Outset Medical reported third quarter 2026 results that exceeded analyst expectations on both the top and bottom lines. Total revenue grew 14% year-over-year, supported by a 26% surge in console sales and steady expansion in recurring revenue from consumables and services. The company demonstrated significant operating leverage, with gross margins expanding to 40.7% as it continues to execute its commercial transformation and drive adoption within its installed base of over 1,000 care sites.
Key Highlights
- Net revenue of $33.6 million beat the consensus estimate of $31.4 million, representing 14% year-over-year growth.
- Recurring revenue reached $23.1 million, up 10% from the prior year and surpassing the $22.8 million analyst target.
- Gross margin expanded to 40.7%, up 130 basis points year-over-year, primarily driven by improved service margins which rose to 32.4%.
- The quarterly net loss narrowed to $14.7 million, or $0.78 per share, outperforming the projected $0.84 loss per share.