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Here's Why You Should Retain Integer Holdings Stock in Your Portfolio
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Key Takeaways
ITGR is banking on a strong R&D pipeline in electrophysiology, neuro and heart markets for 2026-27 growth.
ITGR targets margin expansion via manufacturing efficiencies, with about 70% of sales under multiyear deals.
ITGR cut 2025 view as neuromodulation demand softens, while reliance on a few large OEM customers adds risk.
Integer Holdings Corporation (ITGR - Free Report) has been gaining from its research and product development activities. The optimism, led by a solid third-quarter 2025 performance and its solid foothold in the broader MedTech space, is expected to contribute further. However, dependence on third-party suppliers raises concern.
This Zacks Rank #3 (Hold) company’s shares have lost 24% over the past six months against the industry’s 8.4% growth and the S&P 500’s 10.4% rise.
The renowned medical device outsourcing manufacturer has a market capitalization of $2.98 billion. The company projects 17.2% growth for the next five years and expects to maintain its strong performance going forward. Integer Holdings’ earnings surpassed the Zacks Consensus Estimate, delivering a trailing four-quarter average surprise of 1.6%.
Image Source: Zacks Investment Research
Factors Favoring Integer Holdings’ Growth
Strong Long-Term Product Development Pipeline: Integer Holdings aims to enter 2026 and 2027 with a robust and expanding development pipeline focused on emerging and higher-growth markets. The company has strong visibility into upcoming product launches across electrophysiology, neurovascular, structural, heart and neuromodulation scheduled for 2026 and 2027, positioning it well for above-market growth.
Margin Expansion Supported by Operational Efficiency & New Product: ITGR’s long-term margin expansion framework remains intact heading into 2026 and beyond, supported by gross margin improvement and operating expense leverage. Continued benefits from manufacturing efficiencies, including productivity gains in direct labor and materials through the Integer Production System, are expected to support margins even more. The company expressed confidence in disciplined cost management and the ability to align its cost structure with demand while continuing to invest in future growth. Margin expansion will accelerate as volumes increase with new product launches restoring return to market growth in the second half of 2026 and above-market growth in 2027.
Strong Customer Relationships and Revenue Visibility: Approximately 70% of sales are under multiyear agreements and backlog remains at around $730 million, providing solid forward visibility. The company’s early design strategy with OEMs and sole-source positions in many programs support long-term revenue durability once products achieve market adoption.
Factors That May Offset ITGR’s Gains
Broad-Based Demand Softness Pressures Near-Term Outlook: Integer Holdings’ near-term outlook has deteriorated, prompting management to lower expectations for 2025 and flag a more difficult environment in 2026. The company reduced its 2025 revenue midpoint by $16 million and trimmed adjusted operating income by $3 million, largely reflecting weaker demand from select emerging neuromodulation customers and slower-than-expected uptake of recently launched products. Three new programs — two in electrophysiology and one in neuromodulation — are now forecast to underperform prior assumptions, a rare and unexpected development that management characterized as highly unusual. These programs are expected to create a 3%-4% organic sales headwind in 2026, with declines concentrated in the first half of the year.
Additional pressure comes from the planned Portable Medical exit, which adds roughly a 2% revenue drag in 2026, and softer CRM&N growth, now expected to be low single digits in 2025. As a result, visibility and operating leverage are reduced, with 2026 adjusted operating income guided to down 5% to up 4% and adjusted EPS down 6% to up 5%, underscoring a clear near-term slowdown despite longer-term pipeline strength.
Competitive & Regulatory Risks: Integer Holdings operates in highly competitive markets where pricing pressure, rapid technological change and increasing competition across all product lines continue to intensify. Larger and better-resourced competitors in commercial power sources may introduce more advanced or lower-cost alternatives, which could pressure the company’s revenues and margins. Customer initiatives such as vertical integration or dual-sourcing could reduce demand for products supplied by the company. ITGR’s end markets are also characterized by fast innovation cycles and evolving standards, requiring sustained investment in R&D to avoid product obsolescence and loss of customer relationships.
Integer Holdings is also exposed to extensive and evolving healthcare regulations across global markets, including FDA oversight and the European Medical Device Regulation. Compliance with these stringent rules may raise costs, limit revenues or delay product launches. Failure to meet regulatory requirements could result in fines, operational disruptions or restrictions on future growth, impacting financial performance.
