Masimo Stock Earnings Reports

Masimo delivered a strong Q3 2025: revenue grew 8% year-over-year, adjusted EPS increased 38%, operating margin expanded 450 basis points, and operating cash flow was $57 million. Key drivers included solid demand for technology boards/monitors (66,000 units shipped, +8% YoY), robust contract activity (incremental contract value of $124 million, +48% YoY) and improving commercial execution. Management closed the Sound United divestiture to Harman and used proceeds to pay down debt and repurchase shares—returning a total of $350 million to shareholders across Q3 and Q4. Masimo tightened fiscal 2025 revenue guidance to $1.510B–$1.530B, raised operating margin guidance to 27.3%–27.7%, and lifted adjusted EPS guidance to $5.40–$5.55 (up $0.15 at the midpoint). Company highlighted strategic priorities: (1) elevating commercial excellence to broaden cross-sell and advanced monitoring wins (capnography, hemodynamics, brain monitoring), (2) accelerating intelligent monitoring via AI-enabled sensors (including OIRD detection integration into next-gen sensors/monitors), and (3) innovating wearables (Radius VSM, W1, Radius PPG pilots). Management emphasized favorable contract backlog (unrecognized contract revenue of $507M expected to be recognized within 12 months, +17% YoY) and expects consumables growth to accelerate into Q4 as tougher prior-year comps normalize. The expanded strategic partnership with Philips was noted as a significant long-term opportunity to grow share within Philips’ installed base. Management will provide additional product and strategic detail at Investor Day on December 3.