The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how patient monitoring stocks fared in Q2, starting with iRhythm (NASDAQ: IRTC).

Patient monitoring companies within the healthcare equipment industry offer devices and technologies that track chronic conditions and support real-time health management, such as continuous glucose monitors (CGMs) and sleep apnea machines. These businesses benefit from recurring revenue from consumables and software subscriptions tied to device sales (razor, razor blade model). The rising prevalence of chronic diseases like diabetes and respiratory disorders due to an aging population as well as growing adoption of digitization are good for the industry. However, these companies face challenges from high R&D costs and reliance on regulatory approvals. Looking ahead, the sector is positioned for growth due to tailwinds like the rising burden of chronic diseases from an aging population, the shift toward value-based care, and increased adoption of digital health solutions. Innovations in AI and machine learning are expected to enhance device accuracy and functionality, improving patient outcomes and driving demand. However, there are headwinds such as pricing pressures as healthcare costs are a key focus, especially in the US. An evolving regulatory landscape and competition from more tech-forward new entrants could present additional challenges.

The 4 patient monitoring stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 1.6% below.

While some patient monitoring stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results.

Best Q2: iRhythm (NASDAQ: IRTC)

Pioneering the shift from bulky, short-term heart monitors to sleek, wire-free patches, iRhythm Technologies (NASDAQ: IRTC) provides wearable cardiac monitoring devices and AI-powered analysis services that help physicians detect and diagnose heart rhythm disorders.

iRhythm reported revenues of $224.2 million, up 20.1% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.

“Our second quarter results reflect strong execution across the business, with broad-based growth, meaningful margin expansion, and continued progress against our strategic priorities,” said Quentin Blackford, President and Chief Executive Officer of iRhythm.

iRhythm achieved the biggest analyst estimate beat and highest full-year guidance raise among its peers. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 14.4% since reporting and currently trades at $109.64.

We think iRhythm is a good business, but is it a buy today? Read our full report here, it’s free.

DexCom (NASDAQ: DXCM)

Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ: DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.

DexCom reported revenues of $1.31 billion, up 13.1% year on year, outperforming analysts’ expectations by 1.4%. The business had a strong quarter with a beat of analysts’ EPS estimates and a narrow beat of analysts’ organic revenue estimates.

The market seems happy with the results as the stock is up 20.6% since reporting. It currently trades at $89.88.

Is now the time to buy DexCom? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: ResMed (NYSE: RMD)

Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE: RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use.

ResMed reported revenues of $1.46 billion, up 8.6% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a beat of analysts’ EPS estimates.

ResMed delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is flat since the results and currently trades at $225.25.

Read our full analysis of ResMed’s results here.

Insulet (NASDAQ: PODD)

Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ: PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.

Insulet reported revenues of $801.7 million, up 23.5% year on year. This number topped analysts’ expectations by 1.9%. Taking a step back, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations significantly.

Insulet achieved the fastest revenue growth of the whole group. The stock is down 15.7% since reporting and currently trades at $140.64.

Read our full, actionable report on Insulet here, it’s free.

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.