Masimo Corporation reported preliminary results for the fourth quarter of 2025 that surpassed expectations, with revenue of $411 million, up 12% year‑over‑year from $601 million in Q4 2024, and non‑GAAP earnings per diluted share of $1.54, beating the consensus estimate of $1.44. The company’s full‑year 2025 outlook now projects revenue of $1.523 billion, a 9% increase over the $2.094 billion reported in 2024, and non‑GAAP EPS of $5.55, at the high end of its guidance range.
The earnings beat can be attributed to a combination of strong demand in Masimo’s core healthcare segment and disciplined cost management. The company’s focus on expanding hospital contracts and securing new customer agreements drove revenue growth, while operational efficiencies and pricing power helped offset the impact of new tariffs on the earnings calculation. The 12% revenue increase reflects a 9% rise in healthcare revenue and a 10% rise in non‑healthcare revenue, indicating balanced growth across its product lines.
For the full year, Masimo’s guidance of $1.523 billion in revenue and $5.55 in non‑GAAP EPS signals confidence in sustained demand. The guidance represents a 9% rise in revenue and a 5% rise in EPS compared to 2024, reflecting the company’s belief that its strategic initiatives—such as the sale of its consumer business and the reinvestment of proceeds into core healthcare—will continue to drive profitability. The guidance also incorporates the expected effect of tariffs, which the company has managed through pricing adjustments and supply‑chain efficiencies.
Segment data for Q4 2024 shows healthcare revenue of $368 million and non‑healthcare revenue of $232 million, underscoring the importance of the healthcare segment to Masimo’s top line. Shipments of non‑invasive technology boards and instruments reached 270,000 units for the year, with 69,000 units shipped in the fourth quarter alone, indicating strong production capacity and customer demand. These shipment figures support the revenue growth and suggest that the company’s supply chain is operating at scale.
CEO Katie Szyman highlighted that the company’s “continued execution of our strategy” and the “record level of incremental contract value from new customers and expanded hospital agreements” are key drivers of the strong performance. She emphasized that the company remains focused on delivering value to customers while navigating tariff impacts, and that the guidance reflects a balanced view of growth and risk. The company’s outlook signals confidence in its core business while acknowledging the need to manage external headwinds.
Investors reacted cautiously to the preliminary results, with market sentiment tempered by concerns over tariff impacts and valuation levels. Despite the earnings beat, the company’s guidance and the broader market environment led to a muted response, indicating that investors are weighing the company’s long‑term growth prospects against short‑term headwinds. The market’s focus on these factors highlights the importance of understanding both the company’s operational performance and the external environment in which it operates.
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