LivaNova (LIVN) Earnings Date & Reports

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.
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Earnings Context and Why It Matters

LivaNova's third-quarter results carry weight because they test whether the medical technology company can sustain its recent momentum across two distinct franchises: Cardiopulmonary, which supplies heart-lung machines, oxygenators, and related consumables, and Neuromodulation, which makes vagus nerve stimulation devices for drug-resistant epilepsy. Investors also watch LivaNova closely for progress on its emerging opportunity in obstructive sleep apnea (OSA) neuromodulation, where new reimbursement codes and a planned commercial launch could reshape the long-term growth story. Against a backdrop of strong global demand for oxygenators that continues to outpace industry supply, this report offered a read on both operational execution and management's confidence heading into the end of the fiscal year.

Reported Results

For the third quarter ended September 30, 2026, LivaNova reported net revenue of $393.1 million, an increase of 9.9% on a reported basis and 10.0% on a constant-currency basis compared with the prior-year period. Revenue topped the consensus estimate of roughly $381 million.

Adjusted diluted EPS was $1.23, compared with $1.11 a year earlier and above the approximately $1.06 analyst consensus. On a GAAP basis, diluted EPS declined to $0.11 from $0.49, weighed down by roughly $34 million in "other operating expense" tied largely to a litigation provision. Adjusted operating income rose to $92.3 million from $80.4 million, lifting adjusted operating margin to 23.5% from 22.5%.

Cardiopulmonary revenue grew 10.9% to $225.3 million, driven by strong consumables demand, record quarterly placements of the Essenz perfusion system, and favorable pricing. Neuromodulation revenue increased 11.1% to $166.1 million, with double-digit growth across all regions. The company also achieved operational production on its new dedicated oxygenator manufacturing line and raised full-year 2026 adjusted diluted EPS guidance to $4.40–$4.50 from $4.30–$4.40, while lifting constant-currency revenue growth guidance to 9%–10%.

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Market Reaction and Investor Sentiment

Shares of LivaNova jumped following the report, rising more than 20% in early trading and trading above $97 per share at one point after closing near $79.90. The rally reflected a clean beat on the metrics Wall Street tracks, combined with the company's third consecutive upward revision to full-year guidance. Sentiment was further supported by the operational launch of the new oxygenator line and commentary on the obstructive sleep apnea opportunity, where newly established Category I CPT (Current Procedural Terminology) codes are expected to take effect in January 2028. Still, some analysts flagged tempered enthusiasm around the flat adjusted free cash flow guidance and a fourth-quarter comparison against difficult capital-equipment comps.

Forward Outlook and Key Factors to Monitor

LivaNova's updated outlook points to continued top-line strength, with management now targeting 9%–10% constant-currency revenue growth and adjusted diluted EPS of $4.40–$4.50 for full-year 2026. The company also expects Cardiopulmonary revenue to grow 10.5%–11.5% for the year, up from its prior 9.5%–10.5% range.

Several factors will shape the coming quarters. First, oxygenator supply remains a key lever: with the new dedicated manufacturing line now operational and the Thermo Fisher component agreement in place, investors will watch whether LivaNova can deliver on its target of double-digit capacity expansion in 2027. Second, the obstructive sleep apnea program is advancing, with new CPT reimbursement codes expected effective January 1, 2028, and a supplemental submission to the FDA (U.S. Food and Drug Administration) ahead of commercial launch.

Third, margin and cash-flow dynamics deserve attention. Management kept its full-year adjusted free cash flow outlook unchanged at $140 million to $160 million despite the EPS raise, while planned investments in oxygenator manufacturing, the digital health platform, and IT infrastructure have lifted capital spending. Finally, a sizeable environmental liability payment tied to the SNIA matter has shifted into the fourth quarter, which could pressure the near-term cash balance. These catalysts and cost items will be central to how investors interpret execution in the quarters ahead.

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