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iRhythm's Q2 revenues rose 20.1% to $224.2 million, supported by sustained volume demand.
Gross margin expanded 160 bps to 72.8%, while the operating loss narrowed to $2.5 million.
iRhythm raised 2026 revenue guidance to $880-$890 million and EBITDA margin outlook to 13%-14%.
iRhythm Holdings, Inc. (IRTC - Free Report) reported adjusted earnings per share of 58 cents in the second quarter of 2026, against an adjusted loss per share of 32 cents a year ago. The figure beat the Zacks Consensus Estimate by 5900%.
GAAP loss per share for the quarter was 1 cent compared with 44 cents in the year-ago period.
IRTC’s Q2 Revenues in Detail
iRhythm registered revenues of $224.2 million in the second quarter, up 20.1% 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 2.2%.
In the year-to-date period, the company’s shares have declined 27.9% compared with the industry’s loss of 0.8%. The broader S&P 500 Index has increased 13.1% in the same time frame.
Image Source: Zacks Investment Research
IRTC's Revenue Mix Shows Broad-Based Growth
iRhythm derives revenues from the following sources: Contracted third-party payors, Centers for Medicare & Medicaid Services, Healthcare institutions and Non-contracted third-party payors.
Contracted third-party payor revenues totaled $113.8 million in the quarter, up 16.4% year over year. Centers for Medicare & Medicaid Services revenues increased 31.6% to $58.6 million.
Healthcare institutions generated revenues of $37.8 million, up 18.7% from the prior-year quarter. Non-contracted third-party payor revenues rose 11.1% to $14.1 million.
In the quarter under review, iRhythm’s gross profit increased 22.8% year over year to $163.2 million. Gross margin expanded 160 basis points (bps) to 72.8%, reflecting operational efficiencies, product mix and scale benefits from higher volumes.
Selling, general and administrative expenses increased 4.2% year over year to $131.7 million, while research and development expenses decreased 5.6% to $19.8 million.
Adjusted operating expenses were $145.0 million, down 0.1% year over year despite continued investments in growth initiatives.
The operating loss narrowed to $2.5 million from $18.7 million in the prior-year quarter.
iRhythm’s Financial Position
iRhythm exited second-quarter 2026 with cash and cash equivalents of $246.7 million compared with $240.1 million at the end of first-quarter 2026.
Cumulative net cash provided by operating activities at the end of second-quarter 2026 was $24.9 million compared with $19.8 million a year ago.
IRTC Raises 2026 Outlook
iRhythm has increased its outlook for the full year 2026.
IRTC now projects full-year revenues between $880 million and $890 million, up from the prior outlook of $875 million to $885 million. The Zacks Consensus Estimate is pegged at $884.1 million.
The company expects an adjusted EBITDA margin between 13% and 14%, up from 12% to 13% previously.
iRhythm Holdings, Inc. Price, Consensus and EPS Surprise
iRhythm delivered a strong second quarter, delivering solid earnings and revenue growth. The quarter reflected broad-based commercial momentum across cardiology, primary care, innovative channels and international markets. Innovative channels were the fastest-growing area, supported by value-based care, primary care and population-health partnerships. Approximately 60% of volumes now come from EHR-integrated accounts, while nearly 80 of iRhythm’s top 100 customers are integrated, helping streamline workflows and expand patient access.
On the innovation front, iRhythm secured FDA clearance for its third-generation algorithm, which management expects to reduce clinical technician review time by as much as 50% and generate approximately $100 million in cumulative cost savings over five years. The company is advancing predictive arrhythmia solutions, with new commercial agreements through its Luum partnership and expanded work with Desert Oasis Healthcare.
iRhythm entered into an agreement to acquire Vital Connect for approximately $287.5 million. The transaction is expected to broaden its cardiac monitoring portfolio across mobile cardiac telemetry, event monitoring, long-term continuous monitoring and short-term Holter, while creating opportunities in inpatient and hospital-to-home monitoring. Alongside continued investments in Zio MCT, primary care, international expansion and adjacent markets such as sleep diagnostics, these initiatives support iRhythm’s strategy of expanding access and evolving into a broader cardiac monitoring and intelligence platform.
West Pharmaceutical reported second-quarter 2026 adjusted earnings per share (EPS) of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
West Pharmaceutical has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.40%.
The Cooper Companies reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10.00%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.
The Cooper Companies has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.80%.
Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.
Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.
