Medline Reports Third Quarter and Nine Months 2026 Results
Higher sales and adjusted earnings contrasted with lower net income, while October capital actions included debt repayment and repurchase authorization.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Medline (Nasdaq: MDLN) reported third-quarter net sales of $7.9 billion, up 10.4% from the same period in 2025. Net income fell 1.2% to $318 million, while adjusted EBITDA, a non-GAAP earnings measure, rose 11.8% to $960 million. Diluted earnings per share were $0.22.
For the nine months ended September 26, 2026, sales rose 10.9% to $22.9 billion, but net income fell 28.8% to $696 million. Results included $316 million in net losses from the Tracy, California, distribution-center fire. Operating cash flow was $2.2 billion.
Medline raised its 2026 organic sales growth outlook to 10.0%–10.5% from 9.0%–10.0% and reaffirmed adjusted EBITDA guidance of $3.3 billion–$3.4 billion, excluding tariff refunds. In October, the board authorized repurchases of up to $1 billion in Class A shares and/or Medline Holdings units, and the company prepaid $750 million of term-loan principal.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 organic sales growth guidance raised to 10.0%–10.5% from 9.0%–10.0%.
- Moderate pointThird-quarter net sales increased 10.4% to $7.9 billion versus the third quarter of 2025.
- Moderate pointOctober repurchase authorization covers up to $1 billion of Class A shares and/or Medline Holdings units. 2.2% of market cap
- Moderate pointOctober debt prepayment reduced 2033 Refinancing Term Loan Facility principal by $750 million. 1.7% of market cap
- Moderate pointThird-quarter adjusted EBITDA increased 11.8% to $960 million; nine-month adjusted EBITDA rose 5.0% to $2.8 billion.
- Moderate pointNine-month operating cash flow reached $2.2 billion; free cash flow after capital expenditures was $1.8 billion.
7 minor points
- Minor pointNine-month net sales increased 10.9% to $22.9 billion versus the 2025 period.
- Minor pointThird-quarter organic sales, excluding acquisition, divestiture and currency effects, increased 10.5%; nine-month growth was 10.7%.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA guidance reaffirmed at $3.3 billion–$3.4 billion, excluding IEEPA tariff refunds.
- Minor pointNet IEEPA tariff refund benefits totaled $81 million in the third quarter and $324 million over nine months.
- Minor pointThird-quarter gross profit rose 2.7% to $1.925 billion; nine-month gross profit increased 6.7% to $5.981 billion.
- Minor pointNet interest expense fell 44.6% to $118 million quarterly and 42.3% to $373 million over nine months.
- Minor pointNine-month capital expenditures of $348 million supported distribution automation, new distribution centers and expanded kitting manufacturing capacity.
Negative
- Moderate pointThird-quarter net income fell 1.2% to $318 million; nine-month net income declined 28.8% to $696 million.
- Moderate pointTracy distribution-center fire generated $316 million in net losses during the first nine months of 2026.
- Moderate pointThird-quarter gross margin fell to 24.5% from 26.4%; nine-month margin declined to 26.1% from 27.1%.
- Moderate pointThird-quarter operating income fell 12.9% to $500 million; nine-month operating income declined 26.3% to $1.317 billion.
- Minor pointNet income attributable to Medline fell 39.4% to $195 million quarterly and 60.7% to $384 million over nine months.
4 minor points
- Minor pointThird-quarter operating margin declined to 6.4% from 8.1%; nine-month margin fell to 5.8% from 8.7%.
- Minor pointSelling, general and administrative expenses rose 12.8% to $1.259 billion quarterly and 16.0% to $3.782 billion over nine months.
- Minor pointIncome tax provisions increased to $68 million from $23 million quarterly and $216 million from $65 million over nine months.
- Minor pointNine-month other loss, net, increased to $42 million from $6 million in the 2025 period.
Details
Market Reaction – MDLN
On Nov 4, the day this news came out, the latest delayed price for MDLN is 11.32% above the previous close. Our momentum scanner has recorded 10 alerts for this stock so far that day. The latest delayed price is $37.95. Relative volume is exceptionally heavy at 130.2x what this stock usually trades by this time of day.
