We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IRTC Stock Up on Q1 Earnings & Revenue Beat, FY26 Outlook Raised
Read MoreHide Full Article
Key Takeaways
iRhythm reported Q1 2026 revenue growth of 25.7% and a narrower adjusted loss per share.
IRTC's growth was driven by strong volume demand and broad gains across payor and healthcare segments.
iRhythm raised its FY26 revenue and EBITDA margin outlook, citing operational efficiency and scale benefits.
iRhythm Holdings, Inc. (IRTC - Free Report) reported an adjusted loss per share of 35 cents in the first quarter of 2026 compared with an adjusted loss of 95 cents in the year-ago period. The figure was 37.5% narrower than the Zacks Consensus Estimate.
GAAP loss per share for the quarter was 43 cents compared with 97 cents in the year-ago period.
IRTC’s Q1 Revenues in Detail
iRhythm registered revenues of $199.4 million in the first quarter, up 25.7% year over year. The increase was primarily driven by sustained volume demand across the customer base, reflecting continued strength in the core business and contributions from newer growth channels. The figure surpassed the Zacks Consensus Estimate by 2.9%.
Shares of IRTC were up approximately 7% during after-market trading following the first-quarter results. However, the company’s shares have declined 31.9% in the year-to-date period compared with the industry’s loss of 19.1%. The broader S&P 500 Index has increased 6.5% in the same time frame.
Image Source: Zacks Investment Research
iRhythm’s Segment Details
iRhythm derives revenues from the following sources: Contracted third-party payors, Centers for Medicare & Medicaid Services, Healthcare institutions and Non-contracted third-party payors.
In the first quarter of 2026, the Contracted third-party payors revenues totaled $106.8 million, up 27.4% year over year.
The Healthcare institutions revenues totaled $51.4 million, up 34.8% year over year.
The Centers for Medicare & Medicaid Services revenues totaled $30.2 million, up 13% year over year.
The Non-contracted third-party payors revenues totaled $11 million, up 9.4% year over year.
IRTC’s Margin Trend
In the quarter under review, iRhythm’s gross profit rose 29.4% year over year to $141.4 million. The gross margin expanded 210 basis points (bps) to 70.9%.
Selling, general and administrative expenses increased 13.3% year over year to $135.9 million, and research and development expenses decreased 0.7% year over year to $21.4 million.
Adjusted operating expenses of $153.5 million rose 9.3% year over year.
The operating loss totaled $16.2 million, down from $32.6 million in the prior-year quarter.
iRhythm’s Financial Position
iRhythm exited first-quarter 2026 with cash and cash equivalents of $240.1 million compared with $236 million at the end of fourth-quarter 2025.
Cumulative net cash used in operating activities at the end of first-quarter 2026 was $26.2 million compared with $7.9 million a year ago.
IRTC’s Guidance for 2026
iRhythm has increased its outlook for the full year 2026.
IRTC now projects its full-year revenues between $875 million and $885 million, up from the prior outlook of $870 million to $880 million. The Zacks Consensus Estimate is pegged at $877.1 million.
The company expects an adjusted EBITDA margin between 12% and 13%, up from 11.5% to 12.5% previously.
iRhythm Holdings, Inc. Price, Consensus and EPS Surprise
iRhythm exited the first quarter of 2026 with better-than-expected results, delivering strong top-line growth and progress toward profitability. Revenues were driven by sustained volume demand across its expanding customer base, while adjusted loss per share narrowed significantly, reflecting improving operating leverage and disciplined execution.
iRhythm demonstrated strong gross margin expansion, driven by continued operational efficiencies, as well as scale benefits from higher volumes. Adjusted EBITDA margin is improving by 880 basis points year over year, demonstrating improvement in profitability and operating leverage.
The quarter highlighted momentum across iRhythm’s core platform, with broad-based growth spanning Zio Monitor and Zio AT, as well as growth pillars including cardiology, primary care, innovative channels and international markets. Volume remained the primary growth engine, supported by strong prescriber engagement and new account expansion, with newer accounts contributing nearly two-thirds of year-over-year volume growth.
