Medline (NASDAQ:MDLN) Issues Earnings Results, Misses Expectations By $0.25 EPS

by · The Markets Daily

Medline (NASDAQ:MDLN – Get Free Report) released its quarterly earnings data on Wednesday. The company reported ($0.01) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.24 by ($0.25), Briefing.com reports. The business had revenue of $7.79 billion for the quarter, compared to the consensus estimate of $7.52 billion. Medline’s revenue was up 14.8% compared to the same quarter last year.

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

  • Medline completed a successful IPO raising over $7 billion and used $4 billion of proceeds to pay down debt, reducing net leverage from 4.9x to 3.1x, leaving ~$1.9 billion in cash and greater financial flexibility for growth and M&A.
  • The company signed $2.4 billion of new customers across Prime Vendor and non-Prime Vendor deals (65% of that expected to be recognized in 2026), which management expects to drive strong top-line momentum into 2026.
  • Full-year 2025 net sales rose 12% to $28.4 billion and Adjusted EBITDA increased 3% to $3.5 billion, but margins declined ~100 basis points due to higher costs and investments, while free cash flow was $1.3 billion.
  • Tariffs were a meaningful headwind (about $290 million in 2025) and management now estimates an annualized net tariff burden of ~$490 million after mitigation, with an incremental $200 million headwind already baked into 2026 EBITDA guidance and near-term policy uncertainty following recent court and administration actions.
  • Medline is accelerating technology and product investments — operating AutoStore in 19 U.S. facilities (2,100+ robots), piloting Symbotic for bulk picking, and rolling out Mpower (AI supply‑chain control tower with Microsoft) — aimed at improving service, lowering costs, and supporting Medline Brand and kitting expansion.

Medline Trading Down 2.0%

Medline stock traded down $0.96 during midday trading on Friday, hitting $47.93. 1,379,207 shares of the stock were exchanged, compared to its average volume of 3,317,838. The stock’s 50-day moving average price is $44.40. Medline has a fifty-two week low of $34.89 and a fifty-two week high of $50.88.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on MDLN shares. JPMorgan Chase & Co. set a $55.00 target price on Medline in a report on Wednesday, January 21st. Robert W. Baird assumed coverage on Medline in a research note on Monday, January 12th. They set an “outperform” rating and a $48.00 target price on the stock. Zacks Research upgraded shares of Medline to a “hold” rating in a research note on Tuesday, January 13th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Medline in a report on Monday, January 12th. They issued a “hold” rating and a $40.00 price target on the stock. Finally, TD Cowen started coverage on shares of Medline in a research note on Monday, January 12th. They issued a “buy” rating for the company. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $50.35.

View Our Latest Stock Analysis on MDLN

Insider Buying and Selling

In related news, Director Andrew J. Mills acquired 2,586,206 shares of Medline stock in a transaction that occurred on Thursday, December 18th. The shares were purchased at an average cost of $29.00 per share, for a total transaction of $74,999,974.00. Following the acquisition, the director owned 2,586,206 shares in the company, valued at approximately $74,999,974. This represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Charles N. Mills purchased 2,579,310 shares of the company’s stock in a transaction on Thursday, December 18th. The shares were bought at an average price of $29.00 per share, with a total value of $74,799,990.00. Following the completion of the transaction, the director owned 2,441,379 shares of the company’s stock, valued at approximately $70,799,991. The trade was a -1,870.00% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing.

Institutional Trading of Medline

A number of large investors have recently made changes to their positions in the company. Carlyle Group Inc. purchased a new stake in Medline during the fourth quarter worth approximately $9,042,728,000. H&F Corporate Investors X Ltd. purchased a new stake in Medline during the 4th quarter valued at approximately $4,179,591,000. Morgan Stanley acquired a new stake in shares of Medline during the fourth quarter worth $636,807,000. Janus Henderson Group PLC acquired a new position in Medline in the 4th quarter valued at $443,712,000. Finally, Price T Rowe Associates Inc. MD purchased a new position in Medline during the 4th quarter worth $307,655,000.

Key Headlines Impacting Medline

Here are the key news stories impacting Medline this week:

  • Positive Sentiment: Multiple analyst upgrades and higher price targets — Citi raised its target to $60 (buy), UBS to $57 (buy), BMO to $54 (outperform) and RBC to $53 (outperform), signaling analyst confidence in Medline’s growth trajectory despite the EPS miss. Medline Analysts Boost Their Forecasts Following Q4 Results
  • Neutral Sentiment: Management commentary and the earnings call highlighted record sales and strategic initiatives (product/operational updates) that could support longer‑term growth; read the call highlights for specifics. Medline Inc (MDLN) Q4 2025 Earnings Call Highlights
  • Neutral Sentiment: Public IPO scrutiny and details on ESOP plans have entered the discussion as Medline’s public listing draws more investor attention — this could affect sentiment depending on clarity around guidance and employee‑ownership structures. Medline IPO Opens Public Scrutiny On Growth Guidance And ESOP Plans
  • Negative Sentiment: Shares gapped down after the weak EPS print and corresponding market reaction; some outlets note an immediate selloff tied to the earnings miss. Medline (NASDAQ:MDLN) Shares Gap Down Following Weak Earnings
  • Negative Sentiment: Wells Fargo lifted its target to $47 but kept an “equal weight” rating; the new target sits slightly below the current price, suggesting limited near‑term upside from that shop. Benzinga

Medline Company Profile

(Get Free Report)

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.

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