Blood products company Haemonetics (NYSE: HAE) announced better-than-expected revenue in calendar Q3 2026 (fiscal Q2 2027), with revenue up 9.3% year on year to $357.8 million. Its non-GAAP profit of $1.35 per share was 4.6% above analysts’ consensus estimates.

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Revenue growth

A company’s long-term revenue performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Haemonetics’s 8.2% annualized revenue growth over the last five years was decent. Its growth was slightly above that of 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. Haemonetics’s recent performance shows its demand has slowed as its revenue was flat over the last two years.

We can better understand the company’s revenue dynamics by analyzing its 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, Haemonetics’s organic revenue averaged 4% year-on-year growth. Organic growth outpaced its two-year revenue growth, indicating that some combination of divestitures and foreign exchange rates dampened its headline results.

This quarter, Haemonetics reported year-on-year revenue growth of 9.3%, and its $357.8 million of revenue exceeded Wall Street’s consensus estimates by 3.7%.

Looking ahead, sell-side analysts expect revenue to grow 5.7% over the next 12 months, according to S&P, an improvement versus the last two years. This projection is above average for the sector and suggests its newer products and services will spur better top-line performance.

Adjusted operating margin

Adjusted operating margin is a key measure of profitability. Think of it as net income (the bottom line) excluding the impact of non-recurring expenses, taxes and interest on debt – metrics less connected to business fundamentals.

Haemonetics has been an efficient company over the last five years. It was one of the more profitable businesses in the healthcare sector, with an average adjusted operating margin of 22.4%.

Looking at the trend in its profitability, Haemonetics’s adjusted operating margin rose by 5 percentage points over the last five years, as its revenue growth gave it operating leverage. More recently, the company’s trajectory has remained intact, as its margin has also increased by 3 percentage points on a two-year basis.

In Q3, Haemonetics generated an adjusted operating margin of 23.9%, down 2.8 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

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 revenue through excessive spending on advertising and promotions.

Haemonetics’s EPS grew at a 16.5% compounded annual growth rate over the last five years, higher than its 8.2% annualized revenue growth. This indicates the company became more profitable on a per-share basis as it expanded.

A closer look at Haemonetics’s earnings helps explain its performance. As mentioned earlier, Haemonetics’s adjusted operating margin declined this quarter but expanded by 5 percentage points over the last five years. Its share count also shrank by 9.7%, and these factors together are positive signs for shareholders because improving profitability and share buybacks boost EPS growth relative to revenue growth.

In Q3, Haemonetics reported adjusted EPS of $1.35, up from $1.27 in the same quarter last year. This result beat analysts’ consensus estimates by 4.6%. Over the next 12 months, Wall Street expects Haemonetics’s full-year EPS to grow 10.9% from $5.09 to $5.64, according to S&P.

Key takeaways from Haemonetics’s Q3 results

Haemonetics delivered some important positives this quarter, led by organic revenue that came in well above analysts’ consensus expectations. Revenue also topped Wall Street’s consensus estimates. Shares remained flat at $127.52 immediately after the release.

Haemonetics may have had a good quarter, but that alone does not determine whether it is a good investment. That decision also requires considering its valuation and business quality alongside the latest results. Read our full research report here (it’s free).