CONMED (NYSE:CNMD) Exceeds Q4 CY2025 Revenue Forecasts, Shares Surge

CONMED Surpasses Q4 2025 Revenue Expectations

CONMED (NYSE:CNMD), a leader in medical technology, delivered fourth-quarter 2025 results that outperformed Wall Street’s revenue forecasts, posting a 7.9% year-over-year increase to $373.2 million. However, the company’s projected full-year revenue of $1.36 billion sits 0.7% below what analysts anticipated. Adjusted earnings per share reached $1.43, coming in 8% higher than consensus estimates.

Is this the right moment to invest in CONMED?

Highlights from CONMED’s Q4 2025 Performance

• Revenue: $373.2 million, surpassing analyst expectations of $367 million (7.9% annual growth, 1.7% above estimates)
• Adjusted EPS: $1.43, exceeding the $1.32 forecast (8% above expectations)
• Adjusted EBITDA: $80.36 million, topping the $79.27 million estimate (21.5% margin, 1.4% beat)
• 2026 Adjusted EPS Guidance: $4.38 at the midpoint, trailing analyst projections by 1%
• Operating Margin: 9.8%, a decrease from 15.2% in the prior year’s quarter
• Constant Currency Revenue: Grew 7.1% year-over-year (compared to 6% in the same period last year)
• Market Cap: $1.23 billion

About CONMED

Founded in 1970, CONMED has spent over 50 years advancing surgical technology. The company specializes in designing and producing medical devices for surgical procedures, with a particular focus on orthopedic and general surgery solutions.

Examining Revenue Trends

Consistent sales growth is a strong indicator of a company’s long-term health. Over the past five years, CONMED has achieved an average annual revenue increase of 9.8%, slightly outpacing the healthcare sector average and reflecting solid demand for its products.

While long-term growth is important, recent performance can reveal shifts in demand or industry disruptions. In the last two years, CONMED’s annualized revenue growth slowed to 5.1%, falling below its five-year average.

Evaluating revenue in constant currency terms—removing the effects of exchange rate fluctuations—shows CONMED’s sales grew by an average of 5.2% annually over the past two years. This figure closely matches its reported revenue growth, suggesting effective management of currency risk.

In the most recent quarter, CONMED’s revenue climbed 7.9% year-over-year to $373.2 million, beating analyst expectations by 1.7%.

Future Outlook

Looking forward, analysts predict that CONMED’s revenue will remain steady over the next year, signaling a slowdown compared to the previous two years. This forecast suggests the company may face challenges in driving further demand for its offerings.

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Profitability: Operating Margin

Operating margin measures how much profit remains after covering core business expenses, offering a clear view of operational efficiency. It’s especially useful for comparing companies regardless of their debt or tax situations.

Over the last five years, CONMED has maintained an average operating margin of 10.1%, outperforming the broader healthcare industry. However, its operating margin has declined by 3.4 percentage points during this period, and by 2.2 points over the past two years, indicating rising costs that the company hasn’t been able to offset through higher prices.

In Q4, the operating margin stood at 9.8%, a drop of 5.4 percentage points from the previous year, highlighting that expenses grew faster than revenue.

Earnings Per Share (EPS) Analysis

While revenue growth tells part of the story, changes in earnings per share (EPS) reveal how profitable that growth is. For instance, a company might boost sales through heavy spending, which could hurt profitability.

CONMED’s EPS has increased at a robust 16.4% compound annual rate over the past five years, outpacing its revenue growth. However, since operating margins did not improve and there were no share buybacks, this EPS growth likely resulted from lower interest or tax expenses rather than operational improvements.

For Q4, adjusted EPS reached $1.43, up from $1.34 a year ago and 8% above analyst expectations. However, Wall Street anticipates that full-year EPS will decline by 7.3% to $4.61 over the next 12 months.

Summary and Investment Considerations

CONMED’s latest quarter featured strong revenue and constant currency results, both exceeding analyst forecasts. However, the company’s full-year guidance for both revenue and EPS fell slightly short of expectations, making for a mixed report overall. Following the announcement, CONMED shares rose 5.4% to $40.74.

Is CONMED a buy at this point? While the recent quarter provides valuable information, it’s just one factor in evaluating the company’s long-term prospects. Assessing both business quality and valuation is key to making an informed investment decision.