GET DAILY SIGNALSInMode (INMD) Delivers EPS Beat on Flat Q3 Revenue
Key Takeaways
- InMode reported third-quarter 2026 revenue of $92.1 million, roughly flat to down about 1% from $93.2 million a year earlier and in line with its pre-announced range of $91.8 million to $92.0 million.
- Non-GAAP (adjusted) diluted EPS came in at $0.37, topping the consensus estimate of roughly $0.32, while GAAP diluted EPS fell to $0.32 from $0.34 a year ago.
- GAAP net income declined about 14% year over year to $18.9 million, reflecting softer sales and higher operating expenses.
- The company reaffirmed its full-year 2026 outlook, including revenue of $365 million to $375 million and non-GAAP diluted EPS of $1.29 to $1.34.
- GAAP gross margin held steady at approximately 78%, even as U.S. capital equipment revenue declined from the prior-year period.
Why the Quarter Matters
InMode’s third-quarter report matters because it tests whether the medical-technology company can stabilize its top line after several quarters of uneven demand for its minimally invasive aesthetic and surgical platforms. InMode pre-announced its revenue range in October, signaling that management expected a modest step-down from the prior-year period. I’m watching closely to see whether that softness is a temporary pause or part of a longer cooling trend in capital equipment purchases. The reaffirmed full-year guidance provides a key signal on management’s confidence, while the gap between GAAP and non-GAAP profitability highlights the impact of stock-based compensation and elevated spending on the company’s earnings quality.
Breaking Down the Reported Results
For the third quarter ended September 30, 2026, INMD reported GAAP revenue of $92.1 million, down from $93.2 million in the same period last year. Capital equipment revenue totaled $72.8 million, with U.S. capital equipment contributing $42.7 million (46% of revenue) and international capital equipment $30.1 million (33%). Consumables and service revenue reached $19.3 million, or 21% of the total.
GAAP net income declined to $18.9 million from $21.9 million a year earlier, and GAAP diluted EPS fell to $0.32 from $0.34. On a non-GAAP basis, which excludes stock-based compensation and certain other items, net income was $21.9 million and diluted EPS was $0.37, down from $0.39 a year ago but above the roughly $0.32 analyst consensus. GAAP gross margin held flat at approximately 78%.
Management reaffirmed its full-year 2026 guidance of $365 million to $375 million in revenue, a non-GAAP gross margin of 74% to 76%, non-GAAP operating income of $68 million to $73 million, and non-GAAP diluted EPS of $1.29 to $1.34.
From what I see, the numbers line up with expectations on the top line while showing some resilience in adjusted profitability.
Market Reaction and Investor Sentiment
INMD shares traded modestly higher in the session following the release, with early reports indicating a gain of roughly 2% as investors weighed the EPS beat against flat revenue and a year-over-year profit decline. The market’s response suggests that the reaffirmed full-year guidance, combined with the stronger-than-expected adjusted earnings, provided enough reassurance to offset concerns about the softer top line. Still, sentiment remains cautious: U.S. capital equipment sales continued to weaken, and operating expenses rose as a percentage of revenue, keeping pressure on operating margins. Investors appear focused on whether demand for the company’s higher-priced platforms can recover in the coming quarters.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors will be watching whether InMode can translate its reaffirmed full-year guidance into actual results through the fourth quarter. The revenue target of $365 million to $375 million implies a notable sequential pickup in the final quarter, so execution will be closely scrutinized.
A key factor to monitor is the trajectory of U.S. capital equipment sales, which slipped year over year and remain the largest revenue category. Any stabilization or recovery in domestic demand would be a meaningful positive signal. International sales, which held up relatively better, will also be important as InMode continues to expand in markets such as Asia.
Margin trends are another focal point. While gross margin stayed near 78% on a GAAP basis, rising sales, marketing, and general and administrative expenses have compressed operating profitability. Investors should watch whether spending growth moderates and whether non-GAAP operating income remains within the guided $68 million to $73 million range.
Finally, keep an eye on consumables and service revenue, a recurring revenue stream that can provide a more stable foundation than one-time equipment sales. Sustained growth there would help offset cyclicality in capital equipment demand.
Adding AI Tools to My Research Process
I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry. The tool helps filter based on technical patterns, fundamentals, and AI-driven signals, which can surface ideas that complement traditional earnings analysis.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
INMD's RSI Indicator ascends from oversold territory
The RSI Indicator for INMD moved out of oversold territory on November 02, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 35 similar instances when the indicator left oversold territory. In 29 of the 35 cases the stock moved higher. This puts the odds of a move higher at 83%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a +3.65% 3-day Advance, the price is estimated to grow further. Considering data from situations where INMD advanced for three days, in 164 of 255 cases, the price rose further within the following month. The odds of a continued upward trend are 64%.
INMD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on INMD as a result. In 73 of 101 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 72%.
The Moving Average Convergence Divergence Histogram (MACD) for INMD turned negative on November 06, 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 43 similar instances when the indicator turned negative. In 28 of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at 65%.
The 50-day moving average for INMD moved below the 200-day moving average on November 04, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where INMD 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 73%.
The Aroon Indicator for INMD entered a downward trend on October 19, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 9 (best 1 - 100 worst), pointing to outstanding 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 Valuation Rating of 62 (best 1 - 100 worst) indicates that the company is fair valued 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 (1.219) is normal, around the industry mean (4.142). P/E Ratio (10.750) is within average values for comparable stocks, (3.291). Projected Growth (PEG Ratio) (0.834) is also within normal values, averaging (11.253). Dividend Yield (0.000) settles around the average of (0.011) among similar stocks. P/S Ratio (2.452) is also within normal values, averaging (40.124).
The Tickeron SMR rating for this company is 63 (best 1 - 100 worst), indicating strong sales and a profitable 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 Price Growth Rating for this company is 69 (best 1 - 100 worst), indicating slightly worse than average price growth. INMD’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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. INMD’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 94, placing this stock worse than average.
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General Information
a developer of minimally-invasive aesthetic medical products
Industry MedicalNursingServices