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

Tandem Diabetes Care (NASDAQ:TNDM) posted its quarterly 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. Tandem Diabetes Care had a negative net margin of 6.08% and a negative return on equity of 45.17%. The firm had revenue of $254.56 million for the quarter, compared to analysts’ expectations of $254.99 million. During the same period in the prior year, the company posted ($0.78) earnings per share. The firm’s quarterly revenue 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 Stock Performance

Shares of NASDAQ TNDM traded up $3.59 during midday trading on Friday, hitting $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 debt-to-equity ratio of 4.54, a quick ratio of 3.07 and a current ratio of 3.58. Tandem Diabetes Care has a 1-year low of $10.00 and a 1-year high of $29.65. The firm’s fifty day moving average price is $16.97 and its 200-day moving average price is $18.89. The firm has a market cap of $1.53 billion, a P/E ratio of -24.06 and a beta of 1.54.

Hedge Funds Weigh In On Tandem Diabetes Care

A number of hedge funds and other institutional investors have recently bought and sold shares of TNDM. Caitong International Asset Management Co. Ltd raised its position in shares of Tandem Diabetes Care by 200.0% during 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 purchasing an additional 1,470 shares during the period. Smartleaf Asset Management LLC boosted its position in Tandem Diabetes Care by 80.5% during the 4th 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 period. Quarry LP grew its stake in 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 worth $45,000 after buying an additional 3,558 shares during the last quarter. Van ECK Associates Corp grew its stake in Tandem Diabetes Care by 67.4% during 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. Finally, Tower Research Capital LLC TRC increased its position in Tandem Diabetes Care by 218.6% in the second quarter. Tower Research Capital LLC TRC now owns 9,168 shares of the medical device company’s stock worth $171,000 after buying an additional 6,290 shares during the period.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on TNDM shares. Rothschild & Co Redburn set a $45.00 target price on shares of Tandem Diabetes Care in a research report on Friday, April 24th. TD Cowen reaffirmed a “buy” rating and set a $28.00 price target (up from $25.00) on shares of Tandem Diabetes Care in a research report on Monday, April 20th. Royal Bank Of Canada reissued an “outperform” rating and issued a $26.00 price objective (down from $30.00) on shares of Tandem Diabetes Care in a report on Friday. Weiss Ratings cut Tandem Diabetes Care from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Thursday, June 11th. Finally, Wells Fargo & Company raised Tandem Diabetes Care from a “buy” rating to an “overweight” rating and increased their target price for the stock from $21.00 to $27.00 in a report on Monday, June 1st. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $28.98.

Tandem Diabetes Care News Summary

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.