Outset Medical Q1 gross margin hits record; maintains annual forecast

Outset Medical

07/05/2026 21:34

Overview

US dialysis technology firm's Q1 revenue fell 6% yr/yr to $27.9 mln

Gross margin rose to 43.4%, a record high for the company

Company reiterated 2026 revenue and margin guidance, citing strong utilization and service margins

Outlook

Outset Medical reiterates 2026 revenue guidance of $125 mln to $130 mln

Company maintains 2026 non-GAAP gross margin guidance in low to mid-40% range

Outset Medical says utilization remains strong and service margins are expanding

Result Drivers

GROSS MARGIN EXPANSION - Co said record gross margin was driven by disciplined execution and expanding service margins

SERVICE REVENUE GROWTH - Service and other revenue rose 10% yr/yr, contributing to higher service margins

Company press release: ID:nGNX2Ds0Jl

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
-$18.98 mln
Q1 Gross Margin
43.40%
Q1 Basic EPS
-$1.03
Q1 Gross Profit
$12.10 mln
Q1 Operating Expenses
$29.01 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

Wall Street's median 12-month price target for Outset Medical Inc is $8.00, about 77.4% above its May 6 closing price of $4.51

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)