Within the U.S.-based medical & scientific equipment industry, there used to be a big difference between the warranty costs and expense rates of the laser & X-ray manufacturers, and the manufacturers of other medical equipment. However, when GE HealthCare spun-off from the parent General Electric in 2022, it shifted the ratio of the warranty expenses of the laser & X-ray manufacturers to other medical equipment manufacturers from about 1:4 to roughly 2:3. About a decade ago, the difference between the two groups was even more distinct, at a ratio of about 1:6.

To create this newsletter, we identified 211 U.S.-based manufacturers of medical & scientific equipment that reported warranty expenses between 2003 and 2024. Of those manufacturers, 31 were makers of lasers & X-rays, and 180 were manufacturers of other medical & scientific equipment.

In the laser & X-ray industry sub-group, the largest manufacturers were: GE HealthCare Technologies Inc., Dentsply Sirona Inc., Keysight Technologies Inc., Varex Imaging Corp., Hologic Inc., and BioLase Inc.

In the other medical & scientific equipment sub-group, the largest manufacturers were: Agilent Technologies Inc., DexCom Inc., Illumina Inc., Tandem Diabetes Care Inc., National Vision Holdings Inc., Insulet Corp., ICU Medical Inc., Steris plc, Bruker Corp., Align Technology Inc., and Inogen Inc.

While GE HealthCare finalized the spin-off from General Electric in January 2023, 2022 was the first year for which we gathered data for the manufacturer, since it was the first year that the former parent GE did not include GE HealthCare's warranty expenses in its own annual report. GE HealthCare did report historical data starting in 2020, which we detailed in our March 6, 2025 newsletter "GE's Warranty Expenses by Industry."

A few major players in the industry ceased reporting in recent years, and hence are not included in these lists.

Danaher Corp. ceased reporting its warranty accruals in 2022, and ceased reporting claims costs as well in 2023. Thermo Fisher Scientific Inc. ceased reporting its warranty expenses in 2021. We don't have forthright explanations for these changes in accounting practices.

Thermo Fisher Scientific and Danaher ceasing reporting caused the warranty expense totals for the Other Medical & Scientific Equipment industry sub-group to drop over recent years. These departures contributed to the shifting ratios between the two industries, as did the spin-off of GE HealthCare from GE.

In 2021, Varian Medical Systems Inc. was acquired by the Germany-based Siemens Healthineers AG. In the same year, Hill-Rom Holdings Inc. was acquired by Baxter International Inc., which is based in the U.S., but has not reported its warranty expenses since 2005. In addition, in 2021, parts of MTS Systems Corp. were acquired by Illinois Tool Works Inc. and Amphenol Corp., neither of which is primarily engaged in the medical equipment field.

In 2022, Johnson & Johnson acquired Abiomed Inc., which now operates as a stand-alone business within Johnson & Johnson's MedTech segment. While it still trades separately on the Nasdaq, Abiomed no longer reports its warranty expenses separately. Johnson & Johnson does not publish its warranty expenses.

In 2023, Berkeley Lights Inc. and IsoPlexis Corp. merged to form PhenomeX, which was then acquired by Bruker Cellular Analysis Inc. Bruker Cellular Analysis (not to be confused with Bruker Corp.) published its warranty expenses in 2023, but not in 2024.

In February 2023, Invacare Holdings Corp. filed for Chapter 11 bankruptcy, and did not report its warranty expenses for the second, third, or fourth quarters of the year. Similarly, HTG Molecular Diagnostics Inc. filed for Chapter 11 bankruptcy in June 2023, and did not file an annual report for the year.

Cue Health Inc. filed for Chapter 7 bankruptcy in May 2024, a month after it was de-listed from the Nasdaq for failing to publish its quarterly financial results in a timely manner.

Our final change to report is that hearing aid manufacturer Eargo Inc. went private in January 2024, and did not file a 2023 annual report.

For each manufacturer, we perused their annual reports and quarterly financial statements, and gathered three key warranty metrics: the amount of claims paid, the amount of accruals made, and the end-balance of the warranty reserve fund.

In addition, we gathered data on the amount of capital equipment sold, which in this industry is usually product revenue minus consumables. Some companies were very good about segmenting their data in this way; others, not so much. Whenever possible, all service, licensing, royalties, and investment revenue was similarly subtracted. The goal was to get as close as possible to the revenue generated just from the sale of goods that carry product warranties and generate claims costs.

Using these product sales totals, we calculated two additional warranty expense rates: the amount of claims paid as a percentage of product sales (the claims rate), and the amount of accruals made as a percentage of product sales (the accrual rate).

Warranty Claims Totals

Figure 1 shows the total warranty claims paid by the two industry sub-groups within the U.S.-based medical & scientific equipment industry, from 2003 to 2024.

In the Laser & X-Ray industry sub-group, GE HealthCare paid $220 million in warranty claims in 2024, a 1% increase from 2023.

Dentsply Sirona paid $35 million in claims in 2024, a -24% decrease from the year prior. Keysight Technologies paid $27 million, a -7% decrease. Varex Imaging paid $18 million, a 37% increase. And Hologic paid $8 million in claims in 2024, a 7% increase.

In the Other Medical Equipment industry sub-group, Agilent Technologies paid $57 million in claims, a -2% decrease. DexCom paid $54 million, a 4% increase. Illumina paid $45 million, a 15% increase. Tandem Diabetes Care paid $37 million, a 12% increase. National Vision Holdings paid $35 million in claims, a -4% decrease from the year prior.

