CONMED's Adjusted EPS and Currency Shifts Signal Sustainable Growth in Q2 2025

The medical technology sector continues to face macroeconomic headwinds, but CONMED Corporation (NASDAQ: CNMD) has demonstrated resilience through its first-quarter 2025 results and updated full-year guidance. For investors assessing the company's Q2 2025 earnings announcement, the key metrics to watch are adjusted EPS revisions and how currency fluctuations impact its global operations. These factors are critical to determining whether CONMED's long-term growth narrative remains intact.

Adjusted EPS Guidance: A Steady Hand Amid Shifting Winds

CONMED's Q1 2025 adjusted diluted EPS rose to $1.12, exceeding its prior guidance range of $1.05–$1.10. This outperformance, coupled with strong international sales growth (3.4% in constant currency), positions the company well for Q2. The full-year 2025 EPS guidance was raised to $4.45–$4.60 from $4.25–$4.40, reflecting confidence in its product portfolio and operational efficiency.

However, the updated guidance excludes a potential $0.14 EPS drag from recent tariff announcements, which are expected to hit the second half of 2025. This creates a clear bifurcation in the company's financial trajectory: Q2 may benefit from ongoing currency tailwinds, while Q3/Q4 could face headwinds from tariffs. Investors should scrutinize whether management's Q2 results and commentary address how to mitigate tariff impacts without sacrificing margins.

Currency Impacts: A Turn for the Better, but Risks Remain

Foreign exchange headwinds, which once threatened CONMED's top-line growth (previously estimated at 100–120 basis points), have moderated to 50–70 basis points for the full year. This improvement is a major contributor to the revised revenue guidance of $1.350–1.378 billion, up from $1.344–1.372 billion. The weaker U.S. dollar and stabilization in key markets like Europe and Asia have eased pressure on international sales, a segment that accounts for nearly half of CONMED's revenue.

For Q2 specifically, the reduced currency headwinds likely bolstered the midpoint of its revenue guidance ($335–340 million) and adjusted EPS target ($1.10–1.15). However, the company's exposure to emerging markets—where volatility persists—means currency risks are far from eliminated. A would help contextualize these dynamics.

Tariffs: A Cloud on the Horizon

While currency trends are favorable, the looming tariff threat cannot be ignored. The $0.14 EPS impact cited for the second half of 2025 suggests CONMED's supply chain and pricing strategies are under pressure. Management's ability to offset tariffs through cost savings or price adjustments will be critical. If Q2 results show minimal tariff leakage into margins, it could alleviate investor concerns and validate the full-year guidance.

Investment Takeaways

1. Buy the Dip if Q2 Meets Guidance: A beat or miss on EPS will be closely watched. A strong Q2 could push the stock higher, especially if management reaffirms its full-year outlook.
2. Monitor Currency and Tariff Updates: Any changes to currency headwinds or tariff impacts in the earnings call should be analyzed for their ripple effects on 2025 and 2026 forecasts.
3. Long-Term Appeal: CONMED's focus on minimally invasive surgical devices and robotics integration positions it to capitalize on secular trends in healthcare. Investors with a multi-year horizon may view dips as buying opportunities.

Conclusion

CONMED's Q2 2025 earnings will serve as a litmus test for its ability to navigate macroeconomic challenges while executing on strategic priorities. The reduced currency headwinds and strong Q1 performance suggest management is adapting effectively. However, tariffs remain a wildcard that could test the company's agility. For now, the data points to a resilient business model, and investors should treat any post-earnings dip as a potential entry point—if management delivers clarity on its path to sustained growth.