Masimo (MASI) has opened Q1 2026 with revenue of US$403.6 million and basic EPS of US$1.08, while on a trailing 12 month basis EPS sits at US$4.08 and revenue at US$1.56 billion. This sets a clear earnings season snapshot for investors watching the stock around US$178.49. Over the past few quarters the company has seen revenue move from US$368.4 million in Q4 2024 to US$372.0 million in Q1 2025 and US$403.6 million in Q1 2026. Basic EPS has shifted from a loss of US$1.21 in Q4 2024 to US$0.87 in Q1 2025 and US$1.08 in the latest quarter, while a trailing net margin of 13.9% points to profitability that many investors will be weighing closely as they assess the quality of these results.

See our full analysis for Masimo.

With the headline numbers on the table, the next step is to see how this earnings profile lines up against the dominant stories around Masimo, highlighting where the data backs the narratives and where it challenges them.

TTM Net Margin At 13.9% After Volatile Discontinued Ops

• Over the last 12 months, Masimo generated US$216.8 million in net income excluding extra items on US$1.56b of revenue, translating into a 13.9% net margin compared with 0.8% in the prior year.
• Consensus narrative highlights expansion into areas like capnography, brain monitoring and hemodynamics as key to earnings stability, yet the trailing 12 month figures still include US$140.5 million of losses from discontinued operations, which shows that part of the profit improvement is coming alongside a clean up of non core activities rather than only from newer product categories.
  • Over the same trailing period, basic EPS moved to US$4.08 compared with a five year annual decline rate of 32.3%, which heavily supports the bullish view that profitability has shifted, but the discontinued ops losses show some of that shift reflects portfolio changes.
  • Quarterly net income excluding extra items of US$56.3 million in Q1 2026, compared with US$47.2 million in Q1 2025 and a loss of US$65 million in Q4 2024, challenges any bearish concern that recent margin strength is purely a one off, even if discontinued items have been a swing factor.

With margins moving from fractions of a percent to the mid teens, it is worth seeing how bullish investors connect that shift to product expansion and new leadership in the fuller narrative 🐂 Masimo Bull Case.

P/E Of 43.1x Sits Between Peers And Industry

• Masimo trades at a trailing P/E of 43.1x based on the share price of about US$178.49 and trailing EPS of US$4.08, which is below the peer average of 70x but above the US Medical Equipment industry average of 23.6x.
• Bears focus on valuation and leverage, and the data offers a mixed picture for that cautious view.
  • The current P/E of 43.1x combined with a DCF fair value of US$142.90 and a share price of US$178.49 supports the bearish claim that the stock price is above one cash flow based estimate, even though it is cheaper than some peers on earnings.
  • The company is also flagged as having a high level of debt, so when investors compare the US$180.00 analyst price target with the current price and P/E, it gives critics numerical backing for the idea that valuation already reflects a good portion of the recent profit recovery.

When you see a P/E that is higher than the industry but lower than select peers, it can help to read how skeptics frame the trade off between valuation, debt and forecast growth in the full bear case 🐻 Masimo Bear Case.

Revenue Holds Around US$400 Million Per Quarter

• Quarterly revenue has been in a relatively tight band, from US$368.4 million in Q4 2024 to US$372.0 million in Q1 2025, US$370.9 million in Q2 2025, US$371.5 million in Q3 2025, US$412.5 million in Q4 2025 and US$403.6 million in Q1 2026, while analysts see around 6.3% annual revenue growth ahead.
• Analysts' consensus view connects this steady revenue base with a shift toward recurring and at home monitoring income, yet the growth expectations are more modest than the wider market.
  • The forecast revenue growth of about 6.3% per year compared with an 11.3% forecast for the broader US market shows why consensus is balanced, seeing room for expansion into wearables and telemonitoring but also acknowledging a slower top line profile.
  • Expected earnings growth of roughly 12.4% per year on top of trailing 12 month earnings of US$216.8 million reflects confidence in margin and efficiency gains, which fits the story of operational improvements but also means a lot is riding on those cost and mix benefits rather than rapid sales growth.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Masimo on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of risks and rewards feels finely balanced, it is worth looking through the data yourself and deciding how comfortable you are with that trade off. You can start with the 2 key rewards and 1 important warning sign.

Explore Alternatives

Masimo's high 43.1x P/E relative to the US Medical Equipment industry average of 23.6x, combined with high debt and modest forecast revenue growth, may make some investors cautious.

If you are uneasy about paying up for a stock where valuation and leverage are front of mind, it is worth checking out 44 high quality undervalued stocks as you compare alternatives.

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.