We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can PODD Sustain Growth After Its 2026 Guidance Reset and Q2 Beat?
Read MoreHide Full Article
Key Takeaways
Insulet posted 23.5% revenue growth and a 41.5% rise in adjusted earnings in Q2.
Insulet's U.S. Omnipod growth guidance fell as newer Type 2 customers showed lower utilization and retention.
International growth and margin gains offer support as Insulet targets at least 30% adjusted EPS growth.
Insulet Corporation (PODD - Free Report) delivered a second-quarter earnings and revenue beat, supported by double-digit Omnipod growth and wider adjusted margins. The stronger quarter, however, came alongside a lower 2026 revenue-growth outlook.
That reset puts the durability of U.S. growth under closer scrutiny. International momentum and earnings leverage provide offsets, but Type 2 utilization and retention now carry more weight in the near-term outlook.
PODD's Q2 Beat Shows Operating Momentum
Second-quarter revenues rose 23.5% year over year to $801.7 million, topping the Zacks Consensus Estimate by 1.9%. Adjusted earnings of $1.66 per share increased 41.5% and beat the consensus mark by 15.3%.
Total Omnipod revenues advanced 24.6% to $795.9 million. U.S. Omnipod revenues increased 20.1% to $544.1 million, while international Omnipod revenues climbed 35.5% to $251.8 million.
Insulet Cut Growth Guidance Despite Strong Demand
Insulet now expects 2026 total company revenues to grow 20%-22% at constant currency, below its prior 21%-23% range. Total Omnipod growth is projected at 21%-23%, down from 22%-24%.
Image Source: Zacks Investment Research
The reduction reflects weaker U.S. assumptions. Full-year U.S. Omnipod growth is now expected at 17%-19% versus 20%-22% previously, even as new customer starts improved sequentially and year over year in the second quarter.
PODD's Type 2 Retention Gap Is the Key Issue
More than 40% of U.S. new customer starts came from people with Type 2 diabetes in the second quarter. Yet management is seeing lower utilization and retention among newer Type 2 customers, with the first 90 days of therapy proving especially important for continuity.
Insulet is expanding onboarding support, changing sales-force incentives to emphasize longer-term retention and refining its sampling approach. Tandem Diabetes Care, Inc. (TNDM - Free Report) also competes in automated insulin delivery through systems such as Tandem Mobi and t:slim X2, underscoring the importance of customer experience as the category broadens.
Insulet's International Business Adds Support
International Omnipod revenues increased 35.5%, or 32.9% at constant currency, in the second quarter. Insulet raised its 2026 international Omnipod growth outlook to 30%-32% from 26%-28%, reflecting first-half strength and continued market adoption.
The company also launched Omnipod 5 in Spain, extending Omnipod to 26 countries and Omnipod 5 to 20. DexCom, Inc. (DXCM - Free Report) , a major glucose-sensing company, reported 13% year-over-year revenue growth in the second quarter of 2026, another sign of continued activity across the broader diabetes-technology market.
PODD's Margin Outlook Still Points Higher
Adjusted gross margin reached 72.9% in the second quarter, up 320 basis points year over year, helped by manufacturing productivity, positive pricing and higher volumes. Adjusted operating margin increased 140 basis points to 19.3%.
Insulet still expects about 100 basis points of adjusted operating-margin expansion in 2026. It also raised its adjusted EPS growth outlook to at least 30%, supporting an earnings story that remains stronger than the revised top-line outlook.
Image Source: Zacks Investment Research
Insulet's Ratings Reflect a Balanced Setup
The guidance reset makes retention execution the key test. International growth, margin expansion and continued Omnipod adoption support the case for further earnings growth, while softer U.S. assumptions limit visibility into the pace of revenue expansion.
PODD currently carries a Zacks Rank #3 (Hold). It has a Value Score of B, Growth Score of B, Momentum Score of C and VGM Score of B. The B scores indicate favorable value and growth characteristics, while the C Momentum Score is more neutral. With a Hold rank, the combined setup points to a balanced near-term outlook rather than a clear directional signal.
