10-Q: Haemonetics Q3 FY26: Profit Rises Amid Revenue Dip, Vivasure Acquisition

Haemonetics Corporation reported a 19.3% increase in net income for the third quarter of fiscal 2026, reaching $44.7 million, despite a 2.7% decline in net revenues to $339.0 million, and completed the acquisition of Vivasure Medical Limited.

Summary

• Net revenues decreased 2.7% to $339.0 million for the three months ended December 27, 2025, and 4.1% to $987.7 million for the nine months, compared to the same periods in fiscal 2025.
• Gross profit increased 4.6% to $202.4 million (59.7% of net revenues) for the three months and 6.0% to $589.4 million (59.7% of net revenues) for the nine months.
• Operating income increased 14.2% to $67.4 million for the three months and 19.5% to $179.8 million for the nine months.
• Net income increased 19.3% to $44.7 million for the three months and 7.1% to $117.5 million for the nine months.
• Diluted earnings per share (EPS) increased 28.4% to $0.95 for the three months and 15.0% to $2.46 for the nine months.
• Acquired Vivasure Medical Limited on January 9, 2026, for gross upfront consideration of $116.4 million, with up to $98.9 million in additional contingent consideration.
• Completed a $75.0 million share repurchase in September 2025, acquiring 1,430,579 shares at an average price of $52.43.
• Initiated a new market and regional alignment initiative in May 2025, incurring $1.5 million in restructuring and related costs for the three months and $4.9 million for the nine months.
• Recognized an intangible asset impairment charge of $9.3 million for the nine months ended December 27, 2025, related to HAS viscoelastic diagnostic devices.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, demonstrating strong profitability and operational efficiency improvements despite revenue headwinds. Strategic acquisitions and share repurchases further enhance long-term value, though revenue declines in certain segments warrant monitoring.

Positives

• Gross profit increased by 4.6% for the three months and 6.0% for the nine months, driven by product portfolio transformation to higher-margin offerings and innovation benefits.
• Gross profit margin improved significantly to 59.7% for both the three and nine months ended December 27, 2025, compared to 55.5% and 54.0% in the prior year periods, respectively.
• Operating income showed strong growth, increasing by 14.2% for the three months and 19.5% for the nine months, reflecting improved operational efficiency.
• Net income increased substantially by 19.3% for the three months and 7.1% for the nine months.
• Diluted EPS grew significantly by 28.4% for the three months and 15.0% for the nine months.
• The acquisition of Vivasure Medical Limited expands the Hospital business unit into the high-growth interventional cardiology market with a next-generation percutaneous vessel closure technology.
• Plasma revenue increased by 3.5% for the three months ended December 27, 2025, driven by increased U.S. plasma collections and prior innovation benefits.
• The Hemostasis Management product line within the Hospital segment contributed positively with volume growth and pricing benefits.
• Net cash provided by operating activities increased by $157.1 million to $222.3 million for the nine months ended December 27, 2025.
• The net debt position improved to $(861.4) million as of December 27, 2025, from $(918.0) million as of March 29, 2025.
• The company remains in compliance with all consolidated net leverage and interest coverage ratios, as well as other bank covenants.

Negatives

• Total net revenues decreased by 2.7% for the three months and 4.1% for the nine months ended December 27, 2025.
• Blood Center revenue decreased significantly by 19.6% for both the three and nine months, primarily due to the divestiture of the Whole Blood product line and the previously announced customer transition of CSL Plasma.
• Plasma revenue decreased by 3.6% for the nine months, mainly due to lower sales volumes in North America related to the CSL Plasma customer transition.
• Interventional Technologies revenue within the Hospital segment decreased by 11.4% for the three months and 7.8% for the nine months.
• Interest and other expense, net, increased by $14.2 million for the nine months, primarily due to lower gains on repurchase of convertible senior notes compared to the prior year.
• Provision for income taxes increased by 22.6% for the three months and 23.2% for the nine months.
• An intangible asset impairment charge of $9.3 million was recognized for the nine months related to the HAS viscoelastic diagnostic devices.
• Selling, general and administrative (SG&A) expenses increased by 2.5% for the three months, primarily due to performance-based compensation costs and litigation-related charges.

Risks

• Ability to achieve long-term strategic and financial-improvement goals.
• Demand for and market acceptance risks for new and existing products, including material reductions in purchasing from or loss of a significant customer.
• Ability to develop, manufacture, and market new products and technologies successfully and in a timely manner, and the ability of competitors and other third parties to develop products or technologies that render products noncompetitive or obsolete.
• Product quality or safety concerns, potentially leading to product recalls, withdrawals, regulatory action, reputational damage, declining sales, or litigation.
• Security breaches of products or information technology systems, or those of customers, suppliers, or business partners, which could impair business operations or compromise sensitive information.
• Potential that the expected strategic benefits and opportunities from completed or planned acquisitions (including OpSens Inc., Attune Medical, and Vivasure), divestitures, or other strategic investments may not be realized or may take longer to realize than expected.
• Pricing pressures resulting from trends toward healthcare cost containment, including continued consolidation among healthcare providers and other market participants.
• Disruptions to the continuity, availability, and pricing of plastic and other raw materials, finished goods, and components (including those purchased from sole-source suppliers) and the related continuity of manufacturing, sterilization, supply chain, and distribution operations.
• Ability to obtain the anticipated benefits of restructuring programs, including the market and regional alignment initiative.
• Impact of enhanced requirements to obtain regulatory approval in the U.S. and globally, and the associated timing and cost of product approval.
• Ability to comply with established and developing U.S. and foreign legal and regulatory requirements, including the U.S. Foreign Corrupt Practices Act, European Union Medical Device Regulation and In Vitro Diagnostic Regulation, and similar laws in other jurisdictions, as well as the impact of U.S. and foreign export and import restrictions and tariffs.
• Impact of changes in U.S. and international tax laws, including with respect to the One Big Beautiful Bill Act (OBBBA).
• Ability to meet debt obligations and raise additional capital when desired on terms reasonably acceptable.
• Potential impact of convertible senior notes and related capped call transactions.
• Geopolitical and economic conditions in China, Taiwan, Russia, Ukraine, the Middle East, and other foreign jurisdictions where business is conducted.
• Ability to execute and realize anticipated benefits from investments in emerging economies.
• Potential effect of foreign currency fluctuations and interest rate fluctuations on net revenues, expenses, and resulting margins.
• Ability to protect intellectual property and the outcome of patent litigation.
• Costs and risks associated with product liability and other litigation claims.
• Ability to retain and attract key personnel.
• Market conditions impacting stock price and/or share repurchase program, and the possibility that such share repurchase program may be delayed, suspended, or discontinued.
• Ability to achieve corporate responsibility initiatives and meet evolving stakeholder expectations concerning corporate responsibility matters.
• Impact of actual or threatened public health crises.

