Medical lens company STAAR Surgical (NASDAQ: STAA) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 111% year on year to $93.54 million. Its GAAP profit of $0.16 per share was 12.6% above analysts’ consensus estimates.

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Company Overview

With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ: STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, STAAR Surgical grew its sales at a decent 10.5% compounded annual growth rate. Its growth was slightly above 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. STAAR Surgical’s recent performance shows its demand has slowed as its revenue was flat over the last two years.

This quarter, STAAR Surgical reported magnificent year-on-year revenue growth of 111%, and its $93.54 million of revenue beat Wall Street’s estimates by 3.3%.

Looking ahead, sell-side analysts expect revenue to grow 2.7% over the next 12 months. While this projection implies its newer products and services will fuel better top-line performance, it is still below average for the sector.

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Adjusted Operating Margin

STAAR Surgical was roughly breakeven when averaging the last five years of quarterly operating profits, lousy for a healthcare business.

Analyzing the trend in its profitability, STAAR Surgical’s adjusted operating margin decreased by 11 percentage points over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 1.9 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.

In Q2, STAAR Surgical generated an adjusted operating margin profit margin of 17.8%, up 85.4 percentage points year on year. This increase was a welcome development and shows it was more efficient.

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.

Sadly for STAAR Surgical, its EPS declined by 30.2% annually over the last five years while its revenue grew by 10.5%. This tells us the company became less profitable on a per-share basis as it expanded.

We can take a deeper look into STAAR Surgical’s earnings to better understand the drivers of its performance. As we mentioned earlier, STAAR Surgical’s adjusted operating margin expanded this quarter but declined by 11 percentage points over the last five years. Its share count also grew by 4.1%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders.

In Q2, STAAR Surgical reported EPS of $0.16, up from negative $0.34 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects STAAR Surgical’s full-year EPS to grow 484% from $0.07 to $0.41.

Key Takeaways from STAAR Surgical’s Q2 Results

We enjoyed seeing STAAR Surgical beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The market seemed to be hoping for more, and the stock traded down 8% to $23.38 immediately following the results.

Is STAAR Surgical an attractive investment opportunity at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).