Medline misses earnings estimates in first report as public company despite revenue beat

Medline (NASDAQ:MDLN) reported on Wednesday a net profit of $182 million for its fiscal fourth quarter, marking its first financial update since completing the largest initial public offering of 2025.

The Northfield, Illinois-based company posted a net loss of $0.01 per share, significantly missing the Zacks Investment Research consensus estimate of $0.24 per share.

The earnings miss was primarily attributed to a 37.7% year-over-year decline in quarterly net income, driven by a surge in the cost of goods sold due to new tariffs and substantial one-time expenses related to its December market debut.

Despite the bottom-line pressure, Medline’s top line remained robust; the company posted revenue of $7.79 billion for the quarter, a 14.8% increase that beat the $7.52 billion forecast by analysts.

For the full year 2025, Medline reported total revenue of $28.43 billion, an 11.5% increase over 2024.

Full-year net income reached $1.16 billion, or $0.01 per share.

The company noted that it secured $2.4 billion in new customer signings during the year, highlighting the continued strength of its "Prime Vendor" strategy among hospital systems and post-acute facilities.

Medline enters 2026 with a strengthened balance sheet, having used a significant portion of its $6.26 billion IPO proceeds to pay down debt.

Looking ahead, the company issued fiscal 2026 guidance projecting organic sales growth of 8% to 9% and adjusted EBITDA in the range of $3.5 billion to $3.6 billion.