Inspire Medical Systems Lowers 2026 Revenue Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy INSP?
Source: seekingalpha
- Earnings Beat: Inspire Medical Systems (INSP) reported a non-GAAP EPS of $1.65 for Q4 2025, exceeding expectations by $0.97, while revenue reached $269.1 million, surpassing forecasts by $2.88 million, indicating ongoing growth potential in the sleep apnea treatment sector.
- Revenue Guidance Cut: The company revised its 2026 revenue guidance to $950 million to $1 billion, below the consensus of $1 billion, primarily due to coding uncertainties and the transition of the implant procedure to a different CPT code, which may hinder future revenue growth.
- Negative Market Reaction: Despite the strong earnings report, Inspire's shares fell approximately 6% in after-hours trading, reflecting investor concerns over the lowered revenue guidance, which could impact investor confidence in the medical device market.
- Significant Policy Impact: In January, Inspire's stock declined following a correction from the Centers for Medicare & Medicaid Services (CMS), which stated that obstructive sleep apnea is not a covered indication under the vagus nerve stimulation National Coverage Determination, further exacerbating market uncertainty regarding the company's future revenues.
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Analyst Views on INSP
Wall Street analysts forecast INSP stock price to rise
19 Analyst Rating
13 Buy
6 Hold
0 Sell
Moderate Buy
Current: 59.650
Low
91.00
Averages
145.31
High
180.00
Current: 59.650
Low
91.00
Averages
145.31
High
180.00
About INSP
Inspire Medical Systems, Inc. is a medical technology company. The Company is focused on the development and commercialization of advanced, minimally invasive solutions for patients with obstructive sleep apnea (OSA). Its proprietary Inspire therapy is FDA, EU MDR, and PDMA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea. It has developed a novel, closed-loop solution that continuously monitors a patient’s breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. The Company sells its Inspire system to hospitals and ambulatory surgery centers (ASCs) in the United States (U.S.) and in select countries in Europe and Japan through a direct sales organization and sells its Inspire system in Singapore and Hong Kong through distributors. Its direct sales force engages in sales efforts and promotional activities focused on ear, nose and throat (ENT) physicians and sleep centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Inspire Medical Systems Faces Near-Term Challenges
- Price Target Reduction: Stifel lowered its price target for Inspire Medical Systems from $110 to $95 while maintaining a Buy rating, indicating ongoing reimbursement challenges that impact the company's operations and billing environment.
- Profitability Constraints: Although Inspire's projected revenue growth for 2026 remains in the high single digits, the implementation of a new CPT code could reduce physician payments by 10%-50%, potentially slowing procedure volumes and new account growth, thereby affecting future performance.
- Widespread Rating Downgrades: Baird and Wells Fargo downgraded Inspire's ratings to Neutral and Equal Weight, respectively, citing uncertainty around physician reimbursements and a weaker growth outlook for 2026, which raises concerns about the company's future performance.
- Strong Financial Performance: Despite challenges, Inspire reported a 12% year-over-year revenue increase in Q4, with earnings of $1.65 per share exceeding expectations and margins improving to 17.5%, demonstrating the company's potential for profitability amidst headwinds.
See More
KSF Launches Investigation into Inspire Medical Systems
- Investigation Launched: Former Louisiana Attorney General Charles C. Foti announced that KSF has initiated an investigation into Inspire Medical Systems, focusing on whether its executives breached fiduciary duties, which could impact corporate governance.
- Earnings Guidance Cut: Inspire Medical Systems slashed its 2025 earnings forecast from $2.20-$2.30 per share to $0.40-$0.50, a reduction exceeding 80%, indicating failure to meet necessary training and contracting requirements prior to product launch, leading to weak market demand.
- Legal Action Risks: The company and its executives are facing a securities class action lawsuit for failing to disclose material information, which could result in further financial losses and damage to reputation, affecting investor confidence.
