The medical technology landscape in 2026 is defined by a ruthless pivot toward high-margin, minimally invasive innovations. On January 6, 2026, AngioDynamics (ANGO) released a financial report that signaled the company is no longer just “surviving” its multi-year strategic transformation—it is beginning to thrive within its new skin. As of January 9, 2026, the ANGO stock price sits at $9.86, reflecting a period of intense post-earnings volatility despite a significant fundamental “beat.”
This deep-dive report deconstructs the AngioDynamics stock narrative, examining the friction between its robust operational performance and its current market valuation. By analyzing the ANGO Financial Report, we uncover a company at an inflection point: where a legacy “medical device” manufacturer is successfully emerging as a “Med Tech” innovator.
Financial Architecture: Breaking Down the Q2 Beat and Margin Expansion
The AngioDynamics Earnings for the second fiscal quarter of 2026 (ended November 30, 2025) provided a blueprint of institutional resilience. The company reported net sales of $79.4 million, an 8.8% increase compared to the prior-year period. While 8.8% might appear modest in the software-as-a-service world, in the high-stakes realm of vascular and oncology hardware, this represents significant market share capture.
Profitability and the EBITDA Inflection
The most critical takeaway from the ANGO Financial Report was the “breakeven” adjusted earnings per share. Wall Street had braced for a loss of $0.10 per share, making the $0.00 adjusted EPS a 100% positive surprise. This profitability milestone was powered by a surge in Adjusted EBITDA, which nearly doubled year-over-year to $5.9 million.
The anatomy of this profit surge is found in the Gross Margin expansion. ANGO delivered a GAAP gross margin of 56.4%, a 170-basis-point improvement over the previous year. This wasn’t merely a result of higher prices; it was the product of a “favorable mix.” In the Med Tech world, “mix” is code for selling more high-margin, proprietary tech like Auryon and NanoKnife and less commodity-grade tubing.
The Cash Flow Frontier
For small-cap medical stocks, cash is the oxygen of innovation. AngioDynamics ended the quarter with $41.6 million in cash and equivalents, essentially debt-free. More importantly, the company generated $4.7 million in positive cash flow during the quarter. In a high-interest-rate environment, the ability of ANGO stock to fund its own R&D without returning to the equity markets for dilutive capital raises is a massive competitive moat.
Segment Analysis: The Tale of Two Divisions
To understand the AngioDynamics stock value proposition, one must look at the two distinct engines under the hood: the high-growth “Med Tech” segment and the stable, cash-generating “Med Device” segment.
Med Tech: The Growth Engine (Auryon, AlphaVac, NanoKnife)
The Med Tech segment is the primary reason for the bullish ANGO stock price targets seen from specialized healthcare analysts. This segment grew 13.0% to $35.7 million this quarter.
- Auryon Peripheral Atherectomy: This laser technology is the crown jewel, growing 18.6% to $16.3 million. It is systematically taking share in the peripheral artery disease (PAD) market due to its unique ability to treat all plaque types without the risk of vessel wall damage common in mechanical alternatives.
- Mechanical Thrombectomy (AlphaVac & AngioVac): While AngioVac saw some seasonal softness, the AlphaVac system—a large-bore suction cannula—is seeing rapid adoption, with revenue growing over 40%.
- NanoKnife (Irreversible Electroporation): NanoKnife revenue rose 22.2%. The excitement here isn’t just the current revenue but the regulatory tailwinds. Effective January 1, 2026, a new CPT Category 1 Code for prostate tissue ablation became active, which simplifies reimbursement for physicians.
Med Device: The Strategic Support
The Med Device segment, often overshadowed by its flashier sibling, grew 5.6% to $43.8 million. This segment provides the scale and manufacturing base that supports the overall corporate infrastructure. Management actually raised the growth guidance for this segment from “flat” to 0%–1%, indicating that the divestitures of legacy portfolios (like the PICC and Midline businesses in previous years) have left behind a leaner, more efficient core.
Business Strategy: Product Planning and Market Expansion
The 2026 strategy for ANGO stock is built on “Regulatory Velocity.” The company isn’t just selling products; it is building clinical evidence that forces the hand of insurers and hospital systems.
The Clinical Pipeline as a Catalyst
During the Q2 earnings call, management highlighted several FDA milestones that will dictate revenue in 2027 and 2028:
- AlphaReturn IDE Approval: The FDA gave the green light for the APEX-Return study, evaluating a blood management system used with AlphaVac. This allows for blood to be returned to the patient after a clot is removed, significantly reducing procedural risks.
- AngioVac for Endocarditis: The PAVE clinical study received IDE approval to evaluate AngioVac for right-sided infective endocarditis. This opens a specialized, high-reimbursement market where few competitors exist.
International Market Penetration
Market expansion for AngioDynamics stock is increasingly global. Pro-forma international revenue grew 8.8% to $11.8 million. The company has moved away from low-margin distributor models in Europe toward direct-sales models, which captured an additional $1.4 million in EBITDA this quarter alone. By controlling the sales channel, ANGO ensures that its complex Med Tech platforms are marketed correctly to specialist surgeons.
Important Events: The Bard Settlement and Leadership Transition
Two non-financial events will have a lasting impact on the ANGO stock price.
- Litigation Resolution: The quarter marked the conclusion of the final outstanding item of the long-running patent litigation with C.R. Bard. Clearing this legal cloud allows the company to refocus management energy and legal budgets toward product development.
- Executive Stability: Amidst a broader industry trend of “CEO churn,” Jim Clemmer’s steady hand at AngioDynamics has provided a consistent vision through the divesting of legacy assets and the build-up of the Med Tech portfolio.
Price Outlook: Is ANGO Undervalued?
Following the AngioDynamics Earnings, the company raised its full-year 2026 revenue guidance to $312 million–$314 million (up from $308M–$313M). Despite this, the ANGO stock price has faced technical pressure, falling from pre-market highs of $13.85 down toward the $10 range.
This disconnect creates a classic “Value Gap.” ANGO trades at a Price-to-Sales (P/S) ratio of roughly 1.3x, while its peers in the medical equipment industry trade at an average of 3.1x.
The Bull Case for ANGO Stock
The bull case is simple: the market is valuing ANGO as a commodity medical device company, ignoring the fact that its revenue is increasingly coming from high-margin, patented, proprietary technology. If ANGO continues to deliver double-digit Med Tech growth, it will eventually command a “Med Tech Multiple” (typically 3x–5x P/S).
The Bear Case for ANGO Stock
The primary risk remains the Tariff Impact. Management warned of a $4M–$6M impact from tariffs in fiscal 2026. If geopolitical trade tensions escalate, these costs could eat into the hard-won margin gains. Additionally, while the company is cash-flow positive, it still records a GAAP net loss due to the depreciation of its massive manufacturing overhaul.
Investment Verdict: Buy or Sell?
For the growth-oriented investor with a 12-to-18-month horizon, the AngioDynamics stock represents a high-conviction BUY.
The current ANGO stock price of $9.86 does not reflect a company that is debt-free, cash-flow positive, and leading the market in laser atherectomy and irreversible electroporation. The “breakeven” earnings reported on January 6 were the “proof of concept” for the transformation. As the NanoKnife prostate reimbursement kicks in throughout 2026 and the AlphaVac line extensions hit the market, we expect the stock to re-test its one-year analyst price targets, which average $19.33—representing a nearly 100% upside.
AngioDynamics is no longer the “distressed” asset it was in 2023. It is a lean, innovative, and clinical-evidence-driven machine. Investors who buy the current dip are getting a front-row seat to one of the most successful turnarounds in the Med Tech sector.