GET DAILY SIGNALSLivaNova (LIVN) Posts Solid Q3 Beat and Lifts Guidance as Shares Surge +20%
Key Takeaways
- LivaNova reported third-quarter 2026 net revenue of $393.1 million, up 9.9% year over year and ahead of the roughly $381 million consensus estimate.
- Adjusted diluted earnings per share (EPS) came in at $1.23, up from $1.11 a year earlier and above the approximately $1.06 analyst consensus.
- U.S. GAAP (Generally Accepted Accounting Principles) diluted EPS fell to $0.11 from $0.49, reflecting one-time items including a litigation-related operating expense.
- The company raised its full-year 2026 constant-currency revenue growth outlook to 9%–10% and its adjusted diluted EPS guidance to $4.40–$4.50.
- Both core segments grew double digits: Cardiopulmonary revenue rose 10.9% to $225.3 million, while Neuromodulation revenue rose 11.1% to $166.1 million.
- Adjusted free cash flow of $55.8 million declined from the prior year, and the company maintained its full-year adjusted free cash flow guidance of $140 million to $160 million.
Why These Results Matter
LivaNova’s third-quarter numbers provide a useful checkpoint on whether the medical technology company can maintain momentum in its two main businesses. Cardiopulmonary supplies heart-lung machines and oxygenators, while Neuromodulation focuses on vagus nerve stimulation devices for drug-resistant epilepsy. Investors are also following progress on the company’s emerging obstructive sleep apnea program, where new reimbursement codes and a planned launch could support longer-term growth. Strong global demand for oxygenators continues to exceed supply, so this report offered insight into both execution and management’s outlook for the rest of the year.
Quarterly Performance Breakdown
For the third quarter ended September 30, 2026, LIVN reported net revenue of $393.1 million, up 9.9% on a reported basis and 10.0% on a constant-currency basis. That topped the consensus estimate of roughly $381 million. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Adjusted diluted EPS reached $1.23, compared with $1.11 a year earlier and above the approximately $1.06 consensus. On a GAAP basis, diluted EPS fell to $0.11 from $0.49, mainly due to about $34 million in other operating expense tied to a litigation provision. Adjusted operating income rose to $92.3 million from $80.4 million, improving the adjusted operating margin to 23.5% from 22.5%.
Cardiopulmonary revenue grew 10.9% to $225.3 million, helped by strong consumables demand, record placements of the Essenz perfusion system, and favorable pricing. Neuromodulation revenue increased 11.1% to $166.1 million, with double-digit gains across all regions. The company also began operational production on its new dedicated oxygenator manufacturing line and raised full-year 2026 adjusted diluted EPS guidance to $4.40–$4.50 from the prior $4.30–$4.40 range while lifting constant-currency revenue growth guidance to 9%–10%.
Stock Reaction and Investor Views
Shares of LIVN rose more than 20% in early trading and briefly traded above $97 after closing near $79.90 the prior session. The move reflected a clean beat on the metrics analysts follow most closely, plus the third straight upward revision to full-year guidance. Positive commentary on the obstructive sleep apnea opportunity and the new oxygenator line also helped sentiment. Some analysts noted caution around unchanged adjusted free cash flow guidance and tougher capital-equipment comparisons in the fourth quarter.
Looking Ahead at Key Drivers
Management now targets 9%–10% constant-currency revenue growth and adjusted diluted EPS of $4.40–$4.50 for full-year 2026. Cardiopulmonary revenue is expected to grow 10.5%–11.5% for the year, up from the prior 9.5%–10.5% range.
Several items will shape results in coming quarters. Oxygenator supply remains important, and investors will monitor whether the new manufacturing line and Thermo Fisher agreement deliver the targeted double-digit capacity expansion in 2027. The obstructive sleep apnea program continues to advance, with Category I CPT codes set to take effect January 1, 2028, and a supplemental FDA submission planned ahead of commercial launch.
Margin and cash-flow trends also warrant attention. Management kept full-year adjusted free cash flow guidance at $140 million to $160 million even after raising the EPS outlook, reflecting higher planned spending on manufacturing, digital health, and IT infrastructure. A sizable environmental liability payment related to the SNIA matter has moved into the fourth quarter and could affect near-term cash balances.
My Take on Using AI Tools
When I want to dig deeper into names like this, I often turn to Tickeron’s AI tools to quickly compare fundamentals, technical patterns, and industry peers. The platform helps surface relevant data points without spending hours on manual screens, which is especially useful when guidance has just been updated and multiple catalysts are in play. I find the combination of pattern recognition and signal filtering gives a clearer picture of how the stock stacks up against similar companies.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
LIVN in -0.64% downward trend, sliding for three consecutive days on October 27, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where LIVN declined for three days, in 229 of 308 cases, the price declined further within the following month. The odds of a continued downward trend are 74%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 42 of 59 cases where LIVN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 71%.
LIVN broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 15, 2026. You may want to consider a long position or call options on LIVN as a result. In 59 of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 68%.
The Moving Average Convergence Divergence (MACD) for LIVN just turned positive on October 09, 2026. Looking at past instances where LIVN's MACD turned positive, the stock continued to rise in 38 of 47 cases over the following month. The odds of a continued upward trend are 81%.
LIVN moved above its 50-day moving average on October 22, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for LIVN crossed bullishly above the 50-day moving average on October 26, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 56%.
Following a +1.08% 3-day Advance, the price is estimated to grow further. Considering data from situations where LIVN advanced for three days, in 206 of 305 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
The Aroon Indicator entered an Uptrend today. In 106 of 186 cases where LIVN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 57%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. LIVN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 55 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 76 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.321) is normal, around the industry mean (4.170). P/E Ratio (23.159) is within average values for comparable stocks, (1.500). Projected Growth (PEG Ratio) (0.899) is also within normal values, averaging (11.253). Dividend Yield (0.000) settles around the average of (0.010) among similar stocks. P/S Ratio (2.954) is also within normal values, averaging (40.124).
The Tickeron PE Growth Rating for this company is 84 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LIVN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock worse than average.
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General Information
a developer of electrotherapeutic devices
Industry MedicalNursingServices
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