MDLN

LONG

MEDLINE INC

Funds

Score

4.50

vs SPY

-34.2%

Stock return (since Q-end)

-17.8%

SPY return (since Q-end)

+16.3%

Current price

$36.56

News Summary

Negative

Medline beat Q1 earnings estimates but saw significant margin compression from a $120M net tariff impact and higher operating costs, causing a 7.6% post-earnings stock decline. The company raised FY2026 organic growth guidance to 8.5-9.5% but maintained flat Adjusted EBITDA guidance, signaling margin pressure will persist; additional headwinds include a neurosurgical sponge product recall affecting multiple procedure kits through 2026 and Middle East supply chain risks.

Red flags

•25.8% net income decline despite 10.7% revenue growth due to tariff impact ($120M in Q1, $85M incremental) and higher operating costs
•Adjusted EBITDA guidance held flat at $3.5-3.6B despite raising revenue growth, indicating margin compression not expected to recover
•Neurosurgical sponge/pattie product recall affecting multiple surgical procedure kits with no definite market re-entry date; supply interruptions expected through 2026
•Middle East conflict creating uncertainty around Strait of Hormuz shipping costs and petroleum-based product inflation (exam gloves, fuel)
•Stock declined 7.6% immediately post-earnings and further to $39.04 amid investor concerns over margin compression

Funds Buying (4)

Fund	Manager	Shares Held	∆ Shares	Position Value	QoQ	Status
Lone Pine Capital	Steve Mandel	11.8M	+73K	$524.6B	+1%	Existing
Viking Global	Andreas Halvorsen	11.4M	+4.5M	$508.8B	+64%	Existing
Durable Capital Partners	Henry Ellenbogen	7.3M	+366K	$323.3B	+5%	Existing
Point72	Steve Cohen	3.3M	+3.3M	$147.0B	—	NEW

Shares Held and Position Value reflect total quarter-end holdings. ∆ Shares is the change from the prior quarter.