Masimo Corporation (MASI Quick QuoteMASI - Free Report)  has announced a partnership with Qualcomm Technologies to create a next-generation smartwatch reference platform for Wear OS by Google.

The collaboration is aimed at combining Masimo's expertise in advanced biosensing technologies with Qualcomm's Snapdragon wearable platforms. This reference platform is expected to help original equipment manufacturers (OEMs) develop high-performing smartwatches more efficiently, providing accurate health tracking and superior connectivity through low-power SoCs.

Masimo’s key technologies include the widely used Masimo SET pulse oximetry, which has improved outcomes in more than 200 million patients worldwide and is recognized by the top U.S. hospitals. The company’s advanced noninvasive monitoring tools, such as the Rainbow Pulse CO-Oximetry and the Root Patient Monitoring Platform, offer continuous, reliable data across a range of clinical scenarios.

MASI also provides wearable, portable and home-based devices like the Masimo W1 Medical Watch and the Radius-7. Beyond healthcare, the company’s Consumer Audio division includes iconic brands like Bowers & Wilkins and Denon. Their diverse product offerings excel in patient care, hospital automation, and health and wellness, delivering top-tier performance across the board.

Due to the above-mentioned portfolio, the product is likely to witness substantial demand in the field of wearables and other key technologies, which contribute to the top-line growth of the company, thus driving MASI’s share price higher.

Significance of Masimo’s Collaboration With Qualcomm

The management highlighted the collaboration as a merger of Masimo’s advanced biosensing technology and Qualcomm’s low-power Snapdragon systems, creating a powerful foundation for high-performance smartwatches. It also emphasized that this platform will enable OEMs to produce competitive and desirable wearables, enhancing the overall smartwatch market.

This partnership is aimed at enhancing Masimo's existing portfolio, which includes the Masimo W1 and the upcoming Masimo Freedom wearables, known for their precision in health monitoring. Qualcomm’s Snapdragon W5+ Gen 1 will power these next-gen devices, optimizing power efficiency and connectivity.

The collaboration is also aimed at strengthening Masimo's competitive edge, offering OEMs production-ready solutions that accelerate market entry and benefit consumers with feature-rich, data-accurate devices. The combined expertise promises to drive innovation and expand choices within the Wear OS ecosystem.

Masimo & Qualcomm Enhance Wear OS With Next-Gen Biosensing Tech

Masimo and Qualcomm’s new reference platform for Wear OS smartwatches allows OEMs to design the exterior and user interface of their devices. Masimo provides the interiors, including Snapdragon platforms and advanced biosensors.

The platform ensures premium performance with health and wellness capabilities powered by Masimo’s Signal Extraction Technology (SET), used in the Masimo W1 and upcoming Masimo Freedom wearables. This standardized package simplifies smartwatch development, offering manufacturers an easy way to incorporate high-performance biosensing and connectivity features.

Recent Collaboration

This month, Masimo partnered with Google to create a reference platform for manufacturers building Wear OS smartwatches. The platform uses Masimo’s advanced biosensing technologies to help OEMs develop high-performance smartwatches more efficiently. The platform supports the Wear OS ecosystem by offering reliable health and wellness tracking tools and seamless Android integration.

MASI Stock Price Performance

Shares of Masimo have plunged 3.8% year to date against the industry’s 9.2% growth. The S&P 500 has witnessed a 17.7% growth in the same time frame.

Image Source: Zacks Investment Research

Favorable Earnings Surprise Trend for MASI Stock

Masimo’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.63%.

Zacks Rank & Other Key Picks

Currently, Masimo carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader medical space are Universal Health Services (UHS Quick QuoteUHS - Free Report) , Quest Diagnostics (DGX Quick QuoteDGX - Free Report) and Aveanna Healthcare (AVAH Quick QuoteAVAH - Free Report) . While Universal Health Services sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and Aveanna Healthcare carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, the average being 14.58%.

Universal Health Services’ shares have risen 41.1% compared with the industry's 34.8% growth year to date.

Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.31%.

Quest Diagnostics’ shares have risen 3.7% year to date compared with the industry’s 10.2% growth.

Aveanna Healthcare's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 47.5%.

AVAH's shares have soared 104.5% year to date compared with the industry’s 15.7% growth.