Nortech Medical Sales Jump 36% as CapsoVision Tracks 176K Patients

For health systems and gastroenterology networks, CapsoVision's renewals with M Health Fairview, Henry Ford, University of Colorado Anschutz, and Providence Swedish signal that capsule endoscopy is becoming a standard option for small bowel imaging. Nortech's 36% medical device growth and its key customer stocking program indicate manufacturers are investing in supply assurance and shorter lead times. These Q2 results suggest healthcare capital and diagnostic demand remain a bright spot amid broader industrial softness.

The Q2 2026 earnings season delivered three distinct reports across medical device manufacturing, capsule endoscopy, and professional services. Nortech Systems (NASDAQ:NSYS) reported net sales of $33.5 million, up 9.3% year over year from $30.7 million, with gross profit increasing to $5.7 million from $4.8 million and gross margin expanding 120 basis points to 17.0%. The company's medical device segment was the standout, growing 36% year over year, while medical imaging rose 12.2%. Industrial sales declined 4.7% due to customer inventory adjustments and manufacturing transfers to Monterrey, Mexico, and aerospace/defense fell 12.8% in the quarter, though that segment remains up 8.7% year to date. CapsoVision (NASDAQ:CV) reported Q2 revenue of $3.6 million, up approximately 10% from $3.3 million a year earlier, driven by a 13% increase in CapsoCam Plus capsule sales partially offset by a roughly 3% decline in average selling prices. The company shipped 8,845 capsules versus 7,856 in the prior-year period, and surpassed 176,000 cumulative patients imaged as of June 30, 2026, a 23% increase from more than 143,000 a year earlier. Andersen Group (NYSE:ANDG) reported revenue of $217.7 million, up 23.7% year over year and above its prior guidance of $190 million to $205 million, with organic growth of 20.6% and first-half revenue of approximately $458 million, up 19.4%.

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Andersen Group (NYSE:ANDG) reported revenue of $217.7 million, up 23.7% year over year and above its prior guidance of $190 million to $205 million, with organic growth of 20.6% and first-half revenue of approximately $458 million, up 19.4%.

The common thread across these reports is bifurcation: healthcare-related demand remains resilient while certain industrial and defense markets face inventory destocking. Nortech's medical device growth of 36% and medical imaging growth of 12.2% reflect higher demand from existing customers and continued ramp-ups of new programs. Management specifically cited a stocking program with a key customer designed to improve product availability and shorten lead times. By contrast, industrial sales fell 4.7% as customers worked through inventory and Nortech transferred manufacturing activity to Monterrey, and aerospace/defense declined 12.8% because one customer reduced post-COVID inventory levels. Yet backlog growth and restructuring benefits from late 2024 and early 2025 supported results. Higher incentive and stock-based compensation expenses, however, limited operating income to just $623,000, underscoring that gross margin improvement at 17.0% remains thin for a contract manufacturer.

CapsoVision's results highlight sustained adoption of capsule endoscopy in gastroenterology. The company renewed relationships with M Health Fairview University of Minnesota Medical Center, Henry Ford Hospital, the University of Colorado Anschutz Medical Campus, and Providence Swedish. Notably, Providence Swedish made CapsoCam the most-used capsule in Washington state hospitals. The 13% increase in capsule sales and 12.6% increase in units shipped (8,845 versus 7,856) came despite a 3% decline in average selling prices, suggesting volume growth and competitive pricing dynamics. International expansion includes a dedicated commercial organization in Germany, and management is advancing artificial intelligence software rollout and development programs for colon and upper gastrointestinal applications, which could materially expand the addressable market beyond small bowel imaging.