Inspire Medical Systems' stock experienced a 24-hour plunge of 16.74%.

The sharp decline followed the company's release of its first quarter 2026 financial results, which reported a GAAP diluted loss per share of $0.39 and a net loss of $11.3 million. Revenue for the quarter showed only modest year-over-year growth of 1.6% to $204.6 million.

Investor sentiment turned sharply negative primarily due to the company's significantly lowered full-year 2026 outlook. Inspire Medical Systems guided for annual revenue between $825 million and $875 million, representing a decrease of 4% to 10% compared to 2025 and well below analyst expectations. The company also slashed its adjusted EPS guidance to a range of $0.75 to $1.25, down from a previous range of $1.85 to $2.35. Management cited ongoing disruption from coding and reimbursement uncertainty, along with the impact of its WISeR program, as key factors limiting growth and expects these challenges to persist throughout 2026.

The disappointing results and outlook prompted immediate analyst reactions, with JP Morgan cutting its price target to $54 from $67 and Truist Securities lowering its target to $50 from $64.