How Electromed's Latest Numbers Set the Stage for the Ongoing Narrative

Electromed (ELMD) has just posted Q2 2026 results with revenue of US$18.9 million and basic EPS of US$0.33, alongside trailing twelve month revenue of US$68.9 million and EPS of US$1.08 that frame the latest quarter within a broader earnings context. The company has seen quarterly revenue move from US$16.3 million in Q2 2025 to US$18.9 million in Q2 2026, while basic EPS over that same quarter-on-quarter comparison went from US$0.23 to US$0.33, giving investors a clear view of how the top and bottom lines have tracked together. With net income and margins holding a meaningful share of revenue over the trailing twelve months, this update gives investors plenty to weigh in terms of how durable the current profitability profile looks.

See our full analysis for Electromed.

With the headline figures on the table, the next step is to compare these results with the widely followed narratives around Electromed, and to examine where the story about growth, quality and risk aligns with the latest data and where it might need a rethink.

TTM earnings growth outpacing revenue expansion

• On a trailing twelve month basis, revenue sits at US$68.9 million while net income is US$9.0 million and EPS is US$1.08, so profit has grown faster than sales with earnings up 33% year over year versus forecast revenue growth of about 10.7% per year.
• Consensus narrative notes that awareness campaigns and a bigger sales force should support ongoing growth, and the recent numbers partly line up with that view:
  • Quarterly revenue has stepped from US$14.7 million in Q1 2025 to US$18.9 million in Q2 2026, which sits comfortably within analysts’ expectations for revenue growth around 9% to 10.7% annually over the medium term.
  • At the same time, trailing net margin is quoted at 13.1% compared with 11.3% a year earlier, which is consistent with the consensus idea that operational tweaks and home care focus can support higher profitability.

Margins and profit quality support the bullish angle

• The latest trailing net margin of 13.1% on US$68.9 million of revenue, alongside EPS of US$1.08, is described as high quality and compares with a lower 11.3% margin a year earlier, which lines up with the bullish view that operational improvements can support higher earnings over time.
• Bulls argue that hospital channel expansion and home based care can push margins higher, and the reported figures give them some backing but also set a high bar:
  • Trailing twelve month net income of US$9.0 million versus US$6.5 million a year earlier fits with the bullish claim of strong historical earnings growth of about 29.9% per year over five years, so the recent period is consistent with that pattern.
  • However, bullish assumptions that margins could eventually move toward the high teens mean investors would need to watch whether the current 13.1% level keeps moving closer to those expectations or settles nearer to today’s range.

Have a look at how supporters of the optimistic case connect these profit trends to their longer term thesis about Electromed: 🐂 Electromed Bull Case

Mixed valuation signals keep the bearish case alive

• With a trailing P/E of 23.4x on EPS of US$1.08 and a share price of US$25.26, Electromed trades below the wider US Medical Equipment industry average P/E of 30.9x but above the peer group average of 17.9x, while analysts in the data point to a US$36.00 price target and a DCF fair value of US$9,864.07.
• Bears highlight product concentration and rising costs, and the current valuation numbers give them specific pressure points to focus on:
  • The premium to peers on a 17.9x P/E benchmark can be used to argue that any stumble in earnings growth from the recent 33% year over year clip could make the current multiple look demanding versus companies with broader product sets.
  • At the same time, the gap between the current US$25.26 share price and both the US$36.00 analyst target and the much higher DCF fair value shows why others view the stock as inexpensive, so bears need to justify why earnings or margins might not track the growth that is currently embedded in those models.

If you are weighing these valuation tensions, it can help to see how more cautious investors frame the concentration and cost risks in detail: 🐻 Electromed Bear Case

Next Steps

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

See the numbers differently? If the figures tell you a slightly different story, shape that view into your own narrative in just a few minutes with Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Electromed.

See What Else Is Out There

While earnings and margins look solid on the surface, the mix of product concentration, cost concerns and a premium P/E to peers leaves some investors uneasy.

If that combination feels a bit tight for your comfort, run your eye over our 85 resilient stocks with low risk scores to quickly spot companies where risk scores and fundamentals look more resilient.

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.