Mixed Signals Cloud Inspire Medical Systems’ Outlook

Inspire Medical Systems, a medical technology firm, finds itself in a curious position. Despite presenting a robust financial forecast, its share price continues to struggle, weighed down by legal headwinds and recent market performance.

The company recently announced a change in its executive leadership. Matt Osberg assumed the role of Executive Vice President and Chief Financial Officer on January 19, 2026. This move comes as Inspire Medical prepares for its next growth phase, underscored by preliminary financial data.

The unaudited figures for the fourth quarter and full year 2025 exceeded market expectations. Q4 2025 revenue is estimated between $268.9 million and $269.1 million, surpassing the consensus estimate of $262 million. For the entire 2025 fiscal year, the company anticipates revenue in the range of $911.8 million to $912.0 million, also topping analyst projections of $905.03 million.

Furthermore, management has reaffirmed its outlook for fiscal 2026, projecting revenue growth of 10% to 11%, which would result in a top line of $1.003 billion to $1.013 billion. Perhaps most striking is the significant revision to the 2025 earnings per share (EPS) forecast. The expected EPS has been raised sharply from a prior range of $0.40-$0.50 to a new range of $0.90-$1.00.

Should investors sell immediately? Or is it worth buying Inspire Medical?

Legal Overhang and Share Price Weakness

Contrasting the solid financial picture, the company's stock has faced substantial selling pressure. Shares have declined 6.3% over the past week and have shed 22% over the last month. This downturn is set against a backdrop of ongoing class-action litigation.

Multiple lawsuits, for which lead plaintiff deadlines passed in January 2026, allege that Inspire Medical misled investors regarding the launch of its Inspire V neurostimulation system. The complaints cite several operational challenges as impediments to a successful rollout, including weak demand, excessive inventory levels, and critical deficiencies in training, contracting, and software updates for Medicare billing. These allegations have cast a shadow over the near-term sentiment, even as the company's long-term growth strategy remains unchanged.

Analyst perspectives reflect this dichotomy. On January 14, Wells Fargo reiterated its "Overweight" rating with a $145.00 price target. However, other firms, such as Truist Securities, have previously reduced their targets. The current average 12-month price target sits between $144.32 and $148.67, with a wide spectrum of estimates ranging from $85.00 to $255.00.

Market participants are now looking ahead to the official release of the 2025 audited financial results, scheduled for after the market closes on February 11, 2026. The subsequent conference call with management is expected to provide critical insights into how the company is navigating its product launch challenges and its confidence in the 2026 outlook.