percentages on a year-over-year basis, may not foot due to rounding Twelve Months Ending December 31, 2026 Updated Financial Guidance Prior Financial Guidance (5) Low High Low High Net Sales (GAAP) $ 1,358   $ 1,373   $ 1,350   $ 1,375   Net Sales Growth, as reported   (1.2 )%   (0.1 )%   (1.8 )%   0.0 % Estimated impact of foreign currency exchange rate fluctuations   (0.5 )%   (0.5 )%   (0.3 )%   (0.5 )% Net Sales Growth, Constant Currency   (1.7 )%   (0.7 )%   (2.1 )%   (0.5 )% Estimated impact of strategic product offering exits (3)   6.7 %   6.7 %   7.1 %   7.0 % Net Sales Growth, Organic Constant Currency   5.0 %   6.0 %   5.0 %   6.5 % Adjusted Diluted EPS (4) $ 4.48   $ 4.60   $ 4.30   $ 4.45   Percentage Change   (2.4 )%   0.2 %   (6.3 )%   (3.1 )% Notes to Financial Information Above (1) All growth rates are presented on a year-over-year basis, unless noted otherwise. (2) Constant currency growth, organic growth, organic constant currency growth, and adjusted EPS are non-GAAP financial measures. Reconciliations of GAAP to non-GAAP financial measures appear below. (3) Organic constant currency revenue excludes the sales of gastroenterology ("GI") product offerings for the three and six months ended June 30, 2026 and 2025, and twelve months ending December 31, 2026 and 2025, related to the Company’s previously announced strategic exits as part of its portfolio optimization strategy. (4) Information reconciling forward-looking adjusted diluted net earnings per share to the comparable GAAP financial measures is unavailable to the company without unreasonable effort, as discussed below. (5) "Prior financial guidance" reflects the Company’s full year 2026 financial guidance, previously updated on April 29, 2026. Conference Call The Company’s management will host a conference call today at 4:30 p.m. ET to discuss its second quarter 2026 results. To participate in the conference call via live webcast, please click here . To participate via telephone, please click here to pre-register and obtain the dial-in number and passcode. This conference call webcast can also be accessed from the “Investors” section of CONMED's website: https://www.conmed.com/en/investor-relations . The webcast replay of the call will be available at the same site approximately one hour after the end of the call. Consolidated Condensed Statements of Income (in thousands except per share amounts, unaudited)                       Three Months Ended   Six Months Ended     June 30,   June 30,     2026   2025   2026   2025                   Net sales   $ 343,488     $ 342,345     $ 660,534     $ 663,600   Cost of sales     146,030       154,025       279,629       297,529   Gross profit     197,458       188,320       380,905       366,071   % of sales     57.5 %     55.0 %     57.7 %     55.2 % Selling & administrative expense     145,553       136,021       287,252       284,868   Research & development expense     15,500       14,138       31,833       27,084   Income from operations     36,405       38,161       61,820       54,119   % of sales     10.6 %     11.1 %     9.4 %     8.2 % Interest expense     7,883       7,824       14,943       16,110   Other (income) / expense     (2,825 )     418       (2,825 )     418   Income before income taxes     31,347       29,919       49,702       37,591   Provision for income taxes     8,276       8,498       12,803       10,134   Net income   $ 23,071     $ 21,421     $ 36,899     $ 27,457                     Basic EPS   $ 0.77     $ 0.69     $ 1.22     $ 0.89   Diluted EPS     0.77       0.69       1.22       0.88                     Basic shares     30,069       30,949       30,315       31,011   Diluted shares     30,117       31,054       30,357       31,142     Sales Summary (in millions, unaudited)                                           Three Months Ended June 30,           % Change                       Domestic   International   2026   2025   As Reported Impact of Foreign Currency Constant Currency Impact of GI (1) Organic (1) Constant Currency   As Reported Impact of GI (1) Organic (1)   As Reported Impact of Foreign Currency Constant Currency Impact of GI (1) Organic (1) Constant Currency Orthopedic Surgery $ 152.3   $ 140.7   8.2 % -1.4 % 6.8 % 0.0 % 6.8 %   -0.1 % 0.0 % -0.1 %   13.0 % -2.2 % 10.8 % 0.0 % 10.8 % General Surgery   191.2     201.6   -5.2 % -0.4 % -5.6 % 10.9 % 5.3 %   -10.9 % 14.5 % 3.6 %   7.6 % -1.4 % 6.2 % 2.4 % 8.6 %   $ 343.5   $ 342.3   0.3 % -0.8 % -0.5 % 6.5 % 6.0 %   -8.0 % 10.5 % 2.5 %   10.8 % -1.9 % 8.9 % 1.0 % 9.9 %                                         Domestic $ 175.4   $ 190.6   -8.0 % 0.0 % -8.0 % 10.5 % 2.5 %                     International   168.1     151.7   10.8 % -1.9 % 8.9 % 1.0 % 9.9 %                       $ 343.5   $ 342.3   0.3 % -0.8 % -0.5 % 6.5 % 6.0 %                       Three Months Ended June 30,           % Change                   Domestic   International   2026   2025   As Reported Impact of Foreign Currency Constant Currency   As Reported   As Reported Impact of Foreign Currency Constant Currency Single-use Products $ 295.1   $ 297.8   -0.9 % -0.8 % -1.7 %   -9.2 %   10.0 % -1.8 % 8.2 % Capital Products   48.4     44.5   8.6 % -1.0 % 7.6 %   1.5 %   15.0 % -1.8 % 13.2 %   $ 343.5   $ 342.3   0.3 % -0.8 % -0.5 %   -8.0 %   10.8 % -1.9 % 8.9 % (1) Organic constant currency revenue excludes the sales of gastroenterology ("GI") product offerings for the three months ended June 30, 2026 and 2025.   