ANGO's FY27 Guidance Puts Med Tech Growth and Tariff Risks in Focus

AngioDynamics, Inc. ANGO has set an initial fiscal 2027 framework that keeps its Med Tech transformation at the center of the investment case. Faster growth from its priority platforms is expected to lift sales, but margin pressure and continued losses remain material constraints.

The outlook therefore shifts attention from whether demand is improving to how efficiently ANGO can convert that demand into earnings. Tariffs, clinical spending and flat Med Device revenues will test that conversion during the year.

ANGO’s FY27 Sales Outlook Signals Steady Growth

Management expects fiscal 2027 revenues of $336 million to $341 million, implying growth of about 5%-6.5% from fiscal 2026. The range points to continued expansion, though at a slower rate than the 9.4% pro forma increase recorded last year.

The forecast depends on Med Tech offsetting an expected lack of growth in Med Device. With the mature segment projected to remain flat, execution across the higher-growth platforms will determine whether ANGO reaches the upper end of guidance.

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Med Tech Should Lead ANGO’s Expansion

Med Tech revenues are projected to rise 12%-15% in fiscal 2027 after increasing 18.4% to $150 million in fiscal 2026. The segment represented 47% of annual revenues and 48% in the fiscal fourth quarter, showing how quickly the company’s mix is shifting.

NanoKnife, Auryon and AlphaVac provide the main support. Fiscal fourth-quarter NanoKnife revenues climbed 64.5%, Auryon rose 14.4% and AlphaVac advanced 38.4%. Boston Scientific Corporation BSX also competes across peripheral atherectomy and thrombectomy, while Medtronic plc MDT markets peripheral thrombectomy devices. Those portfolios reinforce the need for ANGO to sustain clinical differentiation and commercial execution.

Tariffs Could Cap ANGO’s Gross Margin

Fiscal 2026 tariff expenses totaled approximately $4.8 million and reduced gross margin by about 151 basis points. Management expects a broadly similar tariff impact in fiscal 2027 based on the current trade environment.

Gross-margin guidance of 54%-55% suggests that benefits from a richer Med Tech mix may be partly absorbed by tariffs, manufacturing costs and inflation. The midpoint would show little change from fiscal 2026’s 54.6%, limiting one of the clearest routes to faster earnings improvement.

Loss Guidance Clouds ANGO’s Earnings Path

ANGO expects an adjusted loss of 24-29 cents per share in fiscal 2027 despite the higher revenue forecast. That range indicates that stronger platform sales may not produce near-term bottom-line improvement.

Research and development, sales and marketing investments remain necessary to support trials, physician adoption and commercialization. These expenses can expand future opportunities, but they also delay operating leverage when gross-margin gains are modest.

Clinical Milestones Could Reshape ANGO’s Outlook

The APEX-Return pivotal study is evaluating AlphaReturn with AlphaVac in acute pulmonary embolism, while the PAVE feasibility study is assessing AngioVac in right-sided infective endocarditis. NanoKnife’s RELIEF study extends the platform into benign prostatic hyperplasia.

Positive progress could broaden addressable markets and strengthen physician acceptance. The potential benefits still depend on enrollment, trial outcomes, regulatory review, reimbursement and successful commercialization, leaving timing and financial contribution uncertain.

ANGO’s Rank Keeps the Event in Perspective

Fiscal 2027 guidance supports a steady growth case, but it does not resolve the earnings-conversion challenge. Med Tech momentum must overcome flat Med Device sales, persistent tariffs and investment requirements before the outlook becomes more balanced.

The stock currently carries a Zacks Rank #4 (Sell), favoring caution as investors assess guidance execution, margins and clinical milestones.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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