Butterfly Network (NYSE:BFLY) Shares Gap Up After Strong Earnings

Butterfly Network, Inc. (NYSE:BFLY)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $3.10, but opened at $4.01. Butterfly Network shares last traded at $4.7310, with a volume of 23,249,066 shares.

The company reported ($0.02) EPS for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.02. Butterfly Network had a negative return on equity of 32.05% and a negative net margin of 78.95%.The firm had revenue of $31.51 million for the quarter, compared to analyst estimates of $26.25 million.

Butterfly Network News Summary

Here are the key news stories impacting Butterfly Network this week:

• Positive Sentiment: TD Cowen raised its price target to $6.00 and reiterated a “buy” rating, signaling material upside vs. the current level and providing broker support for the stock. TD Cowen Raises PT to $6
• Positive Sentiment: Q4 results beat expectations: revenue of $31.5M topped consensus and EPS loss was smaller than forecast, while commentary and press materials highlighted record revenue growth. These results underpin the revenue-outperformance narrative. Q4 Highlights
• Positive Sentiment: Management issued FY2026 revenue guidance ($117M–$121M) above Street consensus (~$108.5M), which is a key near-term growth guidepost for investors watching topline momentum.
• Positive Sentiment: Unusually large options activity—over 10,000 call contracts bought—indicates speculative or institutional bullish positioning that could amplify upside on positive follow-through.
• Positive Sentiment: Industry/strategy write-ups emphasize Butterfly’s semiconductor-based ultrasound plus AI (Compass) as a long-term competitive differentiator if execution scales, supporting a multi-quarter growth thesis. Seeking Alpha: Ultrasound-On-Chip
• Neutral Sentiment: The full Q4 earnings call transcript and BusinessWire release provide more color on margin dynamics and product adoption; useful for confirming management cadence but not immediately market-moving on their own. Earnings Call Transcript Press Release
• Negative Sentiment: Zacks added BFLY to its Rank #5 (Strong Sell) list today, a clear near-term negative that can trigger selling pressure from algorithmic and momentum-driven funds. Zacks Rank #5
• Negative Sentiment: Company remains unprofitable (large negative net margin and negative ROE), which keeps multiples constrained and makes the stock sensitive to any miss in profitability or guidance cadence. Q4 Loss / Margin Detail

Wall Street Analysts Forecast Growth

BFLY has been the subject of a number of research reports. Craig Hallum restated a “buy” rating and set a $5.25 target price on shares of Butterfly Network in a research report on Wednesday, January 21st. Loop Capital set a $5.00 price objective on Butterfly Network in a research note on Wednesday, December 31st. Lake Street Capital upped their target price on Butterfly Network from $4.00 to $5.50 and gave the stock a “buy” rating in a research note on Tuesday, January 20th. Wall Street Zen raised Butterfly Network from a “sell” rating to a “hold” rating in a report on Sunday, November 23rd. Finally, TD Cowen lifted their price target on Butterfly Network from $4.50 to $6.00 and gave the company a “buy” rating in a research report on Friday. Four investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Butterfly Network presently has an average rating of “Moderate Buy” and a consensus target price of $5.44.

Insider Buying and Selling at Butterfly Network

In related news, Director Jonathan M. Rothberg sold 769,327 shares of the company’s stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $3.27, for a total value of $2,515,699.29. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In the last ninety days, insiders sold 4,725,727 shares of company stock valued at $16,172,849. 25.18% of the stock is owned by insiders.

Institutional Trading of Butterfly Network

A number of institutional investors and hedge funds have recently made changes to their positions in the business. AWM Investment Company Inc. increased its holdings in Butterfly Network by 750.0% in the 4th quarter. AWM Investment Company Inc. now owns 3,400,000 shares of the company’s stock worth $12,920,000 after acquiring an additional 3,000,000 shares in the last quarter. Geode Capital Management LLC grew its position in shares of Butterfly Network by 114.7% in the second quarter. Geode Capital Management LLC now owns 4,339,362 shares of the company’s stock valued at $8,680,000 after purchasing an additional 2,317,882 shares during the period. First Light Asset Management LLC grew its position in shares of Butterfly Network by 149.3% in the fourth quarter. First Light Asset Management LLC now owns 2,812,131 shares of the company’s stock valued at $10,686,000 after purchasing an additional 1,684,133 shares during the period. Sei Investments Co. purchased a new stake in shares of Butterfly Network during the second quarter worth about $2,183,000. Finally, Deutsche Bank AG raised its position in shares of Butterfly Network by 156.7% during the 4th quarter. Deutsche Bank AG now owns 1,652,237 shares of the company’s stock worth $6,279,000 after purchasing an additional 1,008,556 shares during the last quarter. 37.85% of the stock is currently owned by hedge funds and other institutional investors.

Butterfly Network Trading Down 19.0%

The stock has a market cap of $955.59 million, a price-to-earnings ratio of -12.20 and a beta of 2.27. The firm’s 50-day moving average is $3.82 and its two-hundred day moving average is $2.78.

About Butterfly Network

Butterfly Network, Inc is a medical technology company focused on democratizing access to diagnostic imaging through its proprietary ultrasound-on-chip platform. The company’s flagship device, the Butterfly iQ, leverages semiconductor technology to deliver whole-body ultrasound imaging in a handheld form factor. This portable system connects to a compatible smart device, enabling point-of-care scanning across a variety of clinical settings.

Beyond its hardware offering, Butterfly Network provides a cloud-based software suite that supports image storage, analysis and remote collaboration.