In this article, we will discuss the 10 Best Medical Technology Stocks to Invest In.Medical technology, or MedTech, companies ensure that the broader healthcare industry has the tools needed to diagnose, treat, monitor, or prevent medical conditions. In other words, the firms bridge the gap between healthcare and engineering. The MedTech space matured into a separate global industry in the early 1990s after shifting from a collection of small divisions and specialists of electronics giants. It has since the ...

Core Insights - Resmed Inc. reported adjusted earnings per share (EPS) of $2.81 for Q2 fiscal 2026, reflecting a 15.6% year-over-year increase and surpassing the Zacks Consensus Estimate by 4.59% [2] - The company's total revenue for the quarter reached $1.42 billion, marking an 11% year-over-year growth, also exceeding the Zacks Consensus Estimate by 2.30% [3] Revenue Performance - Revenues from the Sleep and Breathing Health segment increased by 11.6% year over year to $1.26 billion, with Devices revenues at $726.2 million, up 8.5% [5] - The Masks and other category generated $529.7 million, up 16.1% year over year, driven by strong growth in both the U.S. and international markets [6] - The Residential Care Software segment saw a revenue increase of 6.6% year over year, totaling $166.9 million [7] Margin and Profitability - The adjusted gross profit rose 17.3% to $890.5 million, with an adjusted gross margin of 62.6%, reflecting a 340 basis point expansion [8] - The adjusted operating profit for the quarter was $521.2 million, up 19.6% year over year, with an adjusted operating margin of 36.6%, expanding by 263 basis points [10] Financial Position - At the end of Q2 fiscal 2026, Resmed had cash and cash equivalents of $1.42 billion, an increase from $1.38 billion at the end of Q1 [11] - The cumulative net cash provided by operating activities was $797.1 million, compared to $634.2 million in the same period last year [11] - The company paid out $88 million in dividends and repurchased 704,000 shares for $175 million during the quarter [12] Strategic Developments - Resmed received FDA clearance for its Personalized Therapy Comfort Settings, marketed as Smart Comfort, aimed at enhancing CPAP comfort settings and improving patient adherence [15] - The performance of the Residential Care Software segment is bolstered by contributions from the Medifox DAN software vertical, targeting sustainable growth [14]

Core Viewpoint - ResMed's financial performance exceeded expectations for Q2 of FY2026, but the stock price experienced slight fluctuations post-announcement due to ongoing market concerns regarding medium to long-term competitive variables [2]. Revenue Growth Breakdown - The growth in the quarter was driven by multiple business lines rather than a single blockbuster product: - Sleep devices serve as the core entry point for new patients - Masks and accessories provide high margins and stable repeat purchases [3]. Financial Performance - Quarterly revenue reached $1.42 billion, representing an 11% year-over-year increase - GAAP net profit was $393 million, up 13.9% year-over-year - GAAP EPS was $2.68, while adjusted EPS was $2.81, significantly above market expectations [4]. Product and Service Insights - The CPAP and bi-level ventilators continue to see increased volume, with the AirSense series being the primary revenue source [5]. - Digital health services are positioned as tools for patient engagement and adherence [6]. Regulatory and Product Developments - ResMed received FDA approval for the Smart Comfort personalized treatment solution, which is not described as a "disruptive innovation" but rather as a complementary solution to enhance patient comfort and long-term adherence [7]. - The growth in masks and consumables is supported by the increasing installed base of devices, which is crucial for the company's long-term profitability [8]. Company Background - ResMed, headquartered in San Diego, is a key player in the sleep apnea treatment sector, focusing on outpatient long-term management scenarios, which are closely tied to patient adherence [10]. Market Dynamics - Demand for sleep apnea treatment remains characterized by low diagnosis rates and a high potential patient population - Supply-side challenges are anticipated in the coming years, although these factors were not reflected in the current quarter's financial report or included in the company's formal guidance [11]. Industry Observations - The significance of ResMed's quarterly results lies not in whether they beat expectations, but in the broader implications for the industry [12]. - Other competitors are returning to the market, and there are potential impacts from new drug treatment pathways - The sustainability of ResMed's device, consumables, and digital services combination in the face of increasing competition remains a key question [13].

