two Q1 2026 Earnings Recap

Butterfly Network shares surged 9.8% following Q1 2026 earnings as investors responded positively to 25% revenue growth, expanding gross margin, and clear progress in enterprise AI-driven adoption. Acceleration in software deals and FDA recognition of new AI tools contributed to the upbeat market reaction.

Key Takeaways

• Reported 25% year-over-year revenue growth for the first quarter.
• Gross margin reached 69%, with net loss at its lowest Q1 level since the company went public.
• Achieved FDA clearance for a blind sweep AI tool to determine fetal gestational age, positioned for a U.S. and global rollout.
• Two new partners joined the Butterfly Garden ecosystem, with four partner apps receiving FDA clearance and additional breakthrough designations.
• Pipeline of software deals, measured by total contract value, rose sharply year-on-year, including a 7-figure Compass AI enterprise agreement and nearly 1,000 probes sold to medical schools in early 2026.