Teleflex Incorporated

Teleflex reported second-quarter 2026 revenue of $570.3 million, up 28.9% year over year on a GAAP basis and up 4.7% on a pro forma adjusted constant currency basis. Adjusted EPS was $1.76, up 1.7% year over year; adjusted gross margin was 61.7% versus 64.5% in the prior year period, and adjusted operating margin was 19.6% versus 24.8% a year ago. By segment, Vascular revenue was $246.3 million, up 8%; Surgical revenue was $112.1 million, up 9.2%; and Interventional revenue was $211.9 million, down 1%. For 2026, management lowered pro forma adjusted constant currency revenue growth guidance to 3.5% to 4.5% from 4.5% to 5.5%, kept adjusted operating margin guidance at approximately 19%, raised adjusted EPS guidance to $6.90 to $7.20 from $6.25 to $6.55, lowered expected net interest expense to approximately $85 million from approximately $105 million, and reduced expected adjusted tax rate to approximately 12.25% from approximately 13.5%.

Jason Weidman framed the quarter as a solid start to his tenure and said his early work has reinforced confidence in Teleflex’s product portfolio, global footprint, and employee base. Strategically, he emphasized a more focused portfolio after divestitures, disciplined capital allocation, and increased R&D toward innovation-driven platforms. He said 2026 is a transition year, but expects meaningful improvement in 2027 and beyond as integration issues are resolved and the company becomes more streamlined.

John Deren highlighted that adjusted gross margin was 61.7%, down 280 basis points year over year due mainly to tariffs and the addition of the Vascular Intervention business, and that adjusted operating margin was 19.6%, down 520 basis points because of gross margin pressure, higher operating expenses from the acquired business, and increased R&D. He said adjusted net interest expense was $26.5 million in the quarter, cash and cash equivalents plus restricted cash were $316.9 million, and net leverage was about 2.8x, with pro forma net leverage for the OEM divestiture at about 1.9x. On capital allocation, he said Teleflex repurchased about 1.9 million shares for $250 million in Q2, plans an additional $250 million accelerated share repurchase on August 7, used OEM proceeds to pay down the $700 million Term Loan A-2, and still expects to reduce debt by $800 million and return $1 billion to shareholders via buybacks.

Analysts focused on the slower-than-expected Interventional integration, asking what specifically was causing the delay and how confident management is that the issues are temporary. Weidman said the problems were not product-related; he pointed to order-to-cash transitions, distributor transitions, and sales force transitions, and said the vast majority of order-to-cash changes occurred in Q2 and that the company expects to work through the issues by year-end. Questions also centered on 2027 EPS potential, tariffs/refunds, and capital allocation; management said 2027 should show a clearer profile with lower interest expense, better margins, and more EPS leverage, but declined to guide 2027 directly.