Title

Earning Preview: LivaNova PLC this quarter’s revenue is expected to increase by 9.03%, and institutional views are Hold

Abstract

LivaNova PLC will report quarterly results on February 25, 2026 Pre-Market, and this preview outlines consensus expectations for revenue, earnings, margins, and segment dynamics alongside prevailing institutional stances.

Market Forecast

Consensus forecasts indicate LivaNova PLC’s current-quarter revenue at $353.31 million, up 9.03% year over year, with EPS projected at $0.815, up 1.73% year over year; EBIT is estimated at $60.87 million, down 1.68% year over year. Guidance for gross profit margin and net margin has not been disclosed for the quarter in the available forecasts, so margin expectations should be anchored to recent performance until management provides updates.

The main business remains anchored by cardiopulmonary solutions, where stable procedure volumes and maturing installed bases underpin revenue consistency and incremental recurring revenue opportunities from software and services. Neurostimulation is positioned as the most promising segment in the near term, having delivered $149.53 million last quarter; segment-level year-over-year detail was not disclosed in the latest breakdown.

Last Quarter Review

LivaNova PLC’s last reported quarter delivered revenue of $357.80 million (up 12.48% year over year), gross profit margin of 68.78%, GAAP net profit attributable to the parent company of $26.78 million, net profit margin of 7.49%, and adjusted EPS of $1.11 (up 23.33% year over year).

A key financial highlight was EBIT of $80.40 million, up 26.42% year over year, while GAAP net profit was down -1.39% sequentially, reflecting quarterly mix and investment cadence. Main business contributions were led by cardiopulmonary at $203.22 million (56.80% of total) and neurostimulation at $149.53 million (41.80%), with other revenues at $5.01 million (1.40% of total); segment-level year-over-year changes were not disclosed.

Current Quarter Outlook

Cardiopulmonary: execution on installed-base cycles, pricing discipline, and recurring revenue mix

Cardiopulmonary is the core revenue engine, and the near-term print will hinge on how the installed base replacement cycles and procedure volumes translate into quarterly bookings and shipments. Stable demand dynamics typically support predictable quarter-to-quarter revenue, while pricing discipline and mix management affect margin realization; with last quarter’s gross margin at 68.78%, investors will look for signs that product and geographic mix can sustain margins near recent levels. Management has articulated a path to expand recurring revenue through software and services across cardiopulmonary offerings, and incremental uptake in these solutions should appear in deferred revenue and renewals rather than large one-time hardware spikes, which could smooth cash conversion and bolster EBIT durability.

The oxygenator product roadmap, with a next-generation platform targeted before 2028, is an important signal of ongoing innovation that can reinforce competitiveness and refresh cycles. However, for the current quarter, the focus is operational execution: aligning production schedules to hospital order patterns, maintaining delivery performance, and managing currency and logistics costs to preserve margins. With last quarter’s cardiopulmonary revenue at $203.22 million (56.80% of total), the mix remains large enough that any deviation from consensus at the segment level would materially influence consolidated gross and EBIT lines this quarter. Investors will also be attentive to commentary on service attachment rates and initial traction in software modules, which underpin the stated aim of expanding recurring revenue and operating margin over the medium term.

Neurostimulation: VNS epilepsy core, OSA scaling, and potential DTD reimbursement as optionality

Neurostimulation delivered $149.53 million last quarter, and the current quarter’s trajectory will be shaped by three drivers: epilepsy therapy volumes, progress in scaling the obstructive sleep apnea (OSA) franchise, and developments related to difficult-to-treat depression (DTD) reimbursement pathways. The epilepsy VNS therapy is the cornerstone of the neurostimulation portfolio, and its performance depends on referral trends, center utilization, and replacement cycles. In quarters where procedure visibility is good and lead times are contained, VNS contributes steady growth and attractive margins, reinforcing consolidated EPS outcomes and complementing cardiopulmonary stability.

