Medline Inc (MDLN) shares plummeted 16.46% during intraday trading on Wednesday, as investors reacted to a sharp decline in second-quarter net income and a lowered full-year profit outlook from the largest U.S. provider of medical-surgical products and supply chain solutions.

The company reported Q2 net income of $139 million, a 58.3% plunge from the prior year, primarily driven by a $336 million loss related to a fire at its Tracy, California distribution center. While net sales rose 11.6% to $7.7 billion and adjusted EPS of $0.50 beat analyst estimates of $0.32, the fire-related charges and a downward revision to full-year guidance overshadowed the top-line strength. Medline cut its 2026 adjusted EBITDA forecast to a range of $3.3 billion to $3.4 billion, down from $3.5 billion to $3.6 billion, citing higher-than-expected inflationary pressure from the Middle East conflict, increased operational investments to support customer demand, quality remediation spending, and retail channel softness.

Adding to the selling pressure, the stock had already been under strain from FDA warning letters issued earlier this year citing serious manufacturing violations at the company's Illinois facility, which triggered a securities fraud investigation. Meanwhile, major shareholders including Blackstone, Hellman & Friedman, and Abu Dhabi Investment Authority have conducted large-scale secondary offerings in recent months — selling 75 million shares in March at $41 per share and another 72.6 million shares in May at $37 per share — creating persistent supply overhang that continues to weigh on the stock.