Medical products company UFP Technologies (NASDAQ: UFPT) met Wall Street’s revenue expectations in Q1 CY2026, with sales up 4.1% year on year to $154.2 million. Its non-GAAP profit of $2.48 per share was 7.4% above analysts’ consensus estimates.
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UFP Technologies (UFPT) Q1 CY2026 Highlights:
- Revenue: $154.2 million vs analyst estimates of $154.8 million (4.1% year-on-year growth, in line)
- Adjusted EPS: $2.48 vs analyst estimates of $2.31 (7.4% beat)
- Adjusted EBITDA: $30.95 million vs analyst estimates of $30.28 million (20.1% margin, 2.2% beat)
- Operating Margin: 15.2%, in line with the same quarter last year
- Market Capitalization: $1.50 billion
“I am pleased with our first quarter results and continued progress with our strategic initiatives,” said R. Jeffrey Bailly, Chairman and CEO.
Company Overview
With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ: UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, UFP Technologies’s sales grew at an exceptional 27.6% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. UFP Technologies’s annualized revenue growth of 22.3% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
This quarter, UFP Technologies grew its revenue by 4.1% year on year, and its $154.2 million of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 6.7% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above the sector average and indicates the market is baking in some success for its newer products and services.
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Adjusted Operating Margin
Adjusted 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. It also removes various one-time costs to paint a better picture of normalized profits.
UFP Technologies has managed its cost base well over the last five years. It demonstrated solid profitability for a healthcare business, producing an average adjusted operating margin of 16.2%.
Looking at the trend in its profitability, UFP Technologies’s adjusted operating margin rose by 5.4 percentage points over the last five years, as its sales growth gave it operating leverage.
This quarter, UFP Technologies generated an adjusted operating margin profit margin of 16.9%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
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.
UFP Technologies’s EPS grew at 39.5% compounded annual growth rate over the last five years, higher than its 27.6% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
We can take a deeper look into UFP Technologies’s earnings quality to better understand the drivers of its performance. As we mentioned earlier, UFP Technologies’s adjusted operating margin was flat this quarter but expanded by 5.4 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 Q1, UFP Technologies reported adjusted EPS of $2.48, up from $2.47 in the same quarter last year. This print beat analysts’ estimates by 7.4%. Over the next 12 months, Wall Street expects UFP Technologies’s full-year EPS of $9.81 to grow 5.7%.
Key Takeaways from UFP Technologies’s Q1 Results
It was good to see UFP Technologies beat analysts’ EPS expectations this quarter. On the other hand, its revenue was in line. Zooming out, we think this was a mixed quarter. The stock remained flat at $192.31 immediately after reporting.
Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
