Key Highlights

  • Penumbra posted the quickest sales growth among the three larger names, at 15.6% to $410.1 million, although diluted EPS slipped to $1.07 from $1.17.
  • Stryker recorded net sales of $6.5 billion, a 7.7% increase, and issued 2026 adjusted EPS guidance of $14.80 to $14.90.
  • Merit Medical Systems delivered an Operating Margin of 14.1%, versus 11.1% a year earlier, on sales of $416.2 million.
  • Pro-Dex generated fiscal first quarter sales of $20.6 million with a Backlog of $43.1 million, while Alphatec booked Revenue of $221.2 million.
  • Calculated, Merit's selling, general and administrative ratio dropped 2.5 points while Penumbra's climbed 2.2 points.

What Results Did MedTech Companies Post in Their Latest Quarter?

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

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

Stryker: What Explains the $1.56 Distance Between Reported and Adjusted EPS?

Stryker's reported EPS of $1.96 is $1.56 under adjusted EPS of $3.52, a gap calculated from the two reported figures. The biggest contributor was a $293 million Goodwill impairment, equal to $0.76 per share. Special charges linked to the sale of the Spinal Implants Business and other actions contributed $0.20 per share, and amortization of purchased intangibles contributed $0.37.

Most of the sales growth came from higher unit volume. Endoscopy rose 13.9% to $1,021 million and Ortho Tech rose 15.8% to $754 million, while hips fell 1.0%. Nine-month net sales reached $19,129 million, up 6.6%, and nine-month adjusted EPS was $9.81 versus $9.16. Stryker bought back $1.0 billion of stock during the quarter, and in October 2026 its board approved a $3.0 billion increase to the repurchase program.

Penumbra: Why Did EPS Decline Even With 15.6% Revenue Growth?

Penumbra's thrombectomy revenue grew 18.1% to $279.2 million, and gross margin inched up to 68.3% from 67.8%. Selling, general and administrative expense climbed 20.9% to $204.2 million, including a $7.1 million rise in acquisition-related costs. U.S. revenue increased 17.9% to $324.2 million, or 79.1% of the total, and the company characterized prices as substantially unchanged, which means growth came from volume.

Income before taxes increased to $56.3 million from $52.3 million, yet the effective tax rate reached 24.9% compared with 12.4%, pulling net income down to $42.3 million from $45.9 million. Under a Merger agreement signed January 14, 2026, Boston Scientific (NYSE:BSX) would buy Penumbra at an Enterprise value of about $14.5 billion, with closing expected in early 2027.

Merit Medical Systems: What Lifted Operating Margin to 14.1%?

Merit's gross margin eased to 48.2% from 48.5%, a shift the company attributed to unfavorable price variances and higher freight costs. Selling, general and administrative expense declined to 28.7% of sales from 31.2%, aided by lower legal fees and integration costs, and Research and Development dropped 6.6% to $22.4 million.

Operating income increased to $58.8 million from $42.6 million. Therapeutic sales rose 14.0%, driven by Endoscopy up 32.9%, while Procedural Solutions declined 15.9% after the DualCap product line was sold. Net income reached $42.3 million versus $27.8 million. Merit finished the View Point Acquisition on April 1, 2026, and the filing offers no numerical outlook.

Pro-Dex: Why Did Net Income Drop 35% Even as Operating Income Rose?

Pro-Dex's operating income grew to $3.5 million from $3.1 million on a gross margin of 33% versus 29%. Net income nonetheless declined to $3.0 million, or $0.92 per diluted share, from $4.7 million, or $1.40, a drop of about 35% on a calculated basis.

The difference traces to other income, which contributed $3.1 million a year earlier, aided by unrealized gains on an Equity investment, but produced a net expense of $136 thousand this year. Medical device sales climbed 21% to $17.4 million, while repair revenue dropped 44% to $2.1 million because fewer legacy handpieces were repaired. Operating Cash Flow reached $6.5 million, up from $2.3 million. A supplier that is delaying shipments of a finish used on the next generation handpiece has promised to resume them by mid-November 2026.

Alphatec: How Did Operating Income Move Into Positive Territory?

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

Litigation-related expenses totaled $6.5 million, compared with a $5.9 million Credit a year ago, and selling, general and administrative expense grew 7% to $132.5 million. The outcome was a calculated operating income of about $3.2 million, versus a calculated loss of about $15.9 million.

How Do Growth and Margins Line Up Across the Five Medtech Companies?

These figures are derived from reported numbers.

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

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

What to Watch Next: Outlook, Deal Timing and Supply Dates

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

Merit's OneMark system entered commercial sales in the third quarter, with broader availability planned across 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 during the rest of fiscal 2027. Alphatec's filing signals ongoing Investment in its surgeon base and sales force.