As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the surgical equipment & consumables - diversified industry, including Zimmer Biomet (NYSE: ZBH) and its peers.

The surgical equipment and consumables industry provides tools, devices, and disposable products essential for surgeries and medical procedures. These companies therefore benefit from relatively consistent demand, driven by the ongoing need for medical interventions, recurring revenue from consumables, and long-term contracts with hospitals and healthcare providers. However, the high costs of R&D and regulatory compliance, coupled with intense competition and pricing pressures from cost-conscious customers, can constrain profitability. Over the next few years, tailwinds include aging populations, which tend to need surgical interventions at higher rates. The increasing integration of AI and robotics into surgical procedures could also create opportunities for differentiation and innovation. However, the industry faces headwinds including potential supply chain vulnerabilities, evolving regulatory requirements, and more widespread efforts to make healthcare less costly.

The 5 surgical equipment & consumables - diversified stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.1%.

Thankfully, share prices of the companies have been resilient as they are up 8.9% on average since the latest earnings results.

Best Q1: Zimmer Biomet (NYSE: ZBH)

With a history dating back to 1927 and a presence in over 100 countries worldwide, Zimmer Biomet (NYSE: ZBH) designs and manufactures orthopedic products including knee and hip replacements, surgical tools, and robotic technologies for joint reconstruction and spine surgeries.

Zimmer Biomet reported revenues of $2.09 billion, up 9.3% year on year. This print exceeded analysts’ expectations by 0.9%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and a narrow beat of analysts’ full-year EPS guidance estimates.

"We are off to a solid start to the year — strategically, operationally and financially," said Ivan Tornos, Chairman, President and CEO of Zimmer Biomet.

Zimmer Biomet pulled off the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 1.3% since reporting and currently trades at $91.35.

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

CONMED (NYSE: CNMD)

With over five decades of experience in surgical innovation since its founding in 1970, CONMED (NYSE: CNMD) develops and manufactures medical devices and equipment for surgical procedures, specializing in orthopedic and general surgery products.

CONMED reported revenues of $317 million, down 1.3% year on year, outperforming analysts’ expectations by 2.1%. The business had a strong quarter with a beat of analysts’ EPS estimates and a narrow beat of analysts’ full-year EPS guidance estimates.

CONMED achieved the biggest analyst estimate beat in the group. The market seems happy with the results as the stock is up 18.7% since reporting. It currently trades at $42.68.

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

Slowest Q1: STERIS (NYSE: STE)

With a mission critical role in preventing healthcare-associated infections, STERIS (NYSE: STE) provides infection prevention products, sterilization services, and medical equipment that help healthcare facilities and life science companies maintain sterile environments.

STERIS reported revenues of $1.59 billion, up 7.3% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a narrow beat of analysts’ full-year EPS guidance estimates but a miss of analysts’ EPS estimates.

STERIS delivered the weakest performance against analyst estimates among its peers. Interestingly, the stock is up 6.1% since the results and currently trades at $214.07.

Read our full analysis of STERIS’s results here.

BD (NYSE: BDX)

With a history dating back to 1897 and a presence in virtually every hospital around the globe, Becton Dickinson (NYSE: BDX) develops and manufactures medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions and professionals worldwide.

BD reported revenues of $4.71 billion, up 5.2% year on year. This number topped analysts’ expectations by 0.8%. Overall, it was a satisfactory quarter as it also put up a narrow beat of analysts’ full-year EPS guidance estimates.

The stock is up 8% since reporting and currently trades at $156.36.

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

Solventum (NYSE: SOLV)

Founded in 1985, Solventum (NYSE: SOLV) develops, manufactures, and commercializes a portfolio of healthcare products and services addressing critical customer and therapeutic patient needs.

Solventum reported revenues of $2.01 billion, down 3.1% year on year. This print surpassed analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also logged a beat of analysts’ EPS estimates and a narrow beat of analysts’ full-year EPS guidance estimates.

Solventum had the slowest revenue growth in the group. The stock is up 13% since reporting and currently trades at $78.01.

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

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.