Track market-moving stories before they get noisy

A month has gone by since the last earnings report for Glaukos (GKOS - Free Report) . Shares have added about 8% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Glaukos due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

Glaukos Q2 Earnings Beat Estimates on iDose TR GrowthGlaukos reported a second-quarter 2026 adjusted loss of 14 cents per share, narrower than the Zacks Consensus Estimate of a loss of 28 cents by 50%. The figure also improved from the year-ago quarter’s adjusted loss of 24 cents per share.

The GAAP loss per share was 31 cents compared with the prior-year quarter’s reported loss of 34 cents.

GKOS’ Q2 Revenue PerformanceRevenues of $185.6 million increased 50% year over year on a reported basis and 49% at constant currency (cc). The top line surpassed the Zacks Consensus Estimate by 24.1%.

Growth was driven by increasing adoption and utilization of iDose TR, broader interventional glaucoma initiatives across U.S. and international markets, continued expansion of the company’s global commercial infrastructure and early contributions from the Epioxa launch.

Better-than-expected sales growth led the management to raise its guidance for the full year.

Glaukos Posts Broad Segmental GrowthU.S. Glaucoma revenues reached a record $118.5 million, up 64% year over year on a reported basis. The increase reflected expanding iDose TR adoption, higher utilization among active surgeons and continued growth in trained physicians and accounts.

International Glaucoma revenues were $36.6 million, up 17% year over year on a reported basis. Growth was broad-based, supported by international infrastructure investments and contributions from iStent infinite and PRESERFLO.

Corneal Health revenues increased 48% year over year to $30.4 million. Epioxa contributed approximately $11 million in its first full quarter of commercial availability.

Glaukos’ Margins Expand as Loss NarrowsAdjusted gross profit increased 52.3% year over year to $156.9 million. The adjusted gross margin expanded 150 basis points (bps) to 84.5%.

Selling, general and administrative expenses rose 39.2% year over year to $116.1 million. Research and development expenses totaled $51.3 million, up 40.4% from the prior-year quarter. Total operating expenses were $168.9 million, up 40.8% year over year.

The operating loss narrowed to $17.3 million from $22.7 million in the year-ago period. The adjusted operating loss was $7.6 million, narrower than the prior-year quarter’s adjusted operating loss of $16.6 million.

GKOS Strengthens Its Liquidity PositionGlaukos exited the second quarter with $286.2 million in cash, cash equivalents and short-term investments, up from $280.5 million at the end of the first quarter. The company reported no debt.

Cumulative net cash provided by operating activities was $2.3 million against cumulative net cash used in operating activities of $11.5 million in the year-ago period.

Glaukos Raises 2026 Revenue GuidanceGlaukos raised its 2026 revenue guidance. Management now expects net sales in the range of $680 million to $700 million, up from its previous guidance of $620 million to $635 million. The Zacks Consensus Estimate for the same is pegged at $627.6 million.

The loss per share estimate is pinned at 57 cents, implying a 36.7% improvement year over year.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 25.93% due to these changes.

VGM ScoresCurrently, Glaukos has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock has a score of F on the value side, putting it in the fifth quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Glaukos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerGlaukos belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Thermo Fisher Scientific (TMO - Free Report) , has gained 9.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Thermo Fisher reported revenues of $11.99 billion in the last reported quarter, representing a year-over-year change of +10.5%. EPS of $6.03 for the same period compares with $5.36 a year ago.

For the current quarter, Thermo Fisher is expected to post earnings of $6.40 per share, indicating a change of +10.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.

Thermo Fisher has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

Key Takeaways Glaukos is scaling iDose TR rapidly, with U.S. glaucoma sales up 64% to $118.5 million. Epioxa is adding a second growth pillar as Corneal Health revenues climbed 48% to $30.4 million.Glaukos raised 2026 revenue guidance to $680-$700 million and gross margin reached about 85%. Glaukos Corporation’s (GKOS - Free Report) growth prospects are supported by the continued expansion of interventional glaucoma, growing clinical and commercial synergies between iDose TR and iStent infinite, and the potential for long-term operating leverage. However, physician workflow challenges, infrastructure constraints and margin pressure remain key risks.