Dependence on Third-Party Suppliers & Customers: Integer Holdings designs products to meet the changing needs of its customers, but the strength and scale of these relationships differ in terms of product range, order volumes, contract length, purchasing behavior and pricing. In 2024, three key customers — Abbott, Boston Scientific and Medtronic — each contributed more than 10% of total revenues and together made up 47% of sales. In the past, reduced demand from these large OEMs has affected the company’s results and similar reductions could weigh on future performance. In addition, ITGR does not have long-term supply contracts with all customers and many current agreements do not include minimum purchase requirements, which limit revenue predictability and offer no assurance of consistent order volumes over time.
Integer Holdings is witnessing a positive estimate revision trend for 2026. In the past 60 days, the Zacks Consensus Estimate for earnings has remained flat at $6.33 per share.
The Zacks Consensus Estimate for the company’s fourth-quarter 2025 revenues is pegged at $426.7 million, indicating a 2.9% rise from the year-ago quarter’s reported number. The consensus mark for fourth-quarter earnings is pegged at $1.70 per share, reflecting 18.9% growth from the year-earlier level.
Veracyte’s shares have surged 84.2% over the past six months. Estimates for VCYT’s 2026 earnings per share (EPS) have increased 0.6% to $1.61 in the past 30 days. VCYT’s earnings beat estimates in each of the trailing four quarters, the average surprise being 45.1%. In the last reported quarter, it posted an earnings surprise of 59.4%.
Estimates for Cardinal Health’s fiscal 2026 EPS have increased 0.7% to $9.93 in the past 30 days. Shares of the company have climbed 33.1% over the past six months compared with the industry’s growth of 13.9%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.4%. In the last reported quarter, it delivered an earnings surprise of 15.4%.
Estimates for The Cooper Companies’ 2026 EPS have increased 0.7% to $4.51 in the past 30 days. Shares of the company have gained 13.2% over the past six months compared with the industry’s 13.9% growth. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.4%. In the last reported quarter, it delivered an earnings surprise of 3.6%.
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Here's Why You Should Retain Integer Holdings Stock in Your Portfolio
Key Takeaways
Integer Holdings Corporation (ITGR - Free Report) has been gaining from its research and product development activities. The optimism, led by a solid third-quarter 2025 performance and its solid foothold in the broader MedTech space, is expected to contribute further. However, dependence on third-party suppliers raises concern.
This Zacks Rank #3 (Hold) company’s shares have lost 24% over the past six months against the industry’s 8.4% growth and the S&P 500’s 10.4% rise.
The renowned medical device outsourcing manufacturer has a market capitalization of $2.98 billion. The company projects 17.2% growth for the next five years and expects to maintain its strong performance going forward. Integer Holdings’ earnings surpassed the Zacks Consensus Estimate, delivering a trailing four-quarter average surprise of 1.6%.
Image Source: Zacks Investment Research
Factors Favoring Integer Holdings’ Growth
Strong Long-Term Product Development Pipeline: Integer Holdings aims to enter 2026 and 2027 with a robust and expanding development pipeline focused on emerging and higher-growth markets. The company has strong visibility into upcoming product launches across electrophysiology, neurovascular, structural, heart and neuromodulation scheduled for 2026 and 2027, positioning it well for above-market growth.
Margin Expansion Supported by Operational Efficiency & New Product: ITGR’s long-term margin expansion framework remains intact heading into 2026 and beyond, supported by gross margin improvement and operating expense leverage. Continued benefits from manufacturing efficiencies, including productivity gains in direct labor and materials through the Integer Production System, are expected to support margins even more. The company expressed confidence in disciplined cost management and the ability to align its cost structure with demand while continuing to invest in future growth. Margin expansion will accelerate as volumes increase with new product launches restoring return to market growth in the second half of 2026 and above-market growth in 2027.
Strong Customer Relationships and Revenue Visibility: Approximately 70% of sales are under multiyear agreements and backlog remains at around $730 million, providing solid forward visibility. The company’s early design strategy with OEMs and sole-source positions in many programs support long-term revenue durability once products achieve market adoption.
