Direct Answer
17 SEC filers are classified under the Standard Industrial Classification codes that describe the medical imaging equipment industry, and their latest annual reports show $57.8 billion of combined revenue and a median operating margin of -55.8%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Medical imaging equipment makers build MRI, CT, X-ray and ultrasound systems and sell them to hospitals and imaging centers with long service contracts. Orders follow hospital capital budgets and replacement cycles. The first numbers to compare across companies here are orders and backlog, service revenue share and gross margin.
Key Industry Metrics
- Orders and backlog: New orders and equipment sold but not yet delivered. They lead revenue, and delays by hospitals appear first as weaker orders.
- Service revenue share: Portion of revenue from maintenance and service contracts on installed systems. It is steadier than system sales, so a higher share reduces cyclicality.
- Gross margin: Share of sales left after cost to build and service systems. Service earns more than hardware, so mix and component costs move it.
- Installed base age: Average age of imaging systems in service. An older base points to replacement demand, though hospitals may defer purchases when budgets are tight.
- Regional mix: Split of sales among regions. Each has different budgets, reimbursement and currencies, so mix shows where orders are coming from.
Primary Macro Drivers
- Hospital capital budgets: Hospitals buy MRI and CT systems out of capital budgets, so their finances set order timing and backlog.
- Replacement cycles: Old scanners are replaced on a cycle, so a wave of replacement raises orders and then service revenue on the larger installed base.
- Procedure volumes: More scans are ordered as patients age and care expands, which lifts utilization and supports orders for new capacity.
- Technology such as photon-counting CT and AI: New scanner technology can speed scans or improve image quality, which encourages upgrades and supports higher prices.
Major Risks
- Capex delays: Hospitals delay big purchases when finances are tight, so orders and backlog fall; watch orders, book-to-bill and installed base age.
- Competition: Major rivals compete on price and service, which can lower margin on new systems; watch gross margin and win rates.
- Reimbursement: Lower payments for scans reduce what imaging centers earn and their willingness to buy; watch reimbursement proposals and orders.
- Supply chain: Shortages of parts or key materials delay shipments and raise cost; watch backlog, lead times and gross margin.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Medium |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | Global |
Medical Imaging Equipment Filers in the SEC Record
17 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 3844, 3845. Their latest fiscal years end between 2025 and 2026, and together they reported $57.8 billion of revenue. Median revenue growth over the prior year was 17.0%. Median operating margin was -55.8% and median net margin -66.8%. Median total liabilities were 46% of total assets, and 3 of 17 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Medtronic Plc | $36.4 billion | 8.4% | 17.8% | 0.0% | FY 2026 |
| Ge Healthcare Technologies Inc. | $20.6 billion | 4.8% | 13.4% | 10.1% | FY 2025 |
| Axogen, Inc. | $225 million | 20.2% | -3.5% | -7.0% | FY 2025 |
| Outset Medical, Inc. | $119 million | 5.1% | -55.8% | -68.3% | FY 2025 |
| Butterfly Network, Inc. | $98 million | 19.0% | -88.5% | -79.0% | FY 2025 |
| Ceribell, Inc. | $89 million | 36.1% | -65.6% | -60.0% | FY 2025 |
| Electromed, Inc. | $64 million | 17.0% | 15.1% | 11.8% | FY 2025 |
| Iridex Corp | $53 million | 8.2% | -4.9% | -8.4% | FY 2026 |
The 8 largest of 17 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Medical Imaging Equipment guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Medical Imaging Equipment industry?
Key performance indicators for the Medical Imaging Equipment industry include: Orders and backlog, Service revenue share, Gross margin, Installed base age, Regional mix. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Medical Imaging Equipment industry?
The Medical Imaging Equipment industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Medical Imaging Equipment industry?
The primary risks for Medical Imaging Equipment companies include: Capex delays, Competition, Reimbursement, Supply chain. Investors should assess each company's exposure to these factors and its track record of navigating them.