Watch These 4 Medical Product Stocks for Q2 Earnings: Beat or Miss?

Robust adoption of robotic-assisted surgery, electrophysiology, structural heart therapies, AI-enabled imaging, radiopharmaceuticals and digital health solutions must have continued to support premium product demand across hospitals and outpatient settings. Healthy hospital capital spending, expanding recurring revenue streams from services and software, and strong innovation pipelines are also likely to have provided stability.

Nevertheless, company-specific operational disruptions, product remediation efforts and selective weakness in certain end markets could have resulted in mixed earnings performances, with margin expansion being more challenging than revenue growth.

The Medical - Products industry is housed within the broader Zacks Medical sector. Per the latest Earnings Trends report, total Medical sector earnings are expected to decline 17.4% in the April-June quarter on 5.2% higher revenues

A few of the major companies from the Medical-Products industry are lined up to report their quarterly numbers in the coming days. Let's see how things might have shaped up for Stryker SYK, Baxter International BAX, DexCom DXCM and Merit Medical Systems MMSI prior to their announcements.

Our quantitative model predicts an earnings beat for a company if it has a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This combination increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Let’s delve deeper.

Stryker

The Zacks Consensus Estimate for SYK’s second-quarter 2026 revenues is pegged at $6.56 billion, indicating 8.9% growth year over year. Management anticipates second-quarter 2026 sales to improve sequentially as recovery of deferred orders starts following a disruption in the first quarter due to a cyber incident. New product launches, including Mako 4, Mako Shoulder, Mako RPS and Triathlon Gold, are expected to have supported customer interest.

The Zacks Consensus Estimate for second-quarter 2026 earnings has remained stable over the past 30 days at $3.46 per share. The consensus mark implies a 10.5% upside from the year-ago reported numbers. Stryker’s margins are expected to have improved sequentially with production normalization, although tariff-related costs and higher input prices might have continued to weigh on gross margin.

SYK is scheduled to report second-quarter 2026 results on July 30, after market close. Our proven model does not conclusively predict an earnings beat for SYK this time around, as it has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

Baxter International

The Zacks Consensus Estimate for BAX’s second-quarter 2026 revenues is currently pegged at $2.79 billion, which indicates a 0.6% decline from the year-ago figures. The Zacks Consensus Estimate for BAX’s second-quarter 2026 earnings has been revised downward by 1 cent over the past 30 days to 36 cents per share. The consensus mark for earnings implies a 39% downside from that recorded a year ago.

Baxter is expected to have delivered a modestly improved second-quarter sales, though earnings are likely to have been constrained by ongoing operational headwinds, inflationary cost pressures and the continued shipment hold on its Novum large-volume infusion pump. While end-market demand remained healthy across several businesses, execution-related challenges and difficult year-over-year comparisons are expected to have weighed on profitability.

BAX is scheduled to report second-quarter 2026 results on July 30, before market opens. Our proven model does not conclusively predict an earnings beat for BAX this time around, as it has an Earnings ESP of -0.99% and a Zacks Rank #4 (Sell) at present.

DexCom

DexCom is expected to have delivered another quarter of healthy revenue growth, supported by continued demand for continuous glucose monitoring (CGM) systems, expanding reimbursement, and sustained adoption of its recently launched G7 15 Day platform. The quarterly performance is likely to have benefited from increasing physician awareness of broader reimbursement coverage and continued conversion of existing users to the G7 15 Day system. Margins are likely to have been supported by manufacturing efficiencies, normalized freight costs, supply-chain improvements, and the initial contribution from G7 15 Day. However, uncertainty around resin cost and fuel price must have remained.

The Zacks Consensus Estimate for DXCM’s second-quarter 2026 revenues is currently pegged at $1.3 billion, which indicates an 11.9% uptick from the year-ago reported numbers. The Zacks Consensus Estimate for DXCM’s second-quarter 2026 earnings has remained stable over the past 30 days at 61 cents per share. The consensus mark for earnings implies a 27.1% upside from the year-ago reported figure.

DXCM is scheduled to report second-quarter 2026 results on July 30, after market close. Our proven model does not conclusively predict an earnings beat for DexCom this time around, as it has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. It had an Earnings ESP of -1.36% and a Zacks Rank of 2 when we issued our second-quarter 2026 earnings preview.

Merit Medical Systems

Merit Medical Systems is expected to have delivered another quarter of steady revenue growth, supported by continued execution across its therapeutic portfolio, resilient demand for vascular intervention products, and incremental contributions from recent acquisitions. However, DualCap divestiture and ongoing tariff-related costs might have partially offset growth. The Zacks Consensus Estimate for MMSI’s second-quarter 2026 revenues is currently pegged at $404.7 billion, which indicates a 5.8% uptick from the year-ago reported numbers.

Therapeutic products are expected to have remained the primary growth engine, led by sustained momentum in cardiac therapies, endoscopy and oncology. Endoscopy should have continued to benefit from strong adoption of the C2 CryoBalloon system and the rollout of the Resilience esophageal stent, while oncology growth is likely to have been aided by the early contribution from View Point Medical and continued demand for the SCOUT platform.

Foundational products are also expected to post healthy growth, supported by vascular intervention and access products.  Procedural solutions sales are likely to have been hurt by the continued impact of the DualCap divestiture. OEM performance might have improved sequentially after first-quarter inventory destocking and weaker-than-expected customer orders, with management indicating confidence in a return to mid-single-digit growth.

Margins are expected to have remained under pressure from tariffs, freight costs and broader geopolitical uncertainties. However, adjusted earnings are likely to have been supported by improving operating leverage, healthy cash generation and continued execution of the company's Continued Growth Initiatives program.

The Zacks Consensus Estimate for MMSI’s second-quarter 2026 earnings has remained stable over the past 30 days at 96 cents per share. The consensus mark for earnings implies a 5% downside from the year-ago figures.

MMSI is scheduled to report second-quarter 2026 results on July 30, after market close. Our proven model does not conclusively predict an earnings beat for Merit Medical this time around, as it has an Earnings ESP of 0.00% and a Zacks Rank of 4 at present.

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