Scaling OSA represents a concerted effort to broaden the neurostimulation growth base, and investors will parse any quantitative updates related to adoption, trial readouts, or geographic expansion that might shape quarterly run rates. Near-term, OSA contributions may be modest compared with epilepsy, but they provide an identifiable path to accelerate growth beyond the core over subsequent quarters as commercial capabilities deepen. DTD remains an upside option contingent on CMS coverage decisions; while timing is uncertain, any progress signals—either on coverage criteria or coding—could affect sentiment materially even if revenue impact is unlikely to be immediate in the current quarter. As a result, this quarter’s stock reaction will likely be sensitive to management’s tone on OSA scaling, VNS order trends, and any reimbursement developments, alongside the headline EPS print versus a $0.815 consensus.

Stock-price drivers: EPS delivery versus consensus, margin stability, and segment mix commentary

The primary stock-price driver this quarter is the degree of alignment with consensus, notably on revenue at $353.31 million (+9.03% year over year) and EPS at $0.815 (+1.73% year over year). Because last quarter’s gross margin was 68.78% and net margin was 7.49%, investors will watch whether consolidated margin trends hold near those levels or if mix, costs, or currency cause compression; there is no explicit gross-margin guide in the available forecasts, so commentary will be crucial. EBIT is estimated at $60.87 million, with a -1.68% year-over-year decline; delivering an EBIT line close to or ahead of this benchmark would help validate cost control and efficiency gains, while a miss might shift attention back to operating leverage or pricing dynamics.

Segment mix will be a key narrative in the call and the release. If cardiopulmonary holds its contribution near 56–57% of total revenue with steady margins, and neurostimulation demonstrates tangible progress in OSA scale-up while sustaining epilepsy volumes, the combined effect should support a balanced growth profile. Conversely, an unfavorable mix shift—such as lower-margin geographies or products within cardiopulmonary or slower OSA momentum—could weigh on EBIT and EPS even if headline revenue meets expectations. Beyond the print, investors may react to 2026 commentary around operating margin goals and recurring revenue expansion, given the emphasis on margin uplift over the next several years; concrete milestones or KPIs could be viewed as a positive catalyst, while vagueness or delays may prompt caution.

Analyst Opinions

The institutional stance in the most recent period is skewed to the cautious camp, with a Hold rating reaffirmed by Barclays and a price target of $67 cited by analyst Matt Miksic in January 2026. This neutral positioning reflects a balanced view: supportive of near-term revenue growth and steady core demand, yet mindful of execution needs around operating margin expansion, neurostimulation scale-up, and reimbursement optionality for DTD. In practical terms, the majority view looks for the company to match or modestly exceed revenue consensus, deliver EPS near the $0.815 marker, and offer firm commentary on gross-margin resilience and software-and-services attachment in cardiopulmonary, rather than lean on aggressive upside from nascent neurostimulation subsegments.

Barclays’ Hold posture implies that, while the long-range roadmap to expand operating margins and compound EPS is appealing, the near-term investment case hinges on disciplined execution and evidence that profitability can improve alongside growth. The bank’s updated target suggests confidence in the enterprise’s earnings trajectory over time but stops short of signaling a bullish inflection absent clearer visibility on OSA adoption curves and DTD reimbursement. For this quarter, analysts in the cautious cohort will likely emphasize three checkpoints: stability of cardiopulmonary revenue near the $203.22 million baseline and its margin contribution; the pace of neurostimulation orders and any quantitative guideposts for OSA; and management’s commentary on operating margin and recurring revenue initiatives that underpin medium-term expansion targets.

The consensus framing around EBIT down -1.68% year over year to $60.87 million, versus EPS up 1.73% year over year to $0.815, suggests that operating leverage dynamics—and potentially mix or cost items—will be scrutinized. A clean delivery on the P&L lines, accompanied by specific KPIs on software/services penetration and OSA pipeline conversion, would likely be enough for the cautious camp to maintain its stance while acknowledging reduced near-term risk. If, however, gross margin signals weaken relative to the 68.78% benchmark, or if neurostimulation commentary fails to provide concrete markers of progress, the majority view would expect limited multiple expansion until subsequent quarters clarify momentum. In sum, prevailing institutional opinions emphasize operational evidence and margin sustainability over bold short-dated growth assertions, reinforcing a Hold orientation into the February 25, 2026 Pre-Market report.