Masimo Corp (MASI) rolled out the red carpet Wednesday for investors, hosting its 2025 Investor Day and painting a picture of what the medical device company expects to look like three years from now. The short version? Bigger revenues, fatter margins, and a lot more cash generation.
The company's management team walked through its long-term strategy and updated projections through 2028. They're targeting revenue growth of 7-10% annually, which would represent solid, steady expansion in the medical technology space. But the real headline is on the profitability side: Masimo expects operating margins to climb to around 30% by 2028.
That margin expansion tells an important story about the business maturing and achieving scale. Management is projecting adjusted earnings per share will hit $8.00 by 2028, a meaningful jump from current levels. Over the three-year period from 2026 through 2028, the company expects to generate roughly $1 billion in cumulative operating cash flow, which should give them plenty of flexibility for investments or returning capital to shareholders.
For the more immediate future, Masimo reaffirmed its previously announced 2025 guidance. The company still expects revenue between $1.51 million and $1.53 million, operating profit of $412 million to $424 million, and earnings per share in the $5.40 to $5.55 range.
"Masimo's market-leading position is driven by our mission to deliver innovations that empower clinicians and transform patient care," said Katie Szyman, Chief Executive Officer of Masimo. "As we enter this next chapter, we are incredibly well-positioned to advance that mission."
