Medical technology company Integer Holdings (NYSE: ITGR) reported Q1 CY2026 results topping the market’s revenue expectations, but sales were flat year on year at $439.6 million. On the other hand, the company’s full-year revenue guidance of $1.82 billion at the midpoint came in 1.5% below analysts’ estimates. Its non-GAAP profit of $1.20 per share was 1.1% above analysts’ consensus estimates.

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“First quarter financial performance was in line with our outlook and primarily reflected the previously communicated headwinds associated with the three new products,” said Payman Khales, Integer’s President and CEO.

Company Overview

With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings (NYSE: ITGR) is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Integer Holdings’s 12.4% annualized revenue growth over the last five years was solid. Its growth beat the average healthcare company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Integer Holdings’s annualized revenue growth of 7.7% over the last two years is below its five-year trend, but we still think the results were respectable.

Integer Holdings also reports organic revenue, which strips 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 5.9% year-on-year growth. Because this number is lower than its two-year revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results.

This quarter, Integer Holdings’s $439.6 million of revenue was flat year on year but beat Wall Street’s estimates by 3.1%.

Looking ahead, sell-side analysts expect revenue to grow 1.1% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will face some demand challenges.

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Adjusted Operating Margin

Adjusted operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies because it excludes non-recurring expenses, interest on debt, and taxes.

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 15.4%.

Analyzing the trend in its profitability, Integer Holdings’s adjusted operating margin rose by 1.1 percentage points over the last five years, as its sales growth gave it operating leverage.

In Q1, Integer Holdings generated an adjusted operating margin profit margin of 8.8%, down 7.4 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 EPS grew at 20.3% compounded annual growth rate over the last five years, higher than its 12.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into Integer Holdings’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Integer Holdings’s adjusted operating margin declined this quarter but expanded by 1.1 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q1, Integer Holdings reported adjusted EPS of $1.20, down from $1.31 in the same quarter last year. Despite falling year on year, this print beat analysts’ estimates by 1.1%. Over the next 12 months, Wall Street expects Integer Holdings’s full-year EPS of $6.30 to grow 9%.

Key Takeaways from Integer Holdings’s Q1 Results

We enjoyed seeing Integer Holdings beat analysts’ organic revenue expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its full-year EPS guidance missed and its full-year revenue guidance fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 7.8% to $77.16 immediately after reporting.

The latest quarter from Integer Holdings’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).