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Key Figures
- Third-quarter net sales
- $7.9 billion; increase of 10.4%
- Third quarter 2026
- Third-quarter net income
- $318 million; decrease of 1.2%
- Third quarter 2026
- Third-quarter Adjusted EBITDA
- $960 million; increase of 11.8%
- Third quarter 2026
- Nine-month net income
- $696 million; decrease of 28.8%
- Nine months ended September 26, 2026
- Organic Sales guidance
- 10.0% to 10.5%, raised from 9.0% to 10.0%
- Full year 2026
- Adjusted EBITDA guidance
- $3.3 billion to $3.4 billion
- Full year 2026; reaffirmed
- Share repurchase authorization
- Up to $1 billion
- Authorized by the Board in October
- Tracy distribution center fire losses
- $316 million
- Net losses included in nine-month results
Historical Context
-
Raised Organic Sales outlook but lowered Adjusted EBITDA guidance to $3.3–$3.4 billion
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
non-gaap financial measures financial
free cash flow financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Third quarter net sales of
$7.9 billion, an increase of10.4% - Third quarter net income of
$318 million, a decrease of1.2% - Third quarter Adjusted EBITDA1 of
$1.0 billion, an increase of11.8% - Nine months net sales of
$22.9 billion, an increase of10.9% - Nine months net income of
$696 million, a decrease of28.8% - Nine months Adjusted EBITDA1 of
$2.8 billion, an increase of5.0% - Raising full year 2026 Organic Sales2 guidance to
10.0% to10.5% from9.0% to10.0% and reaffirming Adjusted EBITDA2 guidance of$3.3 billion to$3.4 billion - Board of Directors authorized a
$1 billion share repurchase program
NORTHFIELD, Ill., Nov. 04, 2026 (GLOBE NEWSWIRE) -- Medline Inc. (“Medline” or the “Company”) (Nasdaq: MDLN), the largest provider of medical-surgical (“med-surg”) products and supply chain solutions serving all points of care3, today reported its operating results for the three and nine months ended September 26, 2026.
“Medline delivered another strong quarter, with double-digit net sales growth, reflecting continued momentum across our business,” said Jim Boyle, chief executive officer of Medline. “Our commercial execution remains strong, including continued progress toward our annual total new customer signings4 goal. We are advancing key strategic priorities, including capacity expansion and new technology across our distribution network and progress with our global quality initiatives. We remain focused on serving our customers, advancing our strategic priorities and driving sustainable long-term growth.”
Third Quarter 2026 Results
Third quarter 2026 net sales increased
Third quarter 2026 net income decreased
Third quarter 2026 Adjusted EBITDA¹ increased
Third quarter 2026 diluted earnings per share and Adjusted Diluted EPS¹ were
Nine Months 2026 Results
Nine months 2026 net sales increased
Nine months 2026 net income decreased
Nine months 2026 Adjusted EBITDA¹ increased
Nine months 2026 diluted earnings per share and Adjusted Diluted EPS¹ were
Net cash provided by operating activities for the first nine months of 2026 was
Free Cash Flow¹ for the first nine months of 2026 was
Capital Allocation
In October, the Medline Board of Directors approved a share repurchase program authorizing the Company, including Medline Holdings, LP, to repurchase up to
These actions reflect Medline’s strong cash generation and disciplined capital allocation approach, including investing in the business, continued debt reduction and opportunistic return of capital to shareholders.
2026 Guidance
The Company is raising its full year 2026 outlook for Organic Sales2 growth to
IEEPA Tariff Refunds and Related Customer Repayments
Following the U.S. Supreme Court’s February 2026 ruling that IEEPA tariffs were unauthorized, the Company recognized
Webcast and Conference Call Instructions
The Company will host a live conference call and question and answer session with investors and analysts on November 4, 2026, at 8:30 a.m. CT / 9:30 a.m. ET to discuss its third quarter and nine months 2026 earnings results. The webcast can be accessed through Medline’s Investor Relations website at ir.medline.com. A replay of the call will be available following the event through the same website.
End Notes and Use of Non-GAAP Financial Measures
Certain amounts and percentages presented in this press release have a rounding element. As a result, the sum of the components may not equal the totals due to rounding.
