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3 MedTech Stocks Benefiting From Favorable Product Mix Shifts
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Key Takeaways
ANGO's Med Tech revenues rose to 45% of sales, driving a 170 bps year-over-year rise in adjusted gross margin.
BSX is expanding margins as fast-growing electrophysiology and WATCHMAN franchises gain share of revenues.
MDT's mix is improving as pulsed-field ablation scales and higher-margin consumables grow over time.
One of the most durable, and often underappreciated, drivers of earnings quality among MedTech companies is a favorable product mix shift, where higher-margin, faster-growing, or more differentiated therapies steadily become a larger share of total revenues. Unlike one-time pricing actions or cyclical volume rebounds, mix improvements tend to compound, supporting margin expansion, cash flow durability, and valuation resilience.
That dynamic is increasingly visible across parts of the medical device sector, amid improving hospitals capex and normalizing procedural growth. Companies that can shift their portfolios toward clinically differentiated platforms, premium technologies, or higher consumable intensity are better positioned to deliver consistent earnings growth.
3 Stocks With the Potential to Rise on Favorable Mix
Against that backdrop, AngioDynamics (ANGO - Free Report) , Boston Scientific (BSX - Free Report) and Medtronic (MDT - Free Report) stand out as three MedTech stocks where product mix is moving in the right direction — albeit through different strategic pathways.
Three-Month Performance
Image Source: Zacks Investment Research
AngioDynamics: Portfolio Repositioning Is Lifting Revenue Quality
AngioDynamics’ mix story is less about broad-based market acceleration and more about deliberate portfolio reshaping. Over the past several years, management has exited lower-growth, lower-margin product lines and redirected resources toward its higher-growth Med Tech segment, which includes Auryon atherectomy, mechanical thrombectomy platforms and NanoKnife.
That shift is now showing up clearly in the numbers. In second-quarter fiscal 2026, Med Tech revenues grew 13% year over year and now represents 45% of total company revenues, up from 43% a year ago. Management explicitly highlighted this mix change as a driver of profitability, with adjusted gross margin rising 170 basis points year over year to 56.4%, largely due to continued product mix shift toward Med Tech sales.
Within Med Tech, higher-value platforms are scaling. Auryon delivered its 18th consecutive quarter of double-digit growth, supported by increased hospital penetration and improving economics, while NanoKnife revenues rose 22.2%, driven by growing prostate cancer procedures following CPT code activation. These platforms not only grow faster than legacy lines but also carry structurally better margins.
From an investor’s perspective, ANGO’s favorable mix shift reflects improving revenue quality, not just top-line growth. A growing contribution from higher-margin Med Tech products has improved operating leverage, driving a near doubling of adjusted EBITDA year over year in the quarter. While execution risk remains due to the company’s smaller scale, the evolving mix points to improving earnings durability.
ANGO shares have dropped 10.8% in the past three months, with investors increasingly focused on margin sustainability rather than absolute growth alone. Meanwhile, the company sports a Zacks Rank #1 (Strong Buy), implying strong upside potential going forward in 2026. In the past 60 days, ANGO’s loss estimates for fiscal 2026 have narrowed 1 cent to 27 cents per share. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Boston Scientific: Premium Categories Are Expanding Margins
Boston Scientific represents a more classic mix shift story. The company is benefiting from rapid growth in premium, innovation-led franchises that are increasingly dominating its revenue base, particularly in electrophysiology and structural heart.
In third-quarter 2025, Boston Scientific reported adjusted gross margin of 71%, up 60 basis points year over year, with management explicitly attributing the improvement to favorable product mix, driven by strong growth in electrophysiology and WATCHMAN. That comment underscores how category leadership translates directly into financial leverage.
Electrophysiology was a standout, with sales growing 63% year over year, fueled by continued adoption of the FARAPULSE pulsed-field ablation platform. WATCHMAN left atrial appendage closure also delivered 35% growth, supported by increasing concomitant procedure adoption and expanding clinical evidence. Both franchises carry premium pricing, strong clinical differentiation and attractive disposable pull-through, making them powerful mix drivers.
Importantly, this mix shift appears structural rather than cyclical. Management emphasized that higher-growth franchises are supported by durable physician adoption, ongoing clinical data generation, and pipeline enhancements, suggesting that premium categories will continue to outgrow the broader portfolio.
