MedTech Stocks' Earnings to Watch on May 1: BDX, CAH, BAX, DXCM & SYK

By Harshit Gupta | April 30, 2025, 10:54 AM

This earnings season so far has reflected a continued recovery in sales for companies within the Medical sector. Earnings have increased year over year, albeit at a slower pace than revenues. Inflationary headwinds, supply-chain challenges and labor shortages, however, continued for the sector, hurting the bottom line amid recovering demand for medical products and services. Per the latest Earnings Preview, 15% of the companies in the Medical sector, comprising 33.8% of the sector’s market capitalization, reported earnings till April 23. Of these, 77.8% beat earnings estimates and surpassed revenue estimates. Earnings increased 4.7% year over year on 9.4% higher revenues.

This scorecard highlights the Medical sector’s continued resilience amid an uncertain macroeconomic environment. Throughout the first quarter, the companies saw rising demand for surgery-related procedures. However, most players in the industry were reeling under continued inflationary pressure across the world. Mounting raw material costs, labor-supply constraints and supply-chain disruptions hampered the entire production and distribution process. Meanwhile, an increase in the prices of products and services is likely to have aided the Medical sector.

Overall, the Medical sector's first-quarter earnings are expected to improve 35%, while sales are expected to increase 7.8%. This compares with the fourth-quarter 2024 reported earnings increase of 13.4% and revenue growth of 9.4%.

Medical Device Quarterly Synopsys

The medical device industry commenced 2025 with robust growth, propelled by sustained demand for advanced healthcare solutions and the normalization of elective procedures. Leading companies reported significant revenue increases, driven by innovations in diabetes care and diagnostic imaging. The global market is projected to reach $1.3 trillion by 2029, fueled by technological advancements such as AI-powered diagnostics and real-time monitoring wearables.

However, the sector faces notable challenges. Persistent semiconductor shortages have disrupted the production of critical devices like pacemakers and insulin pumps, leading to extended lead times and increased costs. Additionally, the industry grapples with workforce shortages, particularly in areas requiring expertise in AI and robotics, which hampers innovation and operational efficiency.

Trade tensions have further complicated the landscape. The reinstatement of U.S.-China tariffs under the Trump administration has imposed significant costs on medical device manufacturers. Tariffs on imports of medical-grade metals, polymers, and electronics from China have disrupted supply chains, leading to higher operational costs and potential shortages. Approximately 75% of U.S.-marketed medical devices are manufactured abroad, making the industry particularly vulnerable to such trade policies. In response, companies are diversifying suppliers and investing in domestic manufacturing, while also advocating for tariff exemptions to mitigate the impact on patient care.

Overall, the rebound in the base business through the months of the first quarter is expected to have been impressive. Medical Device companies like Becton Dickinson and Company BDX, Cardinal Health CAH, Baxter International BAX, DexCom Inc. DXCM and Stryker Corporation SYK are likely to have shown improvement in revenues.

Let’s take a look at the MedTech players scheduled to announce results on May 1.

Becton Dickinson and Company: BD is expected to report strong second-quarter fiscal 2025 results, supported by solid performance across its three core segments. In the BD Medical division, revenue growth is projected to be 16.3% year over year, fueled by broader adoption of the BD PIVO Pro Needle-free Blood Collection Device and continued progress in Connected Care and Advanced Patient Monitoring, including FDA clearance for the HemoSphere Alta Monitor and new smart sensors. The BD Life Sciences segment may face a slight revenue dip of 1.3% year over year. However, the adoption of fingertip blood testing and rising momentum for the FDA-approved BD Onclarity HPV Assay—driven by updated screening guidelines and improved reimbursement—are likely to support demand. Meanwhile, the BD Interventional segment continues to expand its footprint in advanced tissue regeneration, with key regulatory approvals and clinical trials underway, suggesting sustained product uptake and steady revenue contribution. (Read more: Can Sustained Product Demand Drive BDX Stock Before Q2 Earnings?)

Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates.

BDX is not likely to beat earnings estimates in the upcoming release as it has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Becton, Dickinson and Company Price

Becton, Dickinson and Company Price

Becton, Dickinson and Company price | Becton, Dickinson and Company Quote

Cardinal Health: CAH is expected to report steady performance in its Pharmaceutical and Specialty Solutions segment for the third quarter of fiscal 2025, supported by strategic acquisitions and strong market demand. The recent integration of Integrated Oncology Network (ION) into its Navista platform and the completed majority acquisition of GI Alliance (GIA) are likely to have contributed to segmental growth and expanded CAH’s multi-specialty reach. These moves align with the company’s broader strategy to enhance patient care and strengthen its specialty services. Additionally, continued robust pharmaceutical demand across brand, specialty, generics, and consumer health categories is expected to have further supported revenues. However, the lingering impact of a key customer contract expiration may have partially offset these gains, with the full benefit of acquisitions likely to materialize more prominently toward the end of the fiscal year. (Read more: Can Sustained Product Demand Drive CAH Stock Before Q3 Earnings?)

