InMode (INMD) opened Q1 2026 with revenue of about US$82.0 million and basic EPS of roughly US$0.18, setting a clear marker for how the year is starting after a period where trailing twelve month revenue sat around US$374.6 million and basic EPS was about US$1.38. Over recent quarters the company has seen revenue move between roughly US$77.9 million and US$103.9 million, while quarterly EPS has ranged from about US$0.26 to US$0.43, giving investors a tight read on how the top line and per share earnings are tracking into this quarter. With net income also adjusting lower versus recent periods and margins coming off prior highs, this set of results keeps the focus squarely on how sustainably InMode can defend profitability from here.

See our full analysis for InMode.

With the latest earnings now on the table, the next step is to see how these numbers line up against the key narratives that have been guiding expectations around InMode and where those stories may need to be updated.

Margins Compress as Net Profit Halves Year on Year

• Net income for Q1 2026 came in at about US$11.6 million versus roughly US$18.2 million in Q1 2025, while the trailing net margin has moved from 44.8% a year ago to 23.3% over the last twelve months.
• Bears argue that shrinking margins and earnings pressure limit the company’s long term earnings power, and the recent data gives them several points to lean on:
  • Trailing earnings have declined at about 1% per year over the past five years and are forecast in the provided estimates to decline by around 0.7% per year over the next three years, which lines up with the concern about a slower earnings base.
  • The drop in trailing net margin from 44.8% to 23.3% fits with the bearish view that higher costs and a tilt toward lower margin treatments can weigh on profitability even when revenue holds in the roughly US$370 million to US$400 million range.

In a quarter where profit margins are under pressure, skeptics point to the risk that earnings drift lower even if revenue stays roughly stable. This sits at the heart of the more cautious long term narrative for the stock. 🐻 InMode Bear Case

Low P/E and DCF Gap Draw Value Attention

• At a share price of US$13.59 and a trailing P/E of 9.9x versus a DCF fair value of about US$18.82 and an industry P/E around 23.6x, the stock is priced well below both that modelled value and sector averages.
• Supporters of the bullish narrative point to this valuation setup as a potential opportunity, although the earnings profile in the data adds a few wrinkles:
  • The roughly 27.8% gap between the current share price and the DCF fair value sits alongside trailing revenue of about US$374.6 million that has only grown around 1.3% per year, which is slower than the 11.3% per year revenue growth forecast provided for the broader US market.
  • Analysts in the inputs expect earnings to ease slightly over the next few years rather than grow, so the low 9.9x P/E and discount to DCF fair value support the bullish value angle but also rely on confidence that margins at around 23.3% can be sustained.

Investors who are drawn to the wide gap between the share price and estimated value often want to see how bullish arguments about future markets and new platforms compare with the current earnings and margin profile in detail. 🐂 InMode Bull Case

TTM Earnings Drift Compared With Analyst Target

• Trailing twelve month EPS is about US$1.38 compared with analysts expecting around US$1.75 of EPS tied to an analyst price target of US$16.75, while trailing net income has moved from approximately US$181.3 million to US$87.2 million over the past year on the supplied figures.
• Consensus commentary in the data suggests that new products and international markets broaden the opportunity set, but the recent numbers highlight some friction points:
  • Analysts expect earnings of roughly US$94.2 million in the scenario attached to that US$16.75 target, which sits above the latest trailing US$87.2 million, so the current earnings base would need to hold or improve for that outcome to align with the figures here.
  • At the same time, the inputs describe an expected 0.6% annual revenue decline and margin compression from 44.5% to 23% over three years, which is very similar to the recent slide in trailing margin from 44.8% to 23.3%, suggesting part of that cautious path is already visible in the reported results.

Next Steps

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

With sentiment split between concern over margin pressure and interest in the valuation gap, it makes sense to look at the full picture yourself and act on your own judgment. You can start with the 2 key rewards and 2 important warning signs

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InMode’s recent results highlight compressed margins, softer earnings and cautious revenue expectations, which together raise questions about how resilient its profit profile really is.

If that mix of earnings pressure and uncertainty makes you uneasy, it can help to balance your watchlist with companies filtered through the 73 resilient stocks with low risk scores.

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.