BFLY stock forecast, quote, news & analysis
Butterfly Network Inc is a digital health business transforming care with handheld, whole-body ultrasound... Show more
Butterfly Network (BFLY) Stock Analysis: Ultrasound-on-Chip Growth Meets Embedded Expansion
Key Takeaways
- Butterfly Network shares traded near $7.32 in recent sessions, roughly 7% below their level about a month earlier — a comparatively modest move that keeps the stock in a consolidation, rather than breakout, context.
- The company reported record second-quarter 2026 revenue of $32.6 million and raised its full-year 2026 revenue outlook to $119–$123 million.
- The Embedded licensing segment has become the fastest-growing part of the business, with revenue up 439% year over year in the second quarter.
- Management is advancing a 2027 hardware roadmap — including a next-generation probe and a point-of-care cart — while scaling its AI software pipeline.
Current Market Snapshot
Butterfly Network, Inc. has traded in a volatile but broadly range-bound pattern through late 2026. After a sharp intraday-style surge in late September, the stock gave back much of that move and settled near the low end of its recent range, hovering in the low-$7 to mid-$9 band over the trailing month. The 30-day percentage change of roughly 7% to the downside reflects a period of consolidation rather than a sustained directional trend.
The shares sit within the medical devices and digital-health segment, a group whose investor sentiment has been shaped by a mix of healthcare-technology adoption themes, enterprise software demand, and broader risk appetite. Butterfly's relatively high volatility reflects both its growth-stage profile and sensitivity to news flow around AI-enabled imaging and new commercial partnerships.
Butterfly Network (BFLY) Business Overview and Competitive Position
Butterfly Network is a digital-health company built around proprietary Ultrasound-on-Chip™ semiconductor technology. Its flagship product, the Butterfly iQ3™, is a single-probe, whole-body handheld ultrasound system that pairs advanced hardware with cloud software and artificial intelligence. The company complements its devices with Compass AI™, an enterprise workflow solution, and Butterfly Garden™, a software development kit and AI marketplace that enables third-party imaging applications.
Beyond medical imaging, Butterfly Embedded™ licenses and co-develops the Ultrasound-on-Chip platform with partners seeking to build ultrasound-enabled applications in adjacent healthcare and non-healthcare markets. This diversification has positioned the company to capture value well beyond device sales. The firm has also pursued Butterfly Home and Community Care, an initiative aimed at enabling in-home and virtual care through AI-powered scanning.
Recent Developments Driving BFLY
The most significant catalyst in recent months was the company's second-quarter 2026 earnings report. Butterfly posted record quarterly revenue of $32.6 million, exceeding the consensus estimate of roughly $28.4 million, while a narrower-than-expected loss and a gross margin of 71% underscored improving operating efficiency. Management responded by raising full-year 2026 revenue guidance to $119–$123 million and an adjusted EBITDA loss forecast of $19–$23 million.
Embedded was the standout growth engine, generating $10.8 million in second-quarter revenue — up 439% year over year — driven in part by the Midjourney partnership. The company added two Embedded partners during the quarter, bringing the total to 11. Meanwhile, the core business grew more modestly, with probe unit sales up 23% and six additional enterprise Compass AI deals signed as the software pipeline expanded.
Additional developments have included progress toward full FedRAMP certification, Brazil regulatory authorization, and the scheduled October 1 launch of the first commercial Home and Community Care state. These milestones have broadened the addressable market narrative, though supply-chain constraints, tariffs, and macroeconomic uncertainty remain notable headwinds cited by management.
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2026 Outlook and What Investors Should Watch
Looking ahead, investors are likely to monitor several concrete drivers. Management guided third-quarter 2026 revenue to $26–$30 million with an adjusted EBITDA loss of $6–$9 million, and execution against those figures will be closely watched as the company balances Embedded growth with a slower-growing core business.
On the product front, Butterfly's 2027 roadmap is a central theme: the next-generation P5.1-based probe is expected in the first quarter of 2027, followed by the iQ Station point-of-care cart later in the year, with Apollo chip deliveries to Midjourney anticipated in late 2027 or early 2028. Scaling of Butterfly Home and Community Care, the pace of new Embedded partnerships, and continued Compass AI adoption represent additional variables.
Risks include ongoing tariff effects, geopolitical disruptions, AI-driven component shortages, and competition in handheld ultrasound. Analyst sentiment has leaned constructive, with an average price target above recent trading levels, but the company remains unprofitable on a GAAP basis, and its valuation will depend on sustained execution across its multiple growth initiatives.
Disclaimer
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BFLY's Stochastic Oscillator stays in oversold zone for 11 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +6.48% 3-day Advance, the price is estimated to grow further. Considering data from situations where BFLY advanced for three days, in 185 of 225 cases, the price rose further within the following month. The odds of a continued upward trend are 82%.
The Aroon Indicator entered an Uptrend today. In 130 of 156 cases where BFLY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 83%.
Bearish Trend Analysis
The 10-day RSI Indicator for BFLY moved out of overbought territory on September 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 similar instances where the indicator moved out of overbought territory. In 21 of the 27 cases, the stock moved lower in the following days. This puts the odds of a move lower at 78%.
The Momentum Indicator moved below the 0 level on October 06, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BFLY as a result. In 73 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 87%.
The Moving Average Convergence Divergence Histogram (MACD) for BFLY turned negative on October 07, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 37 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 82%.
BFLY moved below its 50-day moving average on October 13, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BFLY crossed bearishly below the 50-day moving average on October 14, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 75%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BFLY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 89%.
BFLY broke above its upper Bollinger Band on September 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 15 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.574) is normal, around the industry mean (2.874). P/E Ratio (-23.483) is within average values for comparable stocks, (2.324). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (11.052). Dividend Yield (0.000) settles around the average of (0.009) among similar stocks. P/S Ratio (16.556) is also within normal values, averaging (40.124).
The Tickeron Seasonality Score of 32 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. BFLY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 48 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 97 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BFLY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock worse than average.
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Industry MedicalNursingServices