What does it take to be considered High-Growth in MedTech? In April, we set out to answer that question and introduced ICR Healthcare’s (“ICR-HC”) High-Growth MedTech Group 2026 in our first quarter 2026 blog here.
As a reminder, we track nearly 150 US-listed MedTech companies which we call the ICR-HC MedTech Universe1. From this Universe, we established a filtered subset we call the ICR-HC MedTech Class of 2026 (see footnotes for specific filtering criteria). The ICR-HC High-Growth MedTech Group 2026 represents the top two deciles of the Class of 2026 in terms of the expected revenue growth compound annual growth rate (CAGR) from 2025 to 2028.
For clarity, all fundamental and market-related data is sourced from ICR-HC and FactSet. We use Street estimates and actual results on a calendarized basis. Our first quarter 2026 blog reflected data as of March 9, 2026; this update reflects company and market data as of June 30, 2026. Throughout this piece, “1H’26” refers to the period from December 31, 2025 to June 30, 2026, and “Q2” refers to the period from March 31, 2026 to June 30, 2026.
Healthcare Sector Performance: Mid-2026 Update
The Healthcare sector underperformed the broader U.S. equity market in 1H’26: the S&P 500 returned 9.6% versus a 2.6% gain for the S&P 500 Healthcare Index2. In Q2, the S&P 500 returned 14.9% versus an 8.3% gain for the S&P 500 Healthcare Index. Notably, the Healthcare sector performance improved relative to the broader market in June; the S&P 500 Healthcare Index increased 6.5% compared to a (1.1%) decline in the S&P 500 Index.
At a sub-sector3 level, Pharma, Providers/Services, and Biotech increased 16.7%, 15.4%, and 12.7%, respectively, in 1H’26, materially outperforming MedTech, which declined (20.5%) over the first six months of the year.
MedTech Sector Performance: Mid-2026 Update
The ICR-HC MedTech Class of 2026 comprises 113 companies4 with at least $25 million of revenue in 2025. Median 2025 revenue for the Class of 2026 was $605 million and nearly 60% of these companies delivered positive EPS in 2025.
The Class of 2026 index declined (8.5%) in 1H’26, outperforming the iShares U.S. Medical Devices ETF (IHI)3 which declined (20.5%) in 1H’26. Relative performance between the Class of 2026 and the IHI is driven by the larger number of constituents (113 vs. 45 in the IHI), most of which have market capitalizations smaller than the IHI’s average and median.
At the median, the Class of 2026 is trading at ~2.1x 2028E revenue and is expected to grow at an 8.4% CAGR from 2025 to 2028. Street estimates for revenue growth in MedTech reflect a wide range of growth CAGRs over the next three years (see table below) with the largest group falling in the 5% – 10% CAGR range.
High-Growth MedTech Performance: Mid-2026 Update
The ICR-HC High-Growth MedTech Group 2026 (“HGMT”) represents the top two deciles (n=23) of the Class of 2026 in terms of the expected revenue growth CAGR from 2025 to 2028. Median 2025 revenue for HGMT was $85 million and only 5 of the 23 delivered positive EPS in 2025.
At the median, the HGMT is trading at ~2.7x 2028E revenue and is expected to grow at a 25.4% CAGR from 2025 to 2028. Minimum revenue CAGR in the HGMT is 18.1%, the threshold to be included. HGMT is trading at a 30% premium to the Class of 2026 on an EV/2028E revenue basis; continued evidence that MedTech valuation multiples are highly correlated with the strongest expected growth profiles.
Looking Ahead to Q3 2026
We will continue to follow the ICR-HC MedTech Universe, Class of 2026, and High-Growth MedTech Group 2026 going forward, and our next blog will feature trading and valuation performance for the third quarter of 2026. In the interim, there are many ways to examine growth and valuation in the MedTech sector including by market cap, revenue scale, or therapeutic area, among many others. If you’d like to explore how your company’s growth and valuation profile stacks up, and, more importantly, how ICR-HC can help enhance your company’s story, positioning, or investor relations strategy, please contact Mike Piccinino, CFA, IRC, Partner and Co-Head of MedTech at ICR Healthcare.
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