Shares of this Zacks Rank #3 (Hold) company have gained 63.1% so far this year against the industry’s 8.7% decline. The S&P 500 Index has increased 12.6% in the same time frame.

Glaukos, with a market capitalization of $10.95 billion, is a leading ophthalmic medical technology and pharmaceutical company. The company has a trailing four-quarter average earnings surprise of 25.87%.

Image Source: Zacks Investment Research

Positive Factors Driving ProspectsiDose TR Is Rapidly Scaling Into a Major Revenue Engine: Glaukos' iDose TR franchise is rapidly changing the company's revenue profile, with U.S. glaucoma sales rising 64% year over year to $118.5 million in the second quarter and iDose contributing approximately $74 million. The strong adoption reflects growing surgeon interest, expanding trained accounts and increasing utilization across commercial and Medicare Advantage populations.

Management now expects iDose revenues of roughly $275-$280 million in 2026, while maintaining confidence in continued penetration of interventional glaucoma. The platform's growing body of clinical evidence, including 24 peer-reviewed publications and multiple Phase IV studies, should further support physician adoption and establish iDose as an important alternative to chronic topical glaucoma therapy.

Epioxa Launch Opens a New High-Value Growth Opportunity: Epioxa is establishing a second major growth pillar for Glaukos following iDose's rapid commercialization. Corneal Health revenues increased 48% to $30.4 million in the second quarter, including approximately $11 million from Epioxa, despite the product being in the early stages of its launch. Epioxa is the first FDA-approved epithelium-on corneal cross-linking therapy for keratoconus, which offers a differentiated clinical proposition versus legacy epi-off treatment.

Glaukos has already established access pathways covering more than 125 million commercial lives, while its treatment-center network reaches approximately 85% of the U.S. population and is expected to approach 95%. These developments provide substantial infrastructure for accelerating patient adoption.

Higher Sales Outlook and Margin Expansion Look Encouraging: Glaukos is demonstrating meaningful operating leverage as higher-margin iDose and Epioxa products become a larger portion of revenue. The second-quarter consolidated sales increased 50% to $185.6 million, prompting management to raise full-year 2026 revenue guidance to $680-$700 million, $60-$65 million above the previous outlook.

Gross margin reached approximately 85%, up about 90 basis points sequentially, with management expecting additional modest expansion as iDose and Epioxa gain mix share. This combination of rapid top-line growth and favorable product mix should improve the company's earnings profile over time. Management also expects operating expenses of approximately $600 million for 2026 while continuing to invest in commercial infrastructure and R&D.

Diversified Pipeline Boosts Growth Potential: Beyond iDose and Epioxa, Glaukos is developing a broad pipeline across five novel therapeutic platforms, reducing its long-term dependence on any single product. The company is advancing iDose TREX in Phase IIb/III, iDose TRIO toward a targeted 2027 approval, a customized topographically guided iLink therapy toward Phase III, iStent infinite and PRESERFLO MicroShunt programs, and a retinal therapy for wet AMD.

The company also expects to introduce its keratoconus screening device later in 2026. If these programs progress successfully, they could expand Glaukos' addressable markets across glaucoma, corneal disease, retinal disorders and ocular surface conditions, reinforcing its transition toward a diversified ophthalmology platform.

Key ChallengesMedicare Coverage Uncertainty Could Restrict iDose's Potential: The most significant risk to Glaukos' iDose growth trajectory remains Medicare reimbursement and coverage policy. Five of seven Medicare Administrative Contractors issued proposed local coverage determinations during the second quarter. Management has acknowledged meaningful debate ongoing around proposed eligibility criteria and step-edit requirements involving topical drops and selective laser trabeculoplasty.