Sales Summary (in millions, unaudited)                                           Six Months Ended June 30,           % Change                       Domestic   International   2026   2025   As Reported Impact of Foreign Currency Constant Currency Impact of GI (1) Organic (1) Constant Currency   As Reported Impact of GI (1) Organic (1)   As Reported Impact of Foreign Currency Constant Currency Impact of GI (1) Organic (1) Constant Currency Orthopedic Surgery $ 300.0   $ 279.0   7.5 % -1.8 % 5.7 % 0.0 % 5.7 %   2.8 % 0.0 % 2.8 %   10.4 % -2.9 % 7.5 % 0.0 % 7.5 % General Surgery   360.5     384.6   -6.2 % -0.8 % -7.0 % 9.8 % 2.8 %   -10.7 % 13.3 % 2.6 %   4.2 % -2.5 % 1.7 % 1.6 % 3.3 %   $ 660.5   $ 663.6   -0.5 % -1.2 % -1.7 % 5.8 % 4.1 %   -6.9 % 9.6 % 2.7 %   7.9 % -2.7 % 5.2 % 0.6 % 5.8 %                                         Domestic $ 348.4   $ 374.4   -6.9 % 0.0 % -6.9 % 9.6 % 2.7 %                     International   312.1     289.2   7.9 % -2.7 % 5.2 % 0.6 % 5.8 %                       $ 660.5   $ 663.6   -0.5 % -1.2 % -1.7 % 5.8 % 4.1 %                       Six Months Ended June 30,           % Change                   Domestic   International   2026   2025   As Reported Impact of Foreign Currency Constant Currency   As Reported   As Reported Impact of Foreign Currency Constant Currency Single-use Products $ 565.1   $ 574.1   -1.6 % -1.2 % -2.8 %   -8.7 %   8.2 % -2.8 % 5.4 % Capital Products   95.4     89.5   6.6 % -1.2 % 5.4 %   6.9 %   6.3 % -2.2 % 4.1 %   $ 660.5   $ 663.6   -0.5 % -1.2 % -1.7 %   -6.9 %   7.9 % -2.7 % 5.2 % (1) Organic constant currency revenue excludes the sales of gastroenterology ("GI") product offerings for the six months ended June 30, 2026 and 2025. Reconciliation of Reported Net Income to Adjusted Net Income (in thousands, except per share amounts, unaudited) Three Months Ended June 30, 2026   Gross Profit Selling & Administrative Expense Research & Development Expense Operating Income Interest Expense Other (Income) / Expense Tax Expense Effective Tax Rate Net Income Diluted EPS As reported $ 197,458   $ 145,553   $ 15,500   $ 36,405   $ 7,883   $ (2,825 ) $ 8,276   26.4 % $ 23,071   $ 0.77 % of sales   57.5 %   42.4 %   4.5 %   10.6 %             Operational optimization costs (1)   -     (7,073 )   -     7,073     -     -     1,651       5,422     Product rationalization costs (2)   6,911     -     -     6,911     -     -     1,614       5,297     Loss on sale of product offering (3)   -     (4,425 )   -     4,425     -     -     1,033       3,392     EU medical device regulations (4)   -     -     (1,083 )   1,083     -     -     253       830     Gain on early extinguishment of debt, net (5)   -     -     -     -     -     2,825     (660 )     (2,165 )   Contingent consideration fair value adjustments (6)   -     113     -     (113 )   -     -     (26 )     (87 )   Gain on sale of product offering (7)   -     1,937     -     (1,937 )   -     -     (452 )     (1,485 )     $ 204,369   $ 136,105   $ 14,417   $ 53,847   $ 7,883   $ -   $ 11,689     $ 34,275     Adjusted gross profit %   59.5 %                   Amortization (8) $ 1,500     (7,237 )   -     8,737     (1,054 )   -     2,364       7,427     As adjusted   $ 128,868   $ 14,417   $ 62,584   $ 6,829   $ -   $ 14,053   25.2 % $ 41,702   $ 1.38 % of sales     37.5 %   4.2 %   18.2 %                                   Three Months Ended June 30, 2025   Gross Profit Selling & Administrative Expense Research & Development Expense Operating Income Interest Expense Other (Income) / Expense Tax Expense Effective Tax Rate Net Income Diluted EPS As reported $ 188,320   $ 136,021   $ 14,138   $ 38,161   $ 7,824   $ 418   $ 8,498   28.4 % $ 21,421   $ 0.69 % of sales   55.0 %   39.7 %   4.1 %   11.1 %             Operational optimization costs (1)   5,122     (2,450 )   -     7,572     -     -     852       6,720     Legal matters (9)   -     (1,192 )   -     1,192     -     -     134       1,058     Loss on early extinguishment of debt, net (5)   -     -     -     -     -     (418 )   47       371     Contingent consideration fair value