| (1) | Organic Sales, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, and Net Leverage are non-GAAP financial measures. See discussion of these measures and reconciliations to GAAP at the end of this press release for more information. |
| (2) | Guidance for Adjusted EBITDA and Organic Sales is provided on a non-GAAP basis only because certain information necessary to calculate the most comparable GAAP measure is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of such items impacting comparability, including, but not limited to, inventory-related adjustments, stock-based compensation, litigation (gains) charges, net, transaction-related costs, the impact of currency, and other non-core (gains) charges, among other items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, the Company is unable to provide a reconciliation of these measures with reasonable certainty and without unreasonable effort. Guidance for full year 2026 Adjusted EBITDA excludes |
| (3) | Based on our 2025 net sales relative to the publicly reported net sales of med-surg products by companies that are both med-surg manufacturers and distributors. |
| (4) | Total new customer signings refers to the estimated annual contract value of all new contracts entered into by new customers or by existing customers who are expanding their relationship with Medline, excluding renewals and extensions. |
| (5) | In determining the amount of capital to allocate to share repurchases, the Company takes into account, among other things, its historical and expected business performance and cash and liquidity position, as well as global economic and market conditions and the market price of the Company’s common stock. The timing, manner, price and amount of any repurchases under the share repurchase program are determined by the Company in its discretion. Purchases may be effected through open market transactions, privately negotiated transactions, transactions structured through investment banking institutions, or other means. The Company is not obligated to repurchase any specific number of shares and the program may be modified, suspended, or discontinued at any time. |
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements include all statements that are not historical facts. Words such as “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “foreseeable,” “framework,” “goal,” “guidance,” “intend,” “may,” “objective,” “outlook,” “plan,” “potentially,” “predict,” “project,” “seek,” “should,” “target,” “will,” or “would,” or similar conditional or future expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements related to the Company’s industry, business strategy, costs, and cost savings, goals and expectations, market position, future operations, margins, profitability, annual guidance, growth frameworks, and other financial and operating information. The forward-looking statements are based on management’s current expectations and are subject to various risks, uncertainties, and changes in circumstances, many of which are beyond the Company’s control, that could cause actual results to differ materially.
Factors that may cause actual results to differ from expected results include, but are not limited to, inherent risks in the Company’s global operations; the Company’s ability to derive fully the anticipated benefits from its existing or future acquisitions, joint ventures, investments, dispositions, or other strategic transactions; consolidation in the healthcare industry; competition and accelerating pricing pressure and changes in technology; changes to the U.S. and global healthcare environments; increases in shipping costs or service issues with the Company’s third-party shippers; significant challenges or delays in the Company’s sourcing of new products and technologies; the Company’s concentration in and dependence on certain healthcare provider customers and Group Purchasing Organizations; the Company’s dependence on the proper functioning of its critical facilities and distribution networks, and the impact of events outside its control, including fires and other disruptions affecting such facilities or networks, such as the Tracy facility fire; quality problems, recalls, product liability claims, and regulatory actions by the U.S. Food and Drug Administration; the Company’s failure to establish and maintain Prime Vendor relationships; the Company’s ability to realize the expected benefits from planned cost savings and business improvement initiatives; increased pressure to maintain or decrease the price of the Company’s goods and services; failure by or loss of a third-party manufacturer or supplier or other manufacturing or supply-related impacts; the Company’s reliance on the proper function, security, and availability of its information technology systems and data, as well as those of third parties throughout its global supply chain and the impact of a breach, cyber-attack, or other disruption to these systems or data; the Company’s ability to comply with extensive and complex laws and governmental regulations and the cost of any adverse regulatory action; the Company’s compliance with complex and rapidly evolving data privacy, security and data protection laws and regulations; the Company’s use or its third-party service providers’ or business partners’ use of artificial intelligence, automated decision-making and machine learning technologies and the evolving regulatory framework in this area; the Company’s ability to comply with laws and regulations relating to reimbursement of healthcare goods and services; uncertain global and domestic macro-economic and political conditions, including as a result of global geopolitical conflicts and tensions, such as the ongoing conflicts in Ukraine and the Middle East; the impact of sales of the Company’s common stock in the public market; the Company’s ability to implement its plans regarding share repurchases or to return value to stockholders, the impact of the Company’s share repurchases, or any change in the Company’s share repurchase activity; the Company’s substantial indebtedness, its ability to satisfy its debt obligations, and the significant operating and financial restrictions on the Company’s subsidiaries imposed by the Company’s debt agreements; the Company’s insurance program may not cover claims brought against it, deny coverage of claims, or be inadequate to cover future losses; the dual class structure of the Company’s common stock; the volatility of the market price of the Company’s Class A common stock; and other factors.
The Company disclaims any intent or obligation to update, revise, or withdraw any forward-looking statement in this press release, except as required by applicable law or regulation.
