Conmed (CNMD) Has Risen 22.9% Since Its Most Recent Earnings Report: Will the Momentum Persist?

CONMED (CNMD) Surges Nearly 23% Since Last Earnings Report

In the past month, CONMED Corporation's stock price has climbed approximately 22.9%, outpacing the S&P 500 index. As the next earnings announcement approaches, investors are left wondering whether this upward momentum will persist or if a correction is on the horizon. To better understand the current outlook, let's review the company's latest financial results and recent analyst sentiment.

Fourth Quarter Performance: Earnings and Revenue Highlights

During the fourth quarter of 2025, CONMED reported adjusted earnings per share of $1.43, marking a 6.7% increase compared to the same period last year. These adjusted figures account for expenses such as legal costs and changes in contingent consideration values.

On a GAAP basis, earnings per share came in at $0.54, representing a 50% decline from the prior year's $1.08. For the full year, adjusted EPS reached $4.59, up 10.1% year over year.

Revenue Breakdown

CONMED generated $373.2 million in revenue for the fourth quarter, reflecting a 7.9% year-over-year rise on a reported basis and a 7.1% increase at constant currency. Management attributed this growth to strong performance in both General Surgery and Orthopedic Surgery product lines. Annual revenue totaled $1.37 billion, up 5.2% from the previous year (5.1% growth at constant currency).

Segment Performance

• Orthopedic Surgery: Fourth-quarter revenue reached $157.4 million, up 13.2% year over year (12.1% at constant currency). U.S. orthopedic sales advanced 6.6%, while international orthopedic sales jumped 17.5% on a reported basis and 15.7% at constant currency.
• General Surgery: Revenue for this segment was $215.8 million, a 4.3% increase on a reported basis and 3.8% at constant currency. U.S. sales dipped 0.4%, but international sales surged 16.3% (14.8% at constant currency), offsetting domestic weakness attributed to OEM smoke evacuation products.

Geographic Revenue Insights

• Domestic: U.S. revenue for the quarter totaled $206.2 million, up 1.4% from the prior year.
• International: Overseas sales amounted to $167 million, a robust 17% increase on a reported basis and 15.4% at constant currency.

Profitability and Expenses

Gross profit for the quarter rose 10.1% year over year to $218.3 million, with the gross margin improving by 116 basis points to 58.5%. Selling and administrative expenses increased 25.7% to $166.8 million, while research and development spending grew 13.1% to $14.9 million. Total operating expenses reached $181.7 million, up 24.6% from the previous year. Operating profit fell 30.2% to $36.6 million, and the operating margin contracted by 536 basis points to 9.8%.

Financial Position

Net cash from operating activities at the end of Q4 2025 stood at $170.7 million, up from $166.9 million a year earlier.

2026 Outlook

Looking ahead, CONMED expects total reported revenue for 2026 to range between $1.345 billion and $1.375 billion. Organic revenue at constant currency is projected between $1.324 billion and $1.344 billion, representing 4.5% to 6% organic growth over 2025. Adjusted earnings per share are anticipated to fall between $4.30 and $4.45.

Recent Estimate Revisions

Following the earnings release, analyst estimates have generally trended downward, with the consensus estimate declining by 11.71%.

VGM Score Overview

Currently, CONMED holds a Growth Score of C and a Momentum Score of D. However, the company stands out with a Value Score of A, placing it among the top options for value-focused investors. The overall VGM (Value, Growth, Momentum) Score is B, making it a solid choice for those seeking a balanced investment approach.

Investment Outlook

Analyst estimates for CONMED have been revised lower, suggesting a more cautious stance. The stock carries a Zacks Rank #3 (Hold), indicating expectations for performance in line with the broader market over the coming months.