Outset Medical, Inc. (OM) Earnings
Outset Medical, Inc. is expected to report next earnings on November 9, 2026 (in NaN days), with a consensus EPS estimate of $-0.67. OM has beaten EPS estimates in 5 of its last 12 reported quarters (average surprise -26.9% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $-0.72 | $-0.80 | -11.6% | $32M | +9.2% |
| May 7, 2026 | $-0.79 | $-0.83 | -5.1% | $28M | -3.5% |
| Feb 11, 2026 | $-0.45 | $-1.09 | -143.1% | $29M | -0.1% |
| Aug 6, 2025 | $-1.76 | $-0.84 | +52.3% | $31M | +6.8% |
| May 7, 2025 | $-0.97 | $-3.24 | -234.0% | $30M | +7.0% |
| Feb 19, 2025 | $-6.45 | $-5.55 | +14.0% | $29M | +3.5% |
| Feb 21, 2024 | $-9.15 | $-8.85 | +3.3% | $31M | +0.4% |
| Aug 2, 2023 | $-10.94 | $-10.34 | +5.5% | $36M | -4.0% |
| May 3, 2023 | $-10.34 | $-10.79 | -4.4% | $33M | +5.4% |
| Feb 13, 2023 | $-11.39 | $-10.64 | +6.6% | $32M | +3.5% |
| May 4, 2022 | $-9.90 | $-10.04 | -1.4% | $31M | +1.5% |
| Feb 16, 2022 | $-10.04 | $-11.54 | -14.9% | $28M | +6.5% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 6, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Commercial Progress and Customer Success: The company completed its highest number of successful new site implementations in several years during the quarter. A dedicated clinical excellence team was established to support long-term customer optimization, pairing each hospital customer with a team member to track key performance indicators via Tableau's data ecosystem. An independent customer assessment found an average net promoter score of 8.8 out of 10, driving high retention, customer advocacy, and expansion opportunities within the installed base. Outset signed a landmark $40 million console refresh agreement with HCA Healthcare, extending the partnership through 2028, marking the company's first major refresh win. This agreement creates contracted backlog for improved revenue visibility, and does not include potential future expansion into additional HCA facilities, opening an additional growth avenue. The overall refresh opportunity over the next several years is estimated at ~3,000 consoles and up to $150 million in console revenue. Derick Elliott joined as new Executive Vice President of Commercial to scale the company's standardized sales process and refined go-to-market strategy, with the near-term priority of expanding sales talent and coverage to target the top 250 health systems. Chief Nursing Officer Brittni McGill adds valuable clinical perspective to customer engagement, pairing commercial rigor with clinical expertise to accelerate adoption. Product Development: Next-gen Tableau, which includes hardware/software enhancements for improved performance and reliability, plus advanced cybersecurity capabilities critical for health systems, is currently in the pilot phase ahead of a full market launch. Market Position: Outset's customer base now includes all 10 of the largest U.S. health systems, all 10 of the largest post-acute providers, and ~30% of the top 100 IDNs, positioning the company to capture share in the large, underserved in-center dialysis market. Financial and Operational Discipline: The company maintained strict expense discipline and working capital management, resulting in a $9.5 million cash burn for the quarter, keeping it on track to meet full-year cash usage targets. Gross margin expansion progress keeps the company on track to hit its 50% company-wide gross margin target.
Guidance
- Full-year 2026 revenue guidance is maintained at $125 million to $130 million, representing 5% to 9% YoY revenue growth, with most growth expected to occur in the third and fourth quarters. Full-year 2026 total cash usage is projected to be less than $40 million, maintained from prior guidance. The company expects Q3 to see typical MedTech seasonality that may moderate performance, with Q4 expected to be a stronger quarter driven by seasonal capital budget spending by health systems before year-end.
