We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 MedTech Stocks Positioned to Surpass Q3 Earnings Estimates
Read MoreHide Full Article
Key Takeaways
The MedTech sector is expected to see Q3 2025 earnings decline 2.9% YoY, but revenues rise 9.1%.
Innovation in diabetes care, surgical tech, and AI-driven diagnostics continues to drive strong performance.
SOLV, COR, and INSP each show strong earnings-beat potential based on favorable Rank and Earnings ESP.
The third-quarter 2025 earnings season is underway, with several healthcare companies already reporting their results. Per early trends, U.S. MedTech companies are delivering strong third-quarter results, fueled by innovation in diabetes care, cardiovascular, and surgical technologies. However, tariff pressures, China headwinds, and inflation continue to challenge margins. The industry remains resilient, balancing breakthrough growth with the need for operational discipline and strategic adaptability heading into 2026.
Drawing on our proprietary research and market insight, we’ve identified three stocks — Solventum (SOLV - Free Report) , Cencora (COR - Free Report) and Inspire Medical Systems (INSP - Free Report) — that appear well-positioned to beat on earnings this reporting cycle.
Q3 Expectations
Before delving into the specifics of what could have impacted third-quarter performance, let's examine the sector forecasts.
The MedTech space is part of the broader Zacks Medical sector (one of the 16 broad Zacks sectors within the Zacks Industry). According to the latest Earnings Trends report dated Oct. 29, the medical sector is projected to report a 2.9% decline in earnings for the third quarter, while revenues are anticipated to rise 9.1%.
Factors at Play for MedTech Stocks in Q3
U.S. MedTech companies are navigating a mixed third-quarter 2025 earnings season — marked by impressive innovation-led growth but tempered by persistent macro and operational challenges. The sector continues to showcase resilience, driven by demand for advanced technologies and rising healthcare needs across aging and chronic disease populations.
Many leading medtech players delivered robust top-line gains this quarter.
Abbott’s medical devices segment surged 14.8% year over year, powered by double-digit growth in diabetes care (19.3%) and heart failure products (13.3%). Stryker’s third-quarter results reflected broad-based growth, with MedSurg and Neurotechnology sales rising 14.4% and Orthopaedics up 3.9%.
Organic sales growth in the United States was 10.6%, driven by multiple product lines, including vascular, trauma, extremities, and neurocranial devices. GE HealthCare posted total revenues of $5.1 billion, marking a 6% year-over-year increase, with organic revenue growth of 4%. Revenue growth was driven primarily by Imaging, Advanced Visualization Solutions, and Pharmaceutical Diagnostics, supported by strong demand in the United States and EMEA regions.
Growth remains strong across cardiovascular, electrophysiology, and minimally invasive surgical categories as hospitals resume deferred procedures and adopt next-generation technologies. Moreover, digital health integration, AI-powered diagnostics, and specialty therapies are helping diversify revenues and enhance margins. M&A activity continues, with companies selectively targeting niche robotics, AI, and advanced materials capabilities to strengthen pipelines and expand addressable markets.
Still, the operating environment remains far from smooth. Tariff-related costs, particularly from China-sourced materials, are pressuring margins. Declining COVID-related testing volumes have weighed on diagnostics revenues, offsetting gains elsewhere. Geopolitical headwinds — including China’s anti-corruption campaign and market access constraints — are also dampening international momentum.
Meanwhile, inflation, labor shortages, and shifting reimbursement dynamics continue to test medtech manufacturers’ agility. Companies are responding with sharper operational execution and greater focus on value-based care models.
Overall, the third-quarter earnings season underscores a medtech industry in transition — balancing breakthrough innovation and expanding demand with a need for disciplined cost control and strategic adaptability heading into 2026.
How to Identify Potential Outperformers?
Spotting healthcare stocks poised for an earnings beat is not easy in today’s crowded market. But our proprietary methodology cuts through the noise, pinpointing companies with strong potential to outperform. Backed by in-depth research and market insight, we have leveraged the Zacks Stock Screener to identify top healthcare names that stand out ahead of their earnings releases.
