LivaNova (LIVN) Q2 2026 earnings summary

Executive summary

• Achieved double-digit reported revenue growth of up to 10.8% year-over-year in Q2 2026, with constant-currency growth of 9.8%, driven by strong Cardiopulmonary and Neuromodulation/Epilepsy segment performance.

• Adjusted diluted EPS grew 20% year-over-year to $1.26, benefiting from a one-time tariff refund; GAAP diluted EPS reached $1.93.

• Raised full-year 2026 revenue growth guidance to 8%-9% and adjusted EPS guidance to $4.30-$4.40, reflecting robust business momentum.

• Entered a long-term supply agreement with Thermo Fisher Scientific to secure critical oxygenator components and support manufacturing expansion.

• Appointed new executives to key leadership roles, including President of Cardiopulmonary and Chief Legal Officer.

Financial highlights

• Q2 2026 net revenue reached $391 million, up 10.8% year-over-year (9.8% constant currency); adjusted gross margin was 71% (up from 69%).

• Adjusted operating income was $91 million (23% margin), up from $77 million (22%) in Q2 2025; GAAP operating income was $49.5 million.

• Adjusted diluted EPS was $1.26 (up from $1.05), with a $0.08 one-time tariff refund; GAAP diluted EPS was $1.93.

• Cash and cash equivalents at June 30, 2026, were $516.6 million; total debt reduced to $293 million after early repayments.

• Adjusted free cash flow for the quarter was $46 million, slightly down from $48 million, reflecting higher CapEx and working capital needs.

Outlook and guidance

• 2026 constant-currency revenue growth guidance raised to 8%-9%, with a 1% FX tailwind expected.

• Adjusted diluted EPS guidance increased to $4.30-$4.40 (approx. 11.5% growth at midpoint).

• Adjusted operating income margin expected at 20%-21%; adjusted effective tax rate at ~23%.

• Capital spending guidance raised to $135 million; adjusted free cash flow guidance lowered to $140-$160 million due to higher CapEx and strategic investments.

• Cardiopulmonary revenue growth outlook raised to 9.5%-10.5%; Neuromodulation/Epilepsy revenue growth outlook raised to 7%-8%.