The Company uses its investor relations website at ir.medline.com, press releases, public conference calls and webcasts, and social media as routine channels of distribution to communicate important, and often material, information about Medline to investors and the public, including information about its financial performance and results, analyst and investor presentations, investor days, products, solutions, sustainability initiatives, and corporate governance practices. You are encouraged to follow these channels, in addition to our SEC filings, for timely information about the Company. The information on the Company’s websites is not part of this press release and is not incorporated by reference into any filings the Company makes with the SEC.
Non-GAAP Financial Measures
The non-GAAP financial measures provided in this press release should be viewed in addition to, and not as an alternative for, results prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
To supplement the financial information provided, the Company has presented Organic Sales, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, and Net Leverage, which are considered non-GAAP financial measures. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable GAAP financial measures, such as net income/(loss), net income margin, diluted earnings per share, net cash from operating activities, net sales, or other measures prescribed by GAAP, and there are limitations to using non-GAAP financial measures.
Management uses these non-GAAP financial measures to assist in comparing the Company’s performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes do not directly reflect the Company’s ongoing operating performance. The Company believes Organic Sales, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted EPS provide important comparability of ongoing operating performance, allowing investors and management to assess the Company’s operating performance on a consistent basis. The Company believes Free Cash Flow and Net Leverage provide a measure of the Company’s core operating performance, the cash-generating capabilities of the Company’s business operations, and are factors used in determining the Company’s borrowing capacity and the amount of cash available for debt repayments, acquisitions, and other corporate purposes.
Management believes that presenting the Company’s non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items that we do not consider indicative of our ongoing operating performance, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating the Company’s results. The Company believes that the presentation of these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provides investors with greater understanding of the factors and trends affecting the Company’s business than could be obtained absent these disclosures.
Definitions
Organic Sales is defined as net sales excluding, when they occur, the impact of acquisitions, divestitures, and changes in foreign exchange rates from the net sales changes. The changes in foreign currency exchange rates from the net sales changes are calculated by translating current period GAAP results at the prior period foreign currency exchange rates and comparing these amounts to the current period GAAP results at the current period foreign currency exchange rates.
Adjusted EBITDA is defined as net income (loss) adjusted for (i) interest expense, net, (ii) provision for income taxes, (iii) depreciation and amortization, (iv) inventory-related adjustments, (v) stock-based compensation, (vi) litigation (gains) charges, net, (vii) transaction-related costs, and (viii) other non-core (gains) charges. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net sales.
Adjusted Net Income is defined as net income (loss) adjusted for (i) intangible asset amortization, (ii) inventory-related adjustments, (iii) stock-based compensation, (iv) litigation (gains) charges, net, (v) transaction-related costs, (vi) other non-core (gains) charges, and (vii) tax impacts related to non-GAAP adjustments, noncontrolling interests conversion, and retained tax receivable agreement (“TRA”) benefits. Adjusted Diluted EPS is defined as Adjusted Net Income divided by adjusted weighted-average number of shares of common stock, diluted. The adjusted weighted shares calculation assumes the impact of certain antidilutive securities that were excluded from the U.S. GAAP diluted earnings per share.
Free Cash Flow is defined as net cash provided by/(used for) operating activities less net capital expenditures. The use of this non-GAAP measure does not imply or represent the residual cash flow for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure.
Net Leverage is defined as net debt (total debt less cash, cash equivalents and short-term investments) divided by Adjusted EBITDA.
Medline
Medline is the largest provider of medical-surgical products and supply chain solutions serving all points of care. Through its broad product portfolio, resilient supply chain and leading clinical solutions, Medline helps healthcare providers improve their clinical, financial and operational outcomes. Headquartered in Northfield, Ill., the company employs more than 45,000 people worldwide and operates in more than 100 countries. To learn more about how Medline makes healthcare run better, visit www.medline.com.