Factors That May Offset ITGR’s Gains
Broad-Based Demand Softness Pressures Near-Term Outlook: Integer Holdings’ near-term outlook has deteriorated, prompting management to lower expectations for 2025 and flag a more difficult environment in 2026. The company reduced its 2025 revenue midpoint by $16 million and trimmed adjusted operating income by $3 million, largely reflecting weaker demand from select emerging neuromodulation customers and slower-than-expected uptake of recently launched products. Three new programs — two in electrophysiology and one in neuromodulation — are now forecast to underperform prior assumptions, a rare and unexpected development that management characterized as highly unusual. These programs are expected to create a 3%-4% organic sales headwind in 2026, with declines concentrated in the first half of the year.
Additional pressure comes from the planned Portable Medical exit, which adds roughly a 2% revenue drag in 2026, and softer CRM&N growth, now expected to be low single digits in 2025. As a result, visibility and operating leverage are reduced, with 2026 adjusted operating income guided to down 5% to up 4% and adjusted EPS down 6% to up 5%, underscoring a clear near-term slowdown despite longer-term pipeline strength.
Competitive & Regulatory Risks: Integer Holdings operates in highly competitive markets where pricing pressure, rapid technological change and increasing competition across all product lines continue to intensify. Larger and better-resourced competitors in commercial power sources may introduce more advanced or lower-cost alternatives, which could pressure the company’s revenues and margins. Customer initiatives such as vertical integration or dual-sourcing could reduce demand for products supplied by the company. ITGR’s end markets are also characterized by fast innovation cycles and evolving standards, requiring sustained investment in R&D to avoid product obsolescence and loss of customer relationships.
Integer Holdings is also exposed to extensive and evolving healthcare regulations across global markets, including FDA oversight and the European Medical Device Regulation. Compliance with these stringent rules may raise costs, limit revenues or delay product launches. Failure to meet regulatory requirements could result in fines, operational disruptions or restrictions on future growth, impacting financial performance.
Dependence on Third-Party Suppliers & Customers: Integer Holdings designs products to meet the changing needs of its customers, but the strength and scale of these relationships differ in terms of product range, order volumes, contract length, purchasing behavior and pricing. In 2024, three key customers — Abbott, Boston Scientific and Medtronic — each contributed more than 10% of total revenues and together made up 47% of sales. In the past, reduced demand from these large OEMs has affected the company’s results and similar reductions could weigh on future performance. In addition, ITGR does not have long-term supply contracts with all customers and many current agreements do not include minimum purchase requirements, which limit revenue predictability and offer no assurance of consistent order volumes over time.
Integer Holdings Corporation Price
Integer Holdings Corporation price | Integer Holdings Corporation Quote
Estimate Trend
Integer Holdings is witnessing a positive estimate revision trend for 2026. In the past 60 days, the Zacks Consensus Estimate for earnings has remained flat at $6.33 per share.
The Zacks Consensus Estimate for the company’s fourth-quarter 2025 revenues is pegged at $426.7 million, indicating a 2.9% rise from the year-ago quarter’s reported number. The consensus mark for fourth-quarter earnings is pegged at $1.70 per share, reflecting 18.9% growth from the year-earlier level.
Stocks to Consider
Some better-ranked stocks from the broader medical space are Veracyte (VCYT - Free Report) , Cardinal Health (CAH - Free Report) and The Cooper Companies (COO - Free Report) . At present, Veracyte sports a Zacks Rank #1 (Strong Buy), whereas Cardinal Health and The Cooper Companies carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Veracyte’s shares have surged 84.2% over the past six months. Estimates for VCYT’s 2026 earnings per share (EPS) have increased 0.6% to $1.61 in the past 30 days. VCYT’s earnings beat estimates in each of the trailing four quarters, the average surprise being 45.1%. In the last reported quarter, it posted an earnings surprise of 59.4%.
Estimates for Cardinal Health’s fiscal 2026 EPS have increased 0.7% to $9.93 in the past 30 days. Shares of the company have climbed 33.1% over the past six months compared with the industry’s growth of 13.9%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.4%. In the last reported quarter, it delivered an earnings surprise of 15.4%.
Estimates for The Cooper Companies’ 2026 EPS have increased 0.7% to $4.51 in the past 30 days. Shares of the company have gained 13.2% over the past six months compared with the industry’s 13.9% growth. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.4%. In the last reported quarter, it delivered an earnings surprise of 3.6%.