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The fourth-quarter 2025 earnings season is underway, with several companies in the MedTech sector already releasing their numbers. According to the latest Earnings Preview, quarterly results of the Medical sector are projected to be dull, impacted by the worldwide macroeconomic headwinds, including geopolitical tensions, tariff-related challenges and healthcare labor shortages. At the same time, the sector is expected to have benefited from the rising demand for medical products and services, AI-powered advancements, and improved diagnosis enabled by robotic systems and data analytics.
Going by the broader Medical sector’s scorecard, 11.7% of the companies in the sector, constituting 26% of its market capitalization, reported earnings till Jan. 23. Earnings declined 15.5% year over year on revenue growth of 10.3%. Of the total index members, 42.9% reported a beat on earnings and revenues.
Overall, fourth-quarter earnings of the Medical sector are expected to decline 2.4% despite 8.7% revenue growth. This compares with the third-quarter earnings increase of 4.4% on revenue growth of 10.4%. Based on the latest trends, the Medical sector is one of the seven sectors predicted to earn less in the fourth quarter of 2025 compared with the year-ago period.
Major industry players like Boston Scientific BSX, Align Technology ALGN, STERIS plc STE and Bio-Techne Corp. TECH are set to report results tomorrow.
Cutting-edge innovation is likely to have remained at the forefront of the MedTech sector, helping companies capture market share for significantly improving patient outcomes. Rapid adoption of AI-enabled diagnostics and instruments, particularly in oncology, neuroscience and cardiovascular areas, is expected to have favored fourth-quarter revenues. Intuitive Surgical’s fourth-quarter 2025 results benefited from the rising demand for da Vinci 5, its most advanced, multiport robotic-assisted surgical system. The growing adoption of safe and personalized solutions likely generated a stronger revenue stream. Abbott’s Diabetes Care business delivered $2 billion in fourth-quarter 2025 sales of continuous glucose monitors (CGMs), reflecting 15% year-over-year reported growth.
Medical companies are increasingly targeting fast-growing, emerging markets and underpenetrated regions to capture a broader customer base. Those involved in clinical laboratory services, such as Labcorp and Quest Diagnostics, are likely to have gained from broader test menus addressing early disease detection. The growing dynamic of Ambulatory Surgery Centers (ASCs) is also driving strong demand for a wide range of cost-effective medical product offerings.
Strategic acquisitions are likely to have supported MedTech performance by diversifying product portfolios and creating new growth opportunities. At the same time, macro trends such as an aging population, higher prevalence of diseases, and growing healthcare awareness have been fueling even more innovation and investment in this space, which should positively reflect in fourth-quarter results.
Yet, the industry faces persistent challenges from a heightened geopolitical environment, supply-chain disruptions driving up costs for labor and raw materials, and a shortage of freight and healthcare workers. Changes in U.S. trade policies, tariffs and retaliatory actions from other countries are likely to have weighed heavily on MedTech companies, creating profitability pressures in the fourth quarter.
Boston Scientific: In the fourth quarter of 2025, the company’s MedSurg segment is expected to have maintained solid sales momentum. Growth in the Neuromodulation unit may have been supported by the Pain franchise, while strong adoption of the Intracept procedure is also likely to have persisted. Further, WATCHMAN is expected to have been a key contributor to revenues, with robust U.S. concomitant procedure uptake likely helping to expand its market share.
(Read more: Will Robust MedSurg Performance Fuel Boston Scientific's Q4 Earnings?)
The Zacks Consensus Estimate for the company’s fourth-quarter adjusted earnings stands at 78 cents per share, implying an 11.4% rise year over year. The Zacks Consensus Estimate for revenues is pegged at $5.27 billion, suggesting an improvement of 15.4% from the prior-year quarter’s reported number.
During the fourth quarter, the company’s shares fell 0.6% compared with the industry’s 7.7% decline.
Per our proven model, a stock with the combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates. This is not the case here, as you can see below. You can see the complete list of today’s Zacks #1 Rank stocks here.
BSX has an Earnings ESP of 0.00% and a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Boston Scientific Corporation price-eps-surprise | Boston Scientific Corporation Quote
Align Technology: In the fourth quarter of 2025, the company’s Clear Aligner segment is likely to have benefited from higher volumes, particularly across the EMEA, APAC and Latin American regions. Favorable contributions from Invisalign First, DSP touch-up cases, Invisalign Palatal Expander, retention, including DSP, as well as continued mix shift from non-comprehensive Clear Aligner products, may have boosted revenues. Meanwhile, the Systems and Services segment is expected to have gained from increased scanner services and exocad CAD/CAM sales.
(Read more: Here's How Align Technology Is Placed Ahead of Q4 Earnings)
The Zacks Consensus Estimate for Align Technology’s fourth-quarter earnings per share (EPS) suggests a 22.5% increase year over year to $2.99. The Zacks Consensus Estimate for revenues currently stands at $1.03 billion, indicating 3.9% growth compared with the year-ago period.
During the fourth quarter, the stock climbed 22.4% compared with the industry’s 9.7% growth.
ALGN has an Earnings ESP of -1.62% and a Zacks Rank #2.
Align Technology, Inc. price-eps-surprise | Align Technology, Inc. Quote
STERIS: In the third quarter of fiscal 2026, the company is likely to have experienced organic revenue growth within the Applied Sterilization Technologies (“AST”) segment. In Healthcare, STERIS maintains confidence in recurring revenue streams and backlog strength, which should be reflected in the results. Fiscal third-quarter order growth is expected to have remained robust within Healthcare capital equipment.
(Read more: STERIS' Q3 Earnings on Deck: What's in Store for the Stock?)
The Zacks Consensus Estimate for STERIS’ fiscal third-quarter EPS suggests a 9.1% increase to $2.53. The Zacks Consensus Estimate for revenues indicates 8% year-over-year growth to $1.48 billion.
Meanwhile, during the third quarter, the company's shares rose 5.1% compared with the industry’s 12.9% growth.
STE has an Earnings ESP of 0.00% and a Zacks Rank #3.
STERIS plc price-eps-surprise | STERIS plc Quote
Bio-Techne: In the second quarter of fiscal 2026, the company’s revenues may have been positively impacted by the proteomic analytical tool business, supported by notable strength from large pharmaceutical customers. The protein analytical instrumentation business is likely to have continued to demonstrate strong momentum. However, ongoing macroeconomic uncertainties around tariffs and potential NIH budget cuts could add to uncertainty for customers and temporarily slow down the growth trajectory in the second quarter.
(Read more: Bio-Techne's Q2 Earnings on Deck: What's in Store for the Stock?)
For the fiscal second quarter, the Zacks Consensus Estimate for Bio-Techne’s earnings suggests a 2.4% increase to 43 cents per share. The Zacks Consensus Estimate for revenues is pegged at $292 million, indicating a 1.7% year-over-year decrease.
Meanwhile, during the second quarter, the company's shares dropped 1.9% against the industry’s 10% growth.
TECH has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
Bio-Techne Corp price-eps-surprise | Bio-Techne Corp Quote
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This article originally published on Zacks Investment Research (zacks.com).
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