Masimo Stock Gets a Fresh Buy Case in 2026—Here’s the Detailed Story

Meta Description: Masimo Stock is back in focus after updated 2028 targets, improving estimates, and major partnerships. Explore the key drivers, risks, and what investors should watch next.

If you’ve been watching the medical technology space, you’ve probably noticed that patient monitoring is turning into a “must-have” category—not a “nice-to-have.” Hospitals want better outcomes, fewer emergencies, and smoother workflows. At the same time, they’re under pressure to control costs. That’s where Masimo Corporation (ticker: MASI) comes in, and why a new wave of analysis argues that Masimo Stock deserves a closer look right now.

In early February 2026, Zacks highlighted MASI’s improving setup: solid execution, innovation-driven demand, and updated long-term financial targets—while also calling out real risks like tariffs and uneven capital equipment sales. This rewritten report explains the full picture in plain English, with extra context and investor-friendly structure.

Quick Snapshot: What’s Happening With Masimo Right Now?

Masimo is a global provider of non-invasive patient monitoring technologies. Its tools help clinicians track critical signals like oxygenation and more—often without invasive procedures. According to the Zacks-based coverage republished on TradingView, MASI was labeled a Zacks Rank #2 (Buy), even though the stock had fallen about 15.1% over the prior six months while the industry rose and the S&P 500 gained strongly. The same report noted Masimo’s market cap at roughly $7.44 billion and pointed to a history of earnings beats (average surprise about 12.4% across four quarters).

So, what’s the “big idea”? The optimistic view is that Masimo is building a multi-year growth engine—powered by intelligent monitoring, wearables, hospital partnerships, and operational targets that extend through 2028.

Why Investors Are Talking About Masimo Again

Let’s be real: a stock can be down and still be interesting. In fact, that’s often when new opportunities show up—if the business fundamentals are improving. Zacks’ February 2026 discussion focused on Masimo’s demand trends, R&D strength, and multi-year strategy.

1) A Clear Long-Term Strategy Through 2028

Masimo outlined a long-range plan centered on staying a global leader in patient monitoring while expanding innovation and improving profitability. The company also shared financial targets through 2028 that include:

• 7%–10% compound annual revenue growth
• Operating margins approaching 30%
• Adjusted EPS around $8.00
• Cumulative operating cash flow of about $1 billion (2026–2028)

These targets matter because they give investors a scoreboard. If Masimo keeps hitting milestones—revenue growth, margin expansion, and cash flow—confidence can rise even if the stock price has been choppy.

2) 2025 Guidance Shows Momentum (With Important Details)

The same Zacks-based report cited management expectations for full-year 2025 results, including revenue projected around $1.52 billion (about 9% growth reported and constant currency). It also pointed to adjusted diluted EPS expected to exceed $5.55, and shipments of noninvasive technology boards and instruments expected around 270,000 units.

Those numbers are important for two reasons:

1. They show demand is not fading. Hospitals and health systems are still buying.
2. They support the long-term narrative. You can’t hit 2028 goals without solid near-term execution.

3) “Commercial Traction” Is More Than a Buzzword

One line that stands out in the analysis is Masimo’s “record level of incremental contract value,” supported by new customers and expansions with existing hospitals. Translation: Masimo is not only winning new accounts, it’s growing inside current accounts too. That can be a strong sign of product usefulness and customer stickiness.

Masimo’s Growth Engine: Intelligent Monitoring, Wearables, and Clinical Value

4) Intelligent Patient Monitoring Is a Multi-Year Tailwind

Hospitals want earlier warnings when patients decline. That’s a key theme behind continuous monitoring and connected systems. Masimo has been pushing forward in advanced monitoring categories like capnography and hemodynamics, and it has described “growth waves” tied to commercial excellence, intelligent monitoring acceleration, and wearables innovation.

In simple terms, Masimo’s goal is to move from “a device that measures a number” to “a platform that helps clinicians make better decisions faster.” That’s where software, connectivity, and AI-enabled workflows can become a major differentiator over time.

