$MDLN · Medline Inc.
Medline Inc. filed its Q3 FY2026 10-Q for the quarter ended September 26, 2026. Net sales grew 10.4% YoY to $7.856B, driven by organic volume growth, with nine-month sales up 10.9% to $22.893B. However, gross margin compressed to 24.5% and operating income fell 12.9% to $500M, while net income declined 1.2% to $318M. The tax provision jumped to $68M from $23M due to Reorganization-related corporate-level taxation.
- Q3 net sales rose 10.4% YoY to $7.856B on organic volume growth.
- Operating income fell 12.9% to $500M; net income slipped 1.2% to $318M.
- Gross margin was 24.5%; operating margin 6.4%.
- Nine-month net sales up 10.9% to $22.893B; net income down 28.8% to $696M.
- Supply Chain Solutions segment EBITDA margin fell to 4.4% from 5.5%.
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Strong top-line growth is being offset by margin compression and higher taxes, signaling profitability pressure despite robust demand.
Medline's double-digit volume growth in Prime Vendor and acute care contrasts with margin compression, reflecting the pricing and cost pressures common across medical-surgical distribution.
Reorganization subjected a greater portion of earnings to corporate-level U.S. federal and state income taxes, driving the tax provision up $45M YoY in Q3. Tariff refunds and customer repayments partially offset sales growth.