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    Butterfly Network (BFLY) Is Up 8.1% After Raising 2026 Revenue Outlook And Embedded Growth Outlook

    Simply Wall St·07/31/2026 22:32:27
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    • In the past week, Butterfly Network, Inc. reported record second-quarter 2026 results, with revenue rising to US$32.61 million from US$23.38 million a year earlier and net loss narrowing to US$12.91 million, while also issuing third-quarter revenue guidance of US$26 million to US$30 million.
    • The company raised its full-year 2026 revenue outlook to US$119 million–US$123 million, underpinned by very large Embedded segment growth, new partnerships, and improved gross margins.
    • Next, we’ll examine how Butterfly Network’s raised 2026 revenue guidance and Embedded segment momentum could reshape its existing investment narrative.

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    Butterfly Network Investment Narrative Recap

    To own Butterfly Network, I think you need to believe its handheld and embedded ultrasound platform can grow into a much larger business while steadily narrowing losses. The latest record Q2 revenue and raised 2026 outlook support the near term catalyst of accelerating Embedded adoption, but the company is still loss making, so the biggest current risk remains ongoing cash burn and the possibility that sales cycles or funding pressures slow the ramp needed to justify that spending.

    The clearest tie between this quarter and the broader story is the upgraded full year 2026 revenue guidance to US$119 million to US$123 million, which leans heavily on Embedded segment momentum and improving gross margins. That outlook sits against a share price that already reflects high growth expectations and a rich price to sales multiple, so how well Butterfly converts its new partnerships and embedded wins into repeatable, higher margin revenues is central to the near term thesis.

    Yet beneath the strong headline numbers, there is still the question of whether ongoing losses and cash usage could eventually force moves that existing shareholders should be aware of...

    Read the full narrative on Butterfly Network (it's free!)

    Butterfly Network's narrative projects $238.3 million revenue and $7.3 million earnings by 2029. This requires 32.3% yearly revenue growth and an $83.1 million earnings increase from -$75.8 million today.

    Uncover how Butterfly Network's forecasts yield a $7.06 fair value, in line with its current price.

    Exploring Other Perspectives

    BFLY 1-Year Stock Price Chart
    BFLY 1-Year Stock Price Chart

    Some of the lowest analysts looked for revenue of about US$160 million and US$19 million of earnings by 2029, yet they still worry that cash burn and potential dilution could linger even if Q2’s strong Embedded performance nudges those expectations higher, so you should weigh this more cautious view alongside the consensus catalysts.

    Explore 6 other fair value estimates on Butterfly Network - why the stock might be worth as much as 55% more than the current price!

    Decide For Yourself

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.