Investor Relations:
Karen King
Global Head of Investor Relations
Patrick Flaherty
Director, Investor Relations
(847) 247-7222
IR@medline.com
Media Relations:
Ben Fox
Vice President, Corporate Communications
(224) 327-9999
MedlineMediaRelations@medline.com
Financial Tables
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||||||||||||||||||||||||
| (in millions, except per share amounts) | Three months ended | Nine months ended | ||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ Change | % Change | September 26, 2026 | September 27, 2025 | $ Change | % Change | |||||||||||||||||||||
| Net sales | $ | 7,856 | $ | 7,115 | $ | 741 | $ | 22,893 | $ | 20,645 | $ | 2,248 | ||||||||||||||||
| Cost of goods sold | 5,931 | 5,240 | 691 | 16,912 | 15,041 | 1,871 | ||||||||||||||||||||||
| Gross profit | 1,925 | 1,875 | 50 | 5,981 | 5,604 | 377 | ||||||||||||||||||||||
| Gross margin % | 24.5 | % | 26.4 | % | 26.1 | % | 27.1 | % | ||||||||||||||||||||
| Operating expense | ||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 1,259 | 1,116 | 143 | 3,782 | 3,259 | 523 | ||||||||||||||||||||||
| Amortization of intangible assets | 176 | 177 | (1 | ) | (0.6)% | 529 | 528 | 1 | ||||||||||||||||||||
| Other operating (income) expenses, net | (10 | ) | 8 | (18 | ) | NM⁽¹⁾ | 353 | 30 | 323 | NM⁽¹⁾ | ||||||||||||||||||
| Total operating expense | 1,425 | 1,301 | 124 | 4,664 | 3,817 | 847 | ||||||||||||||||||||||
| Operating income | 500 | 574 | (74 | ) | (12.9)% | 1,317 | 1,787 | (470 | ) | (26.3)% | ||||||||||||||||||
| Operating margin % | 6.4 | % | 8.1 | % | 5.8 | % | 8.7 | % | ||||||||||||||||||||
| Other expense | ||||||||||||||||||||||||||||
| Interest expense, net | (118 | ) | (213 | ) | 95 | (44.6)% | (373 | ) | (646 | ) | 273 | (42.3)% | ||||||||||||||||
| Other loss, net | (1 | ) | (6 | ) | 5 | (83.3)% | (42 | ) | (6 | ) | (36 | ) | NM⁽¹⁾ | |||||||||||||||
| Foreign exchange gain (loss), net | 5 | (10 | ) | 15 | NM⁽¹⁾ | 10 | (93 | ) | 103 | NM⁽¹⁾ | ||||||||||||||||||
| Total other expense | (114 | ) | (229 | ) | 115 | (50.2)% | (405 | ) | (745 | ) | 340 | (45.6)% | ||||||||||||||||
| Income before income taxes | 386 | 345 | 41 | 912 | 1,042 | (130 | ) | (12.5)% | ||||||||||||||||||||
| Provision for income taxes | 68 | 23 | 45 | NM⁽¹⁾ | 216 | 65 | 151 | NM⁽¹⁾ | ||||||||||||||||||||
| Net income | 318 | 322 | (4 | ) | (1.2)% | 696 | 977 | (281 | ) | (28.8)% | ||||||||||||||||||
| Net income % | 4.0 | % | 4.5 | % | 3.0 | % | 4.7 | % | ||||||||||||||||||||
| Net income attributable to noncontrolling interests | 123 | — | 123 | NM⁽¹⁾ | 312 | — | 312 | NM⁽¹⁾ | ||||||||||||||||||||
| Net income attributable to Medline Inc. | $ | 195 | $ | 322 | $ | (127 | ) | (39.4)% | $ | 384 | $ | 977 | $ | (593 | ) | (60.7)% | ||||||||||||
| Earnings per share attributable to Medline Inc. | ||||||||||||||||||||||||||||
| Basic | $ | 0.23 | N/A | $ | 0.46 | N/A | ||||||||||||||||||||||
| Diluted | $ | 0.22 | N/A | $ | 0.45 | N/A | ||||||||||||||||||||||
| Weighted-average number of Class A common stock outstanding | ||||||||||||||||||||||||||||
| Basic | 876 | N/A | 851 | N/A | ||||||||||||||||||||||||
| Diluted | 1,316 | N/A | 1,317 | N/A | ||||||||||||||||||||||||
(1) Not Meaningful
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (in millions, except per share amounts) | As of September 26, 2026 (Unaudited) | As of December 31, 2025 | |||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 2,321 | $ | 1,939 | |||
| Short-term investments | 1,287 | — | |||||
| Trade accounts receivable, net of allowance for credit losses of | 3,794 | 3,533 | |||||
| Inventories | 4,806 | 4,769 | |||||
| Other current assets | 445 | 438 | |||||
| Total current assets | 12,653 | 10,679 | |||||
