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Does CONMED (CNMD) Prioritize Revenue Growth Over Profitability After 2025 Earnings Compression?

Simply Wall St·02/11/2026 14:31:07
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  • In late January 2026, CONMED Corporation reported fourth-quarter 2025 sales of US$373.2 million and full-year sales of US$1.37 billion, alongside a sharp year-on-year fall in net income to US$16.74 million for the quarter and US$47.06 million for the year.
  • While revenue increased, the sizeable drop in earnings per share from continuing operations to US$0.54 for the quarter and US$1.51 for the year, combined with 2026 revenue guidance of US$1.345–1.375 billion, highlights a tension between top-line growth and profitability that investors will be scrutinizing.
  • We’ll now examine how CONMED’s higher 2025 revenue but much lower net income and its cautious 2026 outlook affect the existing investment narrative.

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CONMED Investment Narrative Recap

To own CONMED today, you have to believe its focus on minimally invasive surgery and recurring procedure volumes can ultimately translate revenue gains into healthier earnings. The latest results complicate that belief in the near term, with 2025 sales up to US$1.37 billion but net income sharply lower and 2026 revenue guidance essentially flat versus 2025, keeping margin pressure and earnings quality as the key short term catalyst and the biggest risk. Whether this reset is temporary or more structural is not yet clear.

The most relevant recent announcement is the new 2026 revenue guidance of US$1.345–1.375 billion, issued alongside the fourth quarter numbers. This range suggests management expects only modest top line progress after a year in which profit margins fell to 3.4% and earnings dropped to US$47.06 million, despite higher sales. For investors focused on catalysts like operational improvements and margin recovery, this guidance frames how quickly, or slowly, those efforts may show up in reported results.

Yet beneath the higher sales, investors should be aware that sharply lower earnings and thinner margins leave CONMED more exposed if...

Read the full narrative on CONMED (it's free!)

CONMED's narrative projects $1.6 billion revenue and $154.0 million earnings by 2028. This requires 5.7% yearly revenue growth and a $43.8 million earnings increase from $110.2 million.

Uncover how CONMED's forecasts yield a $48.40 fair value, a 13% upside to its current price.

Exploring Other Perspectives

CNMD 1-Year Stock Price Chart
CNMD 1-Year Stock Price Chart

Before this earnings miss, the most optimistic analysts were assuming revenue could reach about US$1.6 billion and earnings around US$155.9 million by 2028, which is a much more upbeat view than the more cautious narrative around margin pressure and elective procedure risk and it may need to be revisited after CONMED’s weaker 2025 profitability and modest 2026 guidance.

Explore 3 other fair value estimates on CONMED - why the stock might be worth just $42.00!

Build Your Own CONMED Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.