A central theme in the quarter was iRhythm’s focus on expanding the long-term continuous monitoring market. Management highlighted that nearly two-thirds of arrhythmias are detected only after 48 hours, underscoring the limitations of short-duration devices. Against this, the company continues to promote longer-duration monitoring to improve diagnostic yield and patient outcomes. This strategy is complemented by increasing traction in primary care, an important entry point for earlier detection. With more than 27 million people in the United States estimated to be at risk for arrhythmias, iRhythm is focused on expanding access, improving diagnostic efficiency and supporting better coordination across the care pathway.
The company’s AI-enabled platform, built on more than 3 billion hours of curated ECG data, continues to advance, with next-generation algorithms expected to enhance efficiency and support future margin expansion. Early progress in predictive AI and adjacent opportunities such as sleep diagnostics further underscores iRhythm’s ambition to evolve into a broader, multi-specialty platform.
IRTC’s Zacks Rank and Other Key Picks
iRhythm currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space that are expected to report earnings soon are Encompass Health Corporation (EHC - Free Report) , Phibro Animal Health (PAHC - Free Report) and The Cooper Companies, Inc. (COO - Free Report) .
Encompass Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter 2026 adjusted EPS is currently pegged at $1.48. The same for revenues is pegged at $1.57 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Encompass Health has an estimated long-term growth rate of 8.8%. EHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.79%.
Phibro Animal Health holds a Zacks Rank #2 at present. Estimates for Phibro Animal Health’s third-quarter fiscal 2026 EPS and revenues are currently pegged at 72 cents and $360.9 million, respectively.
Phibro Animal Health has an estimated long-term growth rate of 21.5%. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.15%.
Cooper Companies currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2026 adjusted EPS is currently pegged at $1.10. The same for its revenues is pegged at $1.05 billion.
Cooper Companies has an estimated long-term growth rate of 8.4%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 4.11%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
IRTC Stock Up on Q1 Earnings & Revenue Beat, FY26 Outlook Raised
Key Takeaways
iRhythm Holdings, Inc. (IRTC - Free Report) reported an adjusted loss per share of 35 cents in the first quarter of 2026 compared with an adjusted loss of 95 cents in the year-ago period. The figure was 37.5% narrower than the Zacks Consensus Estimate.
GAAP loss per share for the quarter was 43 cents compared with 97 cents in the year-ago period.
IRTC’s Q1 Revenues in Detail
iRhythm registered revenues of $199.4 million in the first quarter, up 25.7% year over year. The increase was primarily driven by sustained volume demand across the customer base, reflecting continued strength in the core business and contributions from newer growth channels. The figure surpassed the Zacks Consensus Estimate by 2.9%.
Shares of IRTC were up approximately 7% during after-market trading following the first-quarter results. However, the company’s shares have declined 31.9% in the year-to-date period compared with the industry’s loss of 19.1%. The broader S&P 500 Index has increased 6.5% in the same time frame.
Image Source: Zacks Investment Research
iRhythm’s Segment Details
iRhythm derives revenues from the following sources: Contracted third-party payors, Centers for Medicare & Medicaid Services, Healthcare institutions and Non-contracted third-party payors.
In the first quarter of 2026, the Contracted third-party payors revenues totaled $106.8 million, up 27.4% year over year.
The Healthcare institutions revenues totaled $51.4 million, up 34.8% year over year.
The Centers for Medicare & Medicaid Services revenues totaled $30.2 million, up 13% year over year.
The Non-contracted third-party payors revenues totaled $11 million, up 9.4% year over year.
IRTC’s Margin Trend
In the quarter under review, iRhythm’s gross profit rose 29.4% year over year to $141.4 million. The gross margin expanded 210 basis points (bps) to 70.9%.
