Financial Performance: Kestra Medical Technologies reported a 53% increase in revenue for Q2 fiscal 2026, reaching $22.6 million, while gross profit also rose significantly to $11.4 million, leading to an expanded gross margin of 50.6%.
Operating Expenses and Losses: The company faced wider GAAP net losses of $32.8 million, up from $20.6 million in the previous year, with operating expenses increasing to $43.2 million, including non-recurring costs.
Cash Position: As of October 31, 2025, Kestra had $175 million in cash and cash equivalents, not accounting for an additional $148 million from a public offering that closed on December 4, 2025.
Revenue Guidance: Kestra has raised its revenue guidance for fiscal 2026 to $91 million, marking a 52% increase over the previous year's revenue of $59.8 million, following multiple revisions from an initial estimate of $85 million.
Wall Street analysts forecast KMTS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KMTS is 30.00 USD with a low forecast of 28.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
Wall Street analysts forecast KMTS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KMTS is 30.00 USD with a low forecast of 28.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 22.980
Low
28.00
Averages
30.00
High
32.00
Current: 22.980
Low
28.00
Averages
30.00
High
32.00
Goldman Sachs
Neutral
maintain
$25 -> $27
Al Analysis
2026-01-09
Reason
Goldman Sachs
Price Target
$25 -> $27
Al Analysis
2026-01-09
maintain
Neutral
Reason
Goldman Sachs raised the firm's price target on Kestra Medical to $27 from $25 and keeps a Neutral rating on the shares. After a year when fundamentals diverged from stock performance, 2026 should represent a return to normalized patterns where organic growth defines relative valuation, the analyst tells investors in a research note.
Piper Sandler
Matt O'Brien
Overweight
maintain
$27 -> $30
2025-12-12
Reason
Piper Sandler
Matt O'Brien
Price Target
$27 -> $30
2025-12-12
maintain
Overweight
Reason
Piper Sandler analyst Matt O'Brien raised the firm's price target on Kestra Medical to $30 from $27 and keeps an Overweight rating on the shares. The firm notes the company reported strong, full fiscal Q2 results, with almost a 10% beat on the top-line. Gross margin was impressive and adjusted EBITDA loss came in better than expected. Piper views the outlook and a rapidly improving profitability profile as extremely compelling and strongly encourages investors to buy the stock.
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Wells Fargo
Overweight
maintain
$27 -> $28
2025-12-12
Reason
Wells Fargo
Price Target
$27 -> $28
2025-12-12
maintain
Overweight
Reason
Wells Fargo raised the firm's price target on Kestra Medical to $28 from $27 and keeps an Overweight rating on the shares. The firm notes the company reported Q2 sales in-line with its pre-announcement and raised FY26 sales guidance above the Q2 beat. Management highlighted an acceleration in WCD market growth, share capture, and improvement in in-network mix and RCM as driving its outlook.
Stifel
Buy
maintain
$28 -> $30
2025-12-12
Reason
Stifel
Price Target
$28 -> $30
2025-12-12
maintain
Buy
Reason
Stifel raised the firm's price target on Kestra Medical to $30 from $28 and keeps a Buy rating on the shares. Coming in at the high-end of the company's December 1st preannounced sales range, Kestra reported Q2 sales at $22.6M also accelerated gross margins to about 51%, the firm notes. Stifel also points out that encouragingly, management raised full-year 2026 sales guidance to $91M from $88M, previously. As expected, this broadly positive quarterly performance was underpinned by continued ASSURE wearable cardioverter defibrillator share gains and broader market expansion.
About KMTS
Kestra Medical Technologies, Ltd. is a commercial-stage, wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intelligent and connected. The Company has developed and is commercializing its Cardiac Recovery System platform, a comprehensive and advanced system that integrates monitoring, therapeutic treatment, digital health, and patient support services into a single, unified solution. The Company's Cardiac Recovery System platform includes ASSURE WCD, which is a wearable cardioverter defibrillator (WCD) used to protect patients at an elevated risk of sudden cardiac arrest (SCA). Its Cardiac Recovery System platform also includes fully integrated digital solutions and services such as the ASSURE patient application, Kestra CareStation remote patient data platform, Heart Alert Services, and ASSURE Assist services and ASSURE wearable ECG.
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.
