Why was the annual EPS guidance not changed despite beating consensus by $0.17 in Q1, and does it factor in any new costs?

Management stated it's early in the year with many puts and takes. They are happy with Q1 performance but chose to maintain full-year guidance for now, promising updates as more information becomes available in Q2. No new specific costs were cited as impacting the guidance. “No. I mean, Jayson, it is early in the year. Again, lots of puts and takes throughout the quarters. Really happy about the performance in Q1. And so we've decided we're going to -- we'll maintain our guidance for the full year right now. We'll have better information as we go through the second quarter, and we'll be able to update as appropriate then.”

Can you provide details on the role and composition of the new Board committee, and update on Freesolve BIOMAG-III trial expectations given faster BIOMAG-II enrollment?

The new growth and operating committee will focus on the company's operations and monitoring growth plan execution, with details on outline and members to be finalized next week. For Freesolve, BIOMAG-II enrollment is ahead of schedule, with data expected late 2027. BIOMAG-III in the U.S. will initiate in 2026 with a similar protocol, and data readout is anticipated around 2030. “Relative to the U.S., as we have indicated, BIOMAG-III will initiate in 2026. It is a study protocol that is very similar to BIOMAG-II. So you should think about it in similar numbers of patients. We'll see how enrollment goes. Different geographies can be different. But I would anticipate that we'll see that data reading out probably sometime in something like 2030.”

Why was Jason Weidman chosen as CEO, when can we expect to hear his strategic vision, and is an Investor Day planned?

Jason Weidman was chosen for his alignment with culture, proven growth leadership (Medtronic stent portfolio), ability to manage complexity (Medtronic experience), and global perspective. He will be actively involved before his official start on June 8. An Investor Day is not currently planned but has been discussed and will be considered for some time in the future after Jason is comfortable in his role. “Why did we pick them? Really, there were kind of 3 or 4 things. First, alignment with our culture and our values, those being really focused on ethics, integrity and accountability. Secondly, we wanted someone who's a proven growth leader. Jason clearly demonstrated that growth when he managed the stent portfolio at Medtronic.”

TFX

Teleflex (TFX) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Health Care· May 7, 2026

Source: earnings call transcript

Executive summary

Teleflex Q1 FY26 — Portfolio Optimization and Capital Allocation Progress

Teleflex is actively transforming its portfolio through strategic divestitures and the integration of the BIOTRONIK Vascular Intervention business, aiming for a more focused medical technologies leader. The company is committed to disciplined capital allocation, including significant share repurchases and debt reduction, with initial buybacks commencing earlier than planned. Despite some near-term operational headwinds and integration-related disruptions, management remains confident in achieving its full-year financial objectives and realizing substantial benefits in 2027 and beyond.

Highlights

Pro forma adjusted constant currency revenue growth was 5.1% year-over-year in Q1 FY26.
Adjusted operating margin was 18.1% in Q1 FY26, reflecting strong execution.
Enrollment for the Freesolve BIOMAG-II study in Europe is outpacing assumptions, positioning for a late 2027 data readout.
The OEM divestiture is on track to close in Q3 2026 after the Hart-Scott-Rodino waiting period expired in March.
Opportunistic share repurchases of up to $1 billion are expected to begin in Q2 FY26, ahead of the previously anticipated timing.

Concerns

Adjusted earnings per share decreased 3.5% year-over-year to $1.39 in Q1 FY26, primarily due to tariffs, higher interest expense, and increased R&D spending.
Adjusted gross margin decreased 470 basis points year-over-year to 61.4% in Q1 FY26, driven by tariffs, quality remediation charges, higher logistics costs, and the Vascular Intervention acquisition.
The Interventional segment experienced disruption from sales force integration and restructuring activities, contributing to slower growth.
Two third-party product suppliers initiated recalls for components in vascular and interventional kits, leading to an estimated cost provision in Q1 and potential elevated back orders in Q2.

