Insulet Corp Early Read on 2Q26 Results

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Insulet Corp

Early Read on 2Q26 Results

Overweight

PODD, PODD US

Price (04 Aug 26):$166.82

Medical Supplies & Devices

Insulet reported mixed results before the open on Wednesday with sales of

$801.7M (+23.5% reported, +22.7%cc) beating the Street’s $787.3M, though the

focus today is surely to be lowered guidance which now points to a softer 2H,

particularly in the US. For the quarter itself, both US (+$5M) and OUS Omnipod

(+$8M) beat, which contributed to another much better than expected profit

quarter. Better gross margin (+160bps) and tax (+$0.05) drove EPS of $1.66, well

ahead of the Street at $1.43. However, guidance for 2026 is moving down to total

revenue growth of +20-22%, down from -21-23%, which includes a softer outlook

for US Omnipod (+17-19% vs. 20-22% prior) seemingly due to softer Type 2

trends, offsetting an improved outlook for OUS Omnipod (+30-32% vs. +26-28%

prior). This includes 3Q revenue growth of +17.5-19.5%, below the Street at

~20%. We’ll need more color on the call on the drivers of the revised outlook,

though the release points to seemingly softer than expected adoption in Type 2.

With decelerating trends in 2H, and assuming this wasn’t a record new patient

quarter again, this will stoke investor fears that US growth could fall out near

10% or even lower in 2027. Investors have been worried about a steep fall off

in growth from patch pump competition next year, but we’re starting to see

it today already. We hope management provides a detailed framework for

2027 on the call that appropriately rebases expectations in one shot vs.

allowing a slow negative revision cycle over the next six months. The multiple

already reflects this, we hope they take the opportunity.

Despite the stronger quarter, the updated 2026 guide now reflects lowered

expectations for US Omnipod, only partially offset by stronger OUS. the

US business is now forecast to grow +17-19% (+20-22% previously), below

consensus at ~21%, while OUS is now expected to grow +30-32% (+26-28%

previously) vs. consensus of +28%. With Drug Delivery improving modestly

(-40% vs.…