Summary
Medline Inc. reported solid revenue growth of 10.7% for the quarter ended March 28, 2026, reaching $7.35 billion, driven primarily by increased volumes across its U.S. operations, particularly within the acute care segment. Despite this top-line expansion, net income saw a decline of 25.8% to $239 million, largely due to a significant increase in Cost of Goods Sold (up 14.3%) and Selling, General, and Administrative (SG&A) expenses (up 14.8%). Higher import costs related to tariffs and increased compensation and distribution expenses were key drivers for the rise in operating costs. The company also experienced a substantial decrease in interest expense, down 35.2% to $136 million, following the repayment of significant debt portions using IPO proceeds in the prior year, which positively impacted profitability. The balance sheet remains strong with $2.24 billion in cash and cash equivalents and $946 million in available liquidity under its revolving credit facility. The company continues to manage its financial obligations, with a total indebtedness of $12.76 billion as of the quarter's end.
Financial Highlights
51 data points| Revenue | $7.35B |
| Cost of Revenue | $5.51B |
| Gross Profit | $1.84B |
| SG&A Expenses | $1.23B |
| Operating Expenses | $1.42B |
| Operating Income | $422.00M |
| Net Income | $239.00M |
| EPS (Basic) | $0.16 |
| EPS (Diluted) | $0.16 |
| Shares Outstanding (Basic) | 819.08M |
| Shares Outstanding (Diluted) | 824.84M |
Key Highlights
- 1Net sales increased by 10.7% to $7.35 billion, driven by volume growth, especially in the U.S. acute care segment.
- 2Net income decreased by 25.8% to $239 million due to higher cost of goods sold and SG&A expenses.
- 3Cost of Goods Sold increased by 14.3% to $5.51 billion, impacted by higher import costs due to tariffs.
- 4SG&A expenses rose by 14.8% to $1.23 billion, driven by higher compensation, benefits, and distribution costs.
- 5Interest expense, net, decreased significantly by 35.2% to $136 million due to prior debt repayments and lower variable rates.
- 6The company maintained a strong liquidity position with $2.24 billion in cash and cash equivalents and $946 million in revolving credit facility availability.
- 7Medline Brand segment sales grew 6.2% to $3.47 billion, but Segment Adjusted EBITDA declined 7.8% due to higher costs.
- 8Supply Chain Solutions segment sales grew 15.0% to $3.89 billion, with Segment Adjusted EBITDA increasing modestly by 2.7%.