China's Zepp Health Q1 revenue rises 34% on new product launches

Zepp Health

09/06/2026 02:50

Overview
China smart wearables maker's Q1 revenue rose 34% yr/yr, driven by new product launches
Adjusted net loss for Q1 narrowed compared to prior year
Company expects Q2 revenue to grow 6% to 14% yr/yr

Outlook
Zepp Health expects Q2 2026 revenue between $63 mln and $68 mln
Company says Q2 outlook reflects continued year-over-year growth and demand across product portfolio
Zepp Health will focus on product mix, pricing power, gross margin, and user engagement in Q2

Result Drivers
NEW PRODUCT LAUNCHES - Q1 revenue growth was mainly driven by new product launches including Active Max, Active 3 Premium, and T-Rex Ultra 2
GROSS MARGIN PRESSURE - Gross margin was impacted by the refresh of entry-level product lines, elevated memory component costs, and RMB appreciation
HIGHER OPERATING EXPENSES - Increased R&D investment, marketing, and branding activities, as well as foreign currency headwinds, led to higher operating expenses

Company press release: ID:nPn7gXTWda

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Gross Margin
 
37.70%
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the phones & handheld devices peer group is "buy."
Wall Street's median 12-month price target for Zepp Health Corp is $61.83, about 900.5% above its June 8 closing price of $6.18

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(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.)