Can These 3 MedTech Stocks Hit Targets This Earnings Season?

Overall, second-quarter earnings of the Medical sector are expected to decline 15.2% despite 6.1% revenue growth. This compares with the first-quarter earnings fall of 2.3% on revenue growth of 7.1%. Based on the latest trends, the Medical sector is one of the three sectors predicted to earn less in the second quarter of 2026 compared with the year-ago period.

Some prominent companies, including Zimmer Biomet ZBH, Charles River Laboratories CRL and Bio-Techne Corp. TECH, are next in line to report their quarterly results.

Key Drivers of MedTech Earnings This Quarter

The MedTech sector has consistently been fueled by innovation, with companies leveraging new technologies to improve patient outcomes and capture market share. The growing adoption of AI-enabled diagnostics and instruments, particularly across oncology, neuroscience and cardiovascular care, is expected to have supported quarterly revenues. For instance, GE HealthCare reported strong order growth in the second quarter of 2026, with broad-based contributions from ultrasound, MR, CT, patient monitoring, radiopharmaceuticals and interventional labs, underscoring strong global demand for its differentiated technologies. Intuitive Surgical also reported roughly 16% year-over-year growth in worldwide procedures, with Ion endoluminal system procedures climbing 36%.

MedTech companies are increasingly pursuing strategic M&A to strengthen their portfolios and expand into fast-growing, emerging markets. Abbott’s Cancer Diagnostics business, created following the Exact Sciences deal, grew 13%, driven by mid-teens growth in the Cologuard colorectal cancer screening test. Companies such as Labcorp and Quest Diagnostics continue to benefit from the growing role of laboratory services across drug development and patient care, supporting earlier disease detection, diagnosis, treatment selection and ongoing disease monitoring.

Companies operating in the fast-growing, global automated insulin delivery (AID) market are likely to have benefited from strong demand for their flagship products, supported by new customer additions and high retention rates. Ongoing cost-efficiency initiatives, enterprise-wide restructuring and footprint optimization efforts are also expected to influence quarterly results.

Still, the industry continues to grapple with broader economic pressures. Geopolitical tensions are straining global supply chains, leading to price volatility of critical raw materials and components. Trade tensions between the United States and China, along with increased tariffs between the United States and other trading partners, are likely to pressure operating results.

MedTech Stocks to Watch

Zimmer Biomet: In the second quarter of 2026, the company's U.S. hip franchise is expected to have continued benefiting from the growing adoption of its hip triple-play: Z1 Femoral Hip Stem, the OrthoGrid AI-based hip navigation platform and the HAMMR surgical impactor. Within the Knees segment, the U.S. knee franchise is likely to have continued to benefit from strong demand for the Oxford Partial Cementless Knee. The Paragon 28 acquisition may support the S.E.T. (Sports Medicine, Upper Extremities, Foot and Ankle; Trauma, Craniomaxillofacial and Thoracic)segment’sresults.

(Read more: Zimmer Biomet Set to Report Q2 Earnings: What's in the Cards?)

The Zacks Consensus Estimate for the company’s second-quarter adjusted earnings per share (EPS) stands at $2.01, implying a 2.9% decrease year over year. The Zacks Consensus Estimate for revenues is pegged at $2.13 billion, suggesting an improvement of 2.5% from the prior-year quarter’s reported number.

During the second quarter, the company’s shares fell 5.4% compared with the industry’s 10.2% decline. 

Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates. This is not the case here, as you can see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

ZBH has an Earnings ESP of -0.94% and a Zacks Rank of #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Charles River Laboratories: In the second quarter of 2026, the company’s Research Models and Services (“RMS”) segment is likely to have faced pressure from lower sales of small models and research model services. Discovery Services revenues are likely to have declined in the second quarter, partly as a result of site consolidation activities. On a positive note, the Microbial Solutions business may have witnessed another solid performance, aided by the Endosafe and Celsis manufacturing quality control testing platforms.

(Read more: Charles River Prepares to Report Q2 Earnings: What's in Store?)

The Zacks Consensus Estimate for Charles River’s second-quarter EPS suggests a 12.8% decrease year over year to $2.72. The Zacks Consensus Estimate for revenues currently stands at $970.8 million, indicating a 6% decline compared with the year-ago period.

During the second quarter, the stock climbed 29.6% compared with the industry’s 9.1% growth.

CRL has an Earnings ESP of +0.33% and a Zacks Rank #2.

Bio-Techne: In the fourth quarter of fiscal 2026, the company’s protein analytical instrumentation business might have continued to demonstrate strong momentum, driven by the Ella benchtop immunoassay platform. Bio-Techne is also expected to have experienced continued traction across the biologic characterization portfolio led by the Maurice platform. Its Diagnostics business remains susceptible to quarter-to-quarter volatility due to its concentration of large customers. 

(Read more: Bio-Techne's Q4 Earnings on Deck: What's in Store for the Stock?)

The Zacks Consensus Estimate for Bio-Techne’s fiscal fourth quarter EPS suggests a 1.9% decrease to 52 cents. The Zacks Consensus Estimate for revenues indicates 0.1% year-over-year growth to $317.2 million.  

During the fourth quarter, the company's shares rose 32.1% compared with the industry’s 2% growth.

TECH has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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