adjustments (6)   -     1,799     -     (1,799 )   -     -     (202 )     (1,597 )     $ 193,442   $ 134,178   $ 14,138   $ 45,126   $ 7,824   $ -   $ 9,329     $ 27,973     Adjusted gross profit %   56.5 %                   Amortization (8) $ 1,500     (7,192 )   -     8,692     (1,388 )   -     2,441       7,639     As adjusted   $ 126,986   $ 14,138   $ 53,818   $ 6,436   $ -   $ 11,770   24.8 % $ 35,612   $ 1.15 % of sales     37.1 %   4.1 %   15.7 %                                   (1) In 2025, the Company incurred costs related to the engagement of a consulting firm to evaluate and propose improvements to our manufacturing operations and other operational optimization charges which are included in cost of sales. In 2026 and 2025, we incurred consulting fees, legal fees and other charges related to operational optimization which are included in selling & administrative expense. (2) In 2026, the Company wrote off inventory, equipment and tooling to cost of goods sold related to the discontinuation of certain products. (3) In 2026, the Company recognized a loss on the sale of certain assets related to gastroenterology products that was recorded as a sale of a business. (4) In 2026, the Company incurred costs to comply with the European Union's Medical Device Regulations (MDR). (5) In 2026, the Company recorded income for the difference between the principal value and purchase price of extinguished debt, and recorded expense for the write-off of deferred financing fees and related professional fees. In 2025, the Company incurred costs related to a loss on early extinguishment and third-party fees associated with the eighth amended and restated senior credit agreement. (6) In 2026 and 2025, the Company recorded income related to the fair value adjustments of contingent consideration. (7) In 2026, the Company recognized a gain on the sale of certain assets related to gastroenterology products. (8) Includes amortization of intangible assets and deferred financing fees. (9) In 2025, the Company incurred costs for third party services pertaining to potential issues with certain royalty payments to design surgeons. Reconciliation of Reported Net Income to Adjusted Net Income (in thousands, except per share amounts, unaudited) Six Months Ended June 30, 2026   Gross Profit Selling & Administrative Expense Research & Development Expense Operating Income Interest Expense Other (Income) / Expense Tax Expense Effective Tax Rate Net Income Diluted EPS As reported $ 380,905   $ 287,252   $ 31,833   $ 61,820   $ 14,943   $ (2,825 ) $ 12,803   25.8 % $ 36,899   $ 1.22 % of sales   57.7 %   43.5 %   4.8 %   9.4 %             Operational optimization costs (1)   379     (14,599 )   -     14,978     -     -     3,454       11,524     Product rationalization costs (2)   6,911     -     -     6,911     -     -     1,614       5,297     Loss on sale of product offering (3)   -     (4,425 )   -     4,425     -     -     1,033       3,392     EU medical device regulations (4)   -     -     (2,250 )   2,250     -     -     519       1,731     Executive transition costs (5)   -     (3,342 )   -     3,342     -     -     761       2,581     Contingent consideration fair value adjustments (6)   -     (610 )   -     610     -     -     138       472     Gain on early extinguishment of debt, net (7)   -     -     -     -     -     2,825     (660 )     (2,165 )   Termination of distribution agreement (8)   (1,864 )   -     -     (1,864 )   -     -     (425 )     (1,439 )   Gain on sale of product offering (9)   -     5,853     -     (5,853 )   -     -     (1,344 )     (4,509 )     $ 386,331   $ 270,129   $ 29,583   $ 86,619   $ 14,943   $ -   $ 17,893     $ 53,783     Adjusted gross profit %   58.5 %                   Amortization (10) $ 3,000     (14,498 )   -     17,498     (2,330 )   -     4,806       15,022     As adjusted   $ 255,631   $ 29,583   $ 104,117   $ 12,613   $ -   $ 22,699   24.8 % $ 68,805   $ 2.27 % of sales     38.7 %   4.5 %   15.8 %                                   Six Months Ended June 30, 2025   Gross Profit Selling & Administrative Expense Research & Development Expense Operating Income Interest Expense Other (Income) / Expense Tax Expense Effective Tax Rate Net Income Diluted EPS As reported $ 366,071   $ 284,868   $ 27,084   $ 54,119   $ 16,110   $ 418   $ 10,134   27.0 % $ 27,457   $ 0.88 % of sales   55.2 %   42.9 %   4.1 %   8.2 %             Operational optimization costs (1)   8,532     (2,940 )   -     11,472     -     -     1,754       9,718     Executive transition costs (5)   -     (12,165 )   -     12,165     -     -     2,812       9,353     Legal matters (11)   -     (2,229 )   -     2,229     -     -     374       1,855     Contingent consideration fair value adjustments (6)   -     (2,163 )   -     