10-Q · May 6, 2026
Medline's Q1 2026 results show a strong increase in revenue of 10.7% year-over-year, reaching $7.4 billion, surpassing analyst estimates. However, the company faced a significant decline in net income and gross margins,…
MDLN earnings analysis
10-Q · Filed November 4, 2026 · Our reading of the company's report
The latest report
Medline delivered a mixed but generally favorable quarter, with $7.856 billion of revenue and $0.44 EPS exceeding consensus estimates. Operating margin was 6.4%, while nine-month free cash flow reached $1.804 billion…
Read full summary
Medline delivered a mixed but generally favorable quarter, with $7.856 billion of revenue and $0.44 EPS exceeding consensus estimates. Operating margin was 6.4%, while nine-month free cash flow reached $1.804 billion and full-year organic sales guidance was raised to 10.0%-10.5%. The filing reports no material changes to the 2025 Form 10-K risk factors, although litigation, product-related issues, and other previously disclosed risks remain relevant.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.44
- Operating margin
- 6.4%
What stood out
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Revenue exceeded consensus
Third-quarter revenue was $7.856 billion, approximately 2.3% above the prior quarter's $7.68 billion and 1.8% above the $7.715 billion consensus estimate.
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EPS beat estimates
Reported EPS was $0.44 versus the $0.34 consensus estimate, a $0.10 beat or approximately 29.4%.
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Operating margin improved sequentially
Operating margin was 6.4%, up from 5.1% in the prior quarter but below the stronger margin profile reflected in the company's earlier results.
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Strong year-to-date cash flow
Nine-month free cash flow reached $1.804 billion, indicating strong cash generation through the first three quarters.
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Organic sales outlook raised
The company raised full-year organic sales growth guidance to 10.0%-10.5% from 9.0%-10.0%, while maintaining adjusted EBITDA guidance of $3.3 billion-$3.4 billion.
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Post-IPO capital base established
The company completed its IPO on December 18, 2025, issuing 248,439,654 Class A shares at $29.00 per share.
What to watch
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No change to disclosed risk factors
The filing states there were no material changes to the risk factors disclosed in the 2025 Form 10-K, so previously disclosed risks remain applicable without a new quantified update.
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Litigation exposure remains
The filing references ordinary-course litigation and notes that plaintiffs may seek compensatory or punitive damages, restitution, civil penalties, attorneys' fees, and other remedies; the company does not currently expect a material adverse outcome.
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Insider trading-plan termination
A former chief operating officer terminated a trading plan on August 13, 2026 that had been scheduled to expire December 31, 2026 and covered up to 100% of shares issued upon vesting and exchange of 808,451 incentive units.
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Market-risk exposure unchanged
The company states that no market-risk exposure materially changed from the 2025 Form 10-K, leaving existing interest-rate, foreign-exchange, and other market-risk exposures in place.
Management's outlook
Full-year 2026 organic sales growth guidance was raised to 10.0%-10.5% from 9.0%-10.0%; adjusted EBITDA guidance was maintained at $3.3 billion-$3.4 billion. No numeric EPS guidance was provided.
Earlier filings 2
10-K · February 25, 2026
Medline reports strong 2025 results with net sales up 11.5% to $28.432 billion and Adjusted EBITDA of $3.5 billion (12.2% margin). Growth was driven by Prime Vendor expansion (over 1,600 relationships, $18.0 billion in…
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