CAH is likely to beat earnings estimates in the upcoming release as it has an Earnings ESP of +0.54% and a Zacks Rank #3.

Cardinal Health, Inc. Price

Cardinal Health, Inc. Price

Cardinal Health, Inc. price | Cardinal Health, Inc. Quote

Baxter International: BAX is expected to report moderate first-quarter 2025 growth, supported by operational recovery and easing macroeconomic pressures. Continued momentum in infusion therapies—particularly the Novum IQ platform—alongside recovering sales of IV solutions post-Hurricane Helene and strength in Advanced Surgery and parenteral nutrition products are likely to have driven the Medical Products & Therapies segment, with estimated 6.6% sales growth at constant currency. The Pharmaceuticals segment likely showed improvement as injectable drug sales rebounded with strong demand and new launches, though margins may remain pressured. While the Healthcare Systems & Technologies segment may have faced softness in international markets and U.S. primary care, resilience in patient support systems and new product rollouts in Frontline Care could have offset some weakness. With one-time costs largely behind and operations streamlined post-divestitures, Baxter appears positioned for improved bottom-line performance. (Read more: Will BAX's Q1 Earnings Improve Following Transformation Completion?)

BAX has an Earnings ESP of 0.00% and a Zacks Rank #3.

Baxter International Inc. Price

Baxter International Inc. Price

Baxter International Inc. price | Baxter International Inc. Quote

DexCom: DexCom’s outlook for the first quarter of 2025 remains promising, fueled by multiple growth drivers, including expanded U.S. prescriber coverage, a stabilizing Durable Medical Equipment channel, and strong international performance. The company’s U.S. sales force expansion and balanced channel strategy are expected to have contributed to higher adoption, while international growth, particularly in markets like Australia, France, and Japan, is likely to continue its positive momentum. The launch of Stelo, a non-insulin over-the-counter continuous glucose monitor, has seen strong initial demand and is positioned to further accelerate growth, especially in the prediabetes and Type 2 diabetes markets. DexCom’s ongoing expansion of reimbursement coverage and FDA approval for the 15-day G7 CGM could provide long-term boosts to both adoption and sales. With a solid cash position and a full-year revenue guidance of $4.6 billion, DexCom is well-positioned for growth and margin expansion throughout 2025. (Read more: DXCM Q1 Earnings to Reflect U.S. Coverage Expansion & Stelo Impact?)

DXCM has an Earnings ESP of 0.00% and a Zacks Rank #3.

DexCom, Inc. Price

DexCom, Inc. Price

DexCom, Inc. price | DexCom, Inc. Quote

Stryker Corporation: Stryker's first-quarter 2025 performance is expected to show strong growth, driven by solid U.S. market demand across multiple segments, including Instruments, Medical, Endoscopy, Trauma and Extremities, and Mako. International sales are also likely to have contributed positively, despite ongoing challenges in China due to volume-based procurement policies and rising tariffs. The company’s MedSurg and Neurotechnology segment is expected to continue its strong performance, bolstered by growth in surgical technologies and orthopedic implants. New product launches, including SurgiCount+ and the Oculan Lighting Platform, along with the successful commercialization of the Pangea Plating system and LIFEPAK defibrillator, are likely to have further supported sales. Acquisitions like Vertos Medical, Care.ai, and NICO Corporation are expected to add to the company’s portfolio, providing additional growth drivers. Stryker’s efforts to manage inflationary pressures and achieve improved pricing are likely to have benefited its gross margins, while U.S. and international sales are projected to reach $4.74 billion and $1.59 billion, respectively.

SYK has an Earnings ESP of -0.58% and a Zacks Rank #4 (Sell).

Stryker Corporation Price

Stryker Corporation Price

Stryker Corporation price | Stryker Corporation Quote

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


 
Becton, Dickinson and Company (BDX): Free Stock Analysis Report
 
Baxter International Inc. (BAX): Free Stock Analysis Report
 
Stryker Corporation (SYK): Free Stock Analysis Report
 
Cardinal Health, Inc. (CAH): Free Stock Analysis Report
 
DexCom, Inc. (DXCM): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Latest News