Tandem Diabetes Care (NASDAQ:TNDM) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Tandem Diabetes Care (NASDAQ:TNDM) released its quarterly earnings data on Thursday. The medical device company reported ($0.31) earnings per share for the quarter, beating the consensus estimate of ($0.32) by $0.01, FiscalAI reports. Tandem Diabetes Care had a negative return on equity of 45.17% and a negative net margin of 6.08%.The company had revenue of $254.56 million for the quarter, compared to the consensus estimate of $254.99 million. During the same quarter last year, the business posted ($0.78) EPS. Tandem Diabetes Care’s revenue for the quarter was up 5.8% on a year-over-year basis.

Here are the key takeaways from Tandem Diabetes Care’s conference call:

• Second-quarter momentum improved: Worldwide pump shipments rose more than 10% year over year and sequentially to approximately 33,000, while sales increased 6% to $255 million. U.S. new starts were nearly flat year over year but improved more than 20% sequentially, with MDI conversions growing mid-single digits.
• The PayGo pharmacy strategy gained early traction, with pharmacy representing approximately 10% of U.S. pump shipments and sales in its first full quarter. Formulary coverage reached about 45%, and management said pharmacy supply pricing was above its initial $350-per-month modeling assumption, although adoption of supplies is lagging pump adoption.
• Profitability continued to improve, with gross margin reaching 57%, up five percentage points year over year, and adjusted EBITDA margin reaching 3% for the fourth consecutive quarter. The company reaffirmed 2026 sales guidance of $1.065 billion-$1.085 billion, gross margin guidance of 56%-57%, and adjusted EBITDA margin guidance of 5%-6%.
• Tandem submitted Mobi Tubeless to the FDA in the second quarter and expects a scaled launch in the second half of 2026, subject to clearance. Management views the product’s tubeless, extended-wear capability as a potential growth and margin catalyst, particularly in 2027.
• Infusion-set supply constraints weighed on U.S. and international results, with the company citing the greatest impact in the second quarter and expecting residual effects through the next several quarters. Cash and investments declined to $456 million from $570 million in the prior quarter, partly due to CRM spending, a Roche settlement payment, and an additional CeQur investment.

Tandem Diabetes Care Price Performance

Shares of TNDM opened at $22.38 on Friday. The business has a 50-day moving average of $16.97 and a 200-day moving average of $18.89. Tandem Diabetes Care has a 1 year low of $10.00 and a 1 year high of $29.65. The company has a market capitalization of $1.53 billion, a price-to-earnings ratio of -24.06 and a beta of 1.54. The company has a debt-to-equity ratio of 4.54, a current ratio of 3.58 and a quick ratio of 3.07.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the company. Truist Financial reiterated a “buy” rating and issued a $31.00 target price (down from $35.00) on shares of Tandem Diabetes Care in a research report on Monday, May 11th. Royal Bank Of Canada restated an “outperform” rating and set a $26.00 price target (down from $30.00) on shares of Tandem Diabetes Care in a report on Friday. Oppenheimer reaffirmed an “outperform” rating on shares of Tandem Diabetes Care in a research note on Friday. Barclays set a $55.00 price objective on shares of Tandem Diabetes Care and gave the company an “overweight” rating in a report on Monday, May 11th. Finally, Bank of America cut their target price on shares of Tandem Diabetes Care from $35.00 to $25.00 and set a “neutral” rating on the stock in a research report on Monday, May 18th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $28.98.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Smartleaf Asset Management LLC lifted its position in Tandem Diabetes Care by 80.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,330 shares of the medical device company’s stock valued at $30,000 after purchasing an additional 593 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in shares of Tandem Diabetes Care by 200.0% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 2,205 shares of the medical device company’s stock worth $27,000 after buying an additional 1,470 shares during the last quarter. Van ECK Associates Corp increased its holdings in shares of Tandem Diabetes Care by 67.4% in the 4th quarter. Van ECK Associates Corp now owns 3,430 shares of the medical device company’s stock worth $75,000 after buying an additional 1,381 shares during the last quarter. Quarry LP raised its position in shares of Tandem Diabetes Care by 2,597.1% during the 3rd quarter. Quarry LP now owns 3,695 shares of the medical device company’s stock valued at $45,000 after buying an additional 3,558 shares in the last quarter. Finally, Tower Research Capital LLC TRC raised its position in shares of Tandem Diabetes Care by 218.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 9,168 shares of the medical device company’s stock valued at $171,000 after buying an additional 6,290 shares in the last quarter.

More Tandem Diabetes Care News

Here are the key news stories impacting Tandem Diabetes Care this week:

• Positive Sentiment: Improved quarterly profitability: Tandem reported a second-quarter 2026 loss of $0.31 per share, slightly better than analyst estimates for a loss of $0.32-$0.34 and substantially improved from a $0.48-$0.78 loss in the year-ago period. Revenue rose 5.8% year over year to $254.6 million, broadly in line with expectations. Tandem Diabetes Care Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Strong gross-margin expansion: Second-quarter gross margin increased to 57%, up 460 basis points from a year earlier. The improvement supports the market’s view that Tandem’s cost structure and operating leverage are moving in the right direction. Tandem Diabetes Care Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Analyst remains bullish: TD Cowen analyst Mathew Blackman reiterated a Buy rating and a $28 price target, citing building momentum ahead of Tandem’s Mobi tubeless launch and continued margin improvement. Analyst Reiterates Buy on Tandem
• Neutral Sentiment: Full-year outlook is largely unchanged: Tandem’s fiscal 2026 revenue guidance of approximately $1.1 billion-$1.1 billion is in line with consensus, providing stability but not a major upward surprise. Tandem Diabetes Care Earnings Report
• Negative Sentiment: Revenue narrowly missed some estimates: Quarterly sales of $254.6 million were just below the roughly $255.0 million consensus forecast, and Tandem remains unprofitable, which could limit the stock’s upside if product launches or growth do not accelerate. Tandem Diabetes Care Reports Q2 Loss

Tandem Diabetes Care Company Profile

Tandem Diabetes Care, Inc (NASDAQ: TNDM), headquartered in San Diego, California, is a medical device company focused on the design, development and commercialization of innovative insulin delivery systems for people with insulin-dependent diabetes. Founded in 2006, the company introduced its first product, the t:slim® Insulin Pump, in 2011 and has since built a portfolio of next-generation pumps featuring touchscreen interfaces, remote software updates and integrated continuous glucose monitoring (CGM) capabilities.

The company’s flagship offering, the t:slim X2® Insulin Pump, is engineered to work with leading CGM sensors and features automated insulin delivery algorithms that adjust basal insulin rates based on real-time glucose trends.