5) Evidence Matters: ICU Accuracy and Skin-Tone Performance

One of the most discussed issues in pulse oximetry has been performance across different skin tones. Masimo highlighted a feasibility study analysis published in CHEST Critical Care, stating that its SET pulse oximetry performed accurately in critically ill adult ICU patients across skin tones and detected zero occult hypoxemic events in that feasibility setting.

Why does this matter for investors? Because hospital buyers care about clinical confidence and outcomes. If a technology is trusted in high-acuity settings, it can help drive adoption and reduce switching risk.

6) Hospitals Want ROI: Cost Savings From Continuous Monitoring

Masimo also pointed to research published in the Journal of Patient Safety by Dartmouth-Hitchcock Medical Center researchers. The report described surveillance monitoring using Masimo tech as cost-effective, improving operating margins by reducing patient rescues and transfers to higher-acuity care. It cited operating margin benefits of around $5,500 per avoided rescue and $10,700 per avoided transfer.

This is a big deal because it shifts the story from “cool technology” to “financial and operational benefit.” Hospitals are businesses too. If monitoring reduces emergencies, staffing strain, and costly escalations, adoption can become easier to justify.

Strategic Moves That Reshape the Company

7) Masimo Sold Sound United—Refocusing on Core Healthcare

Masimo completed the sale of its Sound United consumer audio business to HARMAN International (a Samsung subsidiary). Masimo announced the completion on September 23, 2025, describing the transaction as a portfolio-streamlining move.

Zacks’ February 2026 coverage also framed the deal as a way to sharpen focus on the core professional healthcare business, with cash consideration referenced at $350 million.

For investors, divestitures can be helpful when they:

• Reduce complexity
• Strengthen balance sheet flexibility
• Redirect leadership attention to the highest-conviction segment

8) Philips Partnership Expansion Could Scale Adoption

Masimo renewed and expanded its strategic partnership with Royal Philips in September 2025. The partnership aims to broaden adoption of Masimo monitoring tech (including SET pulse oximetry), integrate Masimo sensors more deeply into Philips monitoring systems, and support next-generation wearable and AI-enabled solutions.

This kind of partnership matters because it can speed up distribution and integration. Instead of trying to “sell around” a major platform provider, Masimo can potentially ride alongside one—getting its tech in front of more hospitals through established workflows.

9) FDA 510(k) Clearance Supports Product Expansion

Masimo announced in August 2025 that its O3 Regional Oximetry received FDA 510(k) clearance for expanded indications of its delta hemoglobin parameters—supporting both cerebral and somatic applications.

Regulatory clearances can strengthen a product roadmap because they:

• Expand addressable use cases
• Support clinical adoption with clearer labeling
• Create competitive separation if alternatives lack similar claims

The Risks: What Could Go Wrong With MASI?

No serious investor story is complete without the downside. Zacks’ February 2026 write-up flagged two notable risk areas: tariffs and capital equipment volatility.

Tariff Pressure Can Squeeze Margins

Masimo’s manufacturing footprint spans the United States, Mexico, and Malaysia, with certain materials sourced from China and some sub-assemblies imported across regions. The Zacks-based analysis warned that tariffs could increase costs on inputs and finished goods. Management reportedly aims to offset this by optimizing supply chain operations and pursuing exemptions, including those under USMCA, while also exploring alternative sourcing to reduce exposure over time.

In plain terms: even a strong product can face profit pressure if costs rise faster than pricing power.

Capital Equipment Sales Can Be “Lumpy”

Masimo’s capital equipment revenues can swing from quarter to quarter based on shipment timing, contract award schedules, and purchasing patterns. The report described capital equipment as timing-driven and volatile, with multi-year growth historically in low- to mid-single digits. It also suggested capital could soften in Q4 2025, while growth may lean more on consumables shipments.

That means investors should avoid overreacting to any single quarter—especially if the mix shifts between capital and consumables.

