PODD's Q2 Earnings Top Estimates, FY'26 Sales View Cut, Stock Down

Revenues of $801.7 million rose 23.5% and surpassed the consensus mark by 1.89%, reflecting broad-based Omnipod demand and favorable price mix.

Following the announcement on Aug. 5, PODD shares have dropped nearly 20% to end the session at $133.26.

PODD's Omnipod Sales Stay Strong

Total Omnipod revenues advanced 24.6% to $795.9 million. U.S. Omnipod revenues increased 20.1% year over year to $544.1 million. Management cited continued demand across type 1 and type 2 customers, with more than 40% of U.S. new customer starts coming from people with type 2 diabetes.

International Omnipod revenues climbed 35.5% to $251.8 million, or 32.9% at constant currency. Growth was driven primarily by volume and continued favorable price, and mix realization. Omnipod 5 also became the top insulin pump for new users in Australia, while the company recently launched in Spain.

PODD's Q2 Margins

Adjusted gross margin reached 72.9%, up 320 basis points (bps) year over year. The improvement reflected manufacturing productivity gains at the Acton and Malaysia facilities, positive pricing and higher volumes.

Adjusted operating margin expanded 140 bps to 19.3%. Research and development expenses rose 20% to $88.1 million, while selling, general and administrative expenses increased 33.8% to $344.8 million, reflecting investments in the U.S. sales force, customer support and market development.

Insulet’s Cash Position

Insulet exited the second quarter of 2026 with cash and cash equivalents of $534.9 million compared with $480.4 million at March-end.

Cumulative net cash provided by operating activities at the end of the second quarter was $202.2 million compared with $260.3 million in the year-ago period.

Insulet’s 2026 Outlook

Insulet now expects 2026 total company revenue growth of 20%-22% at constant currency, down from the prior 21%-23% range.

Total Omnipod growth is projected at 21%-23% (previously, 22%-24%), while Drug Delivery revenues are expected to decline around 40% compared with the earlier expectation of a roughly 50% drop. The Zacks Consensus Estimate for the company’s 2026 revenues is pegged at $3.28 billion, up 21% from the 2025 levels.

Adjusted EPS is now projected to grow at least 30%, up from the prior expectation of more than 25%. The Zacks Consensus Estimate for the same stands at $6.51, up 5%. 

For the third quarter, total company revenues are expected to increase 17.5%-19.5% at constant currency. Total Omnipod growth is projected at 18%-20%, while Drug Delivery is expected to be approximately 20% year over year. The Zacks Consensus Estimate for revenues and EPS is pegged at $835.4 million and $1.59, respectively.  

Our Take on PODD’s Q2 Results

Insulet delivered better-than-expected earnings and revenues in the second quarter of 2026. The company witnessed strong demand for Omnipod across both the U.S. and international markets, along with a benefit from favorable price mix. Global new customer starts increased both sequentially and year over year, resulting in the second highest quarter ever. The expansion of adjusted gross and operating margins is also encouraging. Lower-than-expected retention and utilization among type 2 customers prompted Insulet to lower its full-year U.S. Omnipod and total revenue growth outlook.

PODD’s Zacks Rank & Key Picks

Insulet currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Labcorp Holdings LH, Quest Diagnostics DGX and Medpace MEDP.

Labcorp, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $4.99, which surpassed the Zacks Consensus Estimate by 4.18%. Revenues of $3.73 billion beat the Zacks Consensus Estimate by 0.36%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

LH has an earnings yield of 5.9% compared with the industry’s 4.1% yield. The company's earnings beat estimates in each of the trailing four quarters, the average surprise being 3.09%.

Quest Diagnostics, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $3.12, exceeding the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion topped the Zacks Consensus Estimate by 2.1%.

DGX has an earnings yield of 4.7%, almost in line with the industry’s yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.77%.

Medpace, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 4.17%. Revenues of $707.3 million outperformed the consensus mark by 1.12%.

MEDP has an historical five-year earnings growth rate of 30.5% compared with the industry’s 5.6% growth. In the trailing four quarters, the company delivered an average earnings beat of 10.16%.

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