Over the past year, shares of Globus Medical GMED and Medtronic MDT have gained 46.1% and 7.6%, respectively, significantly outperforming the industry’s 9.6% decline. U.S. medical stocks offer strong structural growth prospects driven by an aging global population, rising chronic disease prevalence and rapid technological integration.
Given these positives, Globus Medical posted revenue growth of 27% year over year in the first quarter. Medtronic experienced 9.9% year-over-year revenue growth in the fiscal fourth quarter.
It is time for investors to assess whether this momentum can extend through 2026. Let’s find out.
The Case for GMED
Globus Medical is taking share in Musculoskeletal Solutions, supported by broad-based growth across its core categories. In the first quarter of 2026, U.S. Spine marked its third straight quarter of 10% growth, with double-digit growth cited across standard fixation, minimally invasive surgery pedicle screws, expandable transforaminal lumbar interbody fusion, anteriorlumbar interbody fusion, posterior cervical and cervical plating.
International Spine also grew 16.4% in the first quarter. Trauma revenues increased 30.4%, aided by continued adoption of the core trauma line and the Precice limb lengthening portfolio, with ANTHEM Elbow continuing to exceed expectations.
The company continues to invest in R&D and product cadence as core part of its competitive positioning. In the first quarter of 2026, R&D expenses were 4.8% of sales, with management expecting it to be 5-6% of net sales for the full year, with spend ramping methodically through the year as product efforts progress.
Its early FDA 510(k) clearances for patient-specific lumbar spacers and rods reinforced its roadmap of linking planning software, enabling technologies and implants into one workflow. This launch activity complements the broader post-merger strategy of compressing development timelines and keeping the portfolio fresh across spine and orthopedics.
Globus Medical ended the first quarter of 2026 with $560.9 million of cash and cash equivalents and $68.9 million of short-term marketable securities. The company remains debt-free, which preserves the capacity to fund R&D, sales-force investments and manufacturing expansion without relying on external financing. Liquidity is also being replenished internally, with $202.4 million of operating cash flow generated in the quarter. This supports continued capital spending and buybacks alongside ongoing integration work.
The Case for MDT
Within Medtronic’s Medical Surgical portfolio, growth is supported by Hugo robotic-assisted surgery, Touch Surgery, Endoscopy and Acute Care & Monitoring. Surgical & Endoscopy rose 3.5% organically in the fourth quarter, with Hugo contributing as procedure volumes expanded globally.
Acute Care & Monitoring grew 10.5% organically in the fourth quarter, driven by Nellcor pulse oximetry, respiratory and airway products, and perioperative offerings. Management expects MedSurg growth to normalize in fiscal 2027, but the portfolio enters the year with broader robotics and digital capabilities.
Also, the company submitted Hugo to the FDA for general surgery and gynecologic indications, as well as for the LigaSure RAS vessel sealer. It received FDA clearance for ProGrip Advanced, a mesh optimized for robotic-assisted ventral hernia repair. Touch Surgery installations exceeded 1,400 and increased more than 30% sequentially, adding a digital layer to the robotics ecosystem.
Medtronic exited fiscal 2026 with $9.2 billion in cash and investments compared with $8.38 billion at the end of the fiscal third quarter. On the debt side, the company issued $1.75 billion of long-term debt and repaid $2.93 billion during fiscal 2026, while current debt obligations increased $9 million on a net basis.
Medtronic returned $4.2 billion to shareholders in fiscal 2026 and raised its quarterly dividend to $0.72 per share for the first quarter of fiscal 2027, marking the 49th consecutive year of dividend increases. The balance sheet position gives the company room to support tuck-in deals in coronary, neurovascular, neuromodulation and EP imaging while maintaining shareholder returns.
Valuation: GMED vs. MDT
Globus Medical currently trades at a forward, one-year, price-to-sales (P/S) of 3.55X, higher than its median. Medtronic’s 2.67X P/S sits below its median. Additionally, Globus Medical trades expensive than Medtronic.
Short Term Price Target Favors GMED Over MDT
GMED: Based on short-term price targets offered by 12 analysts, the average price target of $109.83 represents an increase of 29.75% from the last closing price.
MDT: Based on short-term price targets offered by 25 analysts, the average price target of $96.96 represents an increase of 20.42% from the last closing price.
End Note
Both Globus Medical and Medtronic are well positioned to benefit from long-term growth trends in musculoskeletal and medical technology markets, but they offer different investment profiles.
Globus Medical stands out for its strong execution in Spine and Trauma, robust product innovation pipeline, debt-free balance sheet and disciplined investment in R&D, positioning it as a higher-growth company. Meanwhile, Medtronic benefits from greater scale and a diversified portfolio, supported by expanding robotic-assisted surgery capabilities, digital surgery platforms and a long track record of shareholder returns through dividends and capital allocation.
For investors, Globus Medical, currently carrying a Zacks Rank #2 (Buy), appears to be the stronger choice, given that it has outperformed Medtronic over the past year. However, for investors seeking a more discounted entry, Medtronic, carrying a Zacks Rank #4 (Sell) at present, may offer deeper value but with meaningfully higher risk. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Medtronic PLC (MDT): Free Stock Analysis Report
Globus Medical, Inc. (GMED): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research