Medical technology company Integer Holdings (NYSE:ITGR) fell short of the market's revenue expectations in Q3 2026, with revenue falling 3.9% year on year to $449.7 million. Its non-GAAP profit of $1.34 per share was 20.4% below analysts' consensus estimates.
For more on Integer Holdings, read our full research report .
Integer Holdings (ITGR) Q3 2026 highlights:
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Revenue$449.7 million vs S&P analysts' consensus estimates of $456.2 million (3.9% year-on-year decline, 1.4% miss)
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Adjusted EPS$1.34 vs S&P analysts' consensus estimates of $1.68 (20.4% miss)
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Adjusted EBITDA$87.92 million vs analysts' consensus estimates of $101.5 million (19.6% margin, 13.4% miss)
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Operating margin6.3%, down from 12.1% in the same quarter last year
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Free cash flow margin3.6%, down from 9.9% in the same quarter last year
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Organic revenuefell 2.2% year on year (miss)
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Market capitalization$4.30 billion
Revenue growth
A company's long-term revenue performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Integer Holdings grew its revenue at a decent 9.2% compounded annual growth rate. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Integer Holdings's recent performance shows its demand has slowed as its annualized revenue growth of 4.5% over the last two years was below its five-year trend. Decelerating revenue growth in the sector warrants caution, as it could signal changing consumer tastes aided by low switching costs.
Analyzing the company's organic revenue helps explain its revenue dynamics by stripping out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Integer Holdings's organic revenue averaged 4.3% year-on-year growth. This was in line with its two-year revenue growth, indicating that core operations, rather than acquisitions and divestitures, drove most of its results.
This quarter, Integer Holdings missed Wall Street's consensus estimates and reported an uninspiring 3.9% year-on-year revenue decline, generating $449.7 million of revenue.
Looking ahead, sell-side analysts expect revenue to grow 4% over the next 12 months, according to S&P, similar to its two-year rate. This projection is underwhelming and implies its newer products and services will not accelerate its top-line performance yet.
Adjusted operating margin
Integer Holdings has managed its cost base well over the last five years. It demonstrated solid profitability for a healthcare business, producing an average adjusted operating margin of 15.7%.
Looking at the trend in its profitability, Integer Holdings's adjusted operating margin rose by 2 percentage points over the last five years, as its revenue growth gave it operating leverage.
In Q3, Integer Holdings generated an adjusted operating margin of 14.7%, down 3.6 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue.
Earnings per share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable.
Integer Holdings's strong 9.2% annual EPS growth over the last five years aligns with its revenue performance. This indicates its incremental revenue was profitable.
In Q3, Integer Holdings reported adjusted EPS of $1.34, down from $1.79 in the same quarter last year. This result missed analysts' consensus estimates, but long-term adjusted EPS growth matters more than short-term movements. Over the next 12 months, Wall Street expects Integer Holdings's full-year EPS to grow 14.8% from $5.90 to $6.77, according to S&P.
Key takeaways from Integer Holdings's Q3 results
Integer Holdings delivered a weaker quarter with few positives: Both EPS and organic revenue fell short of Wall Street's consensus estimates. Shares remained flat at $126.52 immediately after the results.
When deciding whether to buy Integer Holdings at its current price, the latest quarter matters, but longer-term fundamentals and valuation matter much more. Read the free full research report here .