- Negative Market Reaction: Due to the investigation and earnings cut, Inspire Medical Systems' stock price may face ongoing pressure, prompting investors to monitor subsequent legal developments and corporate governance improvements.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Overview of Updates: While specific upgrades and downgrades are not detailed, the overall rating changes may prompt investors to reassess their positions, potentially affecting trading volumes and price fluctuations of the related stocks.
- Expected Market Reaction: Analyst rating adjustments typically elicit immediate market responses, and investors should monitor these changes to seize potential investment opportunities or mitigate risks.
- Source of Information: This information is provided by Benzinga, highlighting the significance of analyst ratings in investment decisions, and investors are encouraged to regularly check the analyst ratings page for the latest updates.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Upgrades and Downgrades: While specific upgrades and downgrades are not detailed, such changes typically have a direct impact on the stock prices of the affected companies, prompting investors to closely monitor these shifts to optimize their portfolios.
- Market Reaction Expectations: The adjustments in analyst ratings may trigger short-term market volatility, particularly when investor sentiment is sensitive to certain stocks, potentially leading to rapid price increases or decreases.
- Impact on Investor Decisions: As analysts revise their views on stocks, investors may reassess their investment strategies when considering buying or holding these stocks, thereby affecting overall market liquidity.
See More
Fastly Reports Strong Quarterly Earnings Exceeding Expectations
- Strong Earnings Performance: Fastly reported earnings of $0.12 per share, surpassing analyst expectations of $0.06, indicating a significant improvement in profitability and boosting market confidence in future growth.
- Significant Revenue Growth: The quarterly revenue reached $172.61 million, exceeding Wall Street's estimate of $161.36 million and up from $140.58 million in the same period last year, demonstrating the company's robust performance amid recovering market demand.
- Stock Price Surge: Fastly's shares jumped 34.8% to $12.55 in pre-market trading, reflecting a positive investor reaction to the earnings report, which may attract more investor interest in its future developments.
- Increased Market Confidence: The strong earnings report not only enhances investor confidence but may also prompt analysts to revise their ratings and price targets for the company, potentially driving further stock price increases.
See More
Inspire Medical Systems Q4 2025 Earnings Call Insights
- Revenue Growth: Inspire Medical Systems reported Q4 revenue of $269 million, a 12% increase year-over-year, with full-year revenue reaching $912 million, primarily driven by growth at existing centers and new center additions, indicating the company's ongoing market expansion potential.
- Fee Adjustment Impact: CEO Timothy Herbert highlighted that the coding with the -52 modifier could reduce physician professional fees by 10% to 50%, which may influence physicians' willingness to perform the Inspire V procedure and potentially limit the number of cases, reflecting significant challenges faced by the company.
- Outlook Revision: The company revised its 2026 revenue outlook to $950 million to $1 billion, representing 4% to 10% growth, considering the expected impact of coding uncertainty on the first quarter, demonstrating management's cautious approach to future revenue.
- Clinical Performance Improvement: The Inspire V system demonstrated a 79.5% responder rate in the Singapore study, significantly surpassing the 66% responder rate from the STAR Phase III trial in 2012, indicating that ongoing product performance improvements may support the company's future competitive position.
See More
Inspire Medical Systems Faces Near-Term Challenges
- Price Target Reduction: Stifel lowered its price target for Inspire Medical Systems from $110 to $95 while maintaining a Buy rating, indicating ongoing reimbursement challenges that impact the company's operations and billing environment.
- Profitability Constraints: Although Inspire's projected revenue growth for 2026 remains in the high single digits, the implementation of a new CPT code could reduce physician payments by 10%-50%, potentially slowing procedure volumes and new account growth, thereby affecting future performance.
- Widespread Rating Downgrades: Baird and Wells Fargo downgraded Inspire's ratings to Neutral and Equal Weight, respectively, citing uncertainty around physician reimbursements and a weaker growth outlook for 2026, which raises concerns about the company's future performance.
- Strong Financial Performance: Despite challenges, Inspire reported a 12% year-over-year revenue increase in Q4, with earnings of $1.65 per share exceeding expectations and margins improving to 17.5%, demonstrating the company's potential for profitability amidst headwinds.