Segment performance
Outset Medical's total Q2 2026 revenue was $31.6 million, an increase of 1% year-over-year (YoY) and 14% sequentially. Product revenue totaled $21.9 million, down 5% YoY, making up 69.3% of total revenue. Within product revenue: console revenue was $9.5 million, growing 6% YoY; consumable revenue was $12.4 million, down 12% YoY. Service and other revenue was $9.7 million, growing 17% YoY, accounting for 30.7% of total revenue. Recurring revenue (including consumables, service, implementation services, and freight) was $22.1 million, down 2% YoY. Non-GAAP gross margin for the quarter was 42.2%, up 380 basis points YoY: product gross margin was 46.1% (down 280 basis points YoY due to a higher mix of console sales), while service and other gross margin was 33.4% (up 2400 basis points YoY). Non-GAAP operating expenses were $25.8 million, up 1% YoY, and non-GAAP operating loss improved 7% YoY to $12.4 million.
Risks & headwinds
- Natural variability in capital sales has historically led to less predictable year-over-year performance, though the company is working to improve visibility and predictability via commercial process and organizational improvements. All forward-looking statements are subject to inherent risks and uncertainties, which are detailed in Outset Medical's regular public filings with the U.S. Securities and Exchange Commission, including the most recent annual and quarterly reports.
Analyst Q&A
Q: Analyst asks to break down Q2 console revenue outperformance versus consensus, including how much is from the HCA agreement, early next-gen Tableau impact, pulled-forward delayed orders, and whether this indicates a new sustained console growth rate or a one-time gain. /
A: Management confirms HCA was part of Q2's strong console pipeline and performance, but cannot share further details due to confidentiality. The quarter also included closed deals from new expansion customers, with performance across both core commercial pillars: existing customer expansion and new customer acquisition. Management notes this quarter showed early positive green shoots from new growth tailwinds including the refresh cycle, new commercial leadership, and the new formalized customer success program.
Q: Analyst asks why consumable revenue declined steeper in Q2, what factors are driving the drop, and if the HCA agreement or next-gen launch will reverse the trend for the second half of the year. /
A: Management explains the decline is primarily due to a very difficult year-over-year comparison: 2025 Q2 saw exceptionally strong consumable growth driven by higher flu season patient census, which did not repeat in 2026. The company notes that underlying device utilization across all customer segments remains stable and strong, with pristine real-time utilization data confirming no material change in usage, so there is no cause for concern. The large number of new site implementations in Q2 followed prior delays between console sale and installation, and this will normalize order patterns going forward; consumable revenue is expected to align with total revenue guidance for the full year.
Q: Analyst asks how to interpret Q2's upside beat to revenue, and what the second half revenue cadence will be, specifically whether Q3 will match Q2 performance or stronger growth will be concentrated in Q4. /
A: Management confirms that standard MedTech seasonality impacts Q3, and Q4 is expected to be a stronger quarter for the business, in part due to seasonal capital budget spending where health systems purchase equipment before the end of the annual budget cycle. The full-year guidance range is maintained, so the beat in Q2 is already incorporated into the existing full-year outlook.
Q: Analyst asks for broad details on HCA agreement revenue phasing through 2028, specifically if 2027 will be the largest year for revenue recognition from the contract. /
A: Management notes that the HCA revenue contribution for 2026 is already incorporated into the reiterated full-year guidance, but the company will not provide guidance for 2027 or 2028 revenue from the agreement until the regular annual guidance timing. Outset expects multiple additional refresh agreements as it enters this market cycle, so there will be broad growth beyond just the HCA contract.
Q: Analyst asks for initial pilot user feedback on next-gen Tableau, and what milestones are required to move to full commercial launch. /
A: Management explains the company is taking a measured rollout approach to get the launch right, given the large existing installed base and the 1 million annual treatments supported by the system. Initial customer feedback has been very enthusiastic, driven by demand for the new system's high-level cybersecurity that meets FDA's top standards, plus new features that improve clinician user experience and device performance. Full launch will only proceed once pilot performance, user experience, and user feedback confirm the system meets all quality requirements, with no specific timeline shared for competitive reasons.