Medical device company LeMaitre Vascular (NASDAQ: LMAT) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 15.7% year on year to $64.45 million. Guidance for next quarter’s revenue was better than expected at $66.6 million at the midpoint, 0.7% above analysts’ estimates. Its GAAP profit of $0.68 per share was 2.5% above analysts’ consensus estimates.

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Chairman/CEO George LeMaitre said, “International Artegraft growth, higher ASPs and disciplined spending produced 16% Q4 sales growth and 47% op. income growth. Full year 2025 showed similar op. leverage: 14% sales growth & 30% op. income growth. 2026 guidance of $280mm (+12%) in sales and op. income of $77.8mm (+21% adjusted) suggests another year of healthy sales & profit growth.”

Company Overview

Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, LeMaitre’s 14% annualized revenue growth over the last five years was solid. Its growth beat the average healthcare company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. LeMaitre’s annualized revenue growth of 13.6% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong.

LeMaitre also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, LeMaitre’s organic revenue averaged 13.5% year-on-year growth. Because this number aligns with its two-year revenue growth, we can see the company’s core operations (not acquisitions and divestitures) drove most of its results.

This quarter, LeMaitre reported year-on-year revenue growth of 15.7%, and its $64.45 million of revenue exceeded Wall Street’s estimates by 2.4%. Company management is currently guiding for a 11.2% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 9% over the next 12 months, a deceleration versus the last two years. Still, this projection is noteworthy and indicates the market is forecasting success for its products and services.

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Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D.

LeMaitre has been an efficient company over the last five years. It was one of the more profitable businesses in the healthcare sector, boasting an average operating margin of 22.5%.

Looking at the trend in its profitability, LeMaitre’s operating margin rose by 3.6 percentage points over the last five years, as its sales growth gave it operating leverage. This performance was mostly driven by its recent improvements as the company’s margin has increased by 8.2 percentage points on a two-year basis.

In Q4, LeMaitre generated an operating margin profit margin of 29.2%, up 6.1 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

LeMaitre’s EPS grew at an astounding 19% compounded annual growth rate over the last five years, higher than its 14% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into the nuances of LeMaitre’s earnings can give us a better understanding of its performance. As we mentioned earlier, LeMaitre’s operating margin expanded by 3.6 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q4, LeMaitre reported EPS of $0.68, up from $0.49 in the same quarter last year. This print beat analysts’ estimates by 2.5%. Over the next 12 months, Wall Street expects LeMaitre’s full-year EPS of $2.47 to grow 4.5%.

Key Takeaways from LeMaitre’s Q4 Results

We were impressed by how significantly LeMaitre blew past analysts’ EPS guidance for next quarter expectations this quarter. We were also excited its full-year EPS guidance outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. The stock traded up 5.8% to $96.42 immediately following the results.

LeMaitre put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).