iRhythm Stock Plunges 32% to a New Low: A Big Beat Was Not Enough

iRhythm Holdings (NASDAQ: IRTC) plunged about 32% on Friday, November 6, 2026, falling from a $130.19 close to around $88 and a new 52-week low — one day after the cardiac-monitoring company beat earnings forecasts by a wide margin and raised its full-year guidance. The selloff followed a Citigroup downgrade and a wave of price-target cuts, as analysts focused on a delayed FDA filing and stalled sales of one of the company's two main products.

What happened

iRhythm reported third-quarter results after the close on Thursday, November 5. Adjusted earnings came in at $0.82 per share, far above the $0.02 consensus estimate. Revenue rose 14.9% year over year to $221.6 million, just below the $222.2 million analysts had expected, and gross margin widened to 74.2%. On Friday morning the stock opened near $110, slid through its previous 52-week low of $100.70, and traded as low as $86.30 intraday — a drop of roughly $42 in a single session that erased close to a third of the company's market value.

The immediate trigger was analyst reaction. Citigroup downgraded iRhythm from Buy to Neutral on Friday and set a $124 price target. Wells Fargo cut its target from $150 to $135 while keeping an Overweight rating, Needham lowered its target from $194 to $165 while keeping a Buy rating, and Piper Sandler trimmed its target from $160 to $150. MarketBeat reported the shares down about 30% in midday trading as the stock hit a new one-year low, and MarketOne's midday tape described iRhythm as "getting hammered, down over 30%."

Why it's blowing up

The plunge is a case of investors selling the details, not the headline. Three details in the earnings call worried the market. First, revenue from Zio AT, the company's real-time telemetry product, was roughly flat year over year. Management said some customers delayed purchasing decisions after iRhythm announced its acquisition of VitalConnect, which closed on October 5, and guided for Zio AT revenue to fall about 10% in the fourth quarter, with the product expected to stay roughly flat through 2027.

Second, iRhythm pushed back a key regulatory milestone: it no longer plans to submit its next-generation Zio MCT device to the FDA in 2026 and now expects to file in 2027, while it prioritizes integrating VitalConnect's already-cleared telemetry product. Third, the reported bottom line looked far worse than the adjusted figure: on a GAAP basis iRhythm lost $29.9 million, or $0.90 per share, versus a $5.2 million loss a year earlier, after $49.8 million of litigation settlement charges.

Key facts

• The move: IRTC fell about 32% intraday on November 6, from $130.19 to around $88, with an intraday low of $86.30 and a new 52-week low.
• The beat: Q3 adjusted EPS of $0.82 vs. a $0.02 consensus; revenue of $221.6 million, up 14.9% year over year.
• The guidance raise: Full-year 2026 revenue guidance lifted to $890–$895 million (from $880–$890 million), with the adjusted EBITDA margin outlook raised to 15.5%–16%.
• The downgrade: Citigroup cut IRTC to Neutral with a $124 target; Wells Fargo, Needham and Piper Sandler also cut targets while keeping positive ratings.
• The delay: The Zio MCT FDA submission moved from 2026 to 2027; Zio AT revenue was flat and is guided down about 10% in Q4.

There was genuine good news in the quarter. The core Zio Monitor business beat management's expectations, with new accounts contributing 51% of year-over-year volume growth, and iRhythm filed for a pediatric indication for Zio Monitor with the FDA. Management also held its 2027 organic revenue target of about $1 billion. None of that stopped the selling on Friday.

What's next

The next test is execution: whether Zio Monitor keeps growing in the mid-teens, whether the VitalConnect integration revives the telemetry business, and whether the Zio MCT filing lands in 2027 as promised. Formal 2027 guidance is expected at the JPMorgan Healthcare Conference in early January. Until then, Friday's verdict stands: in a market already rattled this week, a big earnings beat bought iRhythm no protection once analysts started cutting.

Sources: MarketBeat, MarketBeat (Wells Fargo target cut), Motley Fool earnings call transcript, TradingKey, MarketOne Midday Tape. This article reports market news only and is not financial advice.

FAQ

Why did iRhythm stock fall 32% today?

Analysts downgraded and cut targets on the stock on November 6 — led by Citigroup's move from Buy to Neutral — after iRhythm delayed its Zio MCT FDA filing to 2027 and reported flat Zio AT revenue, despite beating earnings estimates.

Did iRhythm beat earnings in Q3 2026?

Yes on an adjusted basis: EPS of $0.82 vs. a $0.02 consensus, with revenue up 14.9% to $221.6 million. On a GAAP basis it lost $0.90 per share, widened by $49.8 million of litigation settlement charges.

Did iRhythm raise its guidance?

Yes. It raised full-year 2026 revenue guidance to $890–$895 million and its adjusted EBITDA margin outlook to 15.5%–16%, and kept a 2027 organic revenue target of about $1 billion.

What does iRhythm make?

iRhythm makes the Zio line of wearable cardiac monitors used to diagnose heart arrhythmias, including the Zio Monitor patch, the Zio AT telemetry service, and the Zio MCT device now expected to be filed with the FDA in 2027.