Inspire Medical Systems' stock experienced a sharp pre-market plunge of 18.60% on Tuesday, extending losses from the previous trading session.
The sell-off was triggered by the company's first-quarter 2026 financial results, which revealed a GAAP diluted loss per share of $0.39 and a net loss of $11.3 million, despite revenue of $204.6 million slightly beating analyst estimates. The primary catalyst for the negative investor sentiment was a significant reduction in the company's full-year 2026 outlook.
Inspire Medical Systems drastically lowered its annual revenue guidance to a range of $825 million to $875 million, representing a potential decline of 4% to 10% compared to 2025 and falling well below the FactSet consensus estimate of $961.9 million. The company also slashed its adjusted EPS forecast to $0.75-$1.25 from a prior range of $1.85-$2.35, compared to the $1.96 analyst expectation. Management attributed the weakened outlook to ongoing disruption from coding and reimbursement uncertainty, along with the impact of its WISeR program, challenges it expects to persist throughout the year.
In response to the disappointing results and guidance, several Wall Street analysts promptly cut their price targets on the stock, including JP Morgan (to $54 from $67), RBC Capital Markets (to $45 from $56), Truist Securities (to $50 from $64), and Leerink Partners (to $52 from $78), further pressuring the stock price in pre-market trading.
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