Medline Reports Q3 2026 Results, Authorizes $1B Share Repurchase, and Raises FY26 Sales Guidance

Executive Summary

On November 4, 2026, Medline Inc. (NASDAQ: MDLN) filed a Form 8-K under Item 2.02 detailing financial results for the third quarter and first nine months ended September 26, 2026. Alongside solid top-line expansion, Medline announced a $1.0 billion share repurchase authorization, prepaid $750 million of debt principal, and raised its full-year 2026 Organic Sales guidance.

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Key Financial Highlights

Third Quarter 2026

• Net Sales: $7,856 million ($7.9 billion), up 10.4% YoY (compared to $7,115 million in Q3 2025). Organic sales increased 10.5%, supported by existing customer growth and 2025 customer signings.
• Net Income: $318 million, down 1.2% YoY from $322 million, pressured by inflation-related inventory costs, higher operating expenses, and customer mix, partially offset by sales growth and IEEPA tariff refunds.
• Adjusted EBITDA: $960 million, up 11.8% YoY from $859 million.
• Diluted EPS / Adjusted Diluted EPS: $0.22 GAAP diluted EPS vs. $0.44 Adjusted Diluted EPS.
• Gross Profit Margin: 24.5% compared to 26.4% in Q3 2025.

First Nine Months 2026

• Net Sales: $22,893 million ($22.9 billion), up 10.9% YoY.
• Net Income: $696 million, down 28.8% YoY from $977 million, impacted by $316 million in net losses related to a distribution center fire in Tracy, California, higher COGS/tariffs, and inflation.
• Adjusted EBITDA: $2,789 million (~$2.8 billion), an increase of 5.0% YoY.
• Operating Cash Flow & FCF: Operating cash flow reached $2.2 billion; Free Cash Flow was $1.8 billion after $348 million in capital expenditures.

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Capital Allocation & Balance Sheet Management

• Share Repurchase Program: In October 2026, the Board of Directors approved a share repurchase program authorizing repurchases of up to $1.0 billion of Class A common stock and/or Medline Holdings, LP units.
• Debt Reduction: The company prepaid $750 million in aggregate principal amount of its 2033 Refinancing Term Loan Facility.
• IEEPA Tariff Refunds: Medline recognized $81 million and $324 million in net IEEPA tariff refund benefits during Q3 and 9M 2026, respectively, following the February 2026 Supreme Court ruling.

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Updated Full-Year 2026 Guidance

• Organic Sales Growth: Raised to 10.0% to 10.5% (previously 9.0% to 10.0%).
• Adjusted EBITDA: Reaffirmed at $3.3 billion to $3.4 billion (guidance excludes the $324 million net tariff refund benefits recognized year-to-date).