Future Outlook

The company expects to settle the remaining principal of the 2026 Notes, maturing on March 1, 2026, through a combination of cash on hand and borrowings under its revolving credit facility. The market and regional alignment initiative is designed to improve operational performance and reduce costs by directing resources toward markets and geographies offering the greatest growth and portfolio advancement opportunities, with amounts and timing of estimated costs and savings subject to change.

Management Comments

• We believe that Plasma and Hospital have the greatest growth potential and are well positioned to drive long-term value.
• Blood Center operates in more challenging markets, and we have sharpened our focus accordingly on targeted opportunities – particularly in plasma and platelets – while ensuring continued alignment of this business with our broader strategic objectives.

Industry Context

StockSavvy.ai notes that Haemonetics' strategic acquisitions in interventional cardiology, such as Vivasure Medical, align with a broader industry trend of medical technology companies expanding into high-growth, specialized procedural markets. The divestiture of the Whole Blood product line and focus on Plasma and Hospital segments reflect a strategic pivot towards higher-margin, innovative solutions, a common strategy among med-tech firms facing pricing pressures and evolving healthcare demands. The ongoing patent litigation with Terumo BCT and Fresenius Kabi highlights the intense competition and importance of intellectual property in the blood plasma collection market.

Legal Proceedings

• Sensor-Guided Technologies Patent Litigation: A complaint was filed in Q4 FY24 by Knoninklijke Philips N.V. and IP2IPO Innovations, Ltd. against OpSens and Haemonetics, alleging infringement of a single patent. The matter was resolved through a confidential settlement agreement in Q2 FY26, with an immaterial additional loss contingency recorded.
• Plasma Patent Litigation (Terumo BCT): The company filed a complaint in Q1 FY26 alleging infringement of its donor-centric blood plasma collection patents. Terumo filed motions to dismiss and to stay proceedings, and inter partes/post-grant review petitions with the U.S. Patent and Trademark Office (PTO) seeking to invalidate the asserted patents. Two petitions have been instituted for further review.
• Plasma Patent Litigation (Fresenius Kabi USA LLC): The company filed a complaint in Q2 FY26 alleging infringement of its donor-centric blood plasma collection patents. An amended complaint was filed in October 2025 to add Fenwal Inc. and Fresenius Kabi AG. Fenwal filed its answer and counterclaims in December 2025, alleging non-infringement and invalidity of Haemonetics' patents and alleging infringement by Haemonetics of Fenwal's U.S. patents.

Stakeholder Impact

• Shareholders: Positive impact from increased net income, EPS, and ongoing share repurchase program. Potential dilution from convertible notes is partially offset by capped call transactions.
• Customers: Continued focus on product innovation and portfolio transformation aims to offer better solutions. The divestiture of the Whole Blood product line may impact certain customers, but transition services are in place to ensure continuity.
• Employees: Restructuring initiatives (Market and Regional Alignment) may lead to workforce adjustments, though specific details are not provided. Share-based compensation remains a component of employee remuneration.
• Creditors: The company remains in compliance with all debt covenants, indicating financial stability and ability to meet its obligations.

Next Steps

• Settle the remaining principal of the 2026 Notes, maturing on March 1, 2026, through a combination of cash on hand and borrowings under the revolving credit facility.
• Continue to implement the market and regional alignment initiative to improve operational performance and reduce costs.
• Continue share repurchases under the remaining $400.0 million authorization of the 2025 share repurchase program.
• Integrate Vivasure Medical into the Hospital business unit to expand its interventional cardiology portfolio.
• Monitor and pursue ongoing patent litigation against Terumo BCT and Fresenius Kabi USA LLC to safeguard intellectual property.

Key Dates

Recommendation

While Haemonetics demonstrated strong profitability and operational improvements, the decline in overall net revenues, particularly in the Blood Center and Plasma segments (nine-month view), presents a mixed picture. The strategic acquisitions and share repurchases are positive, but the ongoing patent litigation and the impact of the CSL Plasma transition introduce uncertainties. A 'hold' recommendation reflects the balance between improved efficiency and strategic growth initiatives against revenue headwinds and legal risks, suggesting investors monitor future revenue trends and litigation outcomes.

Keywords

Medical Technology, Plasma Collection, Blood Center, Hospital Technologies, Interventional Cardiology, Vascular Closure, Hemostasis Management, SEC Filing, Earnings Report, Acquisition, Share Repurchase, Financial Performance, Healthcare, Medical Devices, Biopharmaceutical