View the Zacks #1 Rank List
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iRhythm Q2 Earnings Beat Estimates on Volume Growth, '26 View Raised
Key Takeaways
iRhythm Holdings, Inc. (IRTC - Free Report) reported adjusted earnings per share of 58 cents in the second quarter of 2026, against an adjusted loss per share of 32 cents a year ago. The figure beat the Zacks Consensus Estimate by 5900%.
GAAP loss per share for the quarter was 1 cent compared with 44 cents in the year-ago period.
IRTC’s Q2 Revenues in Detail
iRhythm registered revenues of $224.2 million in the second quarter, up 20.1% 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 2.2%.
In the year-to-date period, the company’s shares have declined 27.9% compared with the industry’s loss of 0.8%. The broader S&P 500 Index has increased 13.1% in the same time frame.
Image Source: Zacks Investment Research
IRTC's Revenue Mix Shows Broad-Based Growth
iRhythm derives revenues from the following sources: Contracted third-party payors, Centers for Medicare & Medicaid Services, Healthcare institutions and Non-contracted third-party payors.
Contracted third-party payor revenues totaled $113.8 million in the quarter, up 16.4% year over year. Centers for Medicare & Medicaid Services revenues increased 31.6% to $58.6 million.
Healthcare institutions generated revenues of $37.8 million, up 18.7% from the prior-year quarter. Non-contracted third-party payor revenues rose 11.1% to $14.1 million.
iRhythm's Q2 Margin Expansion Supports Profitability
In the quarter under review, iRhythm’s gross profit increased 22.8% year over year to $163.2 million. Gross margin expanded 160 basis points (bps) to 72.8%, reflecting operational efficiencies, product mix and scale benefits from higher volumes.
Selling, general and administrative expenses increased 4.2% year over year to $131.7 million, while research and development expenses decreased 5.6% to $19.8 million.
Adjusted operating expenses were $145.0 million, down 0.1% year over year despite continued investments in growth initiatives.
The operating loss narrowed to $2.5 million from $18.7 million in the prior-year quarter.
iRhythm’s Financial Position
iRhythm exited second-quarter 2026 with cash and cash equivalents of $246.7 million compared with $240.1 million at the end of first-quarter 2026.
Cumulative net cash provided by operating activities at the end of second-quarter 2026 was $24.9 million compared with $19.8 million a year ago.
IRTC Raises 2026 Outlook
iRhythm has increased its outlook for the full year 2026.
IRTC now projects full-year revenues between $880 million and $890 million, up from the prior outlook of $875 million to $885 million. The Zacks Consensus Estimate is pegged at $884.1 million.
The company expects an adjusted EBITDA margin between 13% and 14%, up from 12% to 13% previously.
iRhythm Holdings, Inc. Price, Consensus and EPS Surprise
iRhythm Holdings, Inc. price-consensus-eps-surprise-chart | iRhythm Holdings, Inc. Quote
iRhythm’s Innovation and Growth Initiatives
iRhythm delivered a strong second quarter, delivering solid earnings and revenue growth. The quarter reflected broad-based commercial momentum across cardiology, primary care, innovative channels and international markets. Innovative channels were the fastest-growing area, supported by value-based care, primary care and population-health partnerships. Approximately 60% of volumes now come from EHR-integrated accounts, while nearly 80 of iRhythm’s top 100 customers are integrated, helping streamline workflows and expand patient access.
On the innovation front, iRhythm secured FDA clearance for its third-generation algorithm, which management expects to reduce clinical technician review time by as much as 50% and generate approximately $100 million in cumulative cost savings over five years. The company is advancing predictive arrhythmia solutions, with new commercial agreements through its Luum partnership and expanded work with Desert Oasis Healthcare.
iRhythm entered into an agreement to acquire Vital Connect for approximately $287.5 million. The transaction is expected to broaden its cardiac monitoring portfolio across mobile cardiac telemetry, event monitoring, long-term continuous monitoring and short-term Holter, while creating opportunities in inpatient and hospital-to-home monitoring. Alongside continued investments in Zio MCT, primary care, international expansion and adjacent markets such as sleep diagnostics, these initiatives support iRhythm’s strategy of expanding access and evolving into a broader cardiac monitoring and intelligence platform.
IRTC’s Zacks Rank & Key Picks
iRhythm currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are West Pharmaceutical (WST - Free Report) , The Cooper Companies (COO - Free Report) and Cardinal Health (CAH - Free Report) , each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
West Pharmaceutical reported second-quarter 2026 adjusted earnings per share (EPS) of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
West Pharmaceutical has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.40%.
The Cooper Companies reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10.00%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.
The Cooper Companies has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.80%.
Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.
Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.