ITGR Shares Down Despite Q4 Earnings & Revenues Beat Estimates

Core Insights - Integer Holdings Corporation (ITGR) reported adjusted earnings per share (EPS) of $1.76 for Q4 2025, a 23.1% increase year over year, exceeding the Zacks Consensus Estimate by 3.5% [1] - The company achieved revenues of $472.1 million in Q4 2025, reflecting a 5% year-over-year growth and surpassing the Zacks Consensus Estimate by 2% [2] - For the full year 2025, ITGR's revenues reached $1.85 billion, an 8% increase compared to 2024, with full-year EPS of $6.4, up 21% year over year [2] Revenue Breakdown - The Cardio and Vascular (C&V) segment generated revenues of $284.2 million in Q4 2025, an 11.3% increase year over year, driven by new product ramps and strong customer demand [5] - The Cardiac Rhythm Management & Neuromodulation (CRM&N) segment reported revenues of $167.3 million, down 1.9% year over year, due to a decline in Neuromodulation demand [6] - Revenues from the Other Markets segment totaled $20.5 million, down 13.2% year over year, attributed to the planned exit from the Portable Medical market [7] Margin and Expense Analysis - Gross profit for Q4 2025 was $124.8 million, a 6.8% increase year over year, with a gross margin of 26.4%, expanding by 50 basis points [8] - Selling, general and administrative expenses rose to $57.2 million, up 20.5% year over year, while total operating expenses increased by 15.2% to $68.8 million [10] - Adjusted operating profit was $83.3 million, reflecting a 9.6% increase from the prior year, with an adjusted operating margin of 17.6% [10] Financial Position - At the end of Q4 2025, ITGR had cash and cash equivalents of $17.2 million, down from $58.9 million at the end of Q3 2025, with total debt remaining flat at $1.19 billion [11] - Cumulative net cash flow from operating activities was $196.1 million, compared to $205.2 million a year ago [11] 2026 Guidance - For 2026, ITGR expects revenues between $1.826 billion and $1.876 billion, indicating a potential change of -1% to 1% from 2025 [12] - The company anticipates full-year adjusted EPS in the range of $6.29 to $6.78, reflecting a change of -2% to 6% from the previous year [12] Market Performance - Despite strong Q4 results, ITGR shares fell approximately 4% as investors focused on the 2026 guidance, which indicates slower adoption of new products [14] - Over the last six months, ITGR shares have declined by 22.7%, contrasting with a 4.9% decline in the industry and a 9.6% increase in the S&P 500 Index [15]