Inspire Medical Systems (INSP) Stock Trades Down, Here Is Why

What Happened?

Shares of medical technology company Inspire Medical Systems (NYSE:INSP) fell 16% in the morning session after the company lowered its full-year 2026 revenue and earnings guidance, citing persistent reimbursement and coding challenges. 

The medical device maker slashed its full-year revenue guidance by 12.8% to a midpoint of $850 million and cut its adjusted earnings per share forecast by over 50%. The company stated that it expected these challenges to persist through the balance of 2026. 

This downbeat forecast overshadowed first-quarter results that actually beat Wall Street's expectations, including a 1.6% year-on-year increase in revenue and an unexpected adjusted profit of $0.10 per share.

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What Is The Market Telling Us

Inspire Medical Systems’s shares are very volatile and have had 28 moves greater than 5% over the last year. But moves this big are rare even for Inspire Medical Systems and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 9 months ago when the stock dropped 41.3% on the news that the company slashed its full-year revenue and profit forecasts, a move that overshadowed a second-quarter earnings beat. 

The medical device maker lowered its 2025 revenue projection to a range of $900 million to $910 million, a significant drop from its previous estimate of $940 million to $955 million. The company also drastically reduced its net income per share guidance. Management attributed the weaker outlook to a slower-than-expected U.S. launch of its new Inspire V device, inventory issues with an older model, and some patients who delayed therapy to try GLP-1 weight loss drugs. In response to the disappointing forecast, several Wall Street firms, including JPMorgan and KeyBanc, downgraded the stock.

Inspire Medical Systems is down 50.3% since the beginning of the year, and at $45.87 per share, it is trading 71.7% below its 52-week high of $161.88 from May 2025. Investors who bought $1,000 worth of Inspire Medical Systems’s shares 5 years ago would now be looking at only $231.81.

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