Key Highlights

  • Penumbra reported the fastest sales growth of the three larger names at 15.6%, to $410.1 million, while diluted EPS fell to $1.07 from $1.17.
  • Stryker reported net sales of $6.5 billion, up 7.7%, and set 2026 adjusted EPS guidance of $14.80 to $14.90.
  • Merit Medical Systems reported an Operating Margin of 14.1%, up from 11.1%, on sales of $416.2 million.
  • Pro-Dex reported fiscal first quarter sales of $20.6 million and Backlog of $43.1 million, and Alphatec reported Revenue of $221.2 million.
  • Calculated, Merit's selling, general and administrative ratio fell 2.5 points while Penumbra's rose 2.2 points.

What did MedTech companies report in their latest earnings?

Five medical technology companies reported results for the quarter ended September 30, 2026, and revenue grew at all five. Stryker (NYSE:SYK) reported net sales of $6.5 billion, up 7.7%, with reported EPS of $1.96 and adjusted EPS of $3.52. Penumbra (NYSE:PEN) reported revenue of $410.1 million, up 15.6%, with diluted EPS of $1.07.

Merit Medical Systems (NASDAQ:MMSI) reported sales of $416.2 million, up 8.4%, and Net Income of $0.70 per diluted share. Pro-Dex (NASDAQ:PDEX) reported fiscal 2027 first quarter net sales of $20.6 million, up 11%, with EPS of $0.92. Alphatec (NASDAQ:ATEC) reported revenue of $221.2 million, up 13%. Revenue growth ranged from 7.7% at Stryker to 15.6% at Penumbra.

Stryker: Why Did Reported EPS Trail Adjusted EPS by $1.56?

Stryker's reported EPS of $1.96 sits $1.56 below adjusted EPS of $3.52, a gap calculated from the two reported figures. The largest item was a $293 million Goodwill impairment, worth $0.76 per share. Special charges tied to the sale of the Spinal Implants Business and other actions added $0.20 per share, and amortization of purchased intangibles added $0.37.

Sales growth came mainly from unit volume. Endoscopy grew 13.9% to $1,021 million and Ortho Tech grew 15.8% to $754 million, while hips declined 1.0%. Nine-month net sales were $19,129 million, up 6.6%, and nine-month adjusted EPS was $9.81 against $9.16. Stryker repurchased $1.0 billion of stock in the quarter, and in October 2026 the board approved a $3.0 billion increase to its repurchase program.

Penumbra: Why Did EPS Fall as Revenue Grew 15.6%?

Penumbra's thrombectomy revenue rose 18.1% to $279.2 million, and gross margin edged up to 68.3% from 67.8%. Selling, general and administrative expense rose 20.9% to $204.2 million, including a $7.1 million increase in acquisition-related costs. U.S. revenue rose 17.9% to $324.2 million, or 79.1% of the total, and the company described prices as substantially unchanged, so growth came from volume.

Income before taxes rose to $56.3 million from $52.3 million, but the effective tax rate was 24.9% against 12.4%, so net income fell to $42.3 million from $45.9 million. Under a Merger agreement signed January 14, 2026, Boston Scientific (NYSE:BSX) would acquire Penumbra at an Enterprise value of about $14.5 billion, with closing expected in early 2027.

Merit Medical Systems: How Did Operating Margin Reach 14.1%?

Merit's gross margin slipped to 48.2% from 48.5%, which the company tied to unfavorable price variances and higher freight costs. Selling, general and administrative expense fell to 28.7% of sales from 31.2%, helped by lower legal fees and integration costs, and Research and Development fell 6.6% to $22.4 million.

Operating income rose to $58.8 million from $42.6 million. Therapeutic sales grew 14.0%, led by Endoscopy up 32.9%, while Procedural Solutions fell 15.9% after the DualCap product line was sold. Net income was $42.3 million against $27.8 million. Merit completed the View Point Acquisition on April 1, 2026, and the filing gives no numerical outlook.

Pro-Dex: Why Did Net Income Fall 35% on Higher Operating Income?

Pro-Dex's Operating Income rose to $3.5 million from $3.1 million on gross margin of 33% against 29%. Net income nevertheless fell to $3.0 million, or $0.92 per diluted share, from $4.7 million, or $1.40, a decline of about 35% on a calculated basis.

The gap came from other income, which contributed $3.1 million a year earlier, helped by unrealized gains on an Equity investment, and was a net expense of $136 thousand this year. Medical device sales rose 21% to $17.4 million while repair revenue fell 44% to $2.1 million on fewer repairs of the legacy handpiece. Operating Cash Flow was $6.5 million, up from $2.3 million. A supplier delaying shipments of a finish used on the next generation handpiece promised to resume by mid-November 2026.

Alphatec: How Did Operating Income Turn Positive?

Alphatec's revenue of $221.2 million compares with $196.5 million, while cost of sales rose only 6% to $62.9 million. On a calculated basis, Gross Profit was about $158.2 million, or 71.5% of revenue, against about 69.9% a year earlier.

Litigation-related expenses were $6.5 million against a $5.9 million Credit a year ago, and selling, general and administrative expense rose 7% to $132.5 million. The result was a calculated operating income of about $3.2 million, against a calculated loss of about $15.9 million.

How do medtech growth and margins compare across the five?

These figures are calculated from reported numbers.

  • Revenue growth gap: Penumbra's 15.6% is 7.9 points above Stryker's 7.7% (calculated).
  • Expense ratios: Merit's selling, general and administrative ratio fell 2.5 points to 28.7%, while Penumbra's rose 2.2 points to 49.8% (calculated).
  • Penumbra's pre-tax income rose about 7.6%, while net income fell about 7.8% as the tax rate rose 12.5 points (calculated).
  • Alphatec's gross margin widened about 1.6 points to 71.5% (calculated).

Stryker's 2026 adjusted EPS range of $14.80 to $14.90, less nine-month adjusted EPS of $9.81, implies fourth quarter adjusted EPS of about $4.99 to $5.09 (calculated).

What to Watch Next: Guidance, Closings and Supply Dates

Stryker expects 2026 organic net sales growth of 6.5% to 7.0%, and its fourth quarter implied range is above. Penumbra's merger with Boston Scientific is expected to close in early 2027, subject to regulatory approvals, and further merger costs may appear in expenses.

Merit's OneMark system began commercial sales in the third quarter, with wider availability planned through 2026 and 2027. Pro-Dex expects its supplier to resume shipments by mid-November 2026, and $42.4 million of its $43.1 million backlog is scheduled for delivery in the rest of fiscal 2027. Alphatec's filing points to continued Investment in its surgeon base and sales force.