For investors, Boston Scientific is converting its premium product growth into real profit, not just higher revenues. Adjusted operating margin expanded 80 basis points year over year to 28% in third-quarter, reinforcing the idea that faster-growing categories are lifting overall profitability, not just revenues.
BSX shares have lost 0.6% in the past three months, despite favorable mix — not temporary pricing — driving margin expansion. However, the company carries a Zacks Rank #2 (Buy), implying moderate upside potential going forward in 2026. In the past 60 days, BSX’s earnings estimates for 2026 have remained stable at $3.45 per share, indicating 13.7% year-over-year growth.
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Medtronic: Segment Mix Quietly Improving Beneath the Surface
Medtronic’s product mix story is more nuanced, reflecting its massive scale and diversified portfolio. While headline margins face near-term noise from investment cycles and tariffs, the underlying segment mix is improving as faster-growing platforms expand within the revenue base.
In the second quarter of fiscal 2026, Medtronic delivered 5.5% organic revenue growth, with particularly strong contributions from Cardiac Ablation, where pulsed-field ablation now accounts for 75% of cardiac ablation revenues. Management highlighted that this franchise grew 71% year over year, making it one of the fastest-growing businesses in the portfolio.
Although near-term gross margin faced mix headwinds due to the ramp-up of capital-heavy platforms, CFO Thierry Pieton emphasized that these pressures are expected to ease as consumables scale and newer platforms mature. Over time, management expects an improving mix as higher-margin catheter volumes grow compared to upfront capital placements.
Beyond Cardiac Ablation, other higher-growth segments, such as Structural Heart and Neuromodulation, are also gaining traction. This gradual reweighting toward faster-growing, innovation-driven businesses supports Medtronic’s guidance of high single-digit EPS growth longer term, even as near-term margins fluctuate.
For investors, the key takeaway is that Medtronic’s mix shift acts as a slow-moving but powerful lever. Small changes in segment contribution can meaningfully influence consolidated growth and margins over time.
MDT stock has returned 0.4% in the past three months, with mix-driven growth increasingly central to the long-term thesis. Meanwhile, the company carries a Zacks Rank of 2, implying moderate upside potential going forward in 2026. In the past 60 days, MDT’s earnings estimates for 2026 have improved 1 cent to $5.64 per share, indicating 2.7% year-over-year growth.
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3 MedTech Stocks Benefiting From Favorable Product Mix Shifts
Key Takeaways
One of the most durable, and often underappreciated, drivers of earnings quality among MedTech companies is a favorable product mix shift, where higher-margin, faster-growing, or more differentiated therapies steadily become a larger share of total revenues. Unlike one-time pricing actions or cyclical volume rebounds, mix improvements tend to compound, supporting margin expansion, cash flow durability, and valuation resilience.
That dynamic is increasingly visible across parts of the medical device sector, amid improving hospitals capex and normalizing procedural growth. Companies that can shift their portfolios toward clinically differentiated platforms, premium technologies, or higher consumable intensity are better positioned to deliver consistent earnings growth.
3 Stocks With the Potential to Rise on Favorable Mix
Against that backdrop, AngioDynamics (ANGO - Free Report) , Boston Scientific (BSX - Free Report) and Medtronic (MDT - Free Report) stand out as three MedTech stocks where product mix is moving in the right direction — albeit through different strategic pathways.
Three-Month Performance
Image Source: Zacks Investment Research
AngioDynamics: Portfolio Repositioning Is Lifting Revenue Quality
AngioDynamics’ mix story is less about broad-based market acceleration and more about deliberate portfolio reshaping. Over the past several years, management has exited lower-growth, lower-margin product lines and redirected resources toward its higher-growth Med Tech segment, which includes Auryon atherectomy, mechanical thrombectomy platforms and NanoKnife.
That shift is now showing up clearly in the numbers. In second-quarter fiscal 2026, Med Tech revenues grew 13% year over year and now represents 45% of total company revenues, up from 43% a year ago. Management explicitly highlighted this mix change as a driver of profitability, with adjusted gross margin rising 170 basis points year over year to 56.4%, largely due to continued product mix shift toward Med Tech sales.
Within Med Tech, higher-value platforms are scaling. Auryon delivered its 18th consecutive quarter of double-digit growth, supported by increased hospital penetration and improving economics, while NanoKnife revenues rose 22.2%, driven by growing prostate cancer procedures following CPT code activation. These platforms not only grow faster than legacy lines but also carry structurally better margins.
