AI-extracted from the 10-Q filed 2026-08-05 — Q2 FY2026 (quarter ended June 27, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Net sales grew 11.6% YoY to $7.7B, but net income fell 58.3% YoY to $139M as a $336M fire at the Tracy, California distribution center and a post-IPO effective tax rate jump to 40.9% offset revenue growth.
Biggest Revenue Drivers
Supply Chain Solutions$4,145M+16.3% YoY
Driven by volume growth in Prime Vendor sales, including new relationship signings and growth with existing customers
Medline Brand$3,540M+6.6% YoY
Driven by volume growth in Prime Vendor sales, partially offset by $89M of customer repayments associated with tariff refunds
Biggest Revenue Drivers
Total revenue: $7.7B+11.6% YoY
Supply Chain Solutions$4,145M+16.3% YoY
Driven by volume growth in Prime Vendor sales, including new relationship signings and growth with existing customers
Medline Brand$3,540M+6.6% YoY
Driven by volume growth in Prime Vendor sales, partially offset by $89M of customer repayments associated with tariff refunds
Within Medline Brand
Front Line Care$1,652M+3.8% YoY
Volume growth including exam gloves and personal care products, partially offset by tariff refund customer repayments
Surgical Solutions$1,640M+8.7% YoY
Volume growth in kitting and operating room products, partially offset by tariff refund customer repayments
Laboratory and Diagnostics$248M+12.2% YoY
Volume growth in laboratory products
Largest Expense Items
Cost of goods sold$5,470M+9.8% YoY
Growth in net sales and higher import costs due to tariffs, partially offset by tariff refunds
Selling, general and administrative expenses$1,295M+20.7% YoY
$156M higher compensation and benefits from headcount investment (incl. $15M one-time IPO bonuses) and $24M higher distribution/outbound freight expense
Other operating expenses$348M+334M YoY (NM)
Primarily driven by the fire at the Tracy, California distribution center
Margins: Gross margin expanded to 28.8% from 27.7% on net tariff refunds, partially offset by higher import costs from tariffs. Operating income still fell 38.5% YoY to $395M as the Tracy fire loss and higher SG&A outweighed gross profit gains.
Watch Items from the Filing
A June 11, 2026 fire destroyed the Tracy, California distribution center, causing $336M of estimated losses ($204M inventory, $116M fixed assets, $16M other) with no insurance recoveries yet recorded.
Effective income tax rate jumped to 40.92% from 7.16% YoY, driven by the post-IPO Reorganization subjecting more income to corporate-level U.S. federal and state taxes.
Three unresolved FDA warning letters cover Quality Management System and cGMP compliance at the Northfield, Glens Falls, and Waukegan facilities, with remediation expected to raise costs in H2 FY2026.
Tariffs had a ~$110M net negative impact on pretax income in Q2, while the company expects ~$507M in total IEEPA tariff refund claims following a Supreme Court ruling invalidating the tariffs.
Supply Chain Solutions Segment Adjusted EBITDA margin fell to 4.9% from 5.6% YoY due to customer mix from new Prime Vendor signings at lower margins.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Drazin Michael BChief Financial OfficerShares withheld for tax or exercise price · Jun 15, 2026
Laabs Amanda H.Chief Product OfficerShares withheld for tax or exercise price · Jun 15, 2026
Liberman Alexander M.Chief Legal OfficerShares withheld for tax or exercise price · Jun 15, 2026
Shryock Christopher PChief Human Resources OfficerShares withheld for tax or exercise price · Jun 15, 2026
Abrams William JReporting ownerShares withheld for tax or exercise price · Jun 15, 2026
About Medline Inc. (MDLN): stock profile, AI score and financials
Medline Inc. (MDLN) stock profile, AI quality score, and SEC EDGAR financial data, a Healthcare sector company. 13F Pro's AI-powered ranking engine scores MDLN at 63.0/100 on a composite quality score built from its SEC filings, placing it at rank #648 of 2,925 stocks — the top 25% of the AI-ranked universe. MDLN scores in the top quartile across revenue scale (94.8), institutional flow (93.8), earnings quality (82.9). Based on the latest XBRL financial filings (Q2 2026), Medline Inc. reports quarterly revenue of $7.7B, net income of $139.0M, an operating margin of 5.1%. Top institutional holders of MDLN by reported 13-F value include Carlyle Group, Blackstone, H&F Corporate Investors X, Ltd., based on the most recent SEC filings. MDLN trades on the Nasdaq exchange and files with the SEC under CIK 2046386. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate MDLN daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Medline Inc. directly from SEC EDGAR.