Industry Overview - The Zacks Medical - Products industry is facing challenges due to tariffs imposed by the U.S. on trading partners, impacting margins for companies like GE HealthCare, Baxter, and Abbott [1] - Medical device makers are experiencing rising commodity and manufacturing costs post-COVID-19, particularly in consumer-facing areas like Nutrition, leading to price hikes that may constrain volume due to increased price sensitivity among consumers [2] - The industry's profitability is under strain from tariff-related expenses and persistent component shortages, which create inefficiencies and constrain output [7] Trends and Innovations - Industry players are mitigating challenges through product innovation and the adoption of AI and digital services, with the rise of GLP-1 medication acting as a tailwind for certain medical device areas [3] - The market for remote patient monitoring platforms is projected to reach $57 billion by 2030, driving margin expansion and shifting profit pools from hardware to data-driven services [9] - The U.S. market is shifting from inpatient hospital settings to Ambulatory Surgery Centers (ASCs) and home-based monitoring, with the ASC market expected to reach $205 billion by 2030 [10] Company Performance - Boston Scientific (BSX) is positioned for strong growth driven by demand across its diversified product portfolio, with a commitment to over 10% growth over the next three years [29] - ResMed is experiencing strong momentum with 11% top-line growth in Q2 fiscal 2026, driven by rising demand for CPAP therapy and the adoption of GLP-1 drugs [35][36] - Phibro Animal Health Corporation (PAHC) is benefiting from the integration of the Zoetis Medicated Feed Additive portfolio, contributing $80.5 million in sales in Q1 fiscal 2026, and expects favorable net price impacts to improve profitability [42] Financial Outlook - The Zacks Consensus Estimate for BioLife Solutions (BLFS) indicates a 16.4% revenue growth for 2026, with earnings expected to grow by 38.1% [27] - Boston Scientific's revenue for 2026 is estimated at $22.32 billion, projecting an 11.3% growth, with EPS expected to improve by 13.5% [32] - ResMed's revenue for fiscal 2026 is pegged at $5.58 billion, indicating an 8.5% growth, with EPS expected to rise by 15% [39] - PAHC's revenue for fiscal 2026 is estimated at $1.47 billion, projecting a 13.1% growth, with EPS expected to improve by 32.1% [46]

Core Viewpoint - ResMed, a maker of sleep-breathing devices, is launching a global doctor education program to promote the screening of patients seeking Ozempic-style weight loss drugs for sleep apnea [1] Group 1: Company Initiatives - ResMed plans to implement a global education program aimed at doctors to enhance awareness and screening for sleep apnea among patients using GLP-1 receptor agonists like Ozempic [1] - The initiative reflects ResMed's commitment to addressing the intersection of weight loss treatments and sleep health [1] Group 2: Industry Context - The rise in popularity of Ozempic and similar weight loss drugs has prompted a need for increased screening for sleep apnea, as these medications can impact respiratory health [1] - The program aims to educate healthcare providers on the importance of screening for sleep apnea in patients who are prescribed these weight loss medications [1]

Company Overview - ResMed is a $37 billion company that positions itself as a "36-year-old startup" in the sleep and breathing health sector [1] - The company is the leading provider in over 140 countries, holding a market share of 50–60% in sleep apnea devices, including CPAP machines and masks [1] Investment Perspective - The company is focused on identifying undervalued stocks with a strong emphasis on balancing risk and reward [1] - There is a belief that the best investment ideas are often the simplest, and a contrarian approach may yield better results [1]

Company Overview - ResMed is a $37 billion company that positions itself as a "36-year-old startup" in the sleep and breathing health sector [1] - The company is the leading provider in over 140 countries, holding a market share of 50–60% in sleep apnea devices, including CPAP machines and masks [1] Investment Perspective - The company is focused on identifying undervalued stocks with a favorable risk-reward profile, emphasizing limited risks and potential for decent to high upside [1] - The belief is that the best investment ideas are often the simplest, with a contrarian approach being favored [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - ResMed Inc reported second-quarter fiscal 2026 adjusted earnings of $2.81, exceeding the consensus estimate of $2.72 [1] - Quarterly sales rose 11% year over year to $1.42 billion, surpassing the consensus estimate of $1.396 billion [1] - Sales increased 9% on a constant currency basis, driven by higher demand for sleep devices, masks, and accessories [1] - Residential Care Software revenue grew by 5% on a constant currency basis [1] Product Development - In December 2025, the FDA cleared ResMed's Personalized Therapy Comfort Settings (PTCS) for marketing as Smart Comfort, the first AI-enabled medical device for obstructive sleep apnea patients [2] - Smart Comfort is set to launch in early 2026 in a limited U.S. beta version for new users of the myAir app, with a broader rollout planned later in 2026 [3] Financial Performance - Gross margin increased by 320 basis points to 61.8%, driven by manufacturing and logistics efficiencies [3] - Adjusted gross margin rose by 310 basis points to 62.3% [3] - Adjusted operating income increased 19% to $517.2 million [4] Future Outlook - ResMed anticipates revenue growth at a high single-digit rate over the next five years, with earnings expected to outpace revenue growth [5] Analyst Reactions - Analysts from William Blair support the bull thesis for ResMed, projecting strong double-digit EPS growth of +15% this year [6] - Stifel raised the price forecast from $260 to $265, while Wells Fargo increased it from $265 to $270, and Piper Sandler from $270 to $275 [7] - ResMed shares were down 2.33% at $251.62 as of the last check on Friday [7]

In Canada and Latin America, constant-currency device sales increased 8% and masks and other sales increased 16% , which management attributed to growth in both resupply and new patient setups, as well as incremental revenue from the VirtuOx acquisition completed in the fourth quarter of fiscal 2025.Excluding revenue from the Residential Care Software (RCS) business, Sandercock said sales in the U.S., Canada and Latin America rose 11% (and 6% on a constant currency basis). Globally, on a constant currency b ...