Should Masimo’s 2028 Margin Ambitions and Apple Verdict Upside Require Action From Masimo (MASI) Investors?

• Earlier in 2025, Masimo held its Investor Day and outlined a multi-year plan targeting 7%–10% revenue CAGR and about 30% operating margins by 2028, while also completing the sale of its Sound United consumer audio unit to Samsung’s Harman to sharpen its focus on core healthcare monitoring.
• The company also secured a very large US$634 million jury verdict in a patent dispute with Apple over blood-oxygen technology, though the outcome remains uncertain as Apple plans to appeal, adding both potential upside and legal risk to Masimo’s outlook.
• We’ll now examine how Masimo’s ambitious 2028 margin targets could reshape its existing investment narrative and expectations for future profitability.

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Masimo Investment Narrative Recap

To own Masimo, you need to believe its core noninvasive monitoring business can grow profitably as hospitals and at‑home care adopt more advanced, connected devices. Investor Day’s 7%–10% revenue CAGR and 30% operating margin targets by 2028 sharpen that story, while the US$634 million Apple verdict introduces a meaningful, but uncertain, legal swing factor that could influence both near‑term sentiment and balance sheet flexibility.

The completed sale of Sound United to Samsung’s Harman stands out here, because it leaves Masimo more tightly focused on healthcare monitoring at the same time management is promising significant margin expansion. That cleaner profile may matter as investors weigh the potential earnings uplift from higher‑margin hospital technologies against ongoing risks around lumpy hospital contracts and competition from lower cost or tech‑driven rivals.

But while the long term margin story is appealing, investors should be aware that...

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

Masimo's narrative projects $1.8 billion revenue and $293.5 million earnings by 2028.

Uncover how Masimo's forecasts yield a $183.12 fair value, a 37% upside to its current price.

Exploring Other Perspectives

Four Simply Wall St Community valuations span about US$98 to US$183 per share, underlining how far opinions can stretch. Against that backdrop of disagreement, Masimo’s dependence on large, lumpy hospital contracts could keep future performance and sentiment just as uneven, so it is worth comparing several viewpoints before forming your own.

Explore 4 other fair value estimates on Masimo - why the stock might be worth 27% less than the current price!

Build Your Own Masimo Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Masimo research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Masimo research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Masimo's overall financial health at a glance.

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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.

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