Butterfly Network (BFLY) Stock Forecast & Price Target

Butterfly Network is well positioned because its cMUT-powered iQ handheld probe can perform whole-body imaging from a single, low-cost device, supporting continued disruption of traditional ultrasound and potentially driving solid core growth. The investment case is further strengthened by a growing Embedded business, with 12 partnerships and Embedded revenue reaching 33% of total sales in 2Q26, creating multiple monetization layers through licensing, chip sales, and revenue shares. Catalysts in 1Q27 and 2H26, including the next-generation iQ launch, Garden application rollouts, and Mendaera and Midjourney commercialization, could improve margins, expand use cases, and help the company move toward higher-growth, higher-margin revenue.

Butterfly Network is viewed negatively because its growth story may decelerate as it laps tougher comps in 2H26 and again beginning in 4Q26, raising the risk that revenue misses trigger multiple contraction. The core concern is that Embedded partnerships, including the 4Q25 Midjourney milestone and at least one launch expected in 2H26, may take too long to commercialize, leaving operating expense leverage stalled and limiting near-term profitability. Until those projects become meaningful revenue drivers, the company remains reliant on its core business, which was about 2/3 of revenue mix as of 2Q26, while execution, regulatory, competitive, and pricing risks remain elevated.