Outset Medical Q4 Margins Jump 600bps, Price Targets Cut to $12 and $15
Outset Medical reported Q4 revenue of $28.9M, down 2% year-over-year, and saw gross margin improve by 600 basis points to 42.4%. TD Cowen and BTIG maintained Buy ratings despite cutting price targets to $12 and $15, while management projected 2026 revenue of $125M-$130M.
1. Q4 Financial Performance
Outset Medical posted Q4 revenue of $28.9 million, down 2% year-over-year, with gross margin rising 600 basis points to 42.4%. Adjusted net loss narrowed to $15.1 million and full-year 2025 revenue reached $119.5 million, a 5% increase.
2. Analyst Reactions
TD Cowen trimmed its 2026 price target to $12 and BTIG lowered theirs to $15, yet both reaffirmed Buy ratings, citing a stable sales force, robust recurring revenue and improving margins.
3. 2026 Outlook and Guidance
Management projects 2026 revenue of $125 million to $130 million with non-GAAP gross margins in the low-to-mid-40% range and plans to launch its next-generation Tablo hemodialysis platform in Q2.