LivaNova PLC

Second-quarter 2026 revenue was $391 million, up 9.8% on a constant-currency basis year over year; foreign exchange added about $3 million, or 1%. Adjusted gross margin was 71% versus 69% in Q2 2025; adjusted operating income was $91 million versus $77 million; adjusted operating margin was 23% versus 22%; and adjusted diluted EPS was $1.26 versus $1.05, including a $0.08 year-over-year benefit from tariff refunds. Cardiopulmonary revenue was $222 million, up 10%, and Epilepsy revenue rose 10%. For full-year 2026, revenue growth is now expected to be 8% to 9% versus 7% to 8% previously; Cardiopulmonary growth is now expected at 9.5% to 10.5%; Epilepsy growth at 7% to 8%; adjusted diluted EPS at $4.30 to $4.40; adjusted operating margin at 20% to 21%; and adjusted free cash flow at $140 million to $160 million, down from $160 million to $180 million. Capital spending is now expected to be $135 million, up from $120 million.

Vladimir Makatsaria said the quarter reflected broad-based strength and record revenue and EPS, driven by the Essenz upgrade cycle, oxygenator share gains, and improved reimbursement plus clinical data in Epilepsy. He emphasized that LivaNova is strengthening its long-term growth engine through manufacturing expansion, supplier partnerships, and innovation, including a new oxygenator and digital platforms. His tone was confident and strategic, with repeated focus on market share expansion, supply continuity, and the company’s long-term framework.

Alex Shvartsburg highlighted that Q2 revenue was $391 million, gross margin was 71%, SG&A was $137 million, R&D was $50 million, operating income was $91 million, and EPS was $1.26. He noted a $6 million net tariff refund benefit in the quarter, said it will not recur, and explained that margin and EPS improvement were supported by higher revenue, pricing, and the refund, partly offset by currency and planned investments. On the balance sheet, cash was $517 million and total debt was $293 million at June 30, with both lower after an early repayment of $98 million of term facilities; adjusted free cash flow was $46 million versus $48 million last year, while first-half capital spend rose to $46 million from $26 million due to capacity, oxygenator scale-up, and IT investments.

Analysts focused on whether the Thermo Fisher oxygenator supply deal changes the growth outlook, and management said it removes a key long-term bottleneck and should support share gains and higher output over time. On Epilepsy, management said pricing benefits from reduced discounting and reimbursement changes should continue through the rest of the year, with some residual contract renegotiations extending into 2027. Questions on OSA timing elicited an explanation that the PMA supplement moved to the second half of 2026 to first half of 2027 because of final design verification and validation work, not safety or efficacy concerns, while the $200 million to $400 million 2030 revenue target was reaffirmed.