Wrapping up Q2 earnings, we look at the numbers and key takeaways for the medical devices & supplies - specialty stocks, including Enovis (NYSE: ENOV) 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, although specialty devices are more niche. 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 7 medical devices & supplies - specialty stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.6%.

While some medical devices & supplies - specialty stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.3% since the latest earnings results.

Enovis (NYSE: ENOV)

With a focus on helping patients regain or maintain their natural motion, Enovis (NYSE: ENOV) develops and manufactures medical devices for orthopedic care, from injury prevention and pain management to joint replacement and rehabilitation.

Enovis reported revenues of $564.5 million, up 7.5% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.

Damien McDonald, Chief Executive Officer of Enovis, said, “My first 90 days have strengthened my belief that Enovis has the foundation, portfolio, and momentum to drive durable, profitable growth. Realizing this potential will require continued operational discipline and a sharp focus on scalable, capital efficient execution. We are in the early stages of unlocking the full value of our orthopedic platform, and I’m excited to lead the Company with a commitment to continue helping millions of people lead full, active lives with a focus on creating shareholder value. Our second-quarter performance reflects the strength of our diversified global portfolio and the opportunity ahead. I’m grateful to the Board and the entire Enovis team for their support and alignment on our strategy.”

Interestingly, the stock is up 21% since reporting and currently trades at $31.17.

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

Best Q2: STAAR Surgical (NASDAQ: STAA)

With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ: STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens.

STAAR Surgical reported revenues of $44.32 million, down 55.2% year on year, outperforming analysts’ expectations by 9.6%. The business had an incredible quarter with a solid beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.

STAAR Surgical scored the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.2% since reporting. It currently trades at $27.48.

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

Weakest Q2: Inspire Medical Systems (NYSE: INSP)

Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE: INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep.

Inspire Medical Systems reported revenues of $217.1 million, up 10.8% year on year, exceeding analysts’ expectations by 1.2%. Still, it was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ full-year EPS guidance estimates.

Inspire Medical Systems delivered the weakest full-year guidance update in the group. As expected, the stock is down 31% since the results and currently trades at $89.99.

Read our full analysis of Inspire Medical Systems’s results here.

Integer Holdings (NYSE: ITGR)

With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings (NYSE: ITGR) is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications.

Integer Holdings reported revenues of $476.5 million, up 11.4% year on year. This print beat analysts’ expectations by 2.6%. It was a strong quarter as it also put up an impressive beat of analysts’ organic revenue estimates and a narrow beat of analysts’ full-year EPS guidance estimates.

The stock is down 6.2% since reporting and currently trades at $108.46.

Read our full, actionable report on Integer Holdings here, it’s free.

Haemonetics (NYSE: HAE)

With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE: HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.

Haemonetics reported revenues of $321.4 million, down 4.4% year on year. This number topped analysts’ expectations by 6.6%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates.

The stock is down 27.4% since reporting and currently trades at $55.02.

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

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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