iRhythm Technologies (NASDAQ:IRTC) Releases Earnings Results, Beats Expectations By $0.80 EPS

iRhythm Technologies (NASDAQ:IRTC) released its earnings results on Thursday. The company reported $0.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.02 by $0.80, FiscalAI reports. The company had revenue of $221.59 million during the quarter, compared to analyst estimates of $222.23 million. iRhythm Technologies had a positive return on equity of 10.11% and a negative net margin of 1.69%. The company’s revenue for the quarter was up 14.9% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.06) earnings per share.

Here are the key takeaways from iRhythm Technologies’ conference call:

• Q3 revenue rose 14.9% to $221.6 million, led by Zio Monitor, which outperformed expectations on broad-based demand and growth in primary care and innovative channels. Zio AT revenue was roughly flat, partially offsetting that strength.
• The company reported 74.2% gross margin and 23.1% adjusted EBITDA margin, reflecting operating leverage; gross margin included about $3 million in one-time tariff refunds. GAAP results included a $50 million IP-litigation settlement charge, while free cash flow was negative $11.5 million after the settlement payment and would have been positive $38.5 million excluding it.
• iRhythm delayed its planned Zio MCT FDA submission from later this year to 2027, prioritizing integration of VitalConnect. Zio AT purchasing delays are expected to persist near term; management forecasts flat AT volume in Q4 and is assuming AT remains flat in 2027.
• iRhythm raised 2026 revenue guidance to $890 million–$895 million and adjusted EBITDA margin guidance to 15.5%–16%. For 2027, it expects about $1 billion in organic revenue, mid-teens Zio Monitor growth, VitalConnect growth slightly above the organic business, and an adjusted EBITDA margin of at least 15%—while noting that VitalConnect integration and scaling remain priorities.

iRhythm Technologies Trading Down 23.1%

NASDAQ:IRTC opened at $100.06 on Friday. The company has a market capitalization of $3.30 billion, a P/E ratio of -236.39 and a beta of 1.39. The stock’s 50 day moving average price is $115.47 and its 200 day moving average price is $122.07. The company has a debt-to-equity ratio of 3.50, a quick ratio of 3.74 and a current ratio of 3.86. iRhythm Technologies has a 52 week low of $100.70 and a 52 week high of $192.47.

Key iRhythm Technologies News

Here are the key news stories impacting iRhythm Technologies this week:

• Positive Sentiment: Third-quarter adjusted EPS was $0.82, well above the $0.02 consensus estimate and the year-ago loss of $0.06. iRhythm Q3 Earnings Surpass Estimates
• Neutral Sentiment: Revenue increased 14.9% year over year to $221.6 million, but was just below the $222.2 million analyst estimate, making sales performance broadly in line with expectations. Q3 Revenue Report
• Negative Sentiment: Despite the earnings beat, a report said IRTC shares declined following the results, suggesting investors were disappointed by something beyond the headline EPS figure. Needham cut its price target to $165 from $194, while keeping its Buy rating. Q3 Results and Share Reaction Needham Price Target Update

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on IRTC shares. Wall Street Zen downgraded iRhythm Technologies from a “buy” rating to a “hold” rating in a report on Saturday, October 10th. Piper Sandler lowered their price objective on shares of iRhythm Technologies from $160.00 to $150.00 and set an “overweight” rating on the stock in a research report on Friday. Truist Financial upped their price objective on shares of iRhythm Technologies from $160.00 to $168.00 and gave the company a “buy” rating in a research note on Monday, August 10th. Weiss Ratings upgraded shares of iRhythm Technologies from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, October 27th. Finally, Stephens initiated coverage on shares of iRhythm Technologies in a research report on Thursday, July 23rd. They issued an “overweight” rating and a $160.00 target price for the company. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $172.14.

About iRhythm Technologies

iRhythm Technologies, Inc is a digital health company focused on the diagnosis and management of cardiac arrhythmias. The company provides ambulatory cardiac monitoring services that enable physicians to evaluate patients for conditions such as atrial fibrillation and other irregular heart rhythms.

Its principal offering is the Zio platform, which combines wearable electrocardiogram (ECG) monitoring devices with cloud-based data analysis and physician reports. Products in the platform include the Zio XT, an extended-wear monitor, and the Zio AT, which provides near-real-time monitoring capabilities.