Masimo Corporation reported third‑quarter 2025 results that surpassed consensus expectations, with GAAP revenue rising 8.2% to $371.5 million and non‑GAAP earnings per share climbing 38% to $1.32. Operating margin expanded by 450 basis points to 28.4%, reflecting a combination of higher‑margin product sales and disciplined cost management.
The revenue growth was driven largely by a 67% year‑over‑year increase in capital‑equipment sales, while consumable and service revenue grew only 1%. New tariffs imposed on medical devices added a headwind, but the company’s pricing power in high‑margin segments helped offset the impact. The company also reported that the new tariffs were included in its guidance, indicating a cautious outlook for the remainder of the year.
Masimo completed the sale of its Sound United consumer‑audio business to Harman on September 23, 2025, for $350 million. The proceeds were used to repurchase $163 million of common stock and reduce debt, reinforcing the company’s focus on its core professional‑healthcare operations. Management highlighted that the divestiture allows Masimo to concentrate resources on high‑margin monitoring technologies.
The company also announced an expanded partnership with Philips, announced on September 11, 2025, to integrate Masimo’s wearable and AI‑enabled monitoring solutions into Philips’ product portfolio. This collaboration is expected to broaden market reach and accelerate adoption of Masimo’s technologies in new clinical settings.
In its outlook, Masimo raised full‑year 2025 revenue guidance to $1,510–$1,530 million (excluding tariffs) and adjusted EPS guidance to $5.71 at the midpoint, up from the prior guidance of $5.62–$5.79. Operating margin guidance was raised to 28.4%–28.8% (excluding tariffs). The guidance increase signals management’s confidence in sustained demand for high‑margin products and the effectiveness of its cost‑control initiatives.
Analysts noted the earnings beat and margin expansion as evidence of strong execution, while acknowledging the ongoing tariff headwind and the need for continued focus on high‑margin segments to maintain growth momentum.
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