Masimo Stock Declines Despite Solid Preliminary Q4 Revenues

Masimo Corporation MASI announced preliminary revenues for the fourth quarter and full year 2025 on Monday. Despite the robust preliminary results, the company’s shares lost nearly 0.4% till yesterday’s closing.

The company is scheduled to release fourth-quarter results on Feb. 26, after the closing bell.

Per the preliminary report, fourth-quarter 2025 total revenues are estimated to be $411 million, up 12% and 11% year over year on a reported basis and at constant exchange rate (CER), respectively. The Zacks Consensus Estimate of $407.3 million lies below the preliminary figure.

Adjusted earnings per share (EPS), including the impact of new tariffs, is expected to exceed $1.54. The Zacks Consensus Estimate of $1.40 lies below the preliminary figure.

Per management, shipments of non-invasive technology boards and instruments are expected to be 69 thousand during the fourth quarter of 2025.

MASI’s Full-Year Preliminary Results

Per the preliminary report, total revenues for the full year are estimated to be $1,523 million, up 9% from the comparable 2024 period both on a reported basis and at CER. The Zacks Consensus Estimate is currently pegged at $1.52 billion.

Adjusted EPS, including the impact of new tariffs, is expected to exceed $5.55. This compares with Masimo’s guidance range of $5.40 to $5.55, which was announced when it reported third-quarter 2025 results in November 2025. The Zacks Consensus Estimate of $5.41 lies below the preliminary figure.

Per management, shipments of non-invasive technology boards and instruments are expected to be 270 thousand during the year.

A Brief Q4 Analysis of MASI

On the third quarter of 2025 earnings call held in November 2025, Masimo’s management highlighted continued strong momentum across its core healthcare business, with a year-over-year revenue uptick and meaningful expansion in profitability. The quarter’s performance was driven by solid underlying demand, improved contracting activity and strong growth in capital equipment, even as consumable revenue growth was impacted by tough year-over-year comparisons.

Management emphasized that the successful completion of the Sound United divestiture marked a key strategic milestone, allowing Masimo to fully focus on its healthcare operations. Proceeds from the sale were used to strengthen the balance sheet and return capital to shareholders through debt repayment and share repurchases, reinforcing management’s confidence in the company’s long-term value creation strategy.

During the quarter, Masimo also continued to benefit from its strategic initiatives, including expanding partnerships and driving broader adoption of its advanced monitoring technologies. Management pointed to strong contract wins, rising unrecognized contract revenue and improving sales execution as indicators of durable demand and improved visibility into future revenue streams. This looks promising for the stock.

Despite near-term tariff-related headwinds, Masimo’s ability to expand operating margins and deliver robust earnings growth lifts our confidence about the stock.

Masimo’s Price Performance

Shares of the company have lost 10.9% between Sept. 28 and Jan. 3, 2026, against the industry’s 10.3% rise and the S&P 500’s gain of 4.1%.

MASI’s Zacks Rank & Stocks to Consider

Currently, Masimo carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space are Boston Scientific Corporation BSX, Cardinal Health, Inc. CAH and IDEXX Laboratories, Inc. IDXX.

Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 16.4%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific’s shares have lost 2.4% compared with the industry’s 8.9% decline between Sept. 28 and Jan. 3, 2026.

Cardinal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.9%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.4%.

Cardinal Health has gained 33.1% compared with the industry’s 11.9% rise between Sept. 28 and Jan. 3, 2026.

IDEXX, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13%. IDXX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.1%.

IDEXX’s shares have gained 6.3% compared with the industry’s 10.3% rise between Sept. 28 and Jan. 3, 2026.

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This article originally published on Zacks Investment Research (zacks.com).

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