2,163     -     -     714       1,449     Loss on early extinguishment of debt, net (7)   -     -     -     -     -     (418 )   47       371     Gain on sale of product offering (9)   -     354     -     (354 )   -     -     (82 )     (272 )     $ 374,603   $ 265,725   $ 27,084   $ 81,794   $ 16,110   $ -   $ 15,753     $ 49,931     Adjusted gross profit %   56.5 %                   Amortization (10) $ 3,000     (14,364 )   -     17,364     (2,831 )   -     4,897       15,298     As adjusted   $ 251,361   $ 27,084   $ 99,158   $ 13,279   $ -   $ 20,650   24.0 % $ 65,229   $ 2.09 % of sales     37.9 %   4.1 %   14.9 %             (1) In 2026 and 2025, the Company incurred costs related to the engagement of a consulting firm to evaluate and propose improvements to our manufacturing operations and other operational optimization charges which are included in cost of sales. In addition, we incurred consulting fees, legal fees and other charges related to operational optimization which are included in selling & administrative expense. (2) In 2026, the Company wrote off inventory, equipment and tooling to cost of goods sold related to the discontinuation of certain products. (3) In 2026, the Company recognized a loss on the sale of certain assets related to gastroenterology products that was recorded as a sale of a business. (4) In 2026, the Company incurred costs to comply with the European Union's Medical Device Regulations (MDR). (5) The Company incurred cash and stock-based compensation costs related to advisory services provided by our former Chief Financial Officer and Chief Executive Officer in 2026 and 2025, respectively. (6) In 2026 and 2025, the Company recorded expense related to the fair value adjustments of contingent consideration. (7) In 2026, the Company recorded income for the difference between the principal value and purchase price of extinguished debt, and recorded expense for the write-off of deferred financing fees and related professional fees. In 2025, the Company incurred costs related to a loss on early extinguishment and third-party fees associated with the eighth amended and restated senior credit agreement. (8) In 2026, the Company recognized income related to the early termination of an agreement granting the Company exclusive distribution rights. (9) In 2026, the Company recognized a gain on the sale of certain assets related to gastroenterology products. In 2025, the Company recognized a gain on the sale of a product offering. (10) Includes amortization of intangible assets and deferred financing fees. (11) In 2025, the Company incurred costs for third party services pertaining to potential issues with certain royalty payments to surgeons involved in design teams. Reconciliation of Reported Net Income to EBITDA & Adjusted EBITDA (in thousands, unaudited)             Three Months Ended   Six Months Ended   June 30,   June 30,   2026   2025   2026   2025                 Net income $ 23,071     $ 21,421     $ 36,899     $ 27,457   Provision for income taxes   8,276       8,498       12,803       10,134   Interest expense   7,883       7,824       14,943       16,110   Depreciation   4,079       4,467       8,253       8,701   Amortization   14,967       14,105       29,630       28,123   EBITDA $ 58,276     $ 56,315     $ 102,528     $ 90,525                   Stock based compensation   5,230       4,903       10,013       11,284   Operational optimization costs   7,073       7,572       14,978       11,472   Product rationalization costs   6,911       -       6,911       -   Loss on sale of product offering   4,425       -       4,425       -   EU medical device regulations   1,083       -       2,250       -   Contingent consideration fair value adjustments   (113 )     (1,799 )     610       2,163   Gain on sale of product offering   (1,937 )     -       (5,853 )     (354 ) (Gain) / loss on early extinguishment of debt, net   (2,825 )     418       (2,825 )     418   Executive transition costs   -       -       3,342       12,165   Termination of distribution agreement   -       -       (1,864 )     -   Legal matters   -       1,192       -       2,229   Adjusted EBITDA $ 78,123     $ 68,601     $ 134,515     $ 129,902                                   EBITDA Margin               EBITDA   17.0 %     16.4 %     15.5 %     13.6 % Adjusted EBITDA   22.7 %     20.0 %     20.4 %     19.6 % About CONMED Corporation CONMED is a medical technology company that provides devices and equipment for surgical procedures. The Company’s products are used by surgeons and other healthcare professionals in a variety of specialties including orthopedics, general surgery, gynecology, and thoracic surgery. For more information, visit www.conmed.com . Forward-Looking Statements This press release and