Guidance & targets

Category	Target	Timeline	Confidence
Pro forma adjusted constant currency revenue growth	4.5% to 5.5% high materiality	FY26	High
Adjusted earnings per share	$6.25 to $6.55 high materiality	FY26	High
Impact of foreign exchange on revenue	approximately $14 million medium materiality	FY26	Medium
Adjusted operating margin	approximately 19% high materiality	FY26	High
Underlying steady-state adjusted operating margin	approximately 23% high materiality	2027 and beyond	High
Net interest expense	approximately $105 million medium materiality	FY26	High
Adjusted tax rate	approximately 13.5% medium materiality	FY26	High
Annual pretax cost savings from restructuring plan	approximately $50 million medium materiality	Annualized upon completion	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Vascular Growth primarily driven by hemostatic products, central venous, and other access portfolios.	$236.8 million	4.8%	—	—
Interventional Performance driven by intraosseous, right heart catheters, and complex catheters. Experienced some disruption from sales force integration and restructuring activities, with improving momentum anticipated in the second half of the year.	$204.7 million	3%	—	—
Surgical Primarily driven by strong performance in ligation clips and some timing of orders in the instrument portfolio. Moderation of growth is anticipated in Q2.	$106.8 million	9.9%	—	—

Deals & partnerships

BIOTRONIK Acquisition of BIOTRONIK's Vascular Intervention business, expanding coronary intervention portfolio and establishing global footprint in peripheral intervention market.

Completed in July 2025. Sales forces of legacy Teleflex Interventional and Vascular Intervention businesses were combined in Q1 2026.

Acute care, interventional urology and OEM businesses Agreements to sell these businesses as part of an overall transformation plan to create a more focused medical technologies leader.

OEM divestiture reached an important milestone in March with Hart-Scott-Rodino waiting period expiration, targeting Q3 2026 close. Acute care and interventional urology received a second request for additional information from the U.S. Federal Trade Commission in March.

Risks & headwinds

Adverse impact of tariffs Q1 FY26 and FY26

470 basis point decrease year-over-year in adjusted gross margin; approximately $33 million in FY26 guidance

Mitigation:Contingent gain model for refunds, potential upside if refunds are confirmed.

Quality remediation charges Q1 FY26

Impacted adjusted gross margin

Mitigation:Estimated cost provision included in Q1 results to remediate current product stock.

Higher logistics and distribution costs Q1 FY26, ongoing

Impacted adjusted gross margin

Mitigation:Actively pursuing continuing improvement process programs to offset.

Vascular Intervention acquisition impact Q1 FY26, ongoing

Slightly lower gross margin than corporate average; higher operating expenses

Mitigation:Integration efforts ongoing, expected to improve momentum in H2 FY26.

Sales force integration disruption in Interventional segment Q1 FY26, extending into Q2 FY26

Caused disruption and slower growth in Q1 (3% YoY)

Mitigation:Expected to be transient, with improving momentum anticipated in H2 FY26 based on expanded presence and cross-selling opportunities.

Third-party product supplier recalls Q1 FY26 and Q2 FY26

Estimated cost provision in Q1 results; potential elevated back orders at the end of Q2

Mitigation:Identified actions to return products to market, remediation program underway. Not expected to significantly impact full-year 2026 revenue guidance.

Stranded costs from divestitures FY26

Approximately $90 million in FY26, impacting 2026 adjusted operating margin (400 bps difference from underlying steady-state margin)

Mitigation:Expected to be mitigated by TSA and MSA arrangements and further cost optimization efforts, leading to significant improvements in 2027 and beyond.

FTC second request for divestitures March 2026, ongoing

Additional information requested for acute care and interventional urology businesses

Mitigation:Company is cooperating with the FTC and continues to expect transaction to close in H2 2026.

What to watch in Q2 FY26

Interventional segment growth recovery

H2 FY26

Current 3% YoY in Q1 FY26

Target Accelerated growth

Why it matters

The Interventional segment is a key growth driver, and its recovery from integration disruption is crucial for overall performance.