| Property, plant, and equipment, net | 4,728 | 4,778 | |||||
| Other non-current assets | |||||||
| Goodwill | 8,073 | 8,079 | |||||
| Intangible assets, net | 13,377 | 13,893 | |||||
| Deferred tax assets | 833 | 583 | |||||
| Other long-term assets | 514 | 472 | |||||
| Total other non-current assets | 22,797 | 23,027 | |||||
| Total assets | $ | 40,178 | $ | 38,484 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Current portion of long-term borrowings and other short-term borrowings | $ | 29 | $ | 77 | |||
| Accounts payable | 1,209 | 961 | |||||
| Accrued expenses and other current liabilities | 1,891 | 1,452 | |||||
| Total current liabilities | 3,129 | 2,490 | |||||
| Non-current liabilities | |||||||
| Long-term borrowings, less current portion | 12,551 | 12,484 | |||||
| Tax receivable agreement liability | 4,403 | 3,542 | |||||
| Other long-term liabilities | 709 | 682 | |||||
| Total non-current liabilities | 17,663 | 16,708 | |||||
| Total liabilities | $ | 20,792 | $ | 19,198 | |||
| Commitments and contingencies | |||||||
| Stockholders’ equity | |||||||
| Class A common stock, par value | — | — | |||||
| Class B common stock, par value | — | — | |||||
| Preferred stock, par value | — | — | |||||
| Additional paid-in capital | 11,428 | 10,717 | |||||
| Retained earnings (accumulated deficit) | 377 | (7 | ) | ||||
| Accumulated other comprehensive (loss) income | (4 | ) | 27 | ||||
| Total Medline Inc. stockholders’ equity | 11,801 | 10,737 | |||||
| Noncontrolling interests | 7,585 | 8,549 | |||||
| Total stockholders’ equity | 19,386 | 19,286 | |||||
| Total liabilities and stockholders’ equity | $ | 40,178 | $ | 38,484 | |||
| Condensed Consolidated Cash Flow Highlights (unaudited) | ||||||||||||||
| ($ millions) | Nine months ended | |||||||||||||
| September 26, 2026 | September 27, 2025 | $ Change | % Change | |||||||||||
| Net cash provided by operating activities | $ | 2,152 | $ | 1,515 | $ | 637 | | |||||||
| Net cash used in investing activities | (1,537 | ) | (336 | ) | (1,201 | ) | NM(1) | |||||||
| Net cash used in financing activities | (220 | ) | (498 | ) | 278 | (55.8)% | ||||||||
| Effect of exchange rate changes | (14 | ) | 24 | (38 | ) | NM(1) | ||||||||
| Net change in cash, cash equivalents and restricted cash | $ | 381 | $ | 705 | $ | (324 | ) | (46.0)% | ||||||
(1) Not Meaningful
| Segment Net Sales and Adjusted EBITDA Margin (unaudited) | ||||||||||||||||||||||||||||
| ($ millions, except percentages) | Three months ended | Nine months ended | ||||||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | $ Change | % Change | September 26, 2026 | September 27, 2025 | $ Change | % Change | |||||||||||||||||||||
| Medline Brand segment | ||||||||||||||||||||||||||||
| Net sales | $ | 3,637 | $ | 3,411 | $ | 226 | $ | 10,642 | $ | 9,997 | $ | 645 | ||||||||||||||||
| Adjusted EBITDA | 943 | 821 | 122 | 2,775 | 2,541 | 234 | ||||||||||||||||||||||
| Adjusted EBITDA Margin | 25.9 | % | 24.1 | % | 26.1 | % | 25.4 | % | ||||||||||||||||||||
| Supply Chain Solutions segment | ||||||||||||||||||||||||||||
| Net sales | $ | 4,219 | $ | 3,704 | $ | 515 | $ | 12,251 | $ | 10,648 | $ | 1,603 | ||||||||||||||||
| Adjusted EBITDA | 184 | 205 | (21 | ) | (10.2)% | 575 | 588 | (13 | ) | (2.2)% | ||||||||||||||||||
| Adjusted EBITDA Margin | 4.4 | % | 5.5 | % | 4.7 | % | 5.5 | % | ||||||||||||||||||||
| Corporate & Other(1) | $ | (167 | ) | $ | (167 | ) | $ | — | —% | $ | (554 | ) | $ | (467 | ) | $ | (87 | ) | ||||||||||
(1) The organizational structure includes Corporate & Other which consists of expenses related to centralized corporate functions, such as finance, information technology, legal, human resources, and internal audit.
