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IRTC · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is iRhythm Holdings, Inc. Common Stock (IRTC) stock moving?
IRTC reported a solid Q3 on Nov 5: revenue rose 14.9% to $221.6M, gross margin widened 310 bp to 74.2%, adjusted EBITDA margin reached 23.1%, and FY2026 revenue guidance was raised to $890M-$895M. The stock closed at $134.00 on Nov 4 and $130.19 on Nov 5, then fell 30.7% to $90.22 on Nov 6 on 5.67M shares, about ten times the prior session's volume. Citigroup downgraded to Neutral with a $124 target the same day, and a law firm investigation notice cited a revenue shortfall and a delayed Zio MCT FDA submission. That notice conflicts with the raised guidance and the company's pediatric 510(k) filing, so it is unverified. The stock slid further to $88.73 on Nov 9 and $86.06 on Nov 10, with an intraday low of $82.85, the lowest in the 30-day window. Most brokers kept Buy or Overweight ratings but cut targets to $135-$170, with Canaccord the lone raise at $206, so the price now sits well below most published targets. The $300M revolver closed Nov 3 and $560.7M of cash is on hand, which supports the balance sheet. Against this, the GAAP net loss widened by $24.6M to $29.9M, and the price trend and elevated volume are still negative.
News behind the analysis
- Citigroup Downgrades iRhythm Holdings to Neutral, Lowers Price Target to $124Citigroup cut its rating from Buy to Neutral with a $124 price target after the Q3 report. The downgrade is one of the few rating cuts in the window and weighed on the stock on Nov 6.
- iRhythm Holdings, Inc. Reports Third Quarter 2026 Financial ResultsQ3 revenue rose 14.9% to $221.6M, gross margin reached 74.2%, and adjusted EBITDA margin was 23.1%. GAAP net loss widened to $29.9M, and cash and securities totaled $560.7M.
- iRhythm Holdings Raises FY2026 Sales Guidance from $880.000M-$890.000M to $890.000M-$895.000M vs $890.076M EstFull-year 2026 revenue guidance was raised to $890M-$895M, and adjusted EBITDA margin guidance to 15.5%-16.0%. The revenue range sits at the consensus estimate of $890.076M.
- iRhythm Technologies Faces Investor Investigation Following Q3 Earnings Miss and Guidance UpdateA law firm notice says investors may have claims over a revenue shortfall and a delayed FDA submission for Zio MCT. This conflicts with the company's raised guidance and is unverified.
- Canaccord Genuity Maintains Buy on iRhythm Holdings, Raises Price Target to $206Canaccord kept its Buy rating and raised its target to $206, the highest target among the updates in the window. It is an outlier against the lowered targets from other brokers.
- BTIG Maintains Buy on iRhythm Holdings, Lowers Price Target to $170BTIG kept its Buy rating and cut its price target to $170 following the Q3 results.
- Needham Maintains Buy on iRhythm Holdings, Lowers Price Target to $165Needham maintained its Buy rating and lowered its target to $165 from $194.
- Piper Sandler Maintains Overweight on iRhythm Holdings, Lowers Price Target to $150Piper Sandler kept its Overweight rating and lowered its target to $150 after the Q3 results.
- Truist Securities Maintains Buy on iRhythm Holdings, Lowers Price Target to $140Truist reaffirmed its Buy rating and cut its price target to $140. The note was published on Nov 9, after the sell-off.
- Freedom Capital Markets Maintains Buy on iRhythm Holdings, Lowers Price Target to $159Freedom Capital Markets reaffirmed its Buy rating and lowered its price target to $159. It was published on Nov 9.
About iRhythm Holdings, Inc. Common Stock
iRhythm Holdings is a San Francisco-based digital health company best known for its Zio patches, wearable heart monitors that record heart rhythm for days to weeks. The data is analysed by its cloud software and AI algorithms, and the company turns it into reports that doctors use to diagnose arrhythmias such as atrial fibrillation.
How it makes money
Nearly all of its revenue comes from fees for each monitoring test, paid by Medicare, private insurers and healthcare providers. Each fee covers the device, the data analysis and the report, mainly for its long-term Zio XT/Monitor patch and its Zio AT patch, which sends data to doctors during the monitoring period. Most sales are in the US, with smaller operations in markets such as the UK and Japan. The company's 2026 revenue guidance was about $880–890 million. It also agreed in 2026 to buy Vital Connect, which makes wearable biosensors.
What usually moves IRTC
- Medicare and insurer reimbursement rates for heart monitoring
- Test volume growth and new markets such as primary care
- FDA regulatory matters and product clearances
- Competition and patent disputes in cardiac monitoring
- Progress toward profitability and margin expansion