ICU Medical’s third quarter results were met with a positive market response, as the company outpaced analyst expectations on both revenue and adjusted earnings. Management pointed to robust growth in its Consumables and IV Systems businesses, which offset reported revenue declines due to the deconsolidation of its IV Solutions segment. CEO Vivek Jain emphasized that strong customer implementations and progress in niche markets, alongside operational improvements, lifted margins and drove sequential earnings growth. The company also benefited from integration synergies and favorable settlements that enhanced gross margins.
Is now the time to buy ICUI? Find out in our full research report (it’s free for active Edge members).
ICU Medical (ICUI) Q3 CY2025 Highlights:
- Revenue: $533.3 million vs analyst estimates of $512.2 million (9.5% year-on-year decline, 4.1% beat)
- Adjusted EPS: $2.03 vs analyst estimates of $1.43 (41.9% beat)
- Adjusted EBITDA: $105.9 million vs analyst estimates of $87.86 million (19.9% margin, 20.5% beat)
- Adjusted EPS guidance for the full year is $7.50 at the midpoint, beating analyst estimates by 7.4%
- EBITDA guidance for the full year is $400 million at the midpoint, above analyst estimates of $384.8 million
- Operating Margin: 5%, up from 3.6% in the same quarter last year
- Market Capitalization: $3.44 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From ICU Medical’s Q3 Earnings Call
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Jayson Bedford (Raymond James) questioned the sources of strength in Consumables, to which CEO Vivek Jain pointed to market share gains, customer wins, niche market growth, and international expansion as primary factors.
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Brett Fishbin (KeyBanc Capital Markets) asked about the outlook for tariffs in 2026. Jain reiterated ongoing mitigation efforts and advised not to annualize current tariff levels, noting much work is underway to offset these costs.
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Michael Matson (Needham) probed gross margin targets and future earnings leverage. Jain and CFO Brian Bonnell discussed the roles of technology value, product mix, and potential portfolio changes as levers for continued earnings growth.
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Lawrence Solow (CJS Securities) inquired about IV Systems replacement opportunities and free cash flow outlook. Jain described early-stage refresh cycles and Bonnell highlighted free cash flow as a value driver, tempered by ongoing remediation and restructuring expenses.
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Jason Bednar (Piper Sandler) asked for updates on FDA warning letters and potential portfolio management in Vital Care. Jain reported ongoing dialogue with the FDA and stated the company continues to explore strategic options for lower-growth businesses without rushing decisions.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) progress on FDA approvals for new infusion pump hardware and software, (2) the pace of integration and cost reduction in manufacturing and logistics, and (3) the company’s ability to mitigate tariff impacts while maintaining margin expansion. Advances in product refresh cycles and developments in portfolio optimization will also be key signposts.
ICU Medical currently trades at $139.18, up from $129.73 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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