What Happened?

Shares of medical device company Merit Medical Systems (NASDAQ: MMSI) jumped 6% in the afternoon session after the company reported strong third-quarter 2025 financial results that beat Wall Street expectations and raised its full-year guidance. 

The medical device maker announced revenue of $384.2 million, up 13% year on year and ahead of analyst estimates. Its adjusted earnings per share also came in strong at $0.92, easily clearing Wall Street's projections. A key highlight was the company's organic revenue growth of 7.8%, which significantly outpaced expectations. Buoyed by this performance, Merit Medical increased its outlook for the full year, lifting its revenue guidance to a midpoint of $1.51 billion and its adjusted earnings per share forecast to a midpoint of $3.73.

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What Is The Market Telling Us

Merit Medical Systems’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 21 days ago when the stock dropped 4.2% on the news that worries over worsening trade relations with China were triggered by critical comments from President Donald Trump. The president's tone and the suggestion of canceling a meeting with President Xi caused a rapid sell-off in the market. The trade dispute flared up after China imposed export controls on rare earth minerals, which are critical components for high-tech manufacturing. The escalation of the trade war raises concerns about supply chain disruptions and increased costs for technology companies, which are heavily reliant on global trade, leading to a broad sell-off in the sector.

Merit Medical Systems is down 7.6% since the beginning of the year, and at $88.81 per share, it is trading 19.5% below its 52-week high of $110.29 from January 2025. Investors who bought $1,000 worth of Merit Medical Systems’s shares 5 years ago would now be looking at an investment worth $1,787.

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