associated conference call may contain forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties, which could cause actual results, performance, or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures. For example, in addition to general industry and economic conditions, factors that could cause actual results to differ materially from those in the forward-looking statements may include, but are not limited to the risk factors discussed in the Company's Annual Report on Form 10-K for the full year ended December 31, 2025, listed under the heading Forward-Looking Statements in the Company’s most recently filed Form 10-Q and other risks and uncertainties, which may be detailed from time to time in reports filed by CONMED with the SEC. Any and all forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The Company believes that all forward-looking statements made by it have a reasonable basis, but there can be no assurance that management’s expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct. Supplemental Information - Reconciliation of GAAP to Non-GAAP Financial Measures The Company supplements the reporting of its financial information determined under generally accepted accounting principles in the United States (GAAP) with certain non-GAAP financial measures, including percentage sales growth in constant currency; organic sales growth; organic constant currency sales growth; adjusted gross profit; cost of sales excluding specified items; adjusted selling and administrative expenses; adjusted research and development expense; adjusted operating income; adjusted interest expense; adjusted other (income)/expense; adjusted income tax expense; adjusted effective income tax rate; adjusted net income and adjusted diluted net earnings per share (EPS). The Company believes that these non-GAAP measures provide meaningful information to assist investors and shareholders in understanding its financial results and assessing its prospects for future performance. Management believes percentage sales growth in constant currency and the other adjusted measures described above are important indicators of its operations because they exclude items that may not be indicative of, or are unrelated to, its core operating results and provide a baseline for analyzing trends in the Company’s underlying business. Further, the presentation of EBITDA is a non-GAAP measurement that management considers useful for measuring aspects of the Company’s cash flow. Management uses these non-GAAP financial measures for reviewing the operating results and analyzing potential future business trends in connection with its budget process and bases certain management incentive compensation on these non-GAAP financial measures. Net sales on a constant currency basis, organic basis, and organic constant currency basis are non-GAAP measures. The Company analyzes net sales on a constant currency basis, organic basis, and organic constant currency basis to better measure the comparability of results between periods. Organic revenue excludes the sales of GI product offerings and organic constant currency revenue presents sales in constant currency and excludes the sales of GI product offerings. To measure percentage sales growth in constant currency, the Company removes the impact of changes in foreign currency exchange rates that affect the comparability and trend of net sales. To measure earnings performance on a consistent and comparable basis, the Company excludes certain items that affect the comparability of operating results and the trend of earnings. These adjustments are irregular in timing, may not be indicative of past and future performance and are therefore excluded to allow investors to better understand underlying operating trends. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales growth, gross profit, cost of sales, selling and administrative expenses, research and development expense, operating income, interest expense, other (income)/expense, income tax expense, effective income tax rate, net income and diluted net earnings per share, the most directly comparable GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of the Company’s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures above, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. We are unable to present a quantitative reconciliation of our expected diluted net earnings per share to expected adjusted diluted net earnings per share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of acquisition, integration and other charges. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our consolidated condensed statements of income. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729028546/en/

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