Medline Q3 sales rise on customer growth

Overview

• US medical-surgical supplier's Q3 net sales rose 10.4% year-over-year

• Q3 net income fell 1.2%, impacted by higher inventory costs and operating expenses

• Company authorized $1 bln share repurchase program

Outlook

• Medline raises 2026 organic sales growth outlook to 10.0%-10.5% from 9.0%-10.0%

• Company maintains 2026 adj EBITDA guidance at $3.3 bln-$3.4 bln

• 2026 adj EBITDA guidance excludes $324 mln of net IEEPA tariff refunds

Result Drivers

• CUSTOMER GROWTH - Co said sales growth was driven by existing customer growth and new customer signings

• HIGHER COSTS - Co said net income was hurt by increased inventory costs from inflation, higher operating expenses, and customer mix

• TARIFF REFUNDS - Co said IEEPA tariff refund benefits contributed to profit growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for Medline Inc. is $45.00, about 32% above its November 3 closing price of $34.09

Reuters Recommended Reads

• Nov 4 - UK's Smith & Nephew misses Q3 revenue estimates, cuts outlook on slower US orthopaedics market

• Nov 4 - Zimmer Biomet Q3 sales beat estimates, raises FY outlook

• Nov 4 - Sweden's Asker Healthcare Q3 net sales rise 15%

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)