Medline (NASDAQ:MDLN) Shares Gap Down Following Weak Earnings

Shares of Medline (NASDAQ:MDLN) gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $49.99, but opened at $47.38. Medline shares last traded at $50.06, with a volume of 1,165,067 shares trading hands.

The company reported ($0.01) earnings per share for the quarter, missing analysts’ consensus estimates of $0.24 by ($0.25). Medline’s revenue was up 14.8% on a year-over-year basis.

Key Stories Impacting Medline

Here are the key news stories impacting Medline this week:

• Positive Sentiment: Strong revenue growth and forward guidance: Q4 net sales rose ~14.8% (Q4 $7.8B; FY $28.4B, +11.5% y/y) and management guided 2026 organic sales growth of 8–9% with Adjusted EBITDA of $3.5–$3.6B — supports continued revenue momentum and a constructive outlook for investors. Press Release
• Positive Sentiment: IPO completion and balance‑sheet improvements: Medline completed its IPO, increased cash balances materially and reduced net leverage (net leverage ~3.1 vs prior ~4.9), which improves financial flexibility for investments and deleveraging. Quiver Quantitative
• Neutral Sentiment: Adjusted EBITDA largely stable: Q4 Adjusted EBITDA was roughly flat (~$805M) and full‑year Adjusted EBITDA rose modestly ~3.2% to ~$3.5B — shows operating resilience but also margin pressure. GlobeNewswire Release
• Neutral Sentiment: Wall Street reception mixed-to-positive: multiple firms issued Buy/Outperform ratings and the median analyst target is near current levels — helpful for sentiment but not overwhelmingly bullish. Analyst notes (Quiver)
• Negative Sentiment: EPS miss and profit decline: Medline reported ($0.01) per Class A share for the quarter vs. consensus ~$0.24 — a notable miss. Q4 net income fell ~37.7% y/y (to $180M), signaling pressure on near‑term profitability. SeattlePI Q4 Snapshot
• Negative Sentiment: Higher costs weigh on margins: management cited increased cost of goods (tariffs), higher operating costs including headcount and IPO expenses as drivers of the profit decline — a risk to near‑term margin recovery. MassDevice
• Negative Sentiment: Significant insider/pre‑IPO selling: filings show large sales by pre‑IPO holders (Carlyle and others), which can pressure the float and weigh on the stock if selling continues. Quiver Quantitative insider summary

Wall Street Analysts Forecast Growth

MDLN has been the subject of several recent analyst reports. Wells Fargo & Company initiated coverage on Medline in a research report on Monday, January 12th. They set an “equal weight” rating and a $42.00 target price for the company. Mizuho assumed coverage on shares of Medline in a research report on Monday, January 12th. They issued an “outperform” rating and a $48.00 price objective on the stock. JPMorgan Chase & Co. set a $55.00 target price on shares of Medline in a research note on Wednesday, January 21st. Bank of America assumed coverage on shares of Medline in a research note on Monday, January 12th. They issued a “buy” rating and a $50.00 price target for the company. Finally, UBS Group started coverage on shares of Medline in a research report on Monday, January 12th. They set a “buy” rating and a $48.00 price objective on the stock. Two analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $48.77.

Insiders Place Their Bets

In other Medline news, Director Andrew J. Mills purchased 2,586,206 shares of Medline stock in a transaction on Thursday, December 18th. The shares were acquired at an average cost of $29.00 per share, for a total transaction of $74,999,974.00. Following the completion of the transaction, the director directly owned 2,586,206 shares of the company’s stock, valued at approximately $74,999,974. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Charles N. Mills purchased 2,579,310 shares of the firm’s stock in a transaction on Thursday, December 18th. The shares were acquired at an average cost of $29.00 per share, for a total transaction of $74,799,990.00. Following the completion of the purchase, the director directly owned 2,441,379 shares of the company’s stock, valued at approximately $70,799,991. This represents a -1,870.00% increase in their position. The disclosure for this purchase is available in the SEC filing.

Institutional Trading of Medline

Several hedge funds have recently added to or reduced their stakes in MDLN. North Star Investment Management Corp. bought a new stake in Medline during the 4th quarter valued at $36,000. Pictet Asset Management Holding SA bought a new position in shares of Medline during the fourth quarter valued at about $48,996,000. Teachers Retirement System of The State of Kentucky purchased a new stake in shares of Medline during the fourth quarter worth about $2,768,000. Vanguard Group Inc. bought a new stake in shares of Medline in the fourth quarter worth about $793,278,000. Finally, NBC Securities Inc. purchased a new position in Medline during the 4th quarter valued at about $28,000.

Medline Price Performance

The stock’s 50-day moving average is $44.21.

About Medline

Medline (NASDAQ: MDLN) is a healthcare products and services company that manufactures, sources and distributes a wide range of medical supplies and equipment for healthcare providers. Its product portfolio spans clinical consumables and personal protective equipment, surgical and procedural supplies, wound care and incontinence products, diagnostic and laboratory supplies, and select durable medical equipment. Medline supports care settings that include hospitals, health systems, long-term care facilities, ambulatory clinics and home health providers.

In addition to product manufacturing and distribution, Medline provides supply‑chain and logistics services designed to help healthcare customers manage inventory, reduce costs and streamline operations.