Integer Holdings (NYSE:ITGR) Surprises With Strong Q2 CY2026

Medical technology company Integer Holdings (NYSE:ITGR) reported Q2 CY2026 results topping the market’s revenue expectations, but sales fell by 2.6% year on year to $464.1 million. Its non-GAAP profit of $1.60 per share was 15.8% above analysts’ consensus estimates.

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Company Overview

With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings (NYSE:ITGR) is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, Integer Holdings’s sales grew at a decent 10.7% compounded annual growth rate over the last five years. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Integer Holdings’s recent performance shows its demand has slowed as its annualized revenue growth of 6.1% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

We can better understand the company’s sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Integer Holdings’s organic revenue averaged 5.1% year-on-year growth. Because this number aligns with its two-year revenue growth, we can see the company’s core operations (not acquisitions and divestitures) drove most of its results.

This quarter, Integer Holdings’s revenue fell by 2.6% year on year to $464.1 million but beat Wall Street’s estimates by 3%.

Looking ahead, sell-side analysts expect revenue to grow 1.4% over the next 12 months, a deceleration versus the last two years. This projection doesn’t excite us and suggests its products and services will see some demand headwinds.

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Adjusted Operating Margin

Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits.

Integer Holdings’s adjusted operating margin has more or less stayed the same over the last 12 months , averaging 15.3% over the last five years. This profitability was solid for a healthcare business and shows it’s an efficient company that manages its expenses well.

Analyzing the trend in its profitability, Integer Holdings’s adjusted operating margin of 14.7% for the trailing 12 months may be around the same as five years ago, but it has decreased by 1.5 percentage points over the last two years.

In Q2, Integer Holdings generated an adjusted operating margin profit margin of 8.6%, down 8.5 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Integer Holdings’s EPS grew at 14.3% compounded annual growth rate over the last five years, higher than its 10.7% annualized revenue growth. However, we take this with a grain of salt because its adjusted operating margin didn’t improve and it didn’t repurchase its shares, meaning the delta came from reduced interest expenses or taxes.

In Q2, Integer Holdings reported adjusted EPS of $1.60, up from $1.55 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Integer Holdings’s full-year EPS to grow 4% from $6.35 to $6.60.

Key Takeaways from Integer Holdings’s Q2 Results

We enjoyed seeing Integer Holdings beat analysts’ organic revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The stock traded up 2.5% to $124.21 immediately following the results.

Integer Holdings had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).