3 MedTech Stocks Poised to Gain in 2026 From the AI Boom

Per Porsche Consulting’s analysis, artificial intelligence (AI), especially generative AI, is rapidly transforming MedTech from promise to practice. AI is already accelerating product development, optimizing manufacturing, personalizing sales and improving patient care. As agile startups and tech giants enter the space with AI-driven solutions, established MedTech players face mounting pressure to act. With the availability of mature technologies and abundant data, success will depend on how quickly companies move from experimentation to large-scale implementation. 

AI accelerates every stage of R&D — from generative design and virtual testing to clinical trials and regulatory documentation — cutting timelines without compromising safety or efficacy. Further, the FDA encourages the development of innovative, safe and effective medical devices, including devices that incorporate artificial intelligence (AI). In  2025, 209 AI-enabled medical devices have received FDA approval.

Per Porsche Consulting, AI is becoming a core efficiency engine in MedTech, extending beyond R&D into operations, supply chains and commercial functions. It is reducing downtime, defects and costs through advanced quality control, self-optimizing production and smarter workforce training, while improving demand forecasting, inventory efficiency and supply-chain visibility. 

Backed by the strong prospects of AI, companies like Stryker SYK, Tempus AI TEM and GE HealthCare Technologies GEHC are likely to be on investors’ radars. 

Role of AI in Different Medical Specialties

According to a report published in PubMed Central, interventional pulmonology (IP) is particularly well situated to implement AI due to the variety of complex diagnostic and therapeutic techniques within its scope. By integrating AI into the field, the procedure planning and management of pulmonary disease should become easier, more accessible and effective. 

AI technologies have been integrated into key diagnostic procedures, including AI-based systems create virtual “maps” of the lung and guide clinicians during bronchoscopic procedures, improving localization and navigation. Additionally, after tissue samples are collected during procedures, AI algorithms can rapidly analyze pathological specimens and potentially improve diagnostic accuracy.

Recent advances in AI and computing power are unlocking significant potential for AI-driven radiology tools in diagnostic imaging. By quickly processing vast amounts of imaging data and detecting even minor abnormalities, these technologies help increase diagnostic precision, simplify clinical workflows and improve patient care. For instance, in cardiac imaging, AI can apply real-time colorization to heart chambers in grayscale echocardiograms, enhancing clarity and operational efficiency. Reflecting this momentum, radiology has emerged as the most AI-invested medical specialty, with 956 AI-enabled devices approved to date.

Owing to the availability of multidimensional databases and recent algorithmic advancements, AI offers tremendous potential to overcome current obstacles in oncology research and practice. AI applications in oncology span multiple domains, such as data analytics, medical imaging, clinical decision support and genomics, collectively enabling a more personalized and effective approach to cancer management.

Our Top Three Picks

Each of the companies listed below carries a Zacks Rank #3 (Hold), supported by favorable growth outlook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stryker

Mako SmartRobotics, a robotic-assisted surgery platform, is a cornerstone of Stryker’s AI exposure. The system combines preoperative CT-based planning, real-time intraoperative data and advanced analytics to improve implant placement accuracy in knee and hip procedures. With more than 2 million procedures completed and record installations in 2025, Mako adoption is accelerating, creating a recurring revenue stream through implants, consumables and service. 

SYK continues to advance its pipeline, with the launch of its fourth-generation Mako system — Mako 4 — a single robotics platform delivering additional applications and innovation. Additionally, Mako Spine and Mako Shoulder join the company’s SmartRobotics suite of applications, which are expected to open entirely new growth verticals. Hospitals investing in Mako benefit from improved surgical precision and patient outcomes, making it a platform that drives long-term implant demand. This robotics-led ecosystem strengthens customer loyalty and raises barriers for competitors.

Stryker has a projected earnings growth rate of 11.2% for 2025, higher than the industry’s 10.3% growth. The company has a favorable current cashflow rate of 12.9% compared with the industry’s 3.4%. SYK’s return on equity is 24.7% against the industry’s -5.6%. 

Stryker Corporation Price, Consensus and EPS Surprise

Stryker Corporation price-consensus-eps-surprise-chart | Stryker Corporation Quote

Tempus AI 

Tempus is developing and deploying a suite of advanced AI algorithms and diagnostic software that run on its multimodal data. These algorithms span beyond oncology, including digital pathology, radiology, cardiology and neuropsych. It began a collaboration with Northwestern University’s Abrams Center to harness AI for rapid discovery and innovation in Alzheimer’s disease research. The collaboration leverages Tempus’ AI-powered data analytics platform, Lens, to analyze and restructure the center’s repository of genomic data. 

Also, the company secured two FDA 510(k) clearances — one for the updated Tempus Pixel cardiac imaging platform and another for its ECG-Low EF software, which uses AI to help identify patients with potentially low ejection fraction. Most recently, Tempus acquired Paige, an AI company specializing in digital pathology, bringing a proprietary dataset of almost 7 million clinically annotated, de-identified pathology slides to accelerate Tempus’ efforts.

Tempus has a projected earnings growth rate of 58.9% for 2025, higher than the industry’s 37% growth. The company has a favorable current cashflow rate of 267.2% against the industry’s 28.3%. TEM has a projected sales growth rate of 82.2% (for the current fiscal year) compared with the industry’s 3.6% growth.

Tempus AI, Inc. Price, Consensus and EPS Surprise

Tempus AI, Inc. price-consensus-eps-surprise-chart | Tempus AI, Inc. Quote

GE HealthCare 

GE HealthCare collaborates with NVIDIA NVDA to leverage NVIDIA’s offerings and expertise in physical AI, high-performance computing and simulation — an approach that has the potential to reduce manual tasks, enhance patient comfort and alleviate radiologist burnout through AI-powered assistance. 

GEHC and NVIDIA are collaborating to address some of the most pressing challenges in medical imaging and diagnostics with solutions aimed at shortening scan times, enhancing diagnostic clarity and improving clinical workflows. Several GE HealthCare innovations showcase how NVIDIA’s technology is being leveraged to advance medical imaging. These include Vivid Pioneer, the company’s most advanced ultra-premium, adaptive cardiovascular ultrasound system to date. 

Another key example is Pristina Recon DL, GE HealthCare’s advanced 3D mammography reconstruction solution and the first to combine deep learning with ASIR reconstruction, delivering high-quality digital breast tomosynthesis images while maintaining a low patient radiation dose.

GE HealthCare has a projected sales growth rate of 4.3% for 2025 compared with the industry’s flat growth. The company has a favorable current cashflow rate of 9.7% compared with the industry’s 3.4%. GEHC’s return on equity is 22.5% against the industry’s -5.6%. 

GE HealthCare Technologies Inc. Price, Consensus and EPS Surprise

GE HealthCare Technologies Inc. price-consensus-eps-surprise-chart | GE HealthCare Technologies Inc. Quote

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