Inspire Medical Systems shares have gained 28.1% in the past month, raising the question of whether improving earnings expectations can support further upside. The rally follows a second-quarter adjusted earnings beat of 14 cents per share versus a consensus estimate for a loss of 22 cents, along with revenues of $200.6 million that exceeded expectations despite a 7.6% year-over-year decline. Management raised its 2026 revenue outlook to $835-$875 million and increased adjusted earnings guidance to $1.05-$1.45 per share, while the Zacks Consensus Estimate for 2026 earnings rose 34.7% over the past four weeks. A higher sales mix of Inspire V systems lifted gross margin 150 basis points to 85.5%, though reimbursement friction from coding challenges and the WISeR prior authorization program reduced quarterly revenues by approximately $40 million and is expected to have a $120-$130 million full-year impact. INSP trades at about 2.1 times forward 12-month sales, below its five-year median of 7.1 times and the medical information systems industry's 5.1 times multiple, but further gains likely require clearer evidence of normalizing procedure volumes and revenues.
Inspire Medical Systems IncEarnings beat and raised guidance
Eli Lilly and Company
ResMed Inc