Masimo (MASI) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 increased 8.5% year-over-year to $403.6 million, driven by higher consumables and service revenue, with favorable foreign exchange impact of $5.6 million.

• Gross profit rose 7.2% to $250.8 million, with gross margin slightly down to 62.1% due to $6.7 million in incremental tariffs.

• Operating income was $77.4 million, down slightly from $78.0 million, as higher SG&A expenses offset revenue growth.

• Net income from continuing operations was $56.3 million, up from $47.2 million year-over-year; total net income was $57.1 million, reversing a prior year net loss of $170.7 million due to discontinued operations.

• The sale of the non-healthcare business was completed in Q3 2025, with discontinued operations contributing $0.8 million net income in Q1 2026 versus a $217.9 million loss in Q1 2025.

Financial highlights

• Revenue: $403.6 million, up 8.5% year-over-year.

• Gross profit: $250.8 million (62.1% margin), up 7.2%.

• Operating income: $77.4 million (19.2% margin).

• Net income: $57.1 million, or $1.10 per basic share.

• Cash and cash equivalents: $124.6 million as of April 4, 2026.

• Working capital: $545.1 million; available borrowing capacity: $539.6 million.

Outlook and guidance

• Management remains optimistic about long-term growth in patient monitoring, hospital automation, and expansion into outpatient and ambulatory markets.

• The company expects to fund ongoing operations and capital needs for the next 12 months with existing cash, cash flow, and credit facility.