Merit Medical Systems falls 7.7% after quarterly results and guidance lift

What happened

Merit Medical Systems (MMSI) fell 7.7% on October 30, 2026, after third-quarter results beat estimates and prompted an upward revision to full-year guidance. The stock opened 2.6% below the previous close and finished at $86.24 on volume 2.7 times its 20-day average. The move came as the S&P 500 fell 1.8% and the Healthcare sector median fell 2.4%, leaving the stock 5.3 percentage points worse than the sector.

How big was the move

The decline was 4.6 times a typical daily move for this stock and trading volume was 2.7 times its 20-day average. Over the last five sessions the stock fell 7.6%, while the S&P 500 fell 0.6% over the same span. In the past five years the stock had five sessions with at least a 7.7% decline; twenty trading days later the median result was a gain of 1.6%, and four of five were higher.

The technical picture

The stock traded 3.8% below its 20-day moving average and 2.7% below its 50-day moving average, while remaining 12.1% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock has spent 69 consecutive trading days above the 200-day average. The Relative Strength Index (14 days) sits at 41, in a neutral range between 30 and 70. Over one month the stock rose 0.1% and over three months it rose 0.8%; over one year it rose 6.0%, which is 4.0 percentage points behind the S&P 500. Volatility was 26% annualized over 60 days, lower than 61% of its own readings over five years, and the stock finished the session 9.1% below its 52-week high.

Fundamentals and valuation

For the four quarters through September 30, 2026, Merit reported revenue of $1.61 billion, which grew 9.2% from a year earlier. Diluted earnings per share for that period were $2.66, up 36.4% year over year. Gross margin was 49.4%, compared with 48.5% a year earlier, while operating margin rose to 13.5% from 12.0% a year earlier. Free-cash-flow margin stood at 12.7% and return on invested capital was 5.8%. The company carried net debt of 0.8 times EBITDA and share count over one year increased by 0.8%.

On valuation, the stock traded at 32.4 times trailing earnings, a reading lower than 95% of its own readings over the past five years (five-year median: 46.5 times earnings). Price to forward earnings was 20.0 times expected earnings and free-cash-flow yield was 3.7%. PromtFinance scores ranked Merit as strong on Value (87) and Stability (88), positive on Quality (77), and neutral or mixed on Growth (45), Momentum (63) and Revisions (81).

Earnings and analyst expectations

Merit reported on October 29, 2026, with third-quarter revenue of $416.2 million, up 8.4% year over year, including 8% constant-currency and 9% organic constant-currency growth. GAAP operating margin rose to 14.1% from 11.1% a year earlier and non-GAAP operating margin was 21.3%. GAAP EPS was $0.70, up 51% year over year, and non-GAAP EPS was $1.12, up 22% and 7.7% above the consensus estimate of $1.04. Cash flow from operations for the quarter was $175.2 million, and the company raised full-year 2026 guidance following the quarter. The session’s move was because of those earnings results, which were released at this session.

Merit has a streak of 15 consecutive quarters beating estimates and its average surprise over the last four reports was 13.0% above estimates. The typical two-day reaction after recent reports was a rise of 1.5%. Analysts covering the stock number 15, with 80% rating the shares Buy or Strong Buy and a consensus rating of Buy. The consensus price target stands at $102.00, which is 18.3% above the closing price on October 30, 2026.

What to watch

• February 23, 2027: next scheduled earnings report date.
• Consensus price target of $102.00, 18.3% above the October 30, 2026, close.
• Past-quarter revenue of $416.2 million and cash flow from operations of $175.2 million for the quarter ended September 30, 2026.
• The company raised full-year 2026 guidance following the October 29, 2026, report.
• Similar sessions: five declines of at least 7.7% in the past five years; twenty trading days later the median result was a gain of 1.6% and four of five were higher.