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INSP · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Inspire Medical Systems, Inc. (INSP) stock moving?
Inspire beat Q3 2026 expectations, with revenue of $206.7M against $204.3M expected and adjusted EPS of $0.14 against $0.09. It narrowed FY2026 guidance: adjusted EPS to $1.20-$1.40 (midpoint up from $1.25 to $1.30) and sales to $850M-$860M, roughly unchanged at the midpoint. GAAP EPS guidance was also narrowed to a loss of $(0.36) to $(0.10). The FDA approved the therapy for pediatric Down syndrome patients on Nov 6, and new CPT codes were announced for Inspire V. Despite the beat, the stock fell from a $67.21 close on Nov 2 to $61.90 on Nov 3, on volume of about 1.52M shares versus a typical 0.5-0.7M. The Nov 3 intraday low of $60.20 has since held as the reference low, and the stock has traded between $62 and $67 since, closing at $62.31 on Nov 10, which is still below the pre-results level. Analyst reactions were mixed: Piper Sandler, Baird, JP Morgan and Wells Fargo raised targets, while Truist, Evercore, Barclays and UBS (Sell, $45) cut or kept low targets. Most ratings are Neutral or Hold. Consensus targets sit around $60-$77, so the price is near the lower end. The Insplorion AB result in the feed is an unrelated company and was excluded. Near-term direction depends on the Stifel presentation and on Q4 execution against the narrowed guidance.
News behind the analysis
- Inspire Medical Systems Reports Third Quarter 2026 Financial ResultsReported Q3 2026 revenue of $206.7M and adjusted diluted EPS of $0.14, and announced new CPT code approvals for its Inspire V system.
- Inspire Medical Systems Q3 Adj. EPS $0.14 Beats $0.09 Estimate, Sales $206.695M Beat $204.304M EstimateThird-quarter adjusted EPS and sales both came in above consensus estimates.
- Inspire Medical Systems Narrows FY2026 Adj EPS Guidance from $1.05-$1.45 to $1.20-$1.40 vs $1.25 Est; Narrows FY2026 Sales Guidance from $835.000M-$875.000M to $850.000M-$860.000M vs $853.615M EstAdjusted EPS guidance was narrowed to $1.20-$1.40 and sales guidance to $850M-$860M, both close to prior consensus.
- Inspire Medical Systems Narrows FY2026 GAAP EPS Guidance from $(0.42)-$0.17 to $(0.36)-$(0.10)GAAP EPS guidance was narrowed to a loss range of $(0.36) to $(0.10) for FY2026.
- Inspire Medical Systems Receives FDA Approval for Pediatric Patients with Down SyndromeFDA approval allows Inspire to offer its neurostimulation therapy to pediatric patients with Down syndrome.
- UBS Adjusts Inspire Medical Systems Price TargetUBS raised its price target from $40 to $45 while keeping a Sell rating.
- Piper Sandler Maintains Neutral on Inspire Medical Systems, Raises Price Target to $70Piper Sandler kept its Neutral rating and lifted its price target from $60 to $70.
- Barclays Maintains Underweight on Inspire Medical Systems, Lowers Price Target to $62Barclays kept its Underweight rating and cut its price target to $62.
- Inspire Medical Systems to Present at Stifel 2026 Healthcare ConferenceManagement is scheduled to present at the Stifel 2026 Healthcare Conference on November 10, 2026.
About Inspire Medical Systems, Inc.
Inspire Medical Systems is a Minneapolis-based medical device company that makes the Inspire system, a small implanted device that stimulates a nerve to keep the airway open during sleep for people with obstructive sleep apnea. It sells the only FDA-approved nerve-stimulation therapy for this condition, and it is aimed at patients who can't tolerate CPAP masks. More than 135,000 patients have received the device.
How it makes money
Nearly all of its revenue comes from selling Inspire implant systems (the neurostimulator, a sensing lead and a stimulation lead) to hospitals and surgery centers. Most sales are in the US, with a smaller international business. Gross margins are high, around 86%. Revenue was about $912 million in 2025. The company expects roughly $850–860 million in 2026 because of a Medicare billing-code and reimbursement disruption tied to its newer Inspire V device. It has since secured a Category 1 CPT billing code, and management expects revenue to grow again in 2027.
What usually moves INSP
- Medicare and insurer coding and reimbursement decisions
- Adoption rate of the Inspire V system
- Competition from GLP-1 weight-loss drugs and CPAP
- Quarterly procedure volumes and guidance changes
- International expansion