Outset Medical, Inc. (OM) AI Stock Analysis

Outset Medical, Inc. is a medical technology company based in San Jose, California, specializing in the development of innovative hemodialysis systems. The company's flagship product, the Tablo Hemodialysis System, integrates water purification, on-demand dialysate production, and advanced software and connectivity capabilities into a compact console. Originally known as Home Dialysis Plus, Ltd., the company adopted its current name in January 2015. The Tablo system provides flexible treatment options for both acute care settings and home dialysis environments, aiming to simplify workflows, deliver real-time data insights, and enhance patient outcomes across renal therapy.

Between FY2020 and FY2025, revenue grew at a 5-year CAGR of 19.1%. Revenue reached $130.4M in FY2023 before declining 12.8% to $113.7M in FY2024, followed by a 5.1% rebound to $119.5M in FY2025. Gross margin expanded steadily from 7.4% in FY2021 to 39.1% in FY2025. Operating margin also improved, narrowing from -127.2% in FY2021 to -55.8% in FY2025, while net losses decreased from -$131.9M to -$81.7M over the same period. For the trailing twelve months ended June 30, 2026, revenue stood at $117.8M, with quarterly revenue growth at 0.7% year-over-year and an EPS of -$4.00.

As of June 30, 2026, Outset Medical held $147.2M in cash and short-term investments against $104.4M in total debt, resulting in net cash of $42.7M. Total assets stood at $242.4M and shareholders' equity was $96.3M, yielding a debt-to-equity ratio of 1.08 and a current ratio of 5.19. In FY2025, the company used -$46.3M in operating cash flow, resulting in free cash flow of -$47.1M after capital expenditures of $798,000. Over five years, its share count increased by 492.1%.

Outset Medical trades at a price-to-sales ratio of 0.6x and an EV-to-revenue multiple of 0.1x, compared to a median price-to-sales of 4.1x for its US-listed Healthcare peers. Its price-to-book ratio is 0.6x. The stock closed at $3.94 on October 16, 2026, representing a 1-year return of -70.4% compared to a 16.8% gain for the S&P 500 (SPY). Over a 5-year span, the stock fell 99.5%, while the S&P 500 rose 83.0%.

Wall Street coverage includes 2 Strong Buy ratings and 1 Hold rating, with no Buy, Sell, or Strong Sell recommendations. The mean price target is $7.67, representing a 94.6% premium over the last close of $3.94. For the fiscal year ending December 31, 2026, analysts estimate revenue of $126.0M and EPS of -$3.08. For the next fiscal year, 3 analysts project revenue of $139.1M, representing 10.4% growth, and EPS of -$2.29. The company beat EPS estimates 0 times over the last 4 quarters, and its next earnings date is November 9, 2026.

This page is an AI-written research summary of Outset Medical, Inc. (OM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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