Smart wearables firm Zepp Health's Q2 revenue rises on new product launches

Zepp Health

02/09/2026 02:12

Overview
The smart wearables firm's Q2 revenue rose 6.9% yr/yr, driven by new product launches
Net loss widened as higher revenue and margin gains offset by FX headwinds, higher R&D and marketing
Gross margin improved to 37.4% on favorable product mix, partly offset by higher component costs

Outlook
Zepp Health expects Q3 2026 net revenues between $68 mln and $73 mln
Company says improved product mix and demand will not be fully reflected in Q3 revenue due to supply and production cycles
Zepp Health expects overall expense levels to decline as new product launch pace moderates

Result Drivers
NEW PRODUCT LAUNCHES - Co said Q2 sales growth was mainly driven by launches of Active 3 Premium, Active Max, and Cheetah models
PRODUCT MIX SHIFT - Gross margin improvement was attributed to a more favorable product mix and higher-value products, per CFO Leon Deng
SUPPLY CONSTRAINTS - Co said supply issues limited financial contribution from Bip and Helio Strap product families during Q2

Company press release: ID:nPn9ht6nMa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Gross Margin
 
37.40%
 

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 1,274% above its September 1 closing price of $4.50

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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.)