View the Zacks #1 Rank List
Image: Bigstock
Can PODD Sustain Growth After Its 2026 Guidance Reset and Q2 Beat?
Key Takeaways
Insulet Corporation (PODD - Free Report) delivered a second-quarter earnings and revenue beat, supported by double-digit Omnipod growth and wider adjusted margins. The stronger quarter, however, came alongside a lower 2026 revenue-growth outlook.
That reset puts the durability of U.S. growth under closer scrutiny. International momentum and earnings leverage provide offsets, but Type 2 utilization and retention now carry more weight in the near-term outlook.
PODD's Q2 Beat Shows Operating Momentum
Second-quarter revenues rose 23.5% year over year to $801.7 million, topping the Zacks Consensus Estimate by 1.9%. Adjusted earnings of $1.66 per share increased 41.5% and beat the consensus mark by 15.3%.
Total Omnipod revenues advanced 24.6% to $795.9 million. U.S. Omnipod revenues increased 20.1% to $544.1 million, while international Omnipod revenues climbed 35.5% to $251.8 million.
Insulet Cut Growth Guidance Despite Strong Demand
Insulet now expects 2026 total company revenues to grow 20%-22% at constant currency, below its prior 21%-23% range. Total Omnipod growth is projected at 21%-23%, down from 22%-24%.
Image Source: Zacks Investment Research
The reduction reflects weaker U.S. assumptions. Full-year U.S. Omnipod growth is now expected at 17%-19% versus 20%-22% previously, even as new customer starts improved sequentially and year over year in the second quarter.
PODD's Type 2 Retention Gap Is the Key Issue
More than 40% of U.S. new customer starts came from people with Type 2 diabetes in the second quarter. Yet management is seeing lower utilization and retention among newer Type 2 customers, with the first 90 days of therapy proving especially important for continuity.
Insulet is expanding onboarding support, changing sales-force incentives to emphasize longer-term retention and refining its sampling approach. Tandem Diabetes Care, Inc. (TNDM - Free Report) also competes in automated insulin delivery through systems such as Tandem Mobi and t:slim X2, underscoring the importance of customer experience as the category broadens.
Insulet's International Business Adds Support
International Omnipod revenues increased 35.5%, or 32.9% at constant currency, in the second quarter. Insulet raised its 2026 international Omnipod growth outlook to 30%-32% from 26%-28%, reflecting first-half strength and continued market adoption.
The company also launched Omnipod 5 in Spain, extending Omnipod to 26 countries and Omnipod 5 to 20. DexCom, Inc. (DXCM - Free Report) , a major glucose-sensing company, reported 13% year-over-year revenue growth in the second quarter of 2026, another sign of continued activity across the broader diabetes-technology market.
PODD's Margin Outlook Still Points Higher
Adjusted gross margin reached 72.9% in the second quarter, up 320 basis points year over year, helped by manufacturing productivity, positive pricing and higher volumes. Adjusted operating margin increased 140 basis points to 19.3%.
Insulet still expects about 100 basis points of adjusted operating-margin expansion in 2026. It also raised its adjusted EPS growth outlook to at least 30%, supporting an earnings story that remains stronger than the revised top-line outlook.
Image Source: Zacks Investment Research
Insulet's Ratings Reflect a Balanced Setup
The guidance reset makes retention execution the key test. International growth, margin expansion and continued Omnipod adoption support the case for further earnings growth, while softer U.S. assumptions limit visibility into the pace of revenue expansion.
PODD currently carries a Zacks Rank #3 (Hold). It has a Value Score of B, Growth Score of B, Momentum Score of C and VGM Score of B. The B scores indicate favorable value and growth characteristics, while the C Momentum Score is more neutral. With a Hold rank, the combined setup points to a balanced near-term outlook rather than a clear directional signal.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.