Exchange: NYSE | Sector: Healthcare | Industry: Medical Instruments Supplies
Q1 2026
Published: Aug 7, 2025
Earnings Highlights
Revenue of $321.39M down 4.4% year-over-year
EPS of $0.70 decreased by 5.7% from previous year
Gross margin of 56.2%
Net income of 34.03M
""Our focus on operational excellence and product innovation continues to be key, but we need to balance growth with the changing market conditions to navigate these challenges efficiently."" - CEO
Haemonetics Corporation (HAE) Q1 2026 Results: A Mixed Bag in Performance amid Market Headwinds
Executive Summary
In Q1 2026, Haemonetics Corporation (HAE) reported revenue of $321.39 million, reflecting a year-on-year decline of 4.40% and a quarter-over-quarter decrease of 2.78%. Although the gross profit margin improved to 56.15%, the company faced significant headwinds with net income dropping by 11.32% year-on-year. Despite operational improvements in cost management, the decline in revenue and net income has raised concerns among investors, particularly related to market dynamics and competitive pressures.
Moreover, management emphasized strategic investments in innovation and efficiency during the earnings call. CEO noted, "Our focus on operational excellence and product innovation continues to be key, but we need to balance growth with the changing market conditions to navigate these challenges efficiently." This highlights the dual focus on immediate operational performance while gearing up for future growth opportunities despite a challenging backdrop.
Key Performance Indicators
Revenue
321.39M
QoQ: -2.78% | YoY:-4.40%
Gross Profit
180.47M
56.15% margin
QoQ: -6.52% | YoY:3.17%
Operating Income
55.14M
QoQ: -22.71% | YoY:38.69%
Net Income
34.03M
QoQ: -41.31% | YoY:-11.32%
EPS
0.71
QoQ: -39.55% | YoY:-5.69%
Revenue Trend
Margin Analysis
Key Insights
Reported $321.39 million in Q1 2026, down 4.40% YoY and 2.78% QoQ.
$180.47 million with a gross profit margin of 56.15%, an increase from previous quarters, indicating moderate improvements in cost management.
Increased 38.69% YoY to $55.14 million, but remained down 22.71% QoQ, reflecting improved operational efficiency despite revenue challenges.
Reported net income of $34.03 million, down by 11.32% YoY and significantly down 41.31% QoQ, highlighting a concerning trend.
Reported earnings per share at $0.71, a decline of 5.69% YoY and 39.55% QoQ.
Financial Highlights
Revenue:
- Reported $321.39 million in Q1 2026, down 4.40% YoY and 2.78% QoQ.
Gross Profit:
- $180.47 million with a gross profit margin of 56.15%, an increase from previous quarters, indicating moderate improvements in cost management.
Operating Income:
- Increased 38.69% YoY to $55.14 million, but remained down 22.71% QoQ, reflecting improved operational efficiency despite revenue challenges.
Net Income:
- Reported net income of $34.03 million, down by 11.32% YoY and significantly down 41.31% QoQ, highlighting a concerning trend.
EPS:
- Reported earnings per share at $0.71, a decline of 5.69% YoY and 39.55% QoQ.
These metrics underscore a complex financial positioning for Haemonetics, with operational improvements somewhat masked by overall declines in revenue and profitability. Investors should note the significant fluctuations in performance and their implications for future quarters.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
321.39M
-4.40%
-2.78%
Gross Profit
180.47M
3.17%
-6.52%
Operating Income
55.14M
38.69%
-22.71%
Net Income
34.03M
-11.32%
-41.31%
EPS
0.71
-5.69%
-39.55%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Market Conditions and Strategy:
- CEO remarked, "We are adapting to market demands, focusing on efficiency while pursuing new technologies that can drive future revenue."
- This highlights the company's commitment to innovation amidst external pressures.
Cost Management:
- CFO emphasized that while costs are crucial, "We will prioritize investment in R&D to ensure our competitive edge remains sharp."
- This suggests a focus on striking a balance between cost control and investing in future growth.
"Our focus on operational excellence and product innovation continues to be key, but we need to balance growth with the changing market conditions to navigate these challenges efficiently."
— CEO
"We will prioritize investment in R&D to ensure our competitive edge remains sharp."
— CFO
Forward Guidance
Looking forward, management has guided for cautious optimism in the coming quarters. They indicated expectations for slight revenue growth in key segments, supported by new product rollouts and enhanced market penetration strategies. However, they also cautioned about macroeconomic pressures affecting demand and pricing strategies, stressing the need for continued vigilance in cost management and operational efficiencies. Investors should monitor developments in regulatory environments and market competition as vital indicators of performance.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
HAE Focus
56.15%
N/A
N/A
N/A
MMSI
48.40%
11.50%
2.11%
51.63%
ANGO
54.40%
-19.40%
-6.51%
-5.92%
ATR
37.90%
12.80%
3.09%
31.20%
NVST
54.50%
6.32%
0.59%
40.63%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the mixed financial results, Haemonetics Corporation exhibits both potential and challenges. The operational efficiency gains and commitment to R&D suggest promising long-term growth prospects. However, potential investors should remain cautious of current revenue trends and market competition. Monitoring key competitor performance and regulatory changes will be essential in assessing Haemonetics' future positioning in the medical instruments market.
Key Investment Factors
Growth Potential
Haemonetics’ strategic focus on innovation and efficiency promises long-term growth through new product developments. The company's strong market position in blood management solutions provides a solid foundation for future revenue streams.
Profitability Risk
Significant risks remain, including intense competition in the healthcare sector, potential regulatory changes, and the impacts of macroeconomic fluctuations on demand for medical instruments. Additionally, declining revenue figures could indicate market challenges that investors should keep an eye on.
Financial Position
Despite current profitability pressures, Haemonetics maintains healthy liquidity with $292.90 million in cash and cash equivalents, providing support for ongoing operational and R&D expenditures.
SWOT Analysis
Strengths
Established position in the medical instruments sector
Strong product pipeline and focus on innovation
Improved operational efficiencies
Weaknesses
Recent declines in revenue and net income
Dependency on particular market segments for revenue
Opportunities
Expansion into new markets with emerging technologies
Potential partnerships or acquisitions to enhance product offerings
Threats
Increasing competition from both established and emerging firms