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Earnings analysis · 10-Q

MDLN earnings analysis

Filed May 6, 2026 · Our reading of the company's report

The latest report

Medline's Q1 2026 results show a strong increase in revenue of 10.7% year-over-year, reaching $7.4 billion, surpassing analyst estimates. However, the company faced a significant decline in net income and gross margins,…

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Medline's Q1 2026 results show a strong increase in revenue of 10.7% year-over-year, reaching $7.4 billion, surpassing analyst estimates. However, the company faced a significant decline in net income and gross margins, impacted by rising costs associated with tariffs, which contributed to a dip in profitability as reflected in the lower EPS at $0.33 compared to $0.29 estimated and net income margin of 3.3%. Despite these challenges, management raised guidance for organic sales growth for the year to a range of 8.5%-9.5%.

Read the original on SEC.gov

Reported figures

Earnings per share
$0.33
Gross margin
25.0%
Segment
Medline Brand: $3,465 million, Supply Chain Solutions: $3,887 million

What stood out

  • Revenue Surged 10.7% YOY

    Net sales reached $7.4 billion, up from $6.6 billion a year ago.

  • EPS Exceeds Estimates

    Reported EPS was $0.33, beating the estimated $0.29, marking a surprise of 13.8%.

  • Effective Management of Debt Costs

    Interest expense decreased by 35.2%, from $210 million to $136 million.

  • Organic Sales Guidance Raised

    Management set a new organic growth forecast of 8.5% to 9.5% for the full year.

  • Medline Brand Revenue Growth

    Medline Brand sales grew 6.2% to $3.465 billion, driven by volume growth.

  • Strong Cash Position

    Cash equivalents stood at $2.236 billion, providing a solid liquidity buffer.

What to watch

  • Declining Gross Margins

    Gross profit margin decreased from 27.5% to 25.0%, primarily due to tariffs.

  • Net Income Drop

    Net income fell 25.8% to $239 million from $322 million a year ago.

  • Working Capital Strain

    Net cash from operations dropped to $412 million, down from $682 million, impacted by increased trade receivables.

Management's outlook

Outlook includes revised organic sales growth guidance of 8.5% to 9.5% for the year.

Earlier filings 1

10-K · February 25, 2026

Medline reports strong 2025 results with net sales up 11.5% to $28.432 billion and Adjusted EBITDA of $3.5 billion (12.2% margin). Growth was driven by Prime Vendor expansion (over 1,600 relationships, $18.0 billion in…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.