CONMED Exits Gastroenterology Product Line, Projects $95M Revenue in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
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Source: Newsfilter
- Strategic Exit: CONMED announced its intention to exit the gastroenterology product line effective January 1, 2026, as part of its portfolio optimization strategy, with the product line projected to generate $95 million in revenue in 2025 at a gross margin of approximately 45%.
- Financial Impact: The exit is expected to result in an EPS dilution of $0.45 to $0.55 in 2026; however, the company reaffirms its 2025 revenue and adjusted EPS guidance, indicating confidence in its financial stability moving forward.
- Distribution Agreement Termination: CONMED's exclusive distribution agreement with Gore will conclude on January 1, 2026, and while financial terms were not disclosed, this decision accelerates the company's strategic shift towards its core areas of minimally invasive surgery.
- Long-term Strategy: By exiting the gastroenterology product line, CONMED anticipates an improvement in its overall gross margin profile by approximately 80 basis points, further solidifying its leadership in surgical innovation and ensuring sustainable growth in the future.
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Analyst Views on CNMD
Wall Street analysts forecast CNMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CNMD is 50.00 USD with a low forecast of 41.00 USD and a high forecast of 55.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
1 Buy
4 Hold
0 Sell
Hold
Current: 37.310
Low
41.00
Averages
50.00
High
55.00
Current: 37.310
Low
41.00
Averages
50.00
High
55.00
About CNMD
CONMED Corporation is a medical technology company, which provides devices and equipment for surgical procedures. Its products are used by surgeons and other healthcare professionals in a variety of specialties, including orthopedics, general surgery, gynecology, thoracic surgery and gastroenterology. Its product lines consist of orthopedic surgery and general surgery. Orthopedic surgery consists of sports medicine instrumentation and lower extremities instrumentation and implants, small bone, large bone and specialty-powered surgical instruments as well as imaging systems for use in minimally invasive surgical procedures and service fees related to the promotion and marketing of sports medicine allograft tissue. General surgery consists of a complete line of endo-mechanical instrumentation for minimally invasive laparoscopic and gastrointestinal procedures, smoke evacuation devices, a line of cardiac monitoring products as well as electrosurgical generators and related instruments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CONMED Corporation Q4 2025 Earnings Call Insights
- Sales Growth: CONMED reported total sales of $373.2 million for Q4 2025, reflecting a year-over-year increase of 7.9%, with full-year sales reaching $1.375 billion, indicating stable growth potential in the medical device market.
- Strategic Shift: The company announced its exit from gastroenterology product lines, which is expected to improve long-term consolidated gross margins by approximately 80 basis points, demonstrating a focus on higher-growth business areas.
- Supply Chain Improvement: In sports medicine, CONMED reported back order values and SKU counts at a three-year low, indicating significant progress in resolving supply chain constraints, which is expected to further drive future performance.
- Future Outlook: Management is guiding for 2026 revenue between $1.345 billion and $1.375 billion, with adjusted EPS between $4.30 and $4.45, reflecting confidence in future growth and a commitment to ongoing investments.
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CONMED (CNMD) Q4 2025 Earnings Call Transcript
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