Inspire Medical Systems (NYSE:INSP) Announces Earnings Results

Inspire Medical Systems (NYSE:INSP) announced its earnings results on Monday. The company reported $0.14 EPS for the quarter, beating analysts’ consensus estimates of $0.09 by $0.05, FiscalAI reports. Inspire Medical Systems had a net margin of 11.43% and a return on equity of 7.38%. The business had revenue of $206.69 million during the quarter, compared to analysts’ expectations of $204.31 million. During the same period in the prior year, the company earned $0.38 earnings per share. The business’s revenue was down 7.9% compared to the same quarter last year.

Here are the key takeaways from Inspire Medical Systems’ conference call:

• Third-quarter revenue declined 7.9% year over year to $206.7 million, while adjusted operating income fell to $1.9 million from $10.9 million; management estimated coding and reimbursement challenges reduced quarterly revenue by approximately $30 million.
• Inspire narrowed its 2026 revenue outlook to $850 million–$860 million and now expects adjusted operating margin of 4.5%–5.5% and adjusted diluted EPS of $1.20–$1.40, reflecting an estimated $120 million full-year coding and reimbursement impact.
• The company reported improving reimbursement visibility, including a proposed increase in 2027 hospital and ASC reimbursement and approval of a Category I CPT code effective January 1, 2028, which management expects to simplify billing and expand access.
• Management expects to return to growth in 2027, initially guiding to low single-digit revenue growth as coding disruption eases, battery replacement revenue increases, and Project Horizon funds approximately $30 million of annualized growth investments.
• Inspire is adding support in approximately 40 high-potential U.S. markets, increasing patient outreach and navigation efforts, and targeting cardiology referrals and ambulatory surgery centers to improve patient flow and procedure volumes.

Inspire Medical Systems Stock Performance

INSP stock opened at $62.00 on Wednesday. Inspire Medical Systems has a one year low of $38.91 and a one year high of $147.03. The stock has a market capitalization of $1.79 billion, a PE ratio of 33.11, a price-to-earnings-growth ratio of 5.08 and a beta of 0.67. The company has a fifty day moving average of $68.70 and a 200-day moving average of $58.66.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Zacks Research lowered Inspire Medical Systems from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 22nd. Oppenheimer raised Inspire Medical Systems from a “market perform” rating to an “outperform” rating and set a $85.00 price objective for the company in a research note on Tuesday, August 4th. Weiss Ratings raised Inspire Medical Systems from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Wednesday, October 28th. Mizuho set a $75.00 price objective on Inspire Medical Systems in a research report on Tuesday, October 13th. Finally, Barclays lowered their target price on Inspire Medical Systems from $65.00 to $62.00 and set an “underweight” rating on the stock in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, thirteen have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $71.24.

Key Headlines Impacting Inspire Medical Systems

Here are the key news stories impacting Inspire Medical Systems this week:

• Positive Sentiment: Q3 adjusted earnings of $0.14 per share and revenue of about $206.7 million topped consensus estimates of $0.09 and $204.3 million, respectively. Article: Inspire Medical Systems Q3 Earnings and Revenues Beat Estimates
• Neutral Sentiment: For FY 2026, Inspire guided to EPS of $1.20–$1.40 and revenue of $850–$860 million, broadly around analysts’ estimates. The company also plans to present at the Stifel Healthcare Conference on November 10. Article: Inspire Narrows Full-Year 2026 Earnings Guidance
• Neutral Sentiment: Analyst target changes were mixed: Baird and Piper Sandler raised targets, JPMorgan increased its target while retaining a neutral rating, and Barclays lowered its target and kept an underweight rating.
• Negative Sentiment: Revenue fell 7.9% year over year, while EPS declined from $0.38 a year earlier. Reports said the results missed investor “whisper” expectations, and management projected only low-single-digit revenue growth in 2027 as reimbursement and coding trends stabilize—signs of a slower recovery that may weigh more heavily than the quarterly beat. Article: Inspire Medical Stock Drops Despite Beating Q3 Expectations Article: Inspire Projects Low-Single-Digit 2027 Revenue Growth

Insider Buying and Selling at Inspire Medical Systems

In other news, insider Jason Kelly sold 963 shares of the business’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $59.55, for a total transaction of $57,346.65. Following the transaction, the insider directly owned 18,985 shares in the company, valued at $1,130,556.75. The trade was a 4.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 2.20% of the stock is currently owned by insiders.

Inspire Medical Systems Company Profile

Inspire Medical Systems, Inc develops and commercializes medical devices for the treatment of obstructive sleep apnea (OSA), a condition in which the upper airway repeatedly narrows or becomes blocked during sleep. The company’s primary product is Inspire therapy, an implantable system designed to help keep the airway open by stimulating the hypoglossal nerve, which controls muscles involved in maintaining airway patency.

Inspire therapy is intended for certain adults with moderate to severe OSA who are unable to use or obtain consistent benefit from continuous positive airway pressure (CPAP) therapy.