“Haemonetics reported third-quarter fiscal earnings with revenue of $339 million and adjusted earnings per share of $1.31, surpassing analyst expectations. Key segments showed mixed results, with Plasma up 3.5% and Blood Center down 19.6% due to divestitures. The company raised its full-year guidance, projecting adjusted EPS between $4.90 and $5.00 alongside improved organic growth forecasts.”
Haemonetics Corporation, a leader in blood management solutions, showcased resilience in its third-quarter fiscal results, navigating through segment-specific challenges while capitalizing on core strengths in plasma and hospital technologies.
Financial Overview
The quarter saw total revenue reaching $339 million, reflecting a 2.7% decline compared to the prior year, primarily influenced by planned strategic shifts including the divestiture of certain product lines. Despite this, the performance exceeded market projections, highlighting operational efficiency and demand in high-margin areas.
Adjusted earnings per share stood at $1.31, marking a 10.1% increase year-over-year. This figure outpaced consensus estimates, underscoring the company’s ability to enhance profitability through cost management and product innovation. On a GAAP basis, net income climbed to $44.7 million, translating to $0.95 per diluted share, up from $0.74 in the corresponding period last year.
Gross margins improved significantly, with the adjusted gross margin expanding to 60.2%, a 250 basis point gain driven by favorable product mix and supply chain optimizations. Operating income rose to $67.4 million, yielding a 19.9% operating margin. The adjusted operating margin advanced to 26.3%, up 60 basis points, reflecting disciplined expense control amid inflationary pressures.
Cash generation remained a bright spot, with operating cash flow at $94 million and free cash flow surging to $74 million, a 150.9% jump attributed to better working capital management and reduced inventory needs.
Segment Breakdown
| Metric | Q3 FY2026 | Q3 FY2025 | % Change |
|---|---|---|---|
| Revenue | $339M | $348.5M | -2.7% |
| GAAP Net Income | $44.7M | N/A | N/A |
| GAAP EPS | $0.95 | $0.74 | +28.4% |
| Adjusted EPS | $1.31 | $1.19 | +10.1% |
| Adjusted Gross Margin | 60.2% | 57.7% | +250 bps |
| Adjusted Operating Margin | 26.3% | 25.7% | +60 bps |
| Operating Cash Flow | $94M | N/A | N/A |
| Free Cash Flow | $74M | $29.5M | +150.9% |
Performance across business units varied, illustrating Haemonetics’ strategic pivot toward higher-growth, technology-driven segments.
The Plasma segment, a cornerstone of the company’s portfolio, generated $138.9 million in revenue, up 3.5% from the previous year. This growth was fueled by increased adoption of next-generation collection devices and software solutions that enhance donor efficiency and plasma yield for biopharmaceutical clients. Despite broader market fluctuations in plasma collection volumes, Haemonetics benefited from its integrated ecosystem, including disposables and analytics tools that optimize center operations.
In contrast, the Blood Center segment experienced a 19.6% revenue drop to $56.6 million, largely due to the divestiture of the Whole Blood product line earlier in the fiscal year. Excluding this impact, underlying trends showed stability in apheresis and software services, with demand holding steady among blood collection agencies focused on cost-effective transfusion management.
The Hospital segment delivered $143.5 million in revenue, essentially flat with a minor 0.3% dip year-over-year. Strength in hemostasis management products, such as viscoelastic testing systems, offset softer performance in vascular closure devices. Hospitals continued to prioritize Haemonetics’ offerings for reducing blood loss during surgeries, aligning with broader healthcare trends toward value-based care and procedural efficiency.
Overall organic revenue growth was 1.2%, but when excluding the transitional supply agreement with CSL Plasma, it accelerated to 7.5%, demonstrating the underlying momentum in core operations.
Balance Sheet and Liquidity Position
| Segment | Q3 FY2026 Revenue | % Change YoY | Key Drivers |
|---|---|---|---|
| Plasma | $138.9M | +3.5% | Device adoption, software enhancements |
| Blood Center | $56.6M | -19.6% | Divestiture impact, stable apheresis |
| Hospital | $143.5M | -0.3% | Hemostasis strength, vascular offsets |
Haemonetics maintained a solid financial foundation, with ample liquidity to support ongoing investments in innovation and potential acquisitions. The company ended the quarter with strong cash reserves, bolstered by the robust free cash flow generation. Debt levels were managed prudently, with a focus on reducing leverage through operational cash flows.
Investments in research and development continued at a steady pace, emphasizing advancements in digital health integration for blood management, which are expected to drive future margin expansion.
Guidance and Outlook
Building on the quarter’s momentum, Haemonetics upgraded its full-year fiscal projections, signaling confidence in sustained performance despite macroeconomic uncertainties.
The company now anticipates organic revenue growth of 0% to 2%, an improvement from the prior range of -1% to 2%. Excluding the CSL agreement, this translates to 8% to 10% growth, reflecting accelerated traction in Plasma and Hospital segments.
Adjusted earnings per share guidance was raised to $4.90 to $5.00, from $4.80 to $5.00, incorporating the benefits of margin improvements and cost synergies. The adjusted operating margin is expected to range between 26% and 27%.
Free cash flow outlook was also enhanced to $200 million to $220 million, up from $170 million to $210 million, providing flexibility for shareholder returns, including share repurchases and dividends.
Total company revenue is projected to decline by 1% to 3% on a reported basis, accounting for the Blood Center divestiture and other transitional factors.
Strategic Initiatives and Market Dynamics
Haemonetics’ results underscore its transformation into a more focused medtech player, emphasizing high-value solutions in blood and plasma management. Recent acquisitions and partnerships have expanded its portfolio, particularly in interventional cardiology and critical care settings.
In the Plasma market, the company is well-positioned to capitalize on recovering global demand for plasma-derived therapies, driven by immunology and rare disease treatments. Innovations like automated donor management systems are gaining market share, helping centers address labor shortages and regulatory compliance.
The Hospital segment benefits from a shift toward evidence-based transfusion practices, where Haemonetics’ diagnostic tools reduce unnecessary blood usage and improve patient outcomes. Challenges in vascular closure were mitigated by strong uptake in emerging markets and procedural volume recovery post-pandemic.
Blood Center’s contraction highlights the strategic rationale for divestitures, allowing reallocation of resources to higher-growth areas. The segment’s software and service revenues provide a recurring base, insulating against volume volatility.
Looking ahead, Haemonetics is investing in sustainability initiatives, such as eco-friendly disposables, aligning with healthcare providers’ ESG priorities. Digital transformation, including AI-driven analytics for blood supply chains, positions the company for long-term competitive advantage.
Analyst Perspectives and Stock Implications
Market reactions to the earnings beat were positive, with shares showing upward momentum in trading sessions following the release. Analysts have noted the improved guidance as a validation of management’s execution, though some caution persists regarding plasma market cyclicality and hospital budget constraints.
The company’s valuation metrics, including price-to-earnings and enterprise value-to-EBITDA ratios, remain attractive relative to peers in the medtech space, potentially appealing to value-oriented investors.
Haemonetics continues to prioritize shareholder value through a balanced capital allocation strategy, blending organic growth investments with returns via buybacks and a modest dividend payout.
Disclaimer: This news report is for informational purposes only and does not constitute investment advice or recommendations. All tips and insights are based on general market observations and publicly available sources.