Inspire Medical Systems Stock Rebounds 15%: What Q4 Profit Growth Means for 2026

Rexielyn Diaz4 minute read
Reviewed by: Thomas Richmond
Last updated Feb 27, 2026

Key Stats for INSP Stock

  • Price Change for INSP stock: +14.85%
  • INSP Share Price as of Feb. 26: $68
  • 52-Week High: $189
  • INSP Stock Price Target: $78

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What Happened?

Inspire Medical Systems (INSP) stock surged 14.9% to $68 on February 26, 2026, following its fourth-quarter and full-year 2025 results. The move came after the company reported better-than-expected Q4 revenue and sharply higher profitability. According to Reuters, Q4 revenue beat estimates, and Q4 net income per diluted share rose 182% to $4.66.

Full-year results were also strong. Reuters reported that fiscal 2025 net income rose to $145.4 million, up more than 2.7x year over year. That earnings acceleration helped reinforce investor confidence after a volatile period for the stock.

Earlier in the week, Inspire filed a Form 3 for new CFO Matthew J. Osberg, who was named Chief Financial Officer in January. The company also projected 2026 revenue growth of 10% to 11% during its January presentation at the J.P. Morgan Healthcare Conference. That forward guidance likely contributed to renewed optimism.

The rally also comes after several months of legal overhang. Inspire has faced multiple securities class action lawsuits since December 2025, tied to disclosure issues and its Inspire V launch. However, investors appeared focused on earnings momentum rather than litigation risk this week.

INSP Stock Price Targets (TIKR)

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What the Market Is Telling Us About INSP Stock

Investors seem to be rewarding Inspire’s improving profitability profile. The company now generates an LTM gross margin of 85.4% and an EBIT margin of 5.6%. Those margins reflect strong unit economics in its sleep apnea neurostimulation platform.

Inspire has also improved capital efficiency. LTM return on equity stands at 19.8%, while return on invested capital is 6.3%. Meanwhile, the company holds a net cash position of $276 million, which gives it balance sheet flexibility.

Growth has moderated compared to prior years, but it remains positive. Revenue grew at a 30.8% CAGR over the past three years, while analysts project 7.2% forward 2-year revenue CAGR. EBITDA is expected to grow faster, with a projected 15% forward 2-year CAGR.

Valuation has compressed significantly from prior peaks. The stock now trades at 1.7x forward EV/revenue and 7.7x forward EV/EBITDA. On a forward earnings basis, shares trade at 33.3x NTM P/E, while LTM P/E stands at 13.9x.

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Should You Invest in Inspire Medical Systems, Inc.?

The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.

Pull up INSP, and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!

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