Masimo Corporation’s stock is ending the week under pressure, even as the medical-technology company has stacked up several headline catalysts across 2025—from a sweeping strategic reset and long-range financial targets to major legal developments in its long-running dispute with Apple.
As of Friday, Dec. 19, 2025, MASI shares were trading around $132, down roughly 3% on the day after opening near $136 and touching an intraday low near $132, implying a market capitalization of about $7.7 billion.
So what’s going on with Masimo stock right now—and what do current forecasts and recent company updates suggest investors are weighing heading into 2026?
Masimo stock today: Near 52-week lows as investors reprice the “reset” story
Friday’s move keeps Masimo hovering near the lower end of its recent trading range, after the stock recently printed a 52-week low in the mid-$130s earlier this week (and dipped below that level intraday on Dec. 19, based on market data). [1]
That weakness matters because it’s happening after Masimo’s management laid out an ambitious multi-year plan at its 2025 Investor Day—exactly the kind of event that often puts a “line in the sand” under a strategy shift.
The big Masimo catalysts investors are still digesting
1) Investor Day: 2028 targets are bold—7%–10% revenue CAGR and ~30% operating margins
At its Dec. 3, 2025 Investor Day, Masimo presented a long-range plan through 2028 that included:
- Revenue CAGR:7%–10% through 2028
- Operating margin:~30% by 2028
- Adjusted EPS:$8.00 by 2028
- Operating cash flow:~$1 billion cumulative from 2026–2028 [2]
Management also reaffirmed 2025 guidance (non-GAAP) it had previously communicated: revenue of $1.51–$1.53 billion, operating profit of $412–$424 million, and EPS of $5.40–$5.55. [3]
Why it matters for MASI stock: the targets imply Masimo believes it can expand margins meaningfully while sustaining solid growth—classic “quality compounder” language. But the market is clearly demanding proof that the margin trajectory is durable (and not just a cost-cutting bounce), especially with tariff uncertainty and competitive pressure in patient monitoring.
2) The Apple legal fight: a $634 million jury verdict—and more proceedings ahead
In mid-November, a federal jury in California said Apple owes Masimo $634 million for infringing a Masimo patent related to blood-oxygen reading technology. Apple said it disagrees with the verdict and plans to appeal. [4]
Masimo publicly called the outcome a “significant win” in its efforts to protect its IP. [5]
The Reuters report also underscored that the Apple-Masimo dispute remains multi-front:
- It references the U.S. International Trade Commission (ITC) import block on certain Apple Watches in 2023 tied to Masimo patents, and notes that Apple removed the blood-oxygen feature from some models to navigate the ban. [6]
- Reuters reported Apple reintroduced an updated blood-oxygen feature for some U.S. watches via a software update after Customs approval in August 2025. [7]
- The ITC also decided to hold a new proceeding to determine whether updated watches should fall under the ban, per Reuters. [8]
Why it matters for investors: Masimo’s Apple litigation can be a valuation wild card. A big verdict can strengthen Masimo’s negotiating posture, but appeals and administrative proceedings can stretch timelines, create uncertainty, and produce non-linear outcomes. Markets tend to discount “legal upside” until cash is clearly collectible.
3) Sound United is (largely) in the rearview mirror—and that’s the point
One of Masimo’s defining strategic moves this year was stepping back from the consumer audio adventure it began in 2022. Masimo agreed to sell its Sound United consumer audio business to Samsung’s Harman unit for $350 million, according to MedTech Dive’s reporting at the time the deal was announced. [9]
By Q3, management said the company had closed the sale of Sound United to Harman and used the net proceeds to repurchase common stock. [10]
Why it matters for MASI stock: the Sound United saga helped ignite activist pressure and strategic upheaval at Masimo. Exiting the segment simplifies the story and refocuses investors on the core healthcare monitoring business—where Masimo historically built its brand and margins.
4) New leadership era: CEO Katie Szyman and a “back to core” mandate
Masimo appointed Katie Szyman as CEO effective February 2025, following a board-led search. The company highlighted her background in patient monitoring and operational experience as key to the next phase. [11]
This matters because Masimo’s current bull case is, in large part, a credibility story: can a refreshed leadership team execute a cleaner, healthcare-focused plan—and translate it into consistent growth and margin expansion?
5) Balance sheet update: a new $1 billion credit facility
On Dec. 1, 2025, Masimo entered into a new credit agreement that provides:
- $250 million unsecured term loan
- $750 million unsecured revolving commitments
- Option to increase borrowing capacity by $400 million (subject to conditions)
- Maturity on Dec. 1, 2030 [12]
The filing says proceeds were used to finance the refinancing and pay related fees/expenses, and that revolver proceeds after closing are expected to support general corporate purposes, capital investment, and working capital needs. [13]
Why it matters: for a company in the middle of a strategic reset, liquidity and flexibility can matter almost as much as quarterly EPS. Investors will watch how Masimo balances investment in R&D/commercial execution with capital returns.
