Masimo (MASI) Stock Forecast & Price Target

Masimo Corp exhibits a positive outlook due to expected growth across both its core SET pulse oximetry business and advanced monitoring parameters, bolstered by new product launches and increased market share, particularly internationally. The company anticipates a significant recognition of $507 million in unrecognized contract revenue, representing a 17% year-over-year increase, and projected EBIT margins are expected to expand sequentially to 29.2% in FY26 and 29.8% in FY27. Furthermore, Masimo's emphasis on advanced monitoring technologies is anticipated to contribute to overall revenue acceleration, with the international pulse oximetry market and advanced monitoring platforms projected to grow at rates exceeding 10%.

Masimo Corp faces significant challenges impacting its financial outlook, primarily due to the projected increase in tariff-related costs, which are expected to negatively affect operating margins by approximately 110 basis points in 2026. Additionally, multiple risks, including regulatory delays on new products, heightened competition, and reduced demand for capital equipment in hospitals could further strain revenue and operational performance, leading to a lowered forecast for Q4 of 2025. The company also encounters ongoing pressures related to pricing strategies, supply chain issues, and the retention of its sales force, all of which contribute to a pessimistic long-term growth and profitability outlook.