LivaNova beats Q3 2026 estimates and raises full-year EPS guidance

LivaNova posted adjusted EPS of $1.23 for the third quarter of 2026, meeting expectations was not the ceiling: the consensus estimate was $1.06. Revenue of $393.1 million also came in ahead of expectations, with both measures showing operating momentum.

Cardiopulmonary revenue rose 10.9% to $225.3 million on consumables demand, Essenz Perfusion System sales, and favorable pricing. Neuromodulation grew 11.1% to $166.1 million on higher volume and price gains. The United States, Europe, and Rest of World all contributed growth in both divisions.

Adjusted operating income climbed to $92.3 million from $80.4 million a year earlier, and the adjusted operating margin widened to 23.5%. The GAAP picture looks far more subdued because a $34 million provision tied to 3T Heater-Cooler litigation pulled GAAP operating income down to $28.4 million. Investors focused on the underlying business will look through that provision; those watching the litigation will note it remains an active drag on reported results.

Management lifted full-year 2026 guidance, moving the adjusted diluted EPS range up to $4.40 to $4.50 from $4.30 to $4.40 and raising the constant-currency revenue growth target to 9% to 10% from 8% to 9%. The adjusted free cash flow outlook of $140 million to $160 million was left unchanged. The company ended the quarter with $563.5 million in cash.

Full 36-month results from the CORE-VNS study, published in Neuromodulation, showed a 76% median reduction in seizure frequency for drug-resistant epilepsy patients. Separately, the AMA CPT Editorial Panel established new Category I CPT codes covering LivaNova's proximal hypoglossal nerve stimulation therapy for obstructive sleep apnea, effective January 1, 2028. That opens a reimbursement pathway that did not previously exist.