European Medtech & Services Q1 26 Wrap: Share price performance was as bad as it felt

Research evidence excerpt

European Medtech & Services Q1 26 Wrap: Share price performance was as bad as it felt

J P M O R G A N Europe Equity Research

29 May 2026

European Medtech & Services

Q1 26 Wrap: Share price performance was as bad as it

felt

Q1 share price performance for the sector was as bad as it felt: -15% for Q1, ranking European Medical Technologies &

in the worst five performances for the sector in the last 20 years (and worse than Services

any quarter during COVID). This was not the end. Q1 reporting would at best be David Adlington AC

described as underwhelming, with perception generally of increasing risk to FY (44-20) 7134-5828

guidance as a result of: 1) slower Q1 than expected; and 2) the Middle East conflict, david.adlington@jpmorgan.com

and more specifically the impact on input cost inflation. As a result, Q2 sector Anchal Verma

performance is already -7%. (44-20) 3493-6144

anchal.verma@jpmorgan.com

Philip S OmnouSo far, share price performance has been worse than the downgrades, i.e. we have

(44-20) 3493-5648

seen further sector de-rating (Fig 2). We have to go back to 2001 to get back to philip.omnou@jpmorgan.com

similar ratings relative to the market. J.P. Morgan Securities plc

We’d like to say this is a buying opportunity, but we think it is still too early. Fig Specialist Sales contact details:

1 illustrates that rising inflation is the biggest challenge for the sector and can weigh Marjan Daeipour - Specialist Sales -

on share price performance for some time – three straight quarters of double-digit European Healthcare

falls in 2022, as the Street continues to capture margin headwinds into forecasts. (44 20) 7134-1329

marjan.daeipour@jpmorgan.com

The longer the Middle East situation remains unresolved, the more inflation