Medtronic vs. Thermo Fisher: Which Healthcare Turnaround Offers More Upside?
Noor Ul Ain Rehman
Mon, August 24, 2026 at 4:23 AM GMT+5:30
4 min read
- MDT
+1.14% - TMO
+0.27%
Turnarounds in the healthcare sector do not all look the same. Some companies recover because management executes better, launches stronger products, and improves operations, while others do so because the industries they serve begin improving after prolonged downturns
Medtronic (NYSE:MDT) and Thermo Fisher Scientific (NYSE:TMO) are two of healthcare’s most closely watched recovery stories, but they are being driven by very different forces. The question for investors is whether Medtronic’s (NYSE:MDT) internally driven turnaround or Thermo Fisher’s (NYSE:TMO) improving end markets offer the stronger long-term opportunity
Bull Case
The latest results reinforce that Medtronic’s (NYSE:MDT) turnaround is beginning to translate into measurable financial performance. The company reported its highest annual revenue growth in a decade, suggesting that years of investment in new technologies are beginning to gain traction
Furthermore, Medtronic’s (NYSE:MDT) cardiac segment is emerging as one of the most prominent growth drivers for the company, as the Cardiac Ablation Solutions revenue rose 78% globally, including 124% U.S. growth. Several of the company’s newer product launches are beginning to contribute meaningfully to growth, helping strengthen its competitive position in several high-growth markets. It is also heavily investing in innovation and M&A, along with targeted investments in high-growth segments such as ICE catheter technology.
While Medtronic’s (NYSE:MDT) recovery is being driven by internal execution and product innovation, Thermo Fisher’s (NYSE:TMO) outlook increasingly depends on improving customer spending across the life sciences industry. What stood out most from Thermo Fisher’s (NYSE:TMO) quarter was the breadth of the recovery across its life sciences businesses. Management highlighted improving customer activity across pharmaceutical and biotechnology markets, while multiple operating segments returned to healthy growth. That is an important distinction because broader participation across business segments suggests customer spending is becoming healthier rather than merely stabilizing in one niche.
Another encouraging development was the return to growth in Analytical Instruments, a business that had faced weak demand for nearly two years as biotechnology funding slowed. Its return to growth provides another indication that laboratory spending is beginning to normalize. While one quarter does not establish a trend, sustained improvement in this segment would strengthen the case that the industry’s post-pandemic downturn is easing
