Masimo Beats Estimates Four Quarters Running but Q4 EPS Seen Sliding 20.6%
Masimo holds a Zacks Rank #2 and an Earnings ESP of +8.04% for its Q4 2025 results due Feb. 26. The company topped estimates each of the past four quarters by an average 12.39% surprise, even as consensus forecasts a 20.6% year-over-year EPS drop this quarter.
1. Earnings ESP and Zacks Rank
Masimo's Earnings ESP stands at +8.04%, indicating that the most accurate analyst estimate exceeds the consensus by a wide margin ahead of its Q4 2025 release on Feb. 26. The company also carries a Zacks Rank #2 (Buy), signaling strong quantitative signals for a potential earnings beat.
2. Historical Earnings Surprise Streak
Over the trailing four quarters, Masimo has exceeded consensus EPS by an average of 12.39%, reflecting consistent operational strength in its patient monitoring and connectivity businesses. This streak underscores the company's ability to outperform despite sector headwinds and shifting hospital buying behaviors.
3. Q4 2025 EPS Outlook
Consensus projects a 20.6% year-over-year EPS decline for Q4 2025, implying margin pressure from evolving hospital procurement trends and sustained R&D spending. This forecast sets a challenging comparison to last year’s results and will be a key focus in the upcoming release.
4. Investor Implications
Masimo’s combination of a positive Earnings ESP and a history of upside surprises may temper market volatility if results meet or exceed expectations. However, the significant EPS decline forecast creates downside risk, making the Feb. 26 release a pivotal event for investor sentiment.