| Reconciliation of Net Sales to Organic Sales (unaudited) | ||||||||||||
| Three months ended | Nine months ended | |||||||||||
| ($ millions, except percentages) | Amount | Percentage | Amount | Percentage | ||||||||
| Net sales for period ended September 26, 2026 | $ | 7,856 | $ | 22,893 | ||||||||
| Net sales for period ended September 27, 2025 | 7,115 | 20,645 | ||||||||||
| Net sales growth | 741 | 2,248 | 10.9 | % | ||||||||
| Impact from changes in foreign exchange rates | (7 | ) | (0.1)% | 35 | 0.2 | % | ||||||
| Organic Sales | $ | 748 | $ | 2,213 | 10.7 | % | ||||||
| Reconciliation of Net Income to Adjusted EBITDA and Net Leverage (unaudited) | |||||||||||||||||||||||||||||||
| Trailing Twelve months ended | Three months ended | Nine months ended | |||||||||||||||||||||||||||||
| ($ millions, except percentages) | September 26, 2026 | September 26, 2026 | September 27, 2025 | $ Change | % Change | September 26, 2026 | September 27, 2025 | $ Change | % Change | ||||||||||||||||||||||
| Net income | $ | 876 | $ | 318 | $ | 322 | $ | (4 | ) | (1.2)% | $ | 696 | $ | 977 | $ | (281 | ) | (28.8)% | |||||||||||||
| Interest expense, net | 539 | 118 | 213 | (95 | ) | (44.6)% | 373 | 646 | (273 | ) | (42.3)% | ||||||||||||||||||||
| Provision for income taxes | 242 | 68 | 23 | 45 | NM(6) | 216 | 65 | 151 | NM(6) | ||||||||||||||||||||||
| Depreciation and amortization | 1,030 | 259 | 253 | 6 | 769 | 750 | 19 | ||||||||||||||||||||||||
| Inventory-related adjustments (1) | 199 | 122 | 2 | 120 | NM(6) | 154 | 38 | 116 | NM(6) | ||||||||||||||||||||||
| Stock-based compensation expense | 108 | 29 | 15 | 14 | 81 | 52 | 29 | ||||||||||||||||||||||||
| Litigation charges (gains), net (2) | 14 | — | — | — | —% | — | (47 | ) | 47 | NM(6) | |||||||||||||||||||||
| Transaction-related costs (3) | 117 | 30 | 12 | 18 | NM(6) | 94 | 35 | 59 | NM(6) | ||||||||||||||||||||||
| Other non-core charges (4) | 476 | 16 | 19 | (3 | ) | (15.8)% | 413 | 146 | 267 | NM(6) | |||||||||||||||||||||
| Adjusted EBITDA | $ | 3,601 | $ | 960 | $ | 859 | $ | 101 | $ | 2,796 | $ | 2,662 | $ | 134 | |||||||||||||||||
| Net income margin (5) | 2.9 | % | 4.0 | % | 4.5 | % | 3.0 | % | 4.7 | % | |||||||||||||||||||||
| Adjusted EBITDA Margin (5) | 11.7 | % | 12.2 | % | 12.1 | % | 12.2 | % | 12.9 | % | |||||||||||||||||||||
| Total debt | $ | 12,743 | |||||||||||||||||||||||||||||
| Less: Cash and cash equivalents | 2,321 | ||||||||||||||||||||||||||||||
| Less: Short-term investments | 1,287 | ||||||||||||||||||||||||||||||
| Net debt | $ | 9,135 | |||||||||||||||||||||||||||||
| Net Leverage | 2.5 | ||||||||||||||||||||||||||||||
| (1) | Represents the non-cash impact of last-in, first-out reserve changes attributable to changes in inventory costs. |
| (2) | The nine months ended September 27, 2025, represents a settlement adjustment of |
| (3) | The three and nine months ended September 26, 2026 and September 27, 2025, respectively, include |
| (4) | The three and nine months ended September 26, 2026 primarily include: |
| a. Costs related to specified transformation and implementation projects of | |
| b. Loss on debt extinguishment and other debt refinancing costs and fees related to specified financing transactions of | |
| c. The impact attributable to a fire at the distribution center in Tracy, California, net of insurance proceeds of | |
| d. Costs attributable to specified remediation activities undertaken in response to FDA observations and warning letters of | |
| e. Recall and discontinuation costs related to Medline Brand beds of | |
| The three and nine months ended September 27, 2025 primarily include: | |
| f. Costs related to specified transformation and implementation projects of | |
| g. Loss on debt extinguishment and other debt refinancing costs and fees related to specified financing transactions of | |
| h. Foreign exchange losses directly attributable to the remeasurement of euro-denominated term loans of | |
| The nine months ended September 27, 2025 also includes | |