Insulet paid $20 million in claims in 2024, a -66% decrease. Insulet's warranty expenses were higher in 2023, due to a recall of one of its insulin pumps.

ICU Medical paid $20 million in warranty claims in 2024, a 47% increase from 2023. Steris paid $18 million, a 17% increase. Bruker Corp. paid $16 million, a 29% increase. Align Technology paid $13 million, a -4% decrease. And Inogen paid $10 million in claims, a -14% decrease from the year prior.

Warranty Accrual Totals

Figure 2 shows the total warranty accruals made by the U.S.-based medical & scientific equipment manufacturers, divided into two industry sub-groups, from 2003 to 2024.

GE HealthCare set aside $202 million in warranty accruals in 2024, a -6% decrease from 2023.

Dentsply Sirona set aside $32 million in warranty accruals in 2024, a -33% decrease from the year prior. Keysight Technologies accrued $22 million, a -33% decrease. Varex Imaging accrued $21 million, a 54% increase. And Hologic accrued $9 million, a 20% increase.

Among the other medical equipment manufacturers, Agilent Technologies set aside $58 million in warranty accruals in 2024, a 2% increase from the year prior. Tandem Diabetes Care set aside $49 million in warranty accruals, a 37% increase. DexCom accrued $47 million, a -8% decrease. Illumina accrued $42 million, the same amount as 2023.

National Vision Holdings accrued $35 million, a -5% decrease. Insulet accrued $24 million, a 30% increase. Align Technology accrued $22 million, a 20% increase. Bruker Corp. accrued $20 million, a 21% increase. Steris accrued $18 million, a 7% increase. Inogen accrued $12 million, a 23% increase. And ResMed Inc. accrued $12 million in 2024, a -42% decrease from the year prior.

Warranty Expense Rates

Figure 3 shows the average quarterly warranty claims and accrual rates for the X-ray & laser equipment manufacturers, from 2003 to 2024.

Over 22 years, the X-ray & laser manufacturers had an average warranty claims rate of 1.50%, with a standard deviation of 0.46%. The average warranty accrual rate was 1.52%, with a standard deviation of 0.50%.

In 2024, the average warranty claims rate was 1.25%. The quarterly averages ranged from 1.19% in the second quarter, to 1.36% in the fourth quarter.

In 2024, the average warranty accrual rate was 1.12%. The quarterly averages ranged from 1.03% in the first quarter, to 1.25% in the fourth quarter.

Figure 4 shows the quarterly average warranty expense rates for the other medical equipment manufacturers, from 2003 to 2024. The expense rates for the two industry sub-groups are shown on the same y-axis scale, for ease of comparison.

Notice the closing of the gap between the two groups, in Figures 3 and 4, over time. The averages for the X-ray & laser manufacturers have decreased over 22 years, while the expense rates for the other medical equipment manufacturers have increased in the last three years.

Over 22 years, the other medical equipment manufacturers had an average warranty claims rate of 0.66%, with a standard deviation of 0.14%. The average warranty accrual rate was 0.67%, with a standard deviation of 0.15%.

In 2024, the other medical equipment manufacturers had an average warranty claims rate of 0.84%. The quarterly values ranged from 0.78% in the third quarter, to 0.92% in the fourth quarter.

In 2024, the other medical equipment manufacturers had an average warranty accrual rate of 0.83%. The quarterly values ranged from 0.75% in the third quarter, to 0.92% in the fourth quarter.

Warranty Reserve Balances

Figure 5 shows the warranty reserve end-balances for the two sub-groups within the U.S.-based medical & scientific equipment industry, from 2003 to 2024.

At the end of 2024, GE HealthCare held $168 million in warranty reserves, a -13% decrease from the end of 2023.

Dentsply Sirona held $21 million in reserves at the end of 2024, a -13% decrease from the end of the year prior. Keysight Technologies held $31 million in reserves, a -14% decrease. Varex Imaging held $11 million. And Hologic held $10 million, a 10% increase.

In the other medical equipment category, Tandem Diabetes Care held $51 million in warranty reserves at the end of 2024, a 38% increase from the end of 2023. ICU Medical held $49 million in warranty reserves, a -25% decrease from the end of the year prior. Bruker Corp. held $33 million, a 9% increase. Align Technology held $31 million, a 39% increase. Agilent Technologies held $30 million, a 3% increase.

Inogen held $26 million in reserves, a 11% increase. Illumina held $18 million, a -14% decrease. Steris held $15 million, a -1% decrease. Insulet held $14 million, a 35% increase.

Waters Corp. held $12 million in reserves at the end of 2024, a -4% decrease. Masimo Corp. held $9 million, a 7% increase. Bio-Rad Laboratories Inc. held $7 million, a -15% decrease. And DexCom held $6 million in reserves at the end of 2024, a -53% decrease from the end of 2023.

Catch the rest of our series of 22-year charts:

• "Twenty-Second Annual Product Warranty Report"
• "New Home Builder Warranty Report"
• "U.S. Small Vehicle Warranty Expenses"
• "U.S. Truck, Bus, & Heavy Equipment Warranty Expenses"
• "U.S. Auto Parts & Powertrain Warranty Expenses"
• "U.S. Aerospace Warranty Expenses"
• "U.S. New Home & Building Materials Warranty Expenses"
• "U.S. HVAC & Appliance Warranty Expenses"
• "U.S. Power Generation Equipment Warranty Expenses"
• "U.S. Electronics Warranty Report"
• "U.S. Semiconductor Warranty Expenses"
• "U.S. Telecom Equipment Warranty Expenses"