Summary
Bernstein's review of European medical technology firms identifies a set of companies that may outperform in 2026, each for distinct operational reasons. The selection ranges from a dental market leader positioned to benefit from U.S. recovery and Chinese regulatory change, to biomanufacturing and diagnostics companies expected to capture demand from pharmaceutical spending and non-communicable disease testing. Several firms also have explicit margin roadmaps tied to product cycles, cost and capacity actions, or commercial realignments.
What Bernstein highlights - company by company
Straumann - Bernstein frames Straumann as an attractive entry point at prevailing valuations, supported by three named tailwinds through 2026. Analysts see a pickup in the U.S. market after years of muted growth, aided by lower interest rates and renewed marketing from dental corporate groups. In China, the implementation of VBP 2.0 is expected to remove a major overhang on the stock. Separately, the Smartee orthodontics partnership is highlighted as a margin lever, with the previously dilutive orthodontics business targeted to reach breakeven by 2027.
Sartorius - After COVID-era demand swings, Sartorius is exhibiting signs of normalization in pharmaceutical demand. The firm reported a positive book-to-build ratio of 1.03x and is forecast to deliver organic growth of 7.6% for the year. Bernstein points to three supporting factors for the 2026 outlook: strong industry tailwinds from pharmaceutical capex and R&D investment, a favourable shift toward higher-margin consumables across both BPS and LPS divisions, and faster deleveraging following the Polyplus acquisition.
Ambu - As the largest pure-play in single-use endoscopy globally, Ambu sits in a segment Bernstein views as fast-growing with 15-20% growth potential. The market is described as underpenetrated, with current revenue of roughly $6 billion versus a potential $50 billion addressable market. Operationally, Ambu has relocated manufacturing from Malaysia to Mexico, freeing capacity to serve accelerating U.S. demand. Management is targeting a 20% EBIT margin by FY30, rising from a 13% margin expected in FY25; analysts cited are more conservative, modeling an 18% EBIT margin by FY29.
Alcon - Alcon's case is built around the prospect of a re-rating from a weak 2025 performance, tied to a strong product cycle and recovery in end-market volumes. Cataract procedures, which account for about half of Alcon's revenues, endured six consecutive quarters of weak growth in the U.S. due to supply constraints. Bernstein notes signs that surgeons are adding operating room capacity, which could translate to volume growth. Equipment sales are expected to benefit from Unity VCS/CS upgrades, and ocular health revenues may be supported by the new dry eye drug Tryptyr.
Sonova - Trading at depressed multiples, Sonova is positioned for normalization in hearing aid volumes, particularly in the U.S. market. Bernstein highlights new product momentum - Virto R, which captured 650 basis points of share in the VA channel, and Infineo Ultra, which includes a new earwax solution - as catalysts that should help stabilize and grow volumes.
Eurofins - Positioned as a defensive play in life testing for food and environment, Eurofins has delivered sustained organic sales growth: 10% since 2018 and more than 4.5% annually over the past three years, while absorbing COVID-19 impacts. Management's current emphasis is on improving margins and returning capital to shareholders through buybacks and dividends. Bernstein cites a FY27 margin guidance of 24% and notes improvements already visible in mature segments. At a 2026 PE of 17.5x, analysts view valuation as attractive.
Demant - Demant's outlook is similarly tied to hearing aid market normalization after challenging years. Bernstein singles out product competitiveness - notably the Oticon Zeal in-the-ear offering - and expected retail synergies from the KIND acquisition as positive drivers for the company.
Carl Zeiss - Having seen margins and multiples trough in 2024 and 2025, Carl Zeiss is forecast to begin a multi-year turnaround in 2026. Three drivers are highlighted: improved microsurgery performance through deliveries of the Kinevo 900 S, growth in refractive procedure volumes in China via Visumax 800 adoption, and a commercial reorientation that places emphasis on returns and customer needs.
Siemens Healthineers - As a leader in imaging and radiotherapy, Siemens Healthineers is expected to benefit from rising demand for diagnostics and treatments of non-communicable diseases. Bernstein's model assumes average organic growth of 6.5% through 2030 and margin expansion of 310 basis points, together producing 13% adjusted EPS growth. While 2026 is described as a transition year because of tariffs, currency effects and softness in China, current valuations near historic lows imply those headwinds are largely priced in.
Sartorius Stedim - The pure-play biomanufacturing supplier is positioned to capture pharma R&D and biologics trends. Bernstein identifies U.S. capacity expansion, margin acceleration tied to volume growth, and a potential simplification of corporate structure as key 2026 catalysts for the company.
Key takeaways
- Industry recovery and product cycles underpin near-term upside across several sub-sectors - dental, hearing aids, eye care and biomanufacturing.
- Margin trajectories are central to the investment case for multiple names, driven by mix shifts to higher-margin consumables, commercial partnerships, and capacity or manufacturing relocations.
- Defensive exposure in testing and diagnostics is also highlighted, with Eurofins cited for consistent organic growth and an explicit margin and shareholder-return focus.
Risks and uncertainties
- Geographic and macro headwinds - tariffs, currency movements and softness in key markets such as China could weigh on near-term performance, as noted for some companies.
- Execution risk on margin targets and integrations - several firms rely on operational programmes, partnerships or acquisitions to drive margins and deleveraging, which may not progress as planned.
- Market penetration assumptions - names like Ambu have sizeable addressable markets relative to current revenue, but material upside depends on accelerating adoption and capacity absorption.
Conclusion
Bernstein's selection outlines a diverse set of European medtech names that each have defined operational or market levers to push returns in 2026. The common threads are mid-cycle demand recovery in several end-markets, product and equipment upgrade paths, and explicit margin improvement plans. For investors, the list offers exposure to growth areas such as biomanufacturing, diagnostics and specialty devices alongside defensive exposure in testing services. The pace and scale of recovery for each company will hinge on the execution of the cited catalysts and the macro backdrop in 2026.