Medline (NASDAQ:MDLN) Announces Quarterly Earnings Results, Beats Expectations By $0.18 EPS

Medline (NASDAQ:MDLN) released its quarterly earnings data on Wednesday. The company reported $0.50 EPS for the quarter, topping the consensus estimate of $0.32 by $0.18, FiscalAI reports. The business had revenue of $7.68 billion during the quarter.

Here are the key takeaways from Medline’s conference call:

• Second-quarter sales rose 12% to $7.7 billion, led by 16% growth in Supply Chain Solutions and 15% growth in U.S. acute care. Medline raised its full-year organic sales outlook to 9%-10% from 8.5%-9.5%.
• New customer signings exceeded $650 million in the first half, putting Medline ahead of pace for its $1 billion annual goal. Management cited strong opportunities across acute and non-acute care, including the expanded Allina Health partnership.
• Full-year adjusted EBITDA guidance was lowered to $3.3 billion-$3.4 billion from $3.5 billion-$3.6 billion, despite the sales outlook increase. Headwinds include operational investments, quality remediation, retail softness, Middle East-related inflation and costs from the Tracy warehouse fire.
• The Tracy fire reduced first-half net income by $336 million, with another $50 million-$100 million of related costs expected in the second half. Medline also expects quality remediation and delayed product reintroductions, including CHG wipes, to pressure earnings.
• Medline reported $920 million of first-half free cash flow and reduced net leverage to 2.9 times, meeting its long-term goal of below three times. The company is expanding and automating its California distribution footprint, which management expects to improve supply-chain resilience over time.

Medline Stock Performance

Shares of NASDAQ MDLN traded down $1.71 during midday trading on Thursday, hitting $34.97. 5,442,453 shares of the company’s stock traded hands, compared to its average volume of 7,310,755. The firm has a fifty day moving average of $38.29 and a 200 day moving average of $41.83. Medline has a 1 year low of $32.81 and a 1 year high of $50.88. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.51 and a current ratio of 4.41. The stock has a market capitalization of $45.93 billion and a price-to-earnings ratio of 108.87.

Insider Buying and Selling

In other Medline news, insider Jessi L. Corcoran purchased 5,000 shares of the company’s stock in a transaction dated Friday, June 5th. The shares were acquired at an average price of $34.15 per share, for a total transaction of $170,750.00. Following the purchase, the insider directly owned 5,000 shares of the company’s stock, valued at $170,750. The trade was a ? increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Douglas P. Golwas sold 100,000 shares of Medline stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $36.77, for a total value of $3,677,000.00. Following the transaction, the insider owned 23,899 shares in the company, valued at $878,766.23. This trade represents a 80.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.81% of the company’s stock.

Institutional Trading of Medline

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sound Income Strategies LLC bought a new stake in shares of Medline during the fourth quarter valued at approximately $25,000. GAMMA Investing LLC raised its position in shares of Medline by 68.3% during the 2nd quarter. GAMMA Investing LLC now owns 626 shares of the company’s stock valued at $25,000 after buying an additional 254 shares in the last quarter. Entrust Financial LLC bought a new stake in shares of Medline in the 4th quarter valued at approximately $26,000. NBC Securities Inc. purchased a new position in shares of Medline in the 4th quarter worth approximately $28,000. Finally, Whipplewood Advisors LLC bought a new position in shares of Medline during the 1st quarter valued at approximately $30,000.

Medline News Roundup

Here are the key news stories impacting Medline this week:

• Positive Sentiment: Medline reported second-quarter adjusted EPS of $0.50, well above the $0.32 analyst consensus, while revenue rose 11.6% year over year to $7.7 billion. Adjusted EBITDA increased 13.4% to $1.06 billion. Medline Reports Second Quarter and First Six Months 2026 Results
• Positive Sentiment: Management raised its 2026 organic-sales-growth forecast to 9%-10% from 8.5%-9.5%, citing strong existing-customer demand and new customer signings. Operating cash flow also rose 28.2% to $1.1 billion during the first half. Medline Raises 2026 Organic Sales Outlook
• Neutral Sentiment: Analysts remain broadly bullish: BTIG reiterated a Buy rating and $55 price target. Truist and Stifel also kept Buy ratings despite reducing their targets to $47 and $45, respectively, indicating continued expected upside but more cautious assumptions. BTIG Medline Rating
• Negative Sentiment: Medline lowered its 2026 adjusted EBITDA outlook to $3.3-$3.4 billion from $3.5-$3.6 billion. The reduction reflects inflationary pressure, higher investments to support demand, quality-remediation costs and softness in the retail channel. Medline Falls Despite Q2 Beat After EBITDA Outlook Cut
• Negative Sentiment: GAAP net income plunged 58.3% to $139 million, pressured by a $336 million loss tied to the Tracy, California distribution-center fire, higher expenses and tariff costs. Results also benefited from $243 million in net tariff refunds, raising concerns about the sustainability of reported profitability.
• Negative Sentiment: Kaplan Fox announced an investigation into possible securities-law violations involving Medline. The announcement is preliminary and does not establish wrongdoing, but it adds an additional source of headline and litigation risk. Kaplan Fox Medline Investigation

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Weiss Ratings downgraded shares of Medline from a “sell (d+)” rating to a “sell (d)” rating in a report on Thursday, July 23rd. BTIG Research reissued a “buy” rating and set a $55.00 price objective on shares of Medline in a report on Friday, July 31st. BMO Capital Markets restated an “outperform” rating and set a $47.00 price objective on shares of Medline in a research report on Thursday. Tigress Financial raised their target price on shares of Medline from $60.00 to $62.00 and gave the stock a “buy” rating in a report on Wednesday, May 13th. Finally, Truist Financial decreased their target price on shares of Medline from $56.00 to $47.00 and set a “buy” rating for the company in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $48.50.

Medline Company Profile

Medline (NASDAQ: MDLN) is a healthcare products and services company that manufactures, sources and distributes a wide range of medical supplies and equipment for healthcare providers. Its product portfolio spans clinical consumables and personal protective equipment, surgical and procedural supplies, wound care and incontinence products, diagnostic and laboratory supplies, and select durable medical equipment. Medline supports care settings that include hospitals, health systems, long-term care facilities, ambulatory clinics and home health providers.

In addition to product manufacturing and distribution, Medline provides supply?chain and logistics services designed to help healthcare customers manage inventory, reduce costs and streamline operations.