INSP Stock Forecast & Price Target

Inspire Medical Systems Inc. has reported a significant increase in procedural volume, with centers fully transitioned to the gen 5 system experiencing over a 20% rise in the first half of 2025 compared to the previous year. The company anticipates a revenue growth acceleration, projecting a 12-13% year-over-year increase in fiscal year 2026, driven by improved product mix and reduced headwinds. Furthermore, Inspire's revenue reached $207.2 million in its latest reporting period, surpassing expectations and reflecting positive momentum in both U.S. and international markets.

Inspire Medical Systems Inc has experienced a notable downturn in its financial outlook, primarily due to a slower-than-expected launch of the Inspire V system, resulting in a significant reduction of FY25 revenue guidance by $37.5 million and a corresponding EPS forecast cut from $2.20-$2.30 to $0.40-$0.50. Operating expenses have also exceeded expectations by approximately $7 million, contributing to a downturn in gross margins, which fell short of prior estimates at 84.0%. The company's abrupt revisions to both revenue and earnings guidance have raised concerns, indicating potential long-term challenges, with a decremental margin of approximately 85%, resulting in a negative market response marked by a substantial decline in share value.