LivaNova Stock Jumps as Double-Digit Growth and Third Straight Guidance Raise Fuel Medical Device Maker Rally

Shares of LivaNova PLC climbed nearly 17% on Wednesday after the medical technology company reported double-digit growth in both of its main businesses, beat adjusted earnings forecasts and raised its full-year outlook for the third consecutive quarter.

LivaNova shares rose $13.50 to $93.40 in Wednesday trading, with about 333,000 shares traded. The gain lifted the company's market value to about $5.1 billion and extended a strong year for the stock, which is up about 57% over the past 52 weeks.

The rally reversed an early wobble. ChartMill reported the stock slipped in premarket trading as investors weighed a lower GAAP profit figure and guidance that may still trail some consensus estimates.

Growth across both segments

Third-quarter revenue of $393.1 million rose 9.9% on a reported basis and 10.0% in constant currency. That beat the analyst consensus of $381.07 million, according to Rallies.ai.

The company's cardiopulmonary business led the way. Cardiopulmonary revenue increased 10.9%, with growth across all regions driven by strong consumables demand, Essenz Perfusion System sales and favorable pricing.

Neuromodulation, which includes therapies for epilepsy and depression, grew even faster. Neuromodulation revenue rose 11.1% on a reported basis, with growth across all regions driven by higher volume and favorable realized price.

Earnings beat

Adjusted profit topped forecasts. Adjusted diluted earnings per share were $1.23, up from $1.11 a year earlier. That compared with a consensus estimate of $1.06.

GAAP results were weaker. GAAP diluted earnings were 11 cents per share, compared with 49 cents a year earlier, while net income rose to $34.3 million from $26.8 million.

Margins were mixed. The adjusted gross margin was 67.4%, down slightly from 68.4% a year earlier. Adjusted operating income rose to $92.3 million from $80.4 million.

The company generated $73.7 million in operating cash flow and $55.8 million in adjusted free cash flow in the quarter.

A third straight raise

LivaNova lifted its outlook again. The company raised its 2026 revenue growth guidance to 9% to 10% in constant currency from 8% to 9%, and its adjusted diluted EPS outlook to $4.40 to $4.50 from $4.30 to $4.40, while maintaining adjusted free cash flow guidance of $140 million to $160 million.

The latest increase continues a pattern this year. LivaNova initially guided in February to constant-currency revenue growth of 6% to 7% and adjusted EPS of $4.15 to $4.25. It raised that outlook in May, and again in August.

The company tied the new forecast to broad strength. "Our updated 2026 guidance reflects confidence across the portfolio," LivaNova said in its release, adding that it remains focused on long-term shareholder value.

Sleep apnea opportunity

Investors are also watching LivaNova's push into a new market. On March 18, the FDA granted premarket approval for the aura6000 System to treat adults with moderate to severe obstructive sleep apnea who have failed, do not tolerate or are ineligible for first-line therapies such as positive airway pressure.

The company has said the device is the first and only hypoglossal nerve stimulation system approved by the FDA without a contraindication or warning related to complete concentric collapse and without requiring a pre-implantation sleep endoscopy.

LivaNova has described sleep apnea as a high-growth, high-margin market it plans to enter by leveraging the strength of its core businesses. The company is already developing a next-generation device with planned MRI compatibility, remote configuration and a rechargeable battery lasting up to 15 years.

The Gloucester, England-based company's results add to a run of upbeat quarters, and investors will look to the sleep apnea launch as a key driver of growth in 2027 and beyond.