iRhythm Technologies (NASDAQ:IRTC) Announces Earnings Results

iRhythm Technologies (NASDAQ:IRTC) released its quarterly earnings results on Thursday. The company reported $0.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.02 by $0.80, FiscalAI reports. iRhythm Technologies had a positive return on equity of 10.11% and a negative net margin of 1.69%. The business had revenue of $221.59 million during the quarter, compared to analysts’ expectations of $222.23 million. During the same period in the previous year, the business posted ($0.06) earnings per share. The firm’s revenue for the quarter was up 14.9% compared to the same quarter last year.

Here are the key takeaways from iRhythm Technologies’ conference call:

• Q3 revenue rose 14.9% to $221.6 million, led by Zio Monitor, which outperformed expectations on broad-based demand and growth in primary care and innovative channels. Zio AT revenue was roughly flat, partially offsetting that strength.
• The company reported 74.2% gross margin and 23.1% adjusted EBITDA margin, reflecting operating leverage; gross margin included about $3 million in one-time tariff refunds. GAAP results included a $50 million IP-litigation settlement charge, while free cash flow was negative $11.5 million after the settlement payment and would have been positive $38.5 million excluding it.
• iRhythm delayed its planned Zio MCT FDA submission from later this year to 2027, prioritizing integration of VitalConnect. Zio AT purchasing delays are expected to persist near term; management forecasts flat AT volume in Q4 and is assuming AT remains flat in 2027.
• iRhythm raised 2026 revenue guidance to $890 million–$895 million and adjusted EBITDA margin guidance to 15.5%–16%. For 2027, it expects about $1 billion in organic revenue, mid-teens Zio Monitor growth, VitalConnect growth slightly above the organic business, and an adjusted EBITDA margin of at least 15%—while noting that VitalConnect integration and scaling remain priorities.

iRhythm Technologies Stock Performance

Shares of IRTC stock opened at $90.22 on Friday. The company’s 50 day moving average is $114.95 and its 200 day moving average is $121.69. The firm has a market cap of $2.97 billion, a price-to-earnings ratio of -77.11 and a beta of 1.39. iRhythm Technologies has a 52-week low of $86.30 and a 52-week high of $192.47. The company has a quick ratio of 3.74, a current ratio of 3.86 and a debt-to-equity ratio of 3.50.

Analysts Set New Price Targets

Several research analysts recently commented on the stock. Canaccord Genuity Group lifted their target price on shares of iRhythm Technologies from $196.00 to $206.00 and gave the stock a “buy” rating in a research note on Friday. Wells Fargo & Company dropped their price objective on iRhythm Technologies from $150.00 to $135.00 and set an “overweight” rating on the stock in a report on Friday. Wall Street Zen lowered iRhythm Technologies from a “buy” rating to a “hold” rating in a research report on Saturday, October 10th. Citigroup lowered iRhythm Technologies from a “buy” rating to a “neutral” rating and decreased their price target for the stock from $157.00 to $124.00 in a research note on Friday. Finally, Stephens started coverage on shares of iRhythm Technologies in a research note on Thursday, July 23rd. They set an “overweight” rating and a $160.00 price objective for the company. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $171.07.

iRhythm Technologies News Summary

Here are the key news stories impacting iRhythm Technologies this week:

• Positive Sentiment: iRhythm reported third-quarter earnings of $0.82 per share, above the $0.02 consensus estimate, and revenue grew 14.9% year over year. Third-quarter 2026 financial results
• Positive Sentiment: Despite reducing targets, Needham and BTIG retained Buy ratings, while Wells Fargo and Piper Sandler maintained Overweight ratings—indicating continued optimism among those firms. Needham analyst ratings
• Neutral Sentiment: The company announced plans to participate in upcoming investor conferences; no new financial or operating outlook was included in the announcement. Investor conference announcement
• Negative Sentiment: Revenue of $221.6 million narrowly missed the $222.2 million estimate. The small shortfall may have weighed on sentiment despite the EPS beat. Quarterly revenue results
• Negative Sentiment: Analysts cut targets: Wells Fargo to $135 from $150, Piper Sandler to $150 from $160, Needham to $165 from $194, and BTIG to $170 from $185. Citigroup also downgraded IRTC from Buy to Neutral and lowered its target to $124 from $157. These revisions add to concerns about the outlook, even though most firms still see potential upside from the current share price. Citigroup analyst rating

iRhythm Technologies Company Profile

iRhythm Technologies, Inc is a digital health company focused on the diagnosis and management of cardiac arrhythmias. The company provides ambulatory cardiac monitoring services that enable physicians to evaluate patients for conditions such as atrial fibrillation and other irregular heart rhythms.

Its principal offering is the Zio platform, which combines wearable electrocardiogram (ECG) monitoring devices with cloud-based data analysis and physician reports. Products in the platform include the Zio XT, an extended-wear monitor, and the Zio AT, which provides near-real-time monitoring capabilities.