What Masimo reported most recently: Q3 2025 results and 2025 guidance
Masimo’s third-quarter 2025 results (for the quarter ended Sept. 27, 2025) showed:
- GAAP revenue:$371.5 million (8.2% reported growth)
- Non-GAAP revenue:$371.2 million (7.6% constant-currency growth)
- GAAP EPS (diluted):$0.99
- Non-GAAP EPS (diluted):$1.32 (38% growth vs. prior year period) [14]
The earnings release also reiterated Masimo’s 2025 outlook for continuing operations and addressed the impact of “new tariffs.” The company’s updated guidance including tariffs (net of mitigation implemented to date) was:
- Non-GAAP operating profit:$412–$424 million
- Non-GAAP operating margin:27.3%–27.7%
- Non-GAAP EPS:$5.40–$5.55 [15]
Investor interpretation: Q3 showed operational improvement and profit growth, but the guidance language makes clear that tariffs remain a moving variable—and investors often hate “moving variables” more than they hate bad news.
MASI stock forecast: what Wall Street targets imply heading into 2026
Analyst expectations for Masimo remain meaningfully above today’s trading level, but rating conviction is mixed.
- MarketBeat reports an average 12‑month price target around $189.40, with a high of $210 and low of $162, and summarizes a ratings mix that nets out to a consensus “Hold.” [16]
- Benzinga lists a consensus price target around $181.88 (with the high target at $210 and low at $121), and shows several notable 2025 analyst actions—including targets around the high-$100s to low-$200s from multiple firms. [17]
With MASI around $132 on Dec. 19, even the more conservative cluster of targets implies substantial upside—on paper. [18]
But here’s the market reality: price targets are conditional on execution. Masimo is asking investors to believe a multi-year arc (margin expansion + steady growth + cash flow improvement) while the stock is trading like a company still in the penalty box.
The bull case for Masimo stock: why investors think MASI could re-rate
Several threads support a constructive long-term thesis:
- Clear strategic focus on core patient monitoring. Investor Day targets—especially the ~30% operating margin goal—signal confidence that the post-audio Masimo can be a higher-quality earnings machine. [19]
- Legal leverage vs. Apple. A $634M verdict is not a rounding error. Even with appeals, it reinforces Masimo’s IP enforcement story and could influence future settlement dynamics. [20]
- Capital return potential. Management has already pointed to share repurchases funded by Sound United sale proceeds, suggesting shareholder returns are part of the reset playbook. [21]
- Operational progress in 2025. Q3 performance showed earnings growth and margin improvement versus the prior year period, alongside reaffirmed full-year guidance. [22]
The bear case: what could keep MASI stock stuck (or push it lower)
There are also real risks embedded in today’s price action:
- Targets vs. timing. Investor Day numbers extend to 2028. The market trades quarters, not slide decks. Missing intermediate milestones can flatten the narrative fast. [23]
- Tariff and cost uncertainty. Masimo’s guidance explicitly models tariff impact (net of mitigation), and “dynamic and uncertain” external costs can squeeze margins or complicate forecasting. [24]
- Litigation complexity. Even after a jury verdict, the Apple dispute involves appeals and administrative proceedings. Outcomes can be delayed, modified, or partially reversed. [25]
- Recent trading at 52-week lows signals skepticism. When a stock is repeatedly probing new lows, it often reflects institutional caution—even if long-term targets look attractive. [26]
What to watch next in Masimo stock
Looking forward from Dec. 19, 2025, the MASI “next chapter” likely hinges on a few measurable signposts:
- Progress against 2025 guidance and the credibility of a path toward the 2028 margin/EPS targets. [27]
- Developments in Apple litigation and ITC proceedings, including any appeal updates or settlement signals. [28]
- Capital allocation—especially whether Masimo continues repurchases, increases investment, or uses its credit flexibility for strategic moves. [29]
- Execution cadence: product innovation, commercial traction, and operational efficiency will need to show up consistently in reported numbers to re-rate the stock.
Masimo is, in essence, trying to graduate from a messy “conglomerate detour + boardroom drama” story into a cleaner medtech compounder profile again. The long-range targets are ambitious. The Apple verdict is meaningful. The stock—stubbornly near its lows—is the skeptical jury demanding receipts.
References
1. www.investing.com, 2. www.businesswire.com, 3. www.businesswire.com, 4. www.reuters.com, 5. www.masimo.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.medtechdive.com, 10. s24.q4cdn.com, 11. investor.masimo.com, 12. www.sec.gov, 13. www.sec.gov, 14. s24.q4cdn.com, 15. s24.q4cdn.com, 16. www.marketbeat.com, 17. www.benzinga.com, 18. www.marketbeat.com, 19. www.businesswire.com, 20. www.reuters.com, 21. s24.q4cdn.com, 22. s24.q4cdn.com, 23. www.businesswire.com, 24. s24.q4cdn.com, 25. www.reuters.com, 26. www.investing.com, 27. www.businesswire.com, 28. www.reuters.com, 29. s24.q4cdn.com
