Haemonetics reported higher revenue and earnings for the second quarter and first half of fiscal 2027, with growth in both its Apheresis and MedSurg businesses. The medical technology company also said it had updated its full-year outlook.
Second-quarter revenue rose 9.3% to $357.8 million, while gross and operating margins improved from a year earlier.
Key details
- Revenue growth: Second-quarter revenue was $357.8 million, up 9.3% year over year. Organic revenue growth was 10%; that measure excludes currency movements and the exit of certain liquid solution products.
- Both businesses expanded: Apheresis revenue increased 12.6% to $204.8 million. MedSurg revenue rose 5.1% to $153.0 million.
- First-half results: Revenue for the first six months of fiscal 2027 was $697 million, up 8%, with organic growth also at 8%. Diluted earnings per share were $1.72, or $2.49 on an adjusted basis.
- Earnings and cash generation: Second-quarter diluted earnings per share were $1.00; adjusted diluted earnings per share were $1.35. Cash from operating activities was $128 million and free cash flow was $104 million. For the first half, those figures were $180 million and $143 million, respectively.
- Margins improved: Gross margin rose to 61.7% from 59.5% a year earlier. Haemonetics attributed the increase to tariff refunds, a shift toward higher-margin products and the absence of amortization related to a prior fair-value inventory adjustment.
- Operating costs also rose: Operating expenses increased 7% to $145.8 million, mainly reflecting higher personnel costs and freight. Operating income nevertheless climbed to $75.1 million from $58.5 million, and operating margin increased to 21.0% from 17.9%.
- Business developments: CEO Chris Simon pointed to an expanded relationship with CSL and recent innovation milestones in Apheresis and MedSurg as sources of business momentum. No financial terms or further details about the CSL expansion were provided in the material supplied.
- Updated outlook: Haemonetics said it updated fiscal 2027 guidance, but the revised targets are not included in the material provided.
What the results show
Revenue increased in both business units, while operating income grew faster than sales and the operating margin widened. The gross-margin improvement also reflected specific factors—including tariff refunds and the absence of an inventory-accounting charge—alongside the shift toward higher-margin offerings.