Selling, general and administrative expenses increased 13.3% year over year to $135.9 million, and research and development expenses decreased 0.7% year over year to $21.4 million.
Adjusted operating expenses of $153.5 million rose 9.3% year over year.
The operating loss totaled $16.2 million, down from $32.6 million in the prior-year quarter.
iRhythm’s Financial Position
iRhythm exited first-quarter 2026 with cash and cash equivalents of $240.1 million compared with $236 million at the end of fourth-quarter 2025.
Cumulative net cash used in operating activities at the end of first-quarter 2026 was $26.2 million compared with $7.9 million a year ago.
IRTC’s Guidance for 2026
iRhythm has increased its outlook for the full year 2026.
IRTC now projects its full-year revenues between $875 million and $885 million, up from the prior outlook of $870 million to $880 million. The Zacks Consensus Estimate is pegged at $877.1 million.
The company expects an adjusted EBITDA margin between 12% and 13%, up from 11.5% to 12.5% previously.
iRhythm Holdings, Inc. Price, Consensus and EPS Surprise
iRhythm Holdings, Inc. price-consensus-eps-surprise-chart | iRhythm Holdings, Inc. Quote
Our Take on iRhythm’s Q1 Results
iRhythm exited the first quarter of 2026 with better-than-expected results, delivering strong top-line growth and progress toward profitability. Revenues were driven by sustained volume demand across its expanding customer base, while adjusted loss per share narrowed significantly, reflecting improving operating leverage and disciplined execution.
iRhythm demonstrated strong gross margin expansion, driven by continued operational efficiencies, as well as scale benefits from higher volumes. Adjusted EBITDA margin is improving by 880 basis points year over year, demonstrating improvement in profitability and operating leverage.
The quarter highlighted momentum across iRhythm’s core platform, with broad-based growth spanning Zio Monitor and Zio AT, as well as growth pillars including cardiology, primary care, innovative channels and international markets. Volume remained the primary growth engine, supported by strong prescriber engagement and new account expansion, with newer accounts contributing nearly two-thirds of year-over-year volume growth.
A central theme in the quarter was iRhythm’s focus on expanding the long-term continuous monitoring market. Management highlighted that nearly two-thirds of arrhythmias are detected only after 48 hours, underscoring the limitations of short-duration devices. Against this, the company continues to promote longer-duration monitoring to improve diagnostic yield and patient outcomes. This strategy is complemented by increasing traction in primary care, an important entry point for earlier detection. With more than 27 million people in the United States estimated to be at risk for arrhythmias, iRhythm is focused on expanding access, improving diagnostic efficiency and supporting better coordination across the care pathway.
The company’s AI-enabled platform, built on more than 3 billion hours of curated ECG data, continues to advance, with next-generation algorithms expected to enhance efficiency and support future margin expansion. Early progress in predictive AI and adjacent opportunities such as sleep diagnostics further underscores iRhythm’s ambition to evolve into a broader, multi-specialty platform.
IRTC’s Zacks Rank and Other Key Picks
iRhythm currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space that are expected to report earnings soon are Encompass Health Corporation (EHC - Free Report) , Phibro Animal Health (PAHC - Free Report) and The Cooper Companies, Inc. (COO - Free Report) .
Encompass Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter 2026 adjusted EPS is currently pegged at $1.48. The same for revenues is pegged at $1.57 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Encompass Health has an estimated long-term growth rate of 8.8%. EHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.79%.
Phibro Animal Health holds a Zacks Rank #2 at present. Estimates for Phibro Animal Health’s third-quarter fiscal 2026 EPS and revenues are currently pegged at 72 cents and $360.9 million, respectively.
Phibro Animal Health has an estimated long-term growth rate of 21.5%. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.15%.
Cooper Companies currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2026 adjusted EPS is currently pegged at $1.10. The same for its revenues is pegged at $1.05 billion.
Cooper Companies has an estimated long-term growth rate of 8.4%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 4.11%.