Analyst Sentiment on Outset Medical (OM) Remains Strong Following Q4 Results

Outset Medical, Inc. (NASDAQ:OM) is one of the 7 most volatile stocks under $5 for day trading.

Analyst Sentiment on Outset Medical (OM) Remains Strong Following Q4 Results

On February 12, 2026, Outset Medical, Inc. (NASDAQ:OM) shares received fresh support from analysts despite a decline in price targets after fourth-quarter results that largely met expectations. After the company provided what it considered to be a realistic 2026 target, TD Cowen lowered its target to $12 from $15, and BTIG lowered its target to $15 from $17, both of which kept their ‘Buy’ ratings.

In a research note, the BTIG analyst informed investors that this quarter, featuring a stable sales force, an upcoming product, a wide and expanding deal pipeline, robust recurring revenue, and improving margins, will help the company restore credibility.

Outset Medical, Inc. (NASDAQ:OM), on February 11, 2026, announced fourth-quarter revenue of $28.90 million, a 2% year-over-year decrease. Accordingly, the total revenue for 2025 came out at $119.50 million, a 5% increase. In addition, the full-year margin improved to 39.10%, and the quarterly gross margin increased by 600 basis points to 42.40%.

Meanwhile, cash at year-end was $173 million, and adjusted net loss decreased from $19.30 million to $15.10 million. In addition to outlining plans to launch its next-generation Tablo platform in the second quarter, Outset Medical, Inc. (NASDAQ:OM)’s management projected 2026 revenue of $125 million to $130 million, with a non-GAAP gross margin in the low-to-mid-40% range.

Outset Medical, Inc. (NASDAQ:OM), founded in 2003 in San Jose, offers dialysis solutions through its Tablo Hemodialysis System, which enables both acute and home treatment. The company aims to simplify and modernize dialysis care delivery.

While we acknowledge the potential of OM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OM and that has 100x upside potential, check out our report about this cheapest AI stock.

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