As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the medical devices & supplies - diversified industry, including Baxter (NYSE: BAX) and its peers.

The medical devices industry operates a business model that balances steady demand with significant investments in innovation and regulatory compliance. The industry benefits from recurring revenue streams tied to consumables, maintenance services, and incremental upgrades to the latest technologies. However, the capital-intensive nature of product development, coupled with lengthy regulatory pathways and the need for clinical validation, can weigh on profitability and timelines. In addition, there are constant pricing pressures from healthcare systems and insurers maximizing cost efficiency. Over the next several years, one tailwind is demographic–aging populations means rising chronic disease rates that drive greater demand for medical interventions and monitoring solutions. Advances in digital health, such as remote patient monitoring and smart devices, are also expected to unlock new demand by shortening upgrade cycles. On the other hand, the industry faces headwinds from pricing and reimbursement pressures as healthcare providers increasingly adopt value-based care models. Additionally, the integration of cybersecurity for connected devices adds further risk and complexity for device manufacturers.

The 5 medical devices & supplies - diversified stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.5% since the latest earnings results.

Best Q1: Baxter (NYSE: BAX)

With a history dating back to 1931 and products used in over 100 countries, Baxter International (NYSE: BAX) provides essential healthcare products including dialysis therapies, IV solutions, infusion systems, surgical products, and patient monitoring technologies to hospitals and clinics worldwide.

Baxter reported revenues of $2.70 billion, up 2.9% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ revenue and EPS estimates.

Baxter achieved the biggest analyst estimates beat of the whole group. The stock is up 8.5% since reporting and currently trades at $18.34.

Is now the time to buy Baxter? Access our full analysis of the earnings results here, it’s free.

Neogen (NASDAQ: NEOG)

Founded in 1981 and operating at the intersection of food safety and animal health, Neogen (NASDAQ: NEOG) develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health.

Neogen reported revenues of $211.2 million, down 4.4% year on year, outperforming analysts’ expectations by 3.4%. The business had a very strong quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 19.6% since reporting. It currently trades at $8.32.

Is now the time to buy Neogen? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Stryker (NYSE: SYK)

With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE: SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.

Stryker reported revenues of $6.02 billion, up 2.6% year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and EPS estimates.

Stryker delivered the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $318.06.

Read our full analysis of Stryker’s results here.

Boston Scientific (NYSE: BSX)

Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.

Boston Scientific reported revenues of $5.20 billion, up 11.6% year on year. This result surpassed analysts’ expectations by 0.5%. However, it was a softer quarter as it recorded revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ EPS guidance for next quarter estimates.

Boston Scientific achieved the fastest revenue growth among its peers. The stock is down 4.4% since reporting and currently trades at $56.88.

Read our full, actionable report on Boston Scientific here, it’s free.

Abbott Laboratories (NYSE: ABT)

With roots dating back to 1888 when founder Dr. Wallace Abbott began producing precise, dosage-form medications, Abbott Laboratories (NYSE: ABT) develops and sells a diverse range of healthcare products including medical devices, diagnostics, nutrition products, and branded generic pharmaceuticals.

Abbott Laboratories reported revenues of $11.16 billion, up 7.8% year on year. This print beat analysts’ expectations by 1.3%. Overall, it was a satisfactory quarter as it also recorded a narrow beat of analysts’ revenue estimates.

The stock is down 12.7% since reporting and currently trades at $88.66.

Read our full, actionable report on Abbott Laboratories here, it’s free.

Market Update

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These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

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