Inspire Medical Systems, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Shareholders of Inspire Medical Systems, Inc. (NYSE:INSP) will be pleased this week, given that the stock price is up 10% to US$82.82 following its latest third-quarter results. It looks like a credible result overall - although revenues of US$225m were what the analysts expected, Inspire Medical Systems surprised by delivering a statutory profit of US$0.34 per share, instead of the previously forecast loss. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Inspire Medical Systems' 17 analysts is for revenues of US$1.01b in 2026. This reflects a notable 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 3.7% to US$1.59. Before this earnings report, the analysts had been forecasting revenues of US$1.03b and earnings per share (EPS) of US$1.33 in 2026. While revenue forecasts have been revised downwards, the analysts look to have become more optimistic on the company's cost base, given the nice gain to to the earnings per share numbers.

View our latest analysis for Inspire Medical Systems

The analysts have cut their price target 9.0% to US$107per share, suggesting that the declining revenue was a more crucial indicator than the expected improvement in earnings. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Inspire Medical Systems analyst has a price target of US$150 per share, while the most pessimistic values it at US$81.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Inspire Medical Systems' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 37% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.4% annually. Even after the forecast slowdown in growth, it seems obvious that Inspire Medical Systems is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Inspire Medical Systems following these results. They also downgraded Inspire Medical Systems' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Inspire Medical Systems going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Inspire Medical Systems .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.