US MedTech: 2Q26 Preview: In a Holding Pattern, Jumping from 2Q26 to 2H26+

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US MedTech: 2Q26 Preview: In a Holding Pattern, Jumping from 2Q26 to 2H26+

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08 Jul 2026 05:00:00 ET │ 76 pages

US MedTech

2Q26 Preview: In a Holding Pattern, Jumping from 2Q26 to 2H26+

CITI'S TAKE

Joanne Wuensch AC

As we prepare for 2Q26 we find investors looking forward, not just to the 2Q +1-212-816-9606

or 2H but to 2027+, as we move from diagnosing the patient to healing it. joanne.wuensch@citi.com

Instead of evaluating what has gone wrong with MedTech the focus has

shifted to what could go right, particularly at these valuations. Yes, we Anthony Occhiogrosso

expect the 2Q26 earnings calls to focus on the usual suspects: patient +1-212-816-7579

volumes, hospital capex, macro-economic challenges, as well as anthony.occhiogrosso@citi.com

idiosyncratic company-specific headwinds, and while we don’t think 2Q26

will assuage these concerns, it could create a holding pattern from which to Jane-Marie Lai

build. For the quarter, given the skittish trading environment, we prefer +1-212-816-3628

higher-quality stocks that may be positioned for a catch-up trade, thus our janemarie.lai@citi.com

Top Picks are ABT, DXCM, and SYK, removing EW and ISRG. We are also

opening a Positive Catalyst Watch on GEHC and ISRG and a Negative Nikhil Guddeti

Catalyst Watch on HAE. +1-212-816-2606

nikhiltej.guddeti@citi.com

Opening a Positive CW on GEHC and ISRG; Negative CW on HAE — 1) GEHC has

traded sideways since 1Q26 earnings as it wades through idiosyncratic and

macroeconomic challenges, dialing in a $250M inflation headwind, and with

investor expectations particularly low even an in-line quarter could be a positive; 2)

ISRG has been pressured YTD given concerns regarding instrument reprocessing,

extended-use instruments, potential ACA related procedure volume impacts, and