Although Glaukos expects the final policies to become more favorable, there is no statutory timeline for the next step. A restrictive final LCD could limit physician discretion, delay patient access and reduce the addressable Medicare population. Because iDose is already becoming a major revenue contributor, unfavorable coverage decisions could have an outsized impact on the company's future growth expectations.

Epioxa Could Experience a Temporary Revenue Volatility: Epioxa's commercial trajectory faces a near-term reimbursement transition that could create volatility in reported growth. Its permanent, product-specific J-code became effective July 1, 2026, but management expects providers and its specialty-pharma partner to need time to operationalize the new reimbursement process.

At the same time, the previous Photrexa reimbursement mechanism is being phased out. Management specifically warned that these changes could create uncertainty in the third quarter, potentially disrupting the strong momentum established during the second quarter. Although Glaukos expects the issue to be largely resolved by the fourth quarter, the temporary revenue disruption could make quarterly comparisons less predictable and obscure the underlying pace of Epioxa adoption.

International Glaucoma Growth Faces Headwinds: Glaukos' international glaucoma franchise remains healthy, but its growth outlook incorporates several emerging challenges. International glaucoma revenues increased 17% reportedly and 16% on a constant-currency basis in the second quarter. However, management expects new competitive product trialing to create headwinds across certain major markets.

Reimbursement pressure has emerged in Germany and Switzerland, while foreign-exchange tailwinds are expected to disappear over the second half. Although PreserFlo, iStent infinite and broader MIGS adoption should offset some pressure, the combination of competition, reimbursement changes and less favorable currency translation could moderate international growth. Management nevertheless expects low-to-mid-teens growth for the full year, implying a stronger second-half execution requirement.

Estimate TrendThe Zacks Consensus Estimate for 2026 revenues is pegged at $627.6 million, indicating a 36% improvement from the previous year’s level.

The consensus mark for loss per share is pinned at 35 cents, indicating a 61.1% improvement from the year-ago reported number. The consensus estimate for loss per share has narrowed 38.6% in the past 30 days.

Stocks to ConsiderSome better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and The Cooper Companies (COO - Free Report) .

Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.4%.

The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.

COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.

Key Takeaways GKOS rallied after positive iDose TR commentary eased concerns over proposed Medicare coverage restrictions.GKOS reported $54M in first-quarter iDose TR sales and expects sequential growth in the second quarter.Glaukos is expanding with Epioxa adoption and a broad ophthalmology pipeline supporting long-term growth. Shares of Glaukos (GKOS - Free Report) have surged 45.7% since the end of May. The stock has outpaced the industry’s 4% gain and the S&P 500 Index’s 0.9% decline.

GKOS stock witnessed a sharp rally after the company announced better-than-expected first-quarter top and bottom-line figures on April 29. However, the stock pared all its gains in May amid uncertainty surrounding the proposed Local Coverage Determination (LCD) for its glaucoma therapy, iDose TR, by Medicare Administrative Contractors (MACs).

The MACs have proposed providing coverage for iDose only to patients who have failed both selective laser trabeculoplasty (SLT) and two topical medications. The proposal also restricts the concurrent use of iDose TR with minimally invasive glaucoma surgery (MIGS) procedures and limits re-administration of iDose TR to once every two years. These proposed restrictions could hurt the drug's commercial prospects.

However, Glaukos management seemed confident about receiving an exclusion or modification on some or all of these restrictions in the final LCD draft, while presenting at several investor conferences held during the end of May or early June. The company is focusing on promoting iDose TR as first-line treatment for ocular hypertension.

One-Month Performance

Image Source: Zacks Investment Research

GKOS management also stated that the market opportunity for iDose TR remains significant despite the proposed restrictions, driven by the rising number of glaucoma cases, and reaffirmed its guidance for 2026 and 2027. The company also believes that many patients are ineligible for SLTs or topical medications or both. GKOS is conducting a phase 4 study to evaluate the use of iDose TR with MIGS procedure, which has demonstrated promising results so far.

