AngioDynamics, Inc. (NASDAQ:ANGO) posted stronger-than-expected first-quarter results across its Med-Tech businesses and lifted its fiscal 2026 guidance.
Canaccord Genuity analysts, led by John Young, reiterated their Buy rating on AngioDynamics and increased their price forecast to $18 from $17, citing growth across its portfolio and expectations for positive cash flow in fiscal 2026.
First-quarter revenue rose 12.1% to $75.7 million, above consensus, led by a 26.2% jump in Med-Tech sales. Gross margin reached 55.3% versus 52.5% expected. Adjusted EPS of 10 cents loss was slightly below Canaccord’s forecast, but adjusted EBITDA of $2.2 million topped estimates.
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Management has raised fiscal year 2026 revenue guidance to $308 million to $313 million, reflecting stronger Med-Tech growth of 14% to 16%. The adjusted EBITDA is now expected to be between $6 million and $10 million, with positive cash flow anticipated for the year.
Gross margin guidance was held steady at 53.5%-55.5% as the company faces headwinds from manufacturing transitions, raw material costs, and tariffs.
Many of the Med-Device products manufactured in Costa Rica are subject to 15% tariffs. At the same time, some Med-Tech products with production in Italy and Poland is also subject to tariffs, resulting in an additional $4 million to $6 million in annual pressure.
Mechanical Thrombectomy revenue grew 41.2% year-over-year to $11.3 million, with both AngioVac and AlphaVac ahead of expectations. Canaccord anticipates sustained growth from cross-selling opportunities and an expanded sales force.
Auryon delivered $16.5 million in revenue, up 20.1% year-over-year, beating estimates. The platform continues to expand in outpatient labs and hospitals, with international sales contributing after gaining CE mark approval.
NanoKnife posted $6.4 million in revenue, up 26.7% year-over-year, with disposables sales well ahead of forecasts. Canaccord highlighted the quarter as particularly important, since NanoKnife has not yet seen any benefit from its CPT 1 code, which becomes effective January 1, 2026.
AngioDynamics ended the quarter with $38.8 million in cash, no debt, and full access to a $25 million revolving credit facility. Management expects approximately $3 million of cash burn in the second quarter before turning cash flow positive in the second half.
Canaccord now projects that AngioDynamics will post revenue of $310.9 million in fiscal year 2026 and $325.1 million in fiscal year 2027, compared with its prior estimates of $308.5 million and $326.6 million, respectively.
The analyst firm anticipates adjusted EPS losses of 33 cents for fiscal year 2026 and 4 cents for fiscal year 2027, compared to previous expectations of a 29-cent loss and a 1-cent profit.
The new $18 forecast is based on a sum-of-the-parts valuation, applying a 3.4x EV/sales multiple to the Med-Tech business and a 1.0x multiple to Med-Devices, based on fiscal year 2027 revenue estimates.
Price Action: ANGO shares were trading higher by 2.04% to $11.98 at last check Friday.
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