MedTech & HCIT: 2Q26 Chart Pack Preview: Mixed Fundamental Picture Meets Discounted Valuations

研报英文原文证据摘录

MedTech & HCIT: 2Q26 Chart Pack Preview: Mixed Fundamental Picture Meets Discounted Valuations

Goldman Sachs MedTech & HCIT

Turning to the balance of the year and guidance, we do not see meaningful risk to

top-line outlooks since most companies have not considered a meaningful acceleration

in 2026 guidance. For 2Q, we note that we project aggregated top-line organic growth

to improve marginally QoQ, but most of this relates to Stryker’s recovery from

cybersecurity disruptions in 2Q and one-time inventory timing benefits at Solventum.

Therefore, while we retain a cautious view on the direction-of-travel for macro trends,

no company has assumed end-markets improve through the year. Down the P&L, we

continue to forecast improving margins throughout the year, largely based on revenue

scale and mix. Our current estimates do place heavy emphasis on 4Q, and we would

expect EPS and/or margin upside in 2Q to be utilized as a counterbalance to 2H ramps.

We remain vigilant on raw material trends but note on a trailing 30-day basis, most key

input costs have come down (see Exhibit 6).

While a scenario where results are marginally better than expectations could support a

short-term rebound in stocks, we think a sustained turnaround for the group needs to

come from (1) more proactive capital allocation (both in boosting returns to

shareholders and growth-oriented cash use); (2) appropriate calibration of estimates for

2026 and outer years; and (3) visibility into pipeline or other drives to accelerate

performance.

Putting this all together, we continue to recommend selectivity across MedTech and

highlight stocks where not only we see upside potential in the quarter (i.e. EW, OMDA,

PODD) but also where the forward narrative (i.e. 2H26-2027+) can inflect positively,