Haemonetics (HAE -0.38%), a medical technology company specializing in blood and plasma collection and hospital technologies, reported its financial results for the first quarter of fiscal 2026 on August 7, 2025. The main headlines from the release included GAAP revenue of $321.4 million for Q1 FY2026, which fell short of the analyst estimate by $3.65 million, and non-GAAP earnings per share (EPS) of $1.10, missing by $0.09. GAAP revenue dropped 4.4% from the prior-year period, while adjusted EPS grew 7.8%. Despite the misses, management reaffirmed its full-year guidance, with expectations for organic revenue growth (excluding CSL) and an improved adjusted margin profile in Q4 FY2025. The quarter showed mixed signals, with ongoing business transitions and product line divestitures weighing on visible growth but clear evidence of internal margin expansion and strengthening high-margin business lines.
| Metric | Q1 FY26(3 months ended 6/28/2025) | Q1 FY26 Estimate | Q1 FY25(3 months ended 6/29/2024) | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.10 | $1.19 | $1.02 | 7.8% |
| Revenue | $321.4 million | N/A | $336.2 million | (4.4%) |
| Net Income | $34.0 million | — | $38.4 million | (11.3%) |
| Operating Margin | 16.8% | — | 11.8% | 5.0 pp |
| Free Cash Flow (Non-GAAP) | $2.5 million | — | ($16.9 million) | -114.8% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q4 2025 earnings report.
Company Background and Key Business Drivers
Haemonetics develops and sells products that support plasma collection, blood processing, and hospital procedures. Its portfolio includes systems for automated plasma collection (the NexSys platform), blood management in hospital operating rooms, and devices for closing vascular access sites (VASCADE and related products) used after certain heart procedures.
The company's recent strategic focus has prioritized higher-growth and higher-margin segments. The Plasma and Hospital divisions have emerged as its main growth engines, each representing roughly 40% or more of total sales in FY2025. Success factors for Haemonetics include innovative technology rollouts, market share gains through key customer contracts, and maintaining compliance with complex regulatory frameworks in the U.S. and abroad.
Quarter Highlights: Performance, Strategy, and Notable Developments
In Q1 FY2026, GAAP revenue slipped below expectations, mainly due to the completion of the CSL contract and the divestiture of the Whole Blood line. These changes created a notable drag, with GAAP revenue down from the prior year's $336.2 million. However, when adjusting for these discontinued business lines, the company highlighted strong organic growth, especially in Hospital and Plasma (excluding CSL), for Q4 FY2025.
In the Plasma segment, reported revenue was $129.9 million, down 4.4%, but organic growth excluding CSL rose 29.3%. Management noted that nearly all of this period's Plasma organic revenue growth in Q4 FY2025 came from these share wins rather than simply increasing the total market for plasma collection.
The Hospital segment delivered $139.7 million in GAAP revenue, marking a 4.2% increase. Within Hospital, Blood Management Technologies (including Hemostasis Management and related products like TEG 6s viscoelastic testing systems) grew particularly well. Hemostasis Management revenue in the U.S. saw 20% to 23% growth in FY2025, attributed to new account wins and broader adoption of HN cartridges for rapid blood clot analysis. Interventional Technologies, which includes the VASCADE family of vascular closure devices for sealing blood vessels post-surgery, experienced a revenue decline of 7.2%. While new products such as the VASCADE MVP XL are expanding into electrophysiology (a specialization in treating heart rhythm problems), legacy products used in cardiology saw slower demand amid changing procedure types and increased competition.
Margins stood out as a positive theme. Gross margin (GAAP) improved to 59.8%, up from 52.0% in Q1 FY2025, attributed to better product mix, a focus on higher-value offerings, and the exit of lower-margin businesses. Operating margin (GAAP) grew to 16.8%, up from 11.8% in Q1 FY2025. R&D spending rose 12.5% (GAAP), with management emphasizing innovation as a priority despite cost pressures.
A closer look at technological trends shows Haemonetics advancing next-generation solutions across its product lines. NexSys PCS systems continue to capture plasma collection share, while upgraded hospital technologies like TEG 6s drove double-digit gains in Hemostasis Management for FY2025. A dedicated focus on clinical trials for expanding VASCADE MVP XL indications highlights the emphasis on product development directed by regulatory requirements in the U.S. Europe, and Japan.
Looking Ahead: Guidance and Key Things to Watch
For fiscal 2026, Haemonetics management reaffirmed its guidance. Reported revenue is expected to decline 3–6%, as full-year comparisons will still reflect the loss of the CSL contract and the completed Whole Blood divestiture. However, organic revenue growth excluding CSL is forecast to rise 6–9%. Plasma organic growth, excluding the former CSL sales, is projected at 11–14%, while Hospital organic revenue growth is expected at 8–11%. Adjusted earnings per diluted share is guided to a range of $4.70–$5.00, and adjusted operating margin to 26–27%. Free cash flow (non-GAAP) is targeted at $160–200 million.
Management noted that revenue and margin improvement will likely be weighted toward the second half of the fiscal year. This timing reflects expectations for increased utilization and further hospital product penetration in later quarters, as well as the delayed impact of contract-driven plasma share gains. The company's leadership did not announce any new dividend. HAE does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
