Medline Raises Organic Growth Outlook and Authorizes $1 Billion Buyback as Q3 Sales Rise 10.4%
Medline raised its 2026 organic sales growth outlook and authorized a $1 billion share repurchase program after third-quarter net sales grew 10.4% to $7.9 billion, according to its 8-K released Wednesday.
Organic sales rose 10.5%, driven by growth with existing customers and the rollout of new customer contracts signed in 2025. Net income slipped 1.2% to $318 million from $322 million, while adjusted EBITDA increased 11.8% to $960 million. Diluted EPS was $0.22, and adjusted diluted EPS was $0.44.
Inflation squeezes net income
The medical-surgical supplier said net income fell because of inflation-driven inventory costs, higher operating expenses and customer mix, partly offset by higher sales and net benefits from tariff refunds.
Following the U.S. Supreme Court's February 2026 ruling that IEEPA tariffs were unauthorized, Medline recognized $81 million of net tariff refund benefits in the quarter and $324 million over nine months. The nine-month benefit was partly offset by a $78 million reduction in net sales for customer repayments tied to the refunds.
For the first nine months, net sales rose 10.9% to $22.9 billion, but net income dropped 28.8% to $696 million, reflecting higher operating expenses and $316 million of net losses tied to a fire at its distribution center in Tracy, California.
"Our commercial execution remains strong, including continued progress toward our annual total new customer signings goal," said CEO Jim Boyle. He cited capacity expansion and new technology across the distribution network.
Guidance and buyback
Medline now expects 2026 organic sales growth of 10.0% to 10.5%, up from 9.0% to 10.0%. It reaffirmed adjusted EBITDA guidance of $3.3 billion to $3.4 billion, which excludes tariff refunds.
The board also authorized a $1 billion share repurchase program.
By the numbers
- Q3 net sales: $7.9 billion, up 10.4%
- Net income: $318 million, down 1.2%
- Adjusted EBITDA: $960 million, up 11.8%
- Diluted EPS: $0.22; adjusted EPS: $0.44
- New buyback: $1 billion
Sources
- Medline Form 8-K with third-quarter 2026 earnings release, filed Nov. 4, 2026 (accession 0002046386-26-000060)
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