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

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

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 Stock Performance

NASDAQ:TNDM traded up $3.59 during mid-day trading on Friday, reaching $22.38. The company’s stock had a trading volume of 5,434,655 shares, compared to its average volume of 2,034,688. The company has a current ratio of 3.58, a quick ratio of 3.07 and a debt-to-equity ratio of 4.54. The stock has a market cap of $1.53 billion, a P/E ratio of -24.06 and a beta of 1.54. The firm’s fifty day moving average price is $16.97 and its two-hundred day moving average price is $18.89. Tandem Diabetes Care has a 12-month low of $10.00 and a 12-month high of $29.65.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada boosted its stake in shares of Tandem Diabetes Care by 30.5% during the 1st quarter. Royal Bank of Canada now owns 211,666 shares of the medical device company’s stock worth $4,054,000 after acquiring an additional 49,408 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Tandem Diabetes Care by 2.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 74,413 shares of the medical device company’s stock worth $1,426,000 after purchasing an additional 2,096 shares in the last quarter. Millennium Management LLC raised its holdings in Tandem Diabetes Care by 41.1% in the 1st quarter. Millennium Management LLC now owns 227,585 shares of the medical device company’s stock worth $4,361,000 after purchasing an additional 66,245 shares during the period. Dynamic Technology Lab Private Ltd bought a new position in Tandem Diabetes Care in the 1st quarter worth $225,000. Finally, Goldman Sachs Group Inc. lifted its position in Tandem Diabetes Care by 5.0% during the first quarter. Goldman Sachs Group Inc. now owns 712,559 shares of the medical device company’s stock valued at $13,653,000 after purchasing an additional 34,069 shares in the last quarter.

Key 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

Analyst Ratings Changes

Several brokerages have commented on TNDM. Weiss Ratings lowered Tandem Diabetes Care from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Thursday, June 11th. Citigroup reaffirmed a “neutral” rating and issued a $21.00 target price (up from $17.00) on shares of Tandem Diabetes Care in a research report on Friday. Royal Bank Of Canada reiterated an “outperform” rating and issued a $26.00 price target (down from $30.00) on shares of Tandem Diabetes Care in a research note on Friday. The Goldman Sachs Group set a $21.00 price target on shares of Tandem Diabetes Care in a research report on Wednesday, May 27th. Finally, Mizuho lowered their price target on shares of Tandem Diabetes Care from $24.00 to $20.00 and set a “neutral” rating for the company in a research report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $28.98.

About Tandem Diabetes Care

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.