Masimo (MASI)
NASDAQHealth CareMedical - DevicesSnapshot 2026-09-04
$179.950.00%
Close 2026-06-10 · 1-day change
NASDAQHealth CareMedical - DevicesSnapshot 2026-09-04
Broken: Primary pillar broken — Operating margin near 30% in 2025-FY: 20.3% vs 30% target.
Masimo is growing revenue to about $1.5 billion in 2026. Profit margins are near 30%. FDA approval for new products will help sales. The Danaher acquisition could boost growth and market share.
The merger caused management changes and debt payoffs. Revenue growth is weak, near 0%. Profit margins could shrink if costs rise. The stock price is high compared to value.
The price is about 56% above our fair value near $116. Analysts expect almost no revenue growth. We see risk in growth and margin delivery.
Breaks if: Gross profit falls below $247 million in 2026-Q1
Enhance gross profit margins through operational efficiencies and cost management.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with a focus on improving revenue growth and gross profit margins. The current thesis state is mixed, as the company has shown strong recent financial performance but remains loss-making and faces volatility in management execution.
The market appears to be pricing in a durable premium compared to peers, reflecting expectations of future growth despite the current loss-making status. There is an expectations gap, indicating that the market may not fully account for the company's recent challenges and mixed management execution.
The fundamentals are likely to show continued focus on revenue growth and margin improvement, but recent results indicate a decline in revenue. There is a moderate risk of missing earnings expectations, given the company's history of consecutive misses and recent financial performance.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The complete acquisition of Danaher supports growth for Masimo. There are no new threats impacting the thesis at this time.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated in 2 of last 2 quarters. Gross profit increased from $247.3 million in 2025-Q4 to $250.8 million in 2026-Q1. The company is making progress in improving margins, but the increase is modest. Delivering, but at a limited pace.
“Gross profit was $250.8 million in 2026-Q1, compared to $247.3 million in 2025-Q4.”
“Gross profit was $247.3 million.”
Breaks if: Merger not completed or integration fails by mid-2026
Finalize the acquisition of Danaher to enhance Masimo's growth and market position.
Breaks if: Operating margin falls below 25% in 2025-FY
Breaks if: Revenue falls below $1.5 billion in 2026-Q1
Focus on strategies to drive revenue growth across Masimo's product lines.
Stated in 2 of last 2 quarters. Revenue guidance for 2026 is approximately $1,523 million, indicating a 9% growth. The company has consistently focused on revenue growth, but financials show a decline from $412.5 million in 2025-Q4 to $403.6 million in 2026-Q1. Recurring focus, narrow delivery so far.
“Revenue is expected to be approximately $1,523 million, representing approximately 9% growth.”
“Masimo also reaffirmed the 2025 financial guidance it last stated on November 4, including Non-GAAP Revenue of $1,510 - $1,530 million.”
The long-term thesis hinges on management's ability to execute on their priorities, particularly the completion of the Danaher acquisition and improving revenue growth. Additionally, external factors such as sector performance and economic conditions will play a crucial role in shaping the company's trajectory.
Over the next 1 to 3 years, MASI's performance will depend on its ability to navigate current challenges while capitalizing on sector momentum. Not investment advice.