Masimo Pitches 2028 Plan With 30% Operating Margins

Benzinga12-05

Masimo Corp (NASDAQ:MASI) on Wednesday hosted its 2025 Investor Day. At the event, Masimo’s management team provided an update on the company’s long-term strategy.

Masimo also provided a detailed look at each of its growth pillars and updated its long-range plan through 2028.

Management projected a 7%–10% revenue CAGR through 2028, with operating margins reaching about 30%.

Also Read: Apple To Reintroduce Blood Oxygen Feature On Select Watches Following Customs Ruling

The company is aiming for adjusted EPS of $8.00 by 2028 and expects to generate roughly $1 billion in cumulative operating cash flow from 2026 to 2028.

Masimo also reaffirmed its previously announced 2025 financial guidance, including revenue of $1.51 million-$1.53 million, operating profit of between $412 million and $424 million, and earnings per share between $5.40 and $5.55.

“Masimo’s market-leading position is driven by our mission to deliver innovations that empower clinicians and transform patient care,” said Katie Szyman, Chief Executive Officer of Masimo. “As we enter this next chapter, we are incredibly well-positioned to advance that mission.”

Analyst Ratings and Price Forecast

BTIG maintains Masimo with a Buy and raises the price forecast from $198 to $200.

Legal Victory Against Apple

In November, a federal jury in California ruled that Apple Inc. (NASDAQ:AAPL) must pay Masimo $634 million for infringing a patent related to blood-oxygen reading technology.

Third-Quarter Earnings Report

Masimo reported third-quarter adjusted earnings of $1.32 per share, beating the consensus of $1.20, with sales of $371.2 million, surpassing the consensus of $366.85 million.

The company raised fiscal 2025 adjusted earnings from $5.45-$5.70 per share to $5.62-$5.79, compared to the consensus of $5.33.

It narrowed fiscal 2025 sales outlook from $1.51 billion-$1.54 billion to $1.51 billion-$1.53 billion versus the consensus of $1.52 billion.

MASI Price Action: Masimo shares were up 0.25% at $138.44 at the time of publication on Thursday, according to Benzinga Pro data.

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Photo by T. Schneider via Shutterstock

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