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

Tandem Diabetes Care (NASDAQ:TNDM) announced its earnings results on Thursday. The medical device company reported ($0.31) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.32) by $0.01, FiscalAI reports. The business had revenue of $254.56 million during the quarter, compared to analyst estimates of $254.99 million. Tandem Diabetes Care had a negative return on equity of 53.88% and a negative net margin of 9.20%.Tandem Diabetes Care’s revenue for the quarter was up 5.8% compared to the same quarter last year. During the same period last year, the company earned ($0.78) EPS.

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 Trading Up 19.1%

TNDM stock 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 2,170,484. Tandem Diabetes Care has a 12 month low of $10.00 and a 12 month high of $29.65. 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 business’s 50 day moving average price is $16.87 and its 200 day moving average price is $18.86. The company has a market cap of $1.53 billion, a price-to-earnings ratio of -15.99 and a beta of 1.54.

Wall Street Analyst Weigh In

TNDM has been the subject of a number of analyst reports. TD Cowen restated a “buy” rating and set a $28.00 price objective (up from $25.00) on shares of Tandem Diabetes Care in a research report on Monday, April 20th. Oppenheimer restated an “outperform” rating on shares of Tandem Diabetes Care in a research report on Friday. Truist Financial reaffirmed a “buy” rating and issued a $31.00 price objective (down from $35.00) on shares of Tandem Diabetes Care in a research note on Monday, May 11th. Zacks Research cut shares of Tandem Diabetes Care from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, June 10th. Finally, Weiss Ratings lowered shares of Tandem Diabetes Care from a “sell (d-)” rating to a “sell (e+)” rating in a report on Thursday, June 11th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Tandem Diabetes Care has an average rating of “Hold” and a consensus target price of $28.98.

Tandem Diabetes Care News Roundup

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

Institutional Trading of Tandem Diabetes Care

Large investors have recently modified their holdings of the stock. Freestone Grove Partners LP bought a new position in Tandem Diabetes Care during the 3rd quarter valued at $22,706,000. First Light Asset Management LLC purchased a new position in Tandem Diabetes Care during the 4th quarter worth $23,947,000. Marshall Wace LLP bought a new stake in shares of Tandem Diabetes Care in the 4th quarter worth $19,244,000. Balyasny Asset Management L.P. bought a new stake in shares of Tandem Diabetes Care in the 4th quarter worth $5,776,000. Finally, Goldman Sachs Group Inc. grew its stake in shares of Tandem Diabetes Care by 17.6% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,683,400 shares of the medical device company’s stock worth $37,001,000 after acquiring an additional 252,028 shares in the last quarter.

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.