From an investor’s perspective, ANGO’s favorable mix shift reflects improving revenue quality, not just top-line growth. A growing contribution from higher-margin Med Tech products has improved operating leverage, driving a near doubling of adjusted EBITDA year over year in the quarter. While execution risk remains due to the company’s smaller scale, the evolving mix points to improving earnings durability.
ANGO shares have dropped 10.8% in the past three months, with investors increasingly focused on margin sustainability rather than absolute growth alone. Meanwhile, the company sports a Zacks Rank #1 (Strong Buy), implying strong upside potential going forward in 2026. In the past 60 days, ANGO’s loss estimates for fiscal 2026 have narrowed 1 cent to 27 cents per share. You can see the complete list of today’s Zacks #1 Rank stocks here.
Image Source: Zacks Investment Research
Boston Scientific: Premium Categories Are Expanding Margins
Boston Scientific represents a more classic mix shift story. The company is benefiting from rapid growth in premium, innovation-led franchises that are increasingly dominating its revenue base, particularly in electrophysiology and structural heart.
In third-quarter 2025, Boston Scientific reported adjusted gross margin of 71%, up 60 basis points year over year, with management explicitly attributing the improvement to favorable product mix, driven by strong growth in electrophysiology and WATCHMAN. That comment underscores how category leadership translates directly into financial leverage.
Electrophysiology was a standout, with sales growing 63% year over year, fueled by continued adoption of the FARAPULSE pulsed-field ablation platform. WATCHMAN left atrial appendage closure also delivered 35% growth, supported by increasing concomitant procedure adoption and expanding clinical evidence. Both franchises carry premium pricing, strong clinical differentiation and attractive disposable pull-through, making them powerful mix drivers.
Importantly, this mix shift appears structural rather than cyclical. Management emphasized that higher-growth franchises are supported by durable physician adoption, ongoing clinical data generation, and pipeline enhancements, suggesting that premium categories will continue to outgrow the broader portfolio.
For investors, Boston Scientific is converting its premium product growth into real profit, not just higher revenues. Adjusted operating margin expanded 80 basis points year over year to 28% in third-quarter, reinforcing the idea that faster-growing categories are lifting overall profitability, not just revenues.
BSX shares have lost 0.6% in the past three months, despite favorable mix — not temporary pricing — driving margin expansion. However, the company carries a Zacks Rank #2 (Buy), implying moderate upside potential going forward in 2026. In the past 60 days, BSX’s earnings estimates for 2026 have remained stable at $3.45 per share, indicating 13.7% year-over-year growth.
Image Source: Zacks Investment Research
Medtronic: Segment Mix Quietly Improving Beneath the Surface
Medtronic’s product mix story is more nuanced, reflecting its massive scale and diversified portfolio. While headline margins face near-term noise from investment cycles and tariffs, the underlying segment mix is improving as faster-growing platforms expand within the revenue base.
In the second quarter of fiscal 2026, Medtronic delivered 5.5% organic revenue growth, with particularly strong contributions from Cardiac Ablation, where pulsed-field ablation now accounts for 75% of cardiac ablation revenues. Management highlighted that this franchise grew 71% year over year, making it one of the fastest-growing businesses in the portfolio.
Although near-term gross margin faced mix headwinds due to the ramp-up of capital-heavy platforms, CFO Thierry Pieton emphasized that these pressures are expected to ease as consumables scale and newer platforms mature. Over time, management expects an improving mix as higher-margin catheter volumes grow compared to upfront capital placements.
Beyond Cardiac Ablation, other higher-growth segments, such as Structural Heart and Neuromodulation, are also gaining traction. This gradual reweighting toward faster-growing, innovation-driven businesses supports Medtronic’s guidance of high single-digit EPS growth longer term, even as near-term margins fluctuate.
For investors, the key takeaway is that Medtronic’s mix shift acts as a slow-moving but powerful lever. Small changes in segment contribution can meaningfully influence consolidated growth and margins over time.
MDT stock has returned 0.4% in the past three months, with mix-driven growth increasingly central to the long-term thesis. Meanwhile, the company carries a Zacks Rank of 2, implying moderate upside potential going forward in 2026. In the past 60 days, MDT’s earnings estimates for 2026 have improved 1 cent to $5.64 per share, indicating 2.7% year-over-year growth.
Image Source: Zacks Investment Research