Estimates and Revisions: Why Wall Street Models Matter

Zacks’ approach places heavy emphasis on earnings estimate revisions. In the February 2026 discussion, the Zacks Consensus estimate for 2026 EPS was described as moving up 0.5% in 60 days to about $5.77. It also cited consensus first-quarter revenue near $396.7 million (about 6.7% higher year over year).

Why does this matter?

• Positive revisions can signal improving confidence.
• Better visibility can reduce perceived risk.
• Momentum in estimates sometimes attracts new institutional attention.

How Masimo Fits Into a Portfolio (Without Overhyping It)

Here’s a balanced way to think about Masimo Stock as an investor:

If You Like “Quality Growth With a Plan”

Masimo’s appeal is that it isn’t just saying “we’ll grow.” It’s putting numbers on the table through 2028—revenue CAGR targets, margin goals, EPS ambitions, and cash flow expectations.

If You Care About Clinical Proof and Adoption

The combination of ICU-focused evidence discussions, hospital cost-savings claims, and platform partnerships (like Philips) helps build a stronger adoption narrative than pure “product hype.”

If You’re Risk-Aware

Tariffs and capital sales volatility are not small footnotes. They can create margin bumps and short-term noise. Masimo also operates in a space where hospitals already have systems in place—so switching and integration can be slow.

What to Watch Next: Practical Investor Checklist

If you’re tracking MASI, here are the practical signals that matter most:

• Progress toward 2028 targets: revenue growth rate, margin trend, and cash flow cadence.
• Tariff mitigation updates: supply chain changes, exemptions, sourcing shifts.
• Consumables vs. capital mix: steady consumables can smooth volatility.
• Partnership execution: especially Philips integration and scale benefits.
• Product and regulatory milestones: like O3 expansions and new monitoring features.

For official updates, you can also review company announcements via the investor site: Masimo Investor Relations.

FAQs About Masimo Stock

1) Why is Masimo Stock being discussed as a “buy” now?

A Zacks-based report (republished on TradingView) pointed to improving fundamentals: long-term targets through 2028, steady demand for monitoring innovation, and a history of earnings beats—despite the stock being down over the prior six months.

2) What are Masimo’s key financial targets through 2028?

Targets discussed include 7%–10% compound annual revenue growth, operating margins approaching 30%, adjusted EPS around $8.00, and cumulative operating cash flow of about $1 billion from 2026–2028.

3) What major business change did Masimo make in 2025?

Masimo completed the sale of its Sound United consumer audio business to HARMAN International on September 23, 2025, sharpening focus on its healthcare core.

4) How does the Philips partnership help Masimo?

The renewed and expanded partnership aims to increase adoption of Masimo monitoring tech across Philips monitors, integrate wearables like Radius PPG, and support AI-enabled monitoring development.

5) What are the biggest risks mentioned for MASI?

The Zacks-based analysis highlighted tariff pressure on gross margins and volatility in capital equipment revenues, which can create uneven quarterly results.

6) What does “positive estimate revision” mean for this stock?

It means analysts’ earnings expectations have been moving up. The report cited a 0.5% increase in the Zacks Consensus EPS estimate for 2026 over 60 days (to about $5.77), which can signal improving confidence.

Conclusion: The Bull Case Is Real—But It’s Not “Risk-Free”

Masimo Stock is getting renewed attention because the company is pairing innovation with a measurable long-term plan. Updated 2028 targets, evidence-based monitoring value, and strategic partnerships create a credible growth story. At the same time, investors should keep both feet on the ground: tariffs, capital revenue lumpiness, and execution risks can still shake the near-term ride.

If you like durable healthcare technology themes—and you’re comfortable tracking operational progress quarter by quarter—Masimo may be worth placing on your watchlist (or researching for a staged entry). Either way, the next few quarters should reveal whether management’s 2028 scoreboard is becoming reality.

Sources referenced: Zacks-based report republished by TradingView; Masimo investor/press releases; Philips press release; CHEST Critical Care publication; HARMAN release; related reporting.

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