These stocks have the ideal combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to surpass expectations. Our research shows that for stocks with this combination, the chances of an earnings beat are as high as 70%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Potential MedTech Winners
For investors willing to adopt this strategy, we have highlighted three MedTech stocks that may stand out this earnings season.
Solventum, a leading global healthcare company developing, manufacturing and commercializing a broad portfolio of solutions, beat on earnings in each of the trailing four quarters, delivering an average surprise of 13.91%.
Solventum is likely to beat expectations when it reports third-quarter 2025 results on Nov. 6, after market close. This Zacks Rank #1 company has an Earnings ESP of +0.88%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Solventum third-quarter EPS is pegged at $1.43, suggesting a decline of 12.8% from the year-ago reported figure.
Cencora — one of the largest pharmaceutical distribution and healthcare solutions providers globally — beat on earnings in each of the trailing four quarters, the average surprise being 6.19%.
Cencora is likely to beat expectations when it reports third-quarter 2025 results on Nov. 5, before market open. This Zacks Rank #3 company has an Earnings ESP of +0.31%.
The Zacks Consensus Estimate for Cencora’s third-quarter EPS is pegged at $3.79, implying growth of 13.5% from the year-ago reported figure.
Inspire Medical Systems— a medical technology company focused on the development and commercialization of innovative, minimally-invasive solutions for patients with obstructive sleep apnea — topped earnings estimates in each of the trailing four quarters, the average beat being 300.86%.
Inspire Medical Systems is likely to beat expectations when it reports third-quarter 2025 results on Nov. 3, after market close. This Zacks Rank #3 company has an Earnings ESP of +80.22%.
The Zacks Consensus Estimate for third-quarter loss per share is pegged at 15 cents, indicating a decline of 125% from the year-ago period’s level.
Inspire Medical Systems, Inc. Price and EPS Surprise
Image: Bigstock
3 MedTech Stocks Positioned to Surpass Q3 Earnings Estimates
Key Takeaways
The third-quarter 2025 earnings season is underway, with several healthcare companies already reporting their results. Per early trends, U.S. MedTech companies are delivering strong third-quarter results, fueled by innovation in diabetes care, cardiovascular, and surgical technologies. However, tariff pressures, China headwinds, and inflation continue to challenge margins. The industry remains resilient, balancing breakthrough growth with the need for operational discipline and strategic adaptability heading into 2026.
Drawing on our proprietary research and market insight, we’ve identified three stocks — Solventum (SOLV - Free Report) , Cencora (COR - Free Report) and Inspire Medical Systems (INSP - Free Report) — that appear well-positioned to beat on earnings this reporting cycle.
Q3 Expectations
Before delving into the specifics of what could have impacted third-quarter performance, let's examine the sector forecasts.
The MedTech space is part of the broader Zacks Medical sector (one of the 16 broad Zacks sectors within the Zacks Industry). According to the latest Earnings Trends report dated Oct. 29, the medical sector is projected to report a 2.9% decline in earnings for the third quarter, while revenues are anticipated to rise 9.1%.
Factors at Play for MedTech Stocks in Q3
U.S. MedTech companies are navigating a mixed third-quarter 2025 earnings season — marked by impressive innovation-led growth but tempered by persistent macro and operational challenges. The sector continues to showcase resilience, driven by demand for advanced technologies and rising healthcare needs across aging and chronic disease populations.
Many leading medtech players delivered robust top-line gains this quarter.
Abbott’s medical devices segment surged 14.8% year over year, powered by double-digit growth in diabetes care (19.3%) and heart failure products (13.3%). Stryker’s third-quarter results reflected broad-based growth, with MedSurg and Neurotechnology sales rising 14.4% and Orthopaedics up 3.9%.
