CONMED (CNMD) Q2 FY26 earnings call: guidance and Q&A

What caused AirSeal to perform below expectations, and should we now expect high single-digit growth for the year instead of low double-digit?

Patrick Beyer stated that AirSeal was a top contributor to General Surgery growth, with both capital and disposables growing, and trends improving sequentially. He reaffirmed the long-term expectation of high single-digit to low double-digit growth for AirSeal.

“From a long-term growth trajectory of AirSeal, we continue to believe, and I continue to believe it is a high single-digit, low double-digit grower.”

asked by Lawrence Biegelsen · answered by Patrick Beyer

Can you quantify the penetration level of BioBrace RC and comment on the retention rate of its users?

Patrick Beyer highlighted that BioBrace RC improves consistency for surgeons, is seeing strong uptake and an increase in new users, and that existing users show durable attachment. He did not provide specific quantitative penetration figures.

“We're continuing to see a strong uptake in it. We're continuing to see an increase in new users, and we're continuing to see those users that use BioBrace RC have durable attachment with us.”

asked by Lawrence Biegelsen · answered by Patrick Beyer

How might CONMED's strategy change with the new CFO and Board members, and how will shareholder value creation be approached differently?

Patrick Beyer emphasized focusing on core growth opportunities (minimally invasive, robotic, laparoscopic surgery, smoke evacuation, orthopedic soft tissue repair). He noted the strong balance sheet supports both M&A and organic innovation, and highlighted the value of the new Board members' industry experience.

“I'm excited to have John as our new CFO. We talked about our balance sheet being strong and being able to look at both an M&A and an organic approach to an offense on innovation and excited to have 2 new Board members that bring strong, solid, intense industry experience with innovative technology medical device companies.”

asked by Travis Steed · answered by Patrick Beyer

Can you explain the delta between the $0.21 tariff refund and the $0.17 increase in full-year EPS guidance, and if AirSeal was an offsetting factor?

John Gallagher provided a detailed bridge for the $0.18 increase at the low end of EPS guidance: $0.21 from tariff refund, $0.08 from better Q2 operations, $0.05 from lower GI headwind, $0.02 from share repurchases, offset by -$0.15 from interest expense and -$0.03 from tax rate. He confirmed AirSeal was not related to the offset.

“So the stair steps on that are $0.21 related to the tariff refund, as you called out. We have better-than-expected operational results in Q2, which is worth about $0.08. Then on the GI product line, so we have less of a headwind there. So that's worth $0.05 of an increase as well as some tailwind from share repo activity of $0.02. Then partially offsetting that is interest expense, which is minus $0.15 as well as we made an adjustment to the tax rate a little bit higher, which is worth about $0.03.”

asked by Travis Steed · answered by John Gallagher

What is needed to accelerate AirSeal growth in U.S. laparoscopic, ASCs, and OUS channels, and when can we expect an inflection point?

Patrick Beyer reiterated AirSeal's existing presence in robotic systems globally, including ASCs. For laparoscopy, he emphasized advancing stronger clinical relationships and data in key areas like colorectal and gynecology. He expects AirSeal to continue growing faster and more consistently.

“What we're advancing is stronger clinical relationships and data in those key areas of laparoscopy like colorectal and gynecology, which can benefit from the advancement of clinical insufflation. So we are advancing those strongly. And you're going to continue to see AirSeal to continue to grow faster and more consistently going forward along that trajectory.”

asked by Young Li · answered by Patrick Beyer

Are there plans to make AirSeal compatible with other emerging robotic systems (e.g., Medtronic, J&J, Chinese companies), especially for ASCs?

Patrick Beyer confirmed that AirSeal can be used with any robot and is already installed on multiple robotic platforms globally, including in U.S. ASCs. He clarified that no specific FDA clearances are needed for compatibility with other systems, as most require an independent insufflator.

“We can be used in any robot. And I want to confirm, we've had AirSeal's installed around the world on multiple robotic platforms, and I commented earlier, that includes the U.S. and the ASC environment.”

asked by Michael Matson · answered by Patrick Beyer

What was the rationale behind lowering the high end of the full-year organic sales growth guidance?

Patrick Beyer explained that the prior second-half guidance implied an aggressive nearly 9% growth rate after a 6% Q2. The top end was lowered by $6 million to reflect a more measured pace of improvement, targeting 6%+ growth in the second half, while reaffirming confidence in achieving at least 5% for the full year.

“And after a second quarter that we grew 6%, and we knew that we had a second half that was going to have to accelerate, but I thought it was prudent to lower the second half top end, what was $1.350 billion to $1.344 billion. So we actually lowered the top end by $6 million.”

asked by Robert Marcus · answered by Patrick Beyer