The global medical supplies industry is projected to reach $163.5 billion by 2027, growing at a CAGR of 3.4% from 2022 to 2027, driven by resilient healthcare utilization, rising specialty care demand, and increased adoption of digital technologies. Major companies like McKesson, Cardinal Health, West Pharmaceutical Services, Align Technology, and Henry Schein appear well-positioned to benefit from these trends, despite facing challenges such as tariff-related costs and macroeconomic uncertainty.
As of the second half of 2026, steady patient volumes and investing in technology are evident within the industry. Specialty pharmaceuticals are projected to drive over $50 billion in revenues for Cardinal Health in fiscal 2026, while McKesson and West Pharmaceutical Services anticipate revenue improvements of 7.3% and 8.4%, respectively, from prior fiscal years. The current operating environment remains complex, with pricing changes and high inflation impacting profitability.
In terms of stock performance, the medical supplies industry has gained 10.2% over the past year, outperforming its sector’s 9.6% increase but lagging behind the S&P 500’s surge of 24.2%. The industry currently trades at a forward price-to-earnings multiple of 16.83X, indicating a valuation below the S&P 500’s 21.23X and the sector’s 21.07X.
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