See More
KSF Launches Investigation into Inspire Medical Systems
- Investigation Launched: Former Louisiana Attorney General Charles C. Foti announced that KSF has initiated an investigation into Inspire Medical Systems, focusing on whether its executives breached fiduciary duties, which could impact corporate governance.
- Earnings Guidance Cut: Inspire Medical Systems slashed its 2025 earnings forecast from $2.20-$2.30 per share to $0.40-$0.50, a reduction exceeding 80%, indicating failure to meet necessary training and contracting requirements prior to product launch, leading to weak market demand.
- Legal Action Risks: The company and its executives are facing a securities class action lawsuit for failing to disclose material information, which could result in further financial losses and damage to reputation, affecting investor confidence.
- Negative Market Reaction: Due to the investigation and earnings cut, Inspire Medical Systems' stock price may face ongoing pressure, prompting investors to monitor subsequent legal developments and corporate governance improvements.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Overview of Updates: While specific upgrades and downgrades are not detailed, the overall rating changes may prompt investors to reassess their positions, potentially affecting trading volumes and price fluctuations of the related stocks.
- Expected Market Reaction: Analyst rating adjustments typically elicit immediate market responses, and investors should monitor these changes to seize potential investment opportunities or mitigate risks.
- Source of Information: This information is provided by Benzinga, highlighting the significance of analyst ratings in investment decisions, and investors are encouraged to regularly check the analyst ratings page for the latest updates.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Upgrades and Downgrades: While specific upgrades and downgrades are not detailed, such changes typically have a direct impact on the stock prices of the affected companies, prompting investors to closely monitor these shifts to optimize their portfolios.
- Market Reaction Expectations: The adjustments in analyst ratings may trigger short-term market volatility, particularly when investor sentiment is sensitive to certain stocks, potentially leading to rapid price increases or decreases.
- Impact on Investor Decisions: As analysts revise their views on stocks, investors may reassess their investment strategies when considering buying or holding these stocks, thereby affecting overall market liquidity.
See More
Fastly Reports Strong Quarterly Earnings Exceeding Expectations
- Strong Earnings Performance: Fastly reported earnings of $0.12 per share, surpassing analyst expectations of $0.06, indicating a significant improvement in profitability and boosting market confidence in future growth.
- Significant Revenue Growth: The quarterly revenue reached $172.61 million, exceeding Wall Street's estimate of $161.36 million and up from $140.58 million in the same period last year, demonstrating the company's robust performance amid recovering market demand.
- Stock Price Surge: Fastly's shares jumped 34.8% to $12.55 in pre-market trading, reflecting a positive investor reaction to the earnings report, which may attract more investor interest in its future developments.
- Increased Market Confidence: The strong earnings report not only enhances investor confidence but may also prompt analysts to revise their ratings and price targets for the company, potentially driving further stock price increases.
See More
Inspire Medical Systems Q4 2025 Earnings Call Insights
- Revenue Growth: Inspire Medical Systems reported Q4 revenue of $269 million, a 12% increase year-over-year, with full-year revenue reaching $912 million, primarily driven by growth at existing centers and new center additions, indicating the company's ongoing market expansion potential.
- Fee Adjustment Impact: CEO Timothy Herbert highlighted that the coding with the -52 modifier could reduce physician professional fees by 10% to 50%, which may influence physicians' willingness to perform the Inspire V procedure and potentially limit the number of cases, reflecting significant challenges faced by the company.
- Outlook Revision: The company revised its 2026 revenue outlook to $950 million to $1 billion, representing 4% to 10% growth, considering the expected impact of coding uncertainty on the first quarter, demonstrating management's cautious approach to future revenue.
- Clinical Performance Improvement: The Inspire V system demonstrated a 79.5% responder rate in the Singapore study, significantly surpassing the 66% responder rate from the STAR Phase III trial in 2012, indicating that ongoing product performance improvements may support the company's future competitive position.
See More
