Compelling Arguments for Including AngioDynamics Shares in Your Investment Portfolio at This Time

AngioDynamics: Positive Outlook Driven by Innovation and Market Expansion

AngioDynamics (ANGO) continues to benefit from the growing success of its NanoKnife technology and a strategic emphasis on cancer care markets. The company’s robust performance in the first quarter of fiscal 2026, encouraging clinical studies, and a diverse product portfolio are all contributing to investor confidence.

Over the past six months, shares of this Zacks Rank #1 (Strong Buy) company have edged up 0.3%, outperforming the broader medical services industry, which declined by 4.7%. In comparison, the S&P 500 advanced 4.2% during the same period.

As a leading innovator, manufacturer, and distributor of advanced medical, surgical, and diagnostic devices, AngioDynamics boasts a market cap of $444.3 million. The company anticipates a 59.3% increase in growth over the coming year and expects ongoing business improvements. Notably, AngioDynamics has exceeded the Zacks Consensus Estimate for earnings in each of the last four quarters, with an average earnings surprise of 82.1%.

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Key Drivers Behind AngioDynamics’ Momentum

Extensive Product Portfolio

AngioDynamics delivered a strong second quarter in fiscal 2026, fueled by impressive growth across its Med Tech platforms. The Auryon franchise stood out, generating $16.3 million in revenue—a year-over-year increase of 18.6% and marking its 18th consecutive quarter of double-digit growth. The company continues to capture market share in atherectomy, supported by deeper hospital integration, higher procedure volumes, and improved economics. Early international sales following CE Mark approval have also broadened Auryon’s market reach and reinforced confidence in its long-term prospects.

The mechanical thrombectomy segment also advanced, with revenue up 3.9% to $11 million. AlphaVac, in particular, saw growth exceeding 40% as new hospital partnerships were established and progressed through value analysis committees. While AngioVac saw a year-over-year dip due to tough comparisons, it remains positive for the year to date, and management maintains an optimistic long-term view. Regulatory milestones, including IDE approvals and expanded FDA clearances, have further enhanced the clinical value and adoption potential of these products. Meanwhile, the Med Device segment provided steady performance, posting 5.6% growth and consistent cash flow.

NanoKnife’s Role in Growth

During the second quarter of fiscal 2026, AngioDynamics reported continued momentum for its NanoKnife platform. Revenue climbed 22.2% year over year, with probe sales up 14.4%, largely due to increased use in prostate cancer procedures. The quarter set a new record for prostate procedure volumes, reflecting growing physician interest following the introduction of a CPT code for prostate ablation on January 1.

Management noted that adoption is progressing steadily, aligning with previous expectations. International distribution changes in France contributed to capital sales, but the primary growth driver remains increased procedural demand and clinical utilization. NanoKnife is well-positioned to benefit from greater awareness, improved reimbursement, and sustained physician engagement in the prostate cancer space.

Strong Second Quarter Results

AngioDynamics posted an 8.8% year-over-year revenue increase in the second quarter of fiscal 2026, reaching $79.4 million. This growth was led by the higher-margin Med Tech segment, which expanded by 13% and now represents 45% of total revenue, highlighting the company’s shift toward faster-growing business areas. Enhanced product mix, manufacturing efficiencies, and pricing strategies contributed to a 170-basis-point increase in gross margin, now at 56.4%.

Potential Challenges: Macroeconomic Pressures

During the latest earnings call, management confirmed that tariff-related expenses for the second quarter were as anticipated, maintaining their forecast of $4–$6 million in tariff costs for the full fiscal year. These ongoing expenses are expected to remain a drag on margins for the remainder of the year.

Although gross margins improved year over year, this was mainly due to pricing initiatives, tighter cost controls, and a favorable shift toward higher-margin Med Tech products, rather than any reduction in external cost pressures.

Analyst Estimate Trends

Analyst estimates for AngioDynamics’ fiscal 2026 performance have remained steady. Over the past month, the Zacks Consensus Estimate for the company’s loss has held at 27 cents per share.

For the third quarter of fiscal 2026, the Zacks Consensus Estimate projects revenue of $77.4 million, representing a 7.5% increase from the prior year. The consensus estimate for quarterly loss per share stands at 11 cents, which would be a 466.7% year-over-year decline.

Other Noteworthy Medical Stocks

• Intuitive Surgical (ISRG): Currently holding a Zacks Rank #1, Intuitive Surgical reported adjusted EPS of $2.53 for the fourth quarter of 2025, surpassing estimates by 12.4%. Revenue reached $2.87 billion, beating expectations by 4.7%. The company’s projected long-term earnings growth rate is 15.7%, outpacing the industry average of 14%. Intuitive Surgical has exceeded earnings estimates in each of the past four quarters, with an average surprise of 13.2%.
• Phibro Animal Health (PAHC): Also ranked #1 by Zacks, Phibro reported adjusted EPS of 87 cents for the second quarter of fiscal 2025, exceeding estimates by 26.1%. Revenue was $373.9 million, 4.7% above consensus. The company’s estimated long-term earnings growth rate is 21.5%, compared to the industry’s 12.6%. Phibro has beaten earnings estimates in the last four quarters, with an average surprise of 20.1%.
• Cardinal Health (CAH): With a Zacks Rank #2 (Buy), Cardinal Health posted adjusted EPS of $2.63 for the second quarter of fiscal 2026, topping estimates by 10%. Revenue was $65.6 billion, 0.9% above expectations. The company’s projected long-term earnings growth rate is 15%, ahead of the industry’s 9.1%. Cardinal Health has also exceeded earnings estimates in the last four quarters, with an average surprise of 9.3%.

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