Several analysts also believe that the proposed restrictions for iDose TR in the proposed LCDs will have a minimal impact on its sales going forward. They expect a sizable pool of patients who have undergone selective laser trabeculoplasty (SLT) over the past decade to remain eligible for iDose TR.

The recent rally in Glaukos shares can be primarily attributed to investor enthusiasm following the positive commentary on iDose TR.  The company recorded $54 million in iDose TR sales during the first quarter of 2026. GKOS expects sales of the therapy to grow sequentially in the second quarter as well.

Other Factors Supporting the Rally

Rising Epioxa Adoption:Apart from iDose TR, Epioxa is emerging as Glaukos' next major growth engine, with management reporting an encouraging commercial launch despite being in its earliest phase. The company has rapidly built a treatment network covering nearly 65% of the U.S. population, with visibility to expand coverage to roughly 95%.

Reimbursement momentum is strengthening, supported by access pathways covering more than 100 million commercial lives. The drug is covered by four of the five largest U.S. payers and received a permanent J-code effective July 2026. Combined with direct-to-consumer awareness campaigns and physician education initiatives, these developments position Epioxa to meaningfully expand the underpenetrated keratoconus treatment market over time.

Strong Pipeline:Glaukos continues to differentiate itself through one of ophthalmology's broadest innovation pipelines, with 13 publicly disclosed programs spanning glaucoma, corneal disorders, retinal diseases and ocular surface therapies. Beyond commercial products like iDose TR and Epioxa, the company is advancing iDose TREX, iStent infinite for earlier-stage glaucoma, and PRESERFLO MicroShunt, iLution for Demodex blepharitis.

The company plans to initiate studies on next-generation iLink technologies and a keratoconus screening device later this year. Management also highlighted promising early-stage retinal assets and multiple Phase 4 studies that could expand reimbursement, strengthen clinical evidence and create additional label-expansion opportunities, supporting sustainable long-term growth beyond its current revenue drivers.

Key Challenges

Despite strong execution, Glaukos faces several operational challenges that could moderate near-term growth. Apart from uncertainty surrounding iDose TR LCDs, Epioxa's launch remains constrained by reimbursement complexity until the permanent J-code becomes fully operational, resulting in temporary claims-processing delays and slower physician adoption.

The company also expects international glaucoma growth to decelerate due to increasing competitive product launches and fading foreign-exchange tailwinds. Furthermore, management plans to accelerate investments in commercial infrastructure, patient awareness and direct-to-consumer initiatives, which will keep operating expenses elevated and delay margin expansion.

In addition, successful commercialization depends on increasing keratoconus diagnosis rates and expanding physician adoption, requiring sustained investment in education, payer engagement and market development before Epioxa can fully realize its long-term billion-dollar revenue potential.

A Glance at GKOS’ Estimates

The Zacks Consensus Estimate for GKOS’ 2026 loss per share is pinned at 57 cents, implying a year-over-year improvement of 36.7%. The Zacks Consensus Estimate for 2027 earnings per share is pegged at 47 cents, implying growth of 181% year over year. In the past 60 days, the consensus mark for the company's earnings has remained stable.

Revenues for 2026 are projected to grow 23.7% to $627.6 million and another 26.6% to $794.3 million in 2027.

Image Source: Zacks Investment Research

GKOS’ Zacks Rank and Stocks to Consider

Currently, Glaukos has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Veracyte (VCYT - Free Report) , West Pharmaceutical (WST - Free Report) and Intuitive Surgical (ISRG - Free Report) .

Veracyte, currently sporting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of 52 cents, which surpassed the Zacks Consensus Estimate by 52.94%. Revenues of $139 million beat the Zacks Consensus Estimate by 6.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.

VCYT has an estimated earnings growth rate of 5.1% for 2026 compared with the industry’s 14% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 45.88%.

West Pharmaceutical, currently carrying a Zacks Rank #2 (Buy), reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.37%.

Intuitive Surgical, carrying a Zacks Rank of 2 at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.

ISRG has a long-term estimated growth rate of 14.3% compared with the industry’s 12.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%