Tactile Systems (TCMD) Stock Forecast & Price Target

Tactile Systems Tech is viewed positively because its core lymphedema business is expanding on the back of increased Flexitouch order volumes, favorable Medicare access under the new LCD policy, and a large under-penetrated market with persistent diagnosis and education gaps. The company also showed solid operating discipline in 2Q26, delivering $85.7M of revenue, $0.34 adjusted EPS versus $0.17 expected, and gross margin strength, while still guiding FY26 revenue to roughly $360M-$366M and maintaining adjusted EBITDA of $49M-$51M. Longer term, its revamped sales force, CRM-driven efficiency, balance sheet support, LymphaTech’s diagnostic potential, and a favorable valuation versus peers all support confidence in continued growth.

Tactile Systems Tech is facing a softer near-term outlook because FY26 revenue guidance was trimmed to about $360M-$366M and adjusted EBITDA remains only $49M-$51M, suggesting limited earnings leverage despite continued growth in lymphedema. The bearish case is driven by Airway Clearance, where revenue fell 6.7% Y/Y to $12.1M as DME partners worked through elevated AffloVest inventory, pressuring purchases through 3Q26 and forcing expectations for only flat Y/Y contribution. With gross margin guidance also lowered to 76%-76.5% and OpEx still set to rise 10%-12% Y/Y, the company appears to be contending with both margin compression and uneven demand.