Medline provides value, stability amid health care ‘crisis,’ CEO says

NORTHFIELD, Ill. – Medline used its first earnings call since going public in December to assure investors that the company is well-positioned to support a health care industry facing what CEO Jim Boyle called a “crisis of complexity.”

Boyle said providers are grappling with ongoing reimbursement pressures and regulatory uncertainty that make stability and cost containment top priorities.

“They're dealing with cuts in Medicaid, Medicare; they're worried about the One Big Beautiful Bill; they're concerned about what's happening with the Affordable Care Act,” he said. “So, first and foremost, they're looking at creating stabilization around their reimbursement profile and mitigating risk in the future as it relates to that. And they're looking for a value player in the marketplace, and we fit directly within that. So, I mean, our job is to be in the boat with our customers, looking for ways to serve them as it relates to their long-term financial viability by driving value.”

How Medline’s breadth & supply chain appeal to customers

Medline brings two core strengths to customers seeking value, Boyle said: its ability to serve the entire continuum of care and its focus on supply chain sustainability.

Among its highlights for the fourth quarter and full-year 2025, Medline shared $2.4 billion in total new customer signings, including the U.S. Department of Veterans Affairs and a large integrated delivery network (IDN). The IDN, Boyle said, is a strong example of customers looking to streamline purchasing across multiple care settings.

“(They were) seeking a provider that could service them across their entire continuum of care, including acute care facilities, physician offices, ambulatory surgery centers, home health agencies and laboratory departments,” he said.

Boyle emphasized that Medline’s investments in automation and artificial intelligence (AI) are key to strengthening its supply chain performance. The company is now running AutoStore, an automated pick module, across 19 U.S. facilities with more than 2,100 robots.

Additionally, Medline is preparing to launch a bulk-picking pilot at its Columbus, Ohio, facility in partnership with Symbotic – marking the technology’s first application in health care.

“They are using AI-powered robotic technology to move high-volume goods through complex supply chains and many other sophisticated verticals, including grocery, food and beverage and consumer packaged goods,” Boyle said. “Like AutoStore, for less than case, we believe this technology can improve picking quality, accuracy and speed across our network.”

Also heard during the call:

On tariffs

“In August of 2025, we implemented a tariff price increase to offset a portion of the tariff burden,” said CFO Michael Drazin. “For the full year 2025, the net tariff impact totaled approximately $290 million, much of which was weighted in the second half of the year. This was better than the $325 million we have projected due to timing of inventory deferrals.”

On future M&A

“We're pretty optimistic about M&A,” Boyle said. “As you know, historically, 90% of our growth has been organic, only 10% has been through M&A. However, just because of the IPO and how we handled it, we have $1.9 billion in cash on the books, specifically allocated for looking for those M&A opportunities. And I think the market in and of itself is ripe for M&A.”