M&A rose, but company valuations declined in the first half of 2026 compared with the year-ago period, according to EY’s Pulse of the Industry report.

As 2026 nears a close, medical device companies made it through a bumpy year with a challenging stock market, inflation and lots of discussion about the impact of artificial intelligence.

Medtech M&A surged in 2026, but company valuations fell during the first half of the year, according to EY’s Pulse of the Industry report. Much of the dealmaking was driven by a handful of large, multibillion dollar acquisitions. Medtech firms also continued to spin out segments as they reorganize their portfolios.

Medtech M&A reached its highest level in more than a decade, according to EY, with disclosed deal value totaling about $130 billion during the 12 months ending June 30. That amount is more than triple the $39 billion reported in the same period a year ago.

Much of the total was driven by large deals valued at roughly $10 billion or more: Waters’ $17.5 billion purchase of BD’s biosciences and diagnostic solutions business in February, Abbott’s $21 billion acquisition of Exact Sciences in March, Danaher’s $9.9 billion buy of Masimo in June, and Boston Scientific’s $15.2 billion acquisition of Penumbra, which is still pending.

As a result of the large dealmaking, much of the capital raised across the first half of 2026 was fueled by debt, although venture funding remained robust, EY Global MedTech Leader John Babitt said in an interview.

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