| (5) | Net income margin represents net income divided by net sales and Adjusted EBITDA Margin represents Adjusted EBITDA divided by net sales. |
| (6) | Not Meaningful |
| Reconciliation of Net Income to Adjusted Net Income and Adjusted Diluted EPS (unaudited) | ||||||||
| Three months ended | Nine months ended | |||||||
| (in millions, except number of shares and per share amounts) | September 26, 2026 | September 26, 2026 | ||||||
| Net income | $ | 318 | $ | 696 | ||||
| Intangible asset amortization | 176 | 529 | ||||||
| Inventory-related adjustments (1) | 122 | 154 | ||||||
| Stock-based compensation expense | 29 | 81 | ||||||
| Transaction-related costs (2) | 30 | 94 | ||||||
| Other non-core charges (3) | 16 | 413 | ||||||
| Tax effect on non-GAAP adjustments (4) | (96 | ) | (231 | ) | ||||
| Tax provision on conversion of noncontrolling interests (5) | (25 | ) | (82 | ) | ||||
| Tax impact of retained TRA benefits (6) | 7 | 22 | ||||||
| Adjusted Net Income | $ | 577 | $ | 1,676 | ||||
| Weighted-average number of Class A common stock outstanding (Diluted) | 1,316,405,914 | 1,316,765,474 | ||||||
| Anti-dilutive securities(7) | 2,224,134 | 1,142,702 | ||||||
| Adjusted weighted-average common stock outstanding (Diluted) | 1,318,630,048 | 1,317,908,176 | ||||||
| Diluted earnings per share | $ | 0.22 | $ | 0.45 | ||||
| Adjusted Diluted EPS | $ | 0.44 | $ | 1.27 | ||||
| (1) | Represents the non-cash impact of last-in, first-out reserve changes attributable to changes in inventory costs. |
| (2) | The three and nine months ended September 26, 2026 respectively, include |
| (3) | The three and nine months ended September 26, 2026 primarily include: |
| a. Costs related to specified transformation and implementation projects of | |
| b. Loss on debt extinguishment and other debt refinancing costs and fees related to specified financing transactions of | |
| c. The impact attributable to a fire at the distribution center in Tracy, California, net of insurance proceeds of | |
| d. Costs attributable to specified remediation activities undertaken in response to FDA observations and warning letters of | |
| e. Recall and discontinuation costs related to Medline Brand beds of | |
| (4) | Non-GAAP adjustments are tax effected using an estimated effective tax rate of |
| (5) | Represents incremental tax provision assuming |
| (6) | Represents the |
| (7) | Assumes full exchange of noncontrolling interest units for Class A common stock and the effect of securities that were anti-dilutive during the three and nine months ended September 26, 2026. |
| Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (unaudited) | ||||||||||||||
| ($ millions) | Nine months ended | |||||||||||||
| September 26, 2026 | September 27, 2025 | $ Change | % Change | |||||||||||
| Net cash provided by operating activities | $ | 2,152 | $ | 1,515 | $ | 637 | 42.0 | % | ||||||
| Net capital expenditures | (348 | ) | (309 | ) | (39 | ) | 12.6 | % | ||||||
| Free Cash Flow | $ | 1,804 | $ | 1,206 | $ | 598 | 49.6 | % | ||||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Medline's third-quarter 2026 earnings results?
Medline reported $7.9 billion in net sales, up 10.4%, and $318 million in net income, down 1.2% from the third quarter of 2025. Diluted earnings per share were $0.22, while adjusted diluted earnings per share were $0.44.
What is Medline's updated 2026 guidance?
Medline expects 10.0%–10.5% organic sales growth, up from its previous 9.0%–10.0% outlook, and reaffirmed adjusted EBITDA guidance of $3.3 billion–$3.4 billion. The adjusted EBITDA outlook excludes IEEPA tariff refunds, including $324 million of net tariff benefit through the first nine months of 2026.
How did IEEPA tariff refunds affect Medline's nine-month 2026 results?
Medline's nine-month results included $324 million of net IEEPA tariff refund benefits, reflecting $402 million recorded as a reduction in cost of goods sold, partially offset by a $78 million sales reduction for accrued customer repayments. These amounts were entirely within the Medline Brand segment and were included in net income and adjusted EBITDA.