We are continuing our integration of the Vascular Intervention business, which closed early in the third quarter of 2025. In the first quarter, the sales forces of the legacy Teleflex Interventional and Vascular Intervention businesses were combined. As expected, we have experienced some disruption from the integration and restructuring activities, but we continue to anticipate improving momentum in the second half of the year based on our expanded presence and cross-selling opportunities in the cath lab.

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Q&A highlights

Given the recall issue, instrument order timing, and interventional sales integration, should Q2 revenue growth be slower than the annual guidance, and is the consensus estimate of $567 million comfortable?

Management stated they are not providing quarterly guidance but acknowledged the observations. They expect accelerated growth in the second half of 2026. The recall issues are seen as a 'bump in the road' with remediation underway, not expected to significantly impact full-year guidance. Instrument order timing is hard to predict but could shift to Q2 or Q3.

“Yes, we do have these two recalls that could relate to some back orders, but it's really a bump in the road for us. For one of them, we already have product flowing for the larger one and the other one is really small, to be honest. So I think that while there's always some level of risk and there's going to be puts and takes, I think those are not going to be problematic for us for the full year.”

asked by Michael Matson · answered by John Deren

2 min read 5 chapters

Detailed narrative

Portfolio Transformation and Divestitures Update

Teleflex is undergoing a significant portfolio optimization, having completed the acquisition of BIOTRONIK's Vascular Intervention business in July 2025 to expand its coronary and peripheral intervention footprint. Concurrently, the company announced agreements in December 2025 to divest its acute care, interventional urology, and OEM businesses, aiming for a more focused medical technologies leader with higher revenue CAGR and greater exposure to critical care markets.

The OEM divestiture is on track for a Q3 2026 close following the expiration of the Hart-Scott-Rodino waiting period in March. However, the acute care and interventional urology divestitures received a second request for information from the U.S. FTC in March, though the company still expects these transactions to close in the second half of 2026.

Capital Allocation Strategy and Share Repurchase

The company remains committed to a disciplined capital allocation strategy, intending to use the approximately $1.8 billion in net after-tax proceeds from the divestitures to fund a share repurchase program of up to $1 billion and reduce debt by $800 million.

Reflecting confidence in the business and progress on the transformation plan, Teleflex now anticipates initiating opportunistic share repurchases in the open market during Q2 2026, earlier than the previously expected timing of post-divestiture completion. This action is expected to result in a meaningfully lower share count and significantly reduced interest expense starting in 2027.

Q1 Operational Performance and Segment Drivers

In Q1 FY26, Teleflex reported $548.3 million in revenue, up 5.1% on a pro forma adjusted constant currency basis, meeting or exceeding internal expectations. The Vascular segment grew 4.8% to $236.8 million, driven by hemostatic products and central venous access.

Interventional revenue increased 3% to $204.7 million, led by intraosseous, right heart, and complex catheters, though it experienced some disruption from sales force integration. The Surgical business saw strong growth of 9.9% to $106.8 million, primarily from ligation clips and favorable timing of instrument orders.

R&D Investment and Pipeline Progress

Teleflex continues to increase R&D investment, particularly in its Interventional segment. The clinical study for the Freesolve drug-eluting resorbable magnesium scaffold technology is progressing well, with enrollment for the European pivotal trial (BIOMAG-II) outpacing assumptions, targeting a late 2027 data readout.

The company plans to expand its regulatory pathway for Freesolve by initiating the BIOMAG-III pivotal trial in the U.S. during 2026, with data expected around 2030. This technology aims to address the trend towards 'leaving nothing behind' in interventional cardiology.

Leadership Transition and Governance Enhancements

The company announced Jason Weidman as its next President and CEO, effective June 8, highlighting his 25+ years of medical technology experience and track record in driving growth and operational execution. Additionally, Teleflex is enhancing its governance with the nomination of Michael J.

Tokich to the Board and the intent to establish a new growth and operating committee. Andrew Krakauer will succeed Dr. Stephen Klasko as Chair of the Board following the upcoming Annual Stockholders Meeting, reflecting a continued focus on strong oversight and long-term performance.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.