Inspire Medical Systems (INSP Quick QuoteINSP - Free Report) is well-positioned for solid growth over the next few quarters as it navigates a significant product transition.

Shares of this Zacks Rank #3 (Hold) company have declined 22.7% in the year-to-date period against the industry’s 15.2% growth and the S&P 500 Index’s 13% gain.

Inspire Medical, a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea (OSA), has a market capitalization of $2.19 billion.

The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 195.9%.

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Factors Driving INSP’s Prospects

Inspire V Adoption & Expanding Clinical Evidence: Inspire Medical is building momentum around its fifth-generation Inspire V system, which management says offers improved patient outcomes and physician experience. The Singapore clinical study reported a 100% successful implant rate, an 80% SHER responder rate and an average therapy adherence of 5.9 hours per night. The company highlighted more than 400 publications supporting Inspire therapy, including recent research extending its potential benefits beyond OSA treatment. A secondary analysis of STAR trial data showed significant reductions in hypoxic burden, while a TriNetX analysis of 3,525 matched patients in each arm associated Inspire therapy with lower odds of stroke, myocardial infarction, atrial fibrillation and other cardiovascular and metabolic events versus CPAP. PREDICTOR data suggest that BMI and neck circumference could help identify patients at risk of complete concentric collapse, allowing some patients to be screened without DISE and reducing the diagnostic burden.

Large Underpenetrated Market & Improving Patient Access: Inspire Medical continues to operate in a sizable and relatively underpenetrated U.S. OSA market, estimated at more than $10 billion. More than 140,000 patients have been treated with Inspire, while reimbursement coverage extends to more than 300 million U.S. lives, leaving substantial room for further adoption. The company is focused on improving patient flow and reducing friction across the treatment journey. Project Horizon is expected to create $30 million of incremental annualized growth investment capacity, with resources being redirected toward expanding patient access, improving patient education and engagement and helping patients navigate treatment. These initiatives could support procedure growth as coding issues become clearer.

Improving Reimbursement Framework & Upcoming Catalysts: Coding uncertainty surrounding Inspire V has eased, with the appropriate C-code now adopted across all six WISeR states and the company continuing customer education efforts. Management also highlighted potential increases in 2027 Medicare facility reimbursement, with the proposed rule calling for a 12% year-over-year increase for hospital outpatient departments and 15% for ambulatory surgery centers, subject to the final rule. The revised application for a new Category I CPT code for the single-lead system was submitted in May 2026 with additional clinical evidence and other clarifications, and the AMA CPT Editorial Panel is expected to review the revised application in November 2026. If approved, the new code could take effect Jan. 1, 2028.

Key Challenges for INSP Stock

Residual Coding & Reimbursement Friction: Although the reimbursement environment has become clearer, coding and payment-related disruption remained a significant headwind in 2026. Second-quarter revenues declined 7.6% year over year to $200.6 million, with the company attributing the decline primarily to coding and reimbursement disruption. While the correct C-code is now in place across all six WISeR states, only two Medicare Administrative Contractors currently have a surgeon-fee impact associated with the -52 modifier and Inspire Medical continues to invest in customer education. The revised Category I CPT application also remains subject to AMA review after the initial application was declined in July 2026. The pace at which treatment centers fully adapt to the new coding framework remains an important factor for the company’s revenue recovery.

Execution Risks Around Patient Flow and Growth Investments: Inspire Medical’s ability to convert its large addressable market into procedures depends not only on reimbursement but also on improving the patient journey. The company has identified gaps between patients attempting to schedule care and those who ultimately connect with providers, making patient access, education and treatment navigation important areas of focus. Project Horizon is designed to address these issues while creating $30 million of annualized investment capacity, but the plan also involves restructuring charges of approximately $20-$25 million, with about 90% expected to be recognized in the third quarter. The company therefore faces execution risk in translating these organizational changes and patient-flow initiatives into sustained procedure and revenue growth.

Potential GLP-1 Therapy Pressure: GLP-1 adoption could delay some Inspire treatment decisions as physicians may prioritize weight-loss therapy before considering Inspire. A late-2025 survey of more than 200 sleep physicians found that some follow this treatment sequence, extending the patient journey and weighing on near-term procedure volumes. Management believes GLP-1 use could broaden the eligible patient pool by lowering BMI without fully resolving OSA and increasing awareness of diagnosis and treatment. The net impact remains uncertain as prescribing patterns, patient behavior and payer coverage evolve.

Inspire Medical Systems, Inc. Price

Inspire Medical Systems, Inc. price | Inspire Medical Systems, Inc. Quote

Estimate Trend

Inspire Medical is witnessing a stable estimate revision trend for 2026. In the past 30 days, the Zacks Consensus Estimate for earnings has remained unchanged at $1.24 per share.

The Zacks Consensus Estimate for third-quarter 2026 revenues and earnings per share is pegged at $204.3 million and 10 cents, respectively.

Stocks to Consider

Some better-ranked stocks from the broader medical space are Veracyte (VCYT Quick QuoteVCYT - Free Report) , Globus Medical (GMED Quick QuoteGMED - Free Report) and Intuitive Surgical (ISRG Quick QuoteISRG - Free Report) .

Veracyte, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.

Globus Medical, currently flaunting a Zacks Rank #1, reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.80, which beat the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion surpassed the Zacks Consensus Estimate by 3.1%.

Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.5%.