Direct Answer
15 SEC filers are classified under the Standard Industrial Classification code that describes the patient monitoring industry, and their latest annual reports show $37.1 billion of combined revenue and a median operating margin of -55.8%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Patient monitoring companies make bedside monitors, wearable sensors and connected systems that track vital signs in hospitals and at home. Sales combine equipment, disposables and software, and hospital budgets drive orders. The first numbers to compare across companies here are orders and installed base, disposable sensor revenue and gross margin.
Key Industry Metrics
- Orders and installed base: New orders and number of monitors in service. Orders lead revenue and depend on hospital budgets, while the base supports service and sensor sales.
- Disposable sensor revenue: Income from sensors replaced per patient. It recurs with usage, so it is steadier than equipment sales.
- Gross margin: Share of sales left after cost of equipment and sensors. Disposables and software earn more than hardware.
- Software and service share: Portion of revenue from software licenses and service contracts. A higher share adds recurring, higher-margin income.
- Regional mix: Split of sales among geographic regions. Each has different budgets and regulation, so mix explains swings in orders.
Primary Macro Drivers
- Hospital capital budgets: Hospitals buy monitors out of capital budgets, so their finances set order timing and installed base growth.
- Staffing shortages driving automation: Short-staffed units adopt systems that watch more patients with fewer staff, which supports orders and software attach.
- Remote monitoring reimbursement: Payment for remote monitoring lets providers use wearables and home systems, which supports sensors and software sales.
- Technology upgrades: New generations with better sensors, software and connectivity encourage replacement, which supports orders and recurring sensor revenue.
Major Risks
- Capex delays: Hospitals delay equipment purchases when finances are tight, so orders and backlog fall; watch orders and installed base age.
- Competition: Several firms sell comparable monitors, so price concessions can narrow gross margin; watch win rates and gross margin.
- Regulatory clearance: New or changed devices need regulator clearance before sale, so delays push back revenue; watch clearance timelines.
- Pricing: Large health system buyers negotiate firmly, which limits prices for disposables and software; watch disposable revenue per unit and gross margin.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | Medium |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | U.S. / Global |
Patient Monitoring Filers in the SEC Record
15 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 3845. Their latest fiscal years end between 2025 and 2026, and together they reported $37.1 billion of revenue. Median revenue growth over the prior year was 17.0%. Median operating margin was -55.8% and median net margin -66.8%. Median total liabilities were 46% of total assets, and 2 of 15 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Medtronic Plc | $36.4 billion | 8.4% | 17.8% | 0.0% | FY 2026 |
| Axogen, Inc. | $225 million | 20.2% | -3.5% | -7.0% | FY 2025 |
| Outset Medical, Inc. | $119 million | 5.1% | -55.8% | -68.3% | FY 2025 |
| Ceribell, Inc. | $89 million | 36.1% | -65.6% | -60.0% | FY 2025 |
| Electromed, Inc. | $64 million | 17.0% | 15.1% | 11.8% | FY 2025 |
| Iridex Corp | $53 million | 8.2% | -4.9% | -8.4% | FY 2026 |
| Stereotaxis, Inc. | $32 million | 20.3% | -68.3% | -66.8% | FY 2025 |
| Electrocore, Inc. | $32 million | 27.2% | -41.1% | -43.6% | FY 2025 |
The 8 largest of 15 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Patient Monitoring guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Patient Monitoring industry?
Key performance indicators for the Patient Monitoring industry include: Orders and installed base, Disposable sensor revenue, Gross margin, Software and service share, Regional mix. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Patient Monitoring industry?
The Patient Monitoring industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Patient Monitoring industry?
The primary risks for Patient Monitoring companies include: Capex delays, Competition, Regulatory clearance, Pricing. Investors should assess each company's exposure to these factors and its track record of navigating them.