In 2024 and 2025, the MedTech sector has operated against a backdrop of a global economy marked by slowing growth, moderating inflation and elevated geopolitical uncertainty. Worldwide policy shifts, persistent trade frictions and supply-chain realignments have influenced healthcare spending patterns and capital allocation decisions across markets. Despite these challenges, MedTech investors have continued to witness steady demand for advanced medical technologies, supported by the sector’s essential nature and long-term innovation cycle. While higher input costs, labor shortages and cautious hospital spending weighed on near-term performance, MedTech has remained relatively insulated compared with more cyclical industries.

From a macro perspective, the IMF expects global growth to decelerate gradually through 2026, with advanced economies, including the United States, expanding at a slower pace than emerging markets. At the same time, global inflation is projected to continue easing, albeit unevenly across regions. For the MedTech industry, this environment presents a mixed picture. Slower economic growth and fiscal pressures may constrain healthcare budgets, but moderating inflation and improving financial conditions could help ease cost pressures and stabilize procurement trends over time.

Looking into 2026, the MedTech sector is likely to benefit from a gradually more stable macro environment, provided inflation continues to ease and financing conditions remain supportive. While hospital capital spending is expected to stay selective, demand should increasingly favor technologies tied to efficiency gains, outpatient care expansion and automation, positioning fundamentally strong MedTech companies to outperform in a slower-growth economic setting.

Against this backdrop, investors may want to reassess certain MedTech names that have delivered outsized gains but could face a tougher operating and valuation environment in 2026. Stocks such as Globus Medical, Inc. (GMED Quick QuoteGMED - Free Report) , TransMedics Group, Inc. (TMDX Quick QuoteTMDX - Free Report) and Hims & Hers Health, Inc. (HIMS Quick QuoteHIMS - Free Report) have benefited from strong adoption trends, innovation-led growth narratives and improving sentiment over the past year. However, as macro conditions normalize, hospital spending remains selective and competition intensifies, sustaining such elevated momentum may become more challenging, particularly for companies that have already priced in much of their near-term growth optimism.

MedTech in 2025

The broader global environment remains influenced by geopolitical conflicts, rising protectionism and supply-side disruptions, all of which have indirect implications for MedTech manufacturers. Dependence on global supply chains for components and raw materials has kept margins sensitive to transportation costs and trade-related uncertainties. Additionally, widespread clinical staffing shortages have continued to affect hospital capacity and capital equipment utilization. However, recent monetary policy easing in the United States, alongside expectations of further policy normalization, is likely to support borrowing conditions for healthcare providers and MedTech innovators.

Despite near-term macroeconomic challenges, several structural trends continue to underpin the MedTech sector. The global push toward efficiency, productivity and improved health outcomes aligns closely with MedTech innovation. The increasing use of artificial intelligence (AI), automation and data-driven tools in healthcare delivery is helping providers improve diagnostic accuracy, streamline workflows and optimize resource utilization, even in a constrained economic environment. Per a report by Precedence Research, the global AI in the healthcare market was estimated at $36.96 billion in 2025 and is anticipated to reach $613.81 billion by 2034 at a CAGR of approximately 36.8%.

Given its defensive characteristics and exposure to long-term healthcare demand, the sector remains positioned to weather global economic volatility better than many growth-oriented industries, while offering selective opportunities for investors focused on fundamentally strong companies.

3 Stocks to Focus on

With 2026 around the corner, MedTech stocks are entering a more normalized and selective macroeconomic environment, shaped by slowing global growth, easing but uneven inflation and cautious hospital capital spending. While several companies in the space have benefited from strong adoption trends and innovation-driven narratives over the past year, sustaining such momentum may become increasingly challenging as operating conditions tighten and valuation expectations reset.

Listed below are three MedTech stocks that have skyrocketed but may begin to lose steam as macro and industry headwinds persist.

Globus Medical: Globus Medical, a renowned musculoskeletal solutions company, announced third-quarter 2025 results last month. The company witnessed a solid uptick in both its top and bottom lines and strength in its base business, excluding Nevro. GMED currently carries a Zacks Rank #3 (Hold).

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For 2026, the Zacks Consensus Estimate for Globus Medical’s earnings per share (EPS) and revenues implies improvements of 3.9% and 7.9%, respectively, over the comparable 2025 figures. It has an earnings yield of 4.4% against the industry’s negative yield. The stock has gained 3.8% over the past year compared with the industry’s 1.4% rise.

TransMedics: TransMedics, a well-known medical technology company, is our next pick. In October, the company announced third-quarter 2025 results, wherein it recorded solid top and bottom-line performances. During the quarter, TransMedics announced a strategic collaboration with Mercedes-Benz Group AG to deploy a first-of-its-kind fleet of modern Mercedes-Benz V-Class vehicles dedicated exclusively to organ transportation across Italy. TMDX currently carries a Zacks Rank #3.

Image Source: Zacks Investment Research

For 2026, the Zacks Consensus Estimate for TransMedics’ EPS and revenues implies improvements of 2.4% and 20.4%, respectively, over the comparable 2025 figures. It has an earnings yield of 2.1% against the industry’s negative yield. The stock has gained 101.4% over the past year compared with the industry’s 1.5% rise. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hims & Hers: The final company on our list is a key health and wellness player, Hims & Hers. The company, with a Zacks Rank #3, released third-quarter 2025 results last month. It saw a solid uptick in its top line and strength in both revenue channels. The increase in subscribers and monthly online revenue per average subscriber was also recorded. Further, Hims & Hers expanded into the U.K. (which includes the official introduction of the Hers platform, helping eligible women across the U.K. receive access to this holistic weight management care) and Canada, following the recent acquisition of Livewell (both in December).

Image Source: Zacks Investment Research

For 2026, the Zacks Consensus Estimate for Hims & Hers’ EPS and revenues implies improvements of 22.3% and 17.6%, respectively, over the comparable 2025 figures. It has an earnings yield of 1.4% against the industry’s negative yield. The stock has gained 32.6% over the past year against the industry’s 1.8% decline.