iRhythm Holdings stock fell 2.06 percent. VitalConnect deal closed

Published on 10/08/2026 at 07:29 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

iRhythm Holdings completed its USD 237.5 million VitalConnect acquisition on October 5, 2026. Second-quarter revenue rose 20.1 percent to USD 224.17 million.

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iRhythm Holdings stock fell 2.06 percent to a Nasdaq close of USD 104.99 on October 7, 2026, while the company completed its VitalConnect acquisition for USD 237.5 million in cash. The deal adds mobile cardiac telemetry and multi-vitals monitoring to iRhythm's platform.

VitalConnect expands the platform

According to GlobeNewswire on October 5, 2026, iRhythm funded the purchase with USD 237.5 million in cash, subject to customary adjustments, and up to 423,334 shares issued at closing.

VitalConnect also received USD 10.0 million in working capital funding. Its platform supports monitoring for up to 30 days and up to 11 physiological parameters, extending iRhythm's reach beyond ambulatory cardiac monitoring.

Revenue growth meets a margin test

iRhythm's second-quarter revenue reached USD 224.17 million, up 20.1 percent from the prior-year quarter, while quarterly EPS was USD 0.58 versus a consensus loss of USD 0.04, according to MarketBeat on October 1, 2026.

The acquisition is expected to improve revenue growth beginning in 2027 while preserving iRhythm's 15 percent adjusted EBITDA margin target for that year. The company plans to provide updated 2026 guidance, including VitalConnect, with its third-quarter earnings call on November 5, 2026, according to Yahoo Finance.

Analysts see substantial upside

Wells Fargo lowered its target to USD 150 from USD 168 while maintaining an Overweight rating on October 6, 2026, as reported by Investing.com. The firm raised its 2026 sales forecast to USD 904.6 million from USD 886.2 million and its 2027 forecast to USD 1.10 billion from USD 1.025 billion.

MarketBeat reported a Moderate Buy consensus from 16 analysts on October 1, 2026, with 12 buys, two strong buys, one hold and one sell. The average 12-month target was USD 179.93, which placed the target 71.4 percent above the October 7 closing price of USD 104.99.

Stock remains near its yearly low

At USD 104.99, iRhythm Holdings was USD 4.14 above its 52-week low of USD 100.85 and USD 107.01 below its 52-week high of USD 212.00 on October 7, 2026. The company had a market capitalization of USD 3.5 billion and trading volume of 450,294 shares on Nasdaq.