Organic sales growth in the United States was 10.6%, driven by multiple product lines, including vascular, trauma, extremities, and neurocranial devices. GE HealthCare posted total revenues of $5.1 billion, marking a 6% year-over-year increase, with organic revenue growth of 4%. Revenue growth was driven primarily by Imaging, Advanced Visualization Solutions, and Pharmaceutical Diagnostics, supported by strong demand in the United States and EMEA regions.
Growth remains strong across cardiovascular, electrophysiology, and minimally invasive surgical categories as hospitals resume deferred procedures and adopt next-generation technologies. Moreover, digital health integration, AI-powered diagnostics, and specialty therapies are helping diversify revenues and enhance margins. M&A activity continues, with companies selectively targeting niche robotics, AI, and advanced materials capabilities to strengthen pipelines and expand addressable markets.
Still, the operating environment remains far from smooth. Tariff-related costs, particularly from China-sourced materials, are pressuring margins. Declining COVID-related testing volumes have weighed on diagnostics revenues, offsetting gains elsewhere. Geopolitical headwinds — including China’s anti-corruption campaign and market access constraints — are also dampening international momentum.
Meanwhile, inflation, labor shortages, and shifting reimbursement dynamics continue to test medtech manufacturers’ agility. Companies are responding with sharper operational execution and greater focus on value-based care models.
Overall, the third-quarter earnings season underscores a medtech industry in transition — balancing breakthrough innovation and expanding demand with a need for disciplined cost control and strategic adaptability heading into 2026.
How to Identify Potential Outperformers?
Spotting healthcare stocks poised for an earnings beat is not easy in today’s crowded market. But our proprietary methodology cuts through the noise, pinpointing companies with strong potential to outperform. Backed by in-depth research and market insight, we have leveraged the Zacks Stock Screener to identify top healthcare names that stand out ahead of their earnings releases.
These stocks have the ideal combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to surpass expectations. Our research shows that for stocks with this combination, the chances of an earnings beat are as high as 70%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Potential MedTech Winners
For investors willing to adopt this strategy, we have highlighted three MedTech stocks that may stand out this earnings season.
Solventum, a leading global healthcare company developing, manufacturing and commercializing a broad portfolio of solutions, beat on earnings in each of the trailing four quarters, delivering an average surprise of 13.91%.
Solventum is likely to beat expectations when it reports third-quarter 2025 results on Nov. 6, after market close. This Zacks Rank #1 company has an Earnings ESP of +0.88%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Solventum third-quarter EPS is pegged at $1.43, suggesting a decline of 12.8% from the year-ago reported figure.
Solventum Corporation Price and EPS Surprise
Solventum Corporation price-eps-surprise | Solventum Corporation Quote
Cencora — one of the largest pharmaceutical distribution and healthcare solutions providers globally — beat on earnings in each of the trailing four quarters, the average surprise being 6.19%.
Cencora is likely to beat expectations when it reports third-quarter 2025 results on Nov. 5, before market open. This Zacks Rank #3 company has an Earnings ESP of +0.31%.
The Zacks Consensus Estimate for Cencora’s third-quarter EPS is pegged at $3.79, implying growth of 13.5% from the year-ago reported figure.
Cencora, Inc. Price and EPS Surprise
Cencora, Inc. price-eps-surprise | Cencora, Inc. Quote
Inspire Medical Systems— a medical technology company focused on the development and commercialization of innovative, minimally-invasive solutions for patients with obstructive sleep apnea — topped earnings estimates in each of the trailing four quarters, the average beat being 300.86%.
Inspire Medical Systems is likely to beat expectations when it reports third-quarter 2025 results on Nov. 3, after market close. This Zacks Rank #3 company has an Earnings ESP of +80.22%.
The Zacks Consensus Estimate for third-quarter loss per share is pegged at 15 cents, indicating a decline of 125% from the year-ago period’s level.
Inspire Medical Systems, Inc. Price and EPS Surprise
Inspire Medical Systems, Inc. price-eps-surprise | Inspire Medical Systems, Inc. Quote