Inspire Medical Systems Inc. (NYSE: INSP) faces challenges as Stifel lowers price target to $95 due to reimbursement issues affecting operations. Despite this, Inspire projects 2026 revenue growth in high single digits and increased EPS estimates for 2026-2031, showing potential leverage. Baird and Wells Fargo downgrade ratings due to reimbursement uncertainty and weaker growth outlook for 2026.

Inspire’s Q4 revenue increased 12% YoY, with earnings of $1.65 per share beating expectations and margins improving to 17.5%. However, 2026 revenue growth outlook was cut to 4-10%, citing reimbursement changes tied to a new CPT code that could reduce physician payments by 10%-50%. Despite this, Inspire expects to remain profitable with margins of 6%-8%. Wells Fargo notes some doctors may stick with Inspire IV, limiting near-term demand for the newer system.

Inspire Medical Systems Inc. (NYSE: INSP) is known for developing medical technology solutions for obstructive sleep apnea, with its primary product being the Inspire system. This neurostimulation device is implanted to deliver mild hypoglossal nerve stimulation, keeping the airway open during sleep.

Read more at Yahoo Finance: Inspire Medical Systems Inc. (INSP) Confronts Near-Term Headwinds Despite Profitability