Tandem Diabetes Care (NASDAQ:TNDM) Announces Quarterly Earnings Results

Tandem Diabetes Care (NASDAQ:TNDM) posted its quarterly earnings data on Thursday. The medical device company reported ($0.01) EPS for the quarter, beating analysts’ consensus estimates of ($0.05) by $0.04, FiscalAI reports. Tandem Diabetes Care had a negative return on equity of 73.97% and a negative net margin of 20.19%.The business had revenue of $290.38 million during the quarter, compared to analysts’ expectations of $277.14 million. During the same period in the previous year, the business earned $0.01 earnings per share. The business’s revenue was up 15.1% compared to the same quarter last year.

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

• Company reported a record 2025 — surpassing $1 billion in sales with Q4 at $290M (+15% YoY), improved profitability (FY gross margin 54%, Q4 gross margin 58%), first positive operating margin since 2021, adjusted EBITDA 11% in Q4, and nearly $300M in cash with FCF generation in Q3–Q4.
• Tandem is shifting to a pay-as-you-go pharmacy model that will create meaningful near-term revenue headwinds in 2026 (company estimates $85–95M total headwinds, ~$70–80M U.S.), moderating reported sales growth even as pump shipments are expected to increase 10–11% in the U.S.
• Product roadmap and near-term launches are catalytic — Control‑IQ+ expanded indications, FreeStyle Libre 3 Plus and Dexcom 15‑day integrations, three Q2 product launches (including scaled Mobi OUS), and a planned 510(k) for Mobi Tubeless (file in Q2, targeted H2 launch) plus a pivotal trial toward a fully closed‑loop FDA filing in 2027.
• International strategy is transitioning to direct operations (UK, Switzerland, Austria now live) with a playbook to expand — management expects long‑term ASP premiums (~30%) but flagged a ~$15M 2026 destocking/buyback headwind and guidance of $335–340M in international sales for 2026.

Tandem Diabetes Care Trading Up 34.0%

TNDM stock traded up $6.29 during trading on Friday, reaching $24.81. 3,741,508 shares of the stock were exchanged, compared to its average volume of 1,306,184. The firm has a market capitalization of $1.68 billion, a price-to-earnings ratio of -8.14 and a beta of 1.68. The company has a current ratio of 2.44, a quick ratio of 1.90 and a debt-to-equity ratio of 2.33. The business has a 50 day moving average price of $20.85 and a 200-day moving average price of $16.95. Tandem Diabetes Care has a 1 year low of $9.98 and a 1 year high of $35.12.

Institutional Trading of Tandem Diabetes Care

A number of hedge funds and other institutional investors have recently modified their holdings of TNDM. Freestone Grove Partners LP purchased a new stake in Tandem Diabetes Care in the 3rd quarter valued at about $22,706,000. Goldman Sachs Group Inc. increased its position in shares of Tandem Diabetes Care by 17.6% during the fourth quarter. Goldman Sachs Group Inc. now owns 1,683,400 shares of the medical device company’s stock valued at $37,001,000 after acquiring an additional 252,028 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its stake in shares of Tandem Diabetes Care by 11.6% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,653,708 shares of the medical device company’s stock valued at $36,349,000 after acquiring an additional 171,755 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Tandem Diabetes Care by 3.2% in the 4th quarter. Geode Capital Management LLC now owns 1,649,383 shares of the medical device company’s stock worth $36,260,000 after acquiring an additional 51,102 shares during the last quarter. Finally, First Light Asset Management LLC purchased a new position in shares of Tandem Diabetes Care during the 4th quarter worth approximately $23,947,000.

Key Tandem Diabetes Care News

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

• Positive Sentiment: Q4 results beat consensus: Tandem reported revenue of $290.4M (up ~15% y/y) and a narrower loss (EPS -$0.01 vs. estimates for -$0.05), plus improved gross margins — the core drivers cited for the share strength. TNDM Q4 Earnings & Revenues Beat Estimates, Gross Margin & Stock Up
• Positive Sentiment: Record sales and shipments: Management reported record quarterly sales and ~38,000 pump shipments, signaling demand momentum in its core pump business. Business Wire — Q4 & FY2025 Results
• Positive Sentiment: New PayGo pricing model announced — management positions this as a growth/market-share tool that could broaden adoption, which investors view as a long-term positive if execution succeeds. Tandem stock rises on Q4 beats, new pay-as-you-go model
• Neutral Sentiment: FY2026 revenue outlook reiterated around ~$1.1B (management provided guidance consistent with consensus), which gives clarity but not a material upside surprise. Business Wire — Guidance
• Neutral Sentiment: Earnings call, slides and transcripts available — useful for investors wanting management commentary on PayGo rollout, reimbursement and margins. Yahoo — Q4 2025 Earnings Call Summary Seeking Alpha — Call Transcript
• Negative Sentiment: Analyst caution on PayGo and competition: UBS and other analysts say the Q4 beat is solid but the transition to a PayGo model and competitive headwinds create execution risk — supporting Hold ratings for some. TipRanks — Hold Thesis
• Negative Sentiment: Mixed analyst actions: Stifel kept a Hold and nudged its target to $22 (still below current trading), while UBS maintained a Hold; Bank of America upgraded to Neutral with a $30 target — the patchwork of views adds short-term volatility potential. Bank of America Upgrade / Analyst Notes

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on TNDM shares. Wells Fargo & Company boosted their price target on shares of Tandem Diabetes Care from $13.00 to $14.00 and gave the stock an “equal weight” rating in a report on Friday, November 7th. Truist Financial set a $24.00 target price on shares of Tandem Diabetes Care and gave the stock a “hold” rating in a research note on Thursday, December 18th. Mizuho set a $22.00 price target on shares of Tandem Diabetes Care in a research report on Friday. Royal Bank Of Canada reiterated an “outperform” rating and issued a $30.00 price objective on shares of Tandem Diabetes Care in a report on Wednesday, December 17th. Finally, Canaccord Genuity Group set a $35.00 target price on Tandem Diabetes Care and gave the company a “buy” rating in a report on Wednesday, December 17th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $25.50.

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.