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Tandem Diabetes Care
(NASDAQ:TNDM)
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Rating:48Neutral
Price Target:
$18.50
▼(-13.43% Downside)
Action:Reiterated
Date:10/27/26
The score is held down primarily by below-average financial fundamentals: high leverage versus a thin equity base and negative free cash flow despite improving operating trends. The earnings call adds support through reaffirmed guidance, record shipments, and sustained gross margin strength, but execution risks (supplier constraints and pharmacy-transition timing effects) remain. Technicals show recent strength but with elevated momentum indicators, while valuation is constrained by negative earnings and no dividend yield data.
Positive Factors
Recurring Consumables Revenue
Tandem combines one-time pump sales with recurring consumable demand because users need disposable supplies for daily insulin delivery. This installed-base model can support repeat revenue, deepen customer relationships, and improve revenue durability as the pump population expands.
Negative Factors
High Financial Leverage
The thin equity cushion relative to debt increases financial risk while Tandem's earnings remain negative. High leverage can reduce flexibility to invest, absorb operating setbacks, or respond to competitive changes, making sustained execution more important over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Consumables Revenue
Tandem combines one-time pump sales with recurring consumable demand because users need disposable supplies for daily insulin delivery. This installed-base model can support repeat revenue, deepen customer relationships, and improve revenue durability as the pump population expands.
Read all positive factors
Tandem Diabetes Care (TNDM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.32B
Dividend YieldN/A
Average Volume (3M)2.24M
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue Growth3.92%
EPS Growth70.03%
CountryUS
Employees2,500
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.93
Shares Outstanding69,578,705
10 Day Avg. Volume1,981,799
30 Day Avg. Volume2,242,523
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)9.53
Price to Sales (P/S)1.46
P/FCF Ratio-49.85
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue1.27
Enterprise Value/Gross Profit2.27
Enterprise Value/Ebitda-38.05
Forecast
1Y Price Target
$26.77Price Target Upside25.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)-0.67
Revenue Forecast (FY)$1.07B
Tandem Diabetes Care Business Overview & Revenue Model
Company Description
Tandem Diabetes Care, Inc., a medical technology firm, specializes in creating, developing, and marketing solutions for individuals globally who manage insulin-dependent diabetes. At the core of its offerings is the t:slim X2 insulin delivery syst...
How the Company Makes Money
Tandem primarily generates revenue by selling insulin pump hardware and ongoing consumable supplies used with its pumps. The company’s revenue model is largely recurring because pump users need continuous replenishment of disposable items (such as...
Tandem Diabetes Care Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational and financial progress: record quarterly sales and shipments, strong international growth, notable gross margin expansion, improving profitability, and clear product and pipeline milestones (Mobi tubeless filing, AdaNet IDE). Near-term challenges include infusion set supplier constraints, a temporary revenue headwind and margin variability from the pharmacy PayGo transition, distributor destocking, and the need to accelerate U.S. new-starts in H2 to meet guidance. On balance, the positives — sizable revenue and margin improvements, product launches, and early PayGo traction — outweigh the near-term operational headwinds, with the company reiterating full-year guidance.Positive Updates
Strong International Growth
International shipments ~11k pumps in Q2, up 19% year-over-year; international sales $75M, up 7% year-over-year (6% in constant currency). Direct channel sales represented ≈13% of revenue, more than double prior year levels.
Negative Updates
Infusion Set Supplier Constraints
Key third-party infusion set supplier shortages had the greatest impact in Q2, causing timing issues and late shipments that limited distributor order fulfillment; resulted in softer supplies sales and is cited as the primary reason for Q2 supply weakness. Availability expected to improve through H2 but some impact may persist in near term.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong International Growth
International shipments ~11k pumps in Q2, up 19% year-over-year; international sales $75M, up 7% year-over-year (6% in constant currency). Direct channel sales represented ≈13% of revenue, more than double prior year levels.
Read all positive updates
Company Guidance
Tandem reaffirmed 2026 guidance for worldwide sales of $1.065–$1.085 billion (U.S. $730–$745M; international $305–$340M), gross margin of 56–57% and an adjusted EBITDA margin of 5–6% of sales. For Q3 they expect roughly $265M in worldwide sales (U.S. ~$180M; international ~$85M) with ~56% gross margin and ~2% adjusted EBITDA margin. Management said they still expect the highest margins in Q4 as pharmacy supply penetration, seasonality in U.S. DME pump sales and a larger direct European presence ramp, noting Q2 actuals of $255M in sales, ~33k pumps shipped (22k U.S., 11k international), 57% gross margin and a 3% adjusted EBITDA margin as support for the outlook.Tandem Diabetes Care Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
28
Negative
Cash Flow
36
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.04B | 1.01B | 940.20M | 747.72M | 801.22M | 702.80M |
| Gross Profit | 583.32M | 530.85M | 489.57M | 367.69M | 412.99M | 376.21M |
| EBITDA | -34.82M | -174.70M | -82.68M | -196.46M | -74.21M | 34.06M |
| Net Income | -63.31M | -204.71M | -96.03M | -222.61M | -94.59M | 15.57M |
Balance Sheet | ||||||
| Total Assets | 1.15B | 881.11M | 967.66M | 952.66M | 1.05B | 905.14M |
| Cash, Cash Equivalents and Short-Term Investments | 456.00M | 292.67M | 438.33M | 467.91M | 616.90M | 623.81M |
| Total Debt | 739.25M | 444.48M | 473.56M | 415.67M | 419.88M | 314.67M |
| Total Liabilities | 1.02B | 725.94M | 704.56M | 639.03M | 612.84M | 472.02M |
| Stockholders Equity | 130.39M | 155.17M | 263.10M | 313.63M | 439.95M | 433.11M |
Cash Flow | ||||||
| Free Cash Flow | -26.62M | -29.67M | 4.99M | -58.61M | 16.37M | 87.85M |
| Operating Cash Flow | -5.52M | -9.72M | 24.23M | -31.81M | 50.46M | 111.36M |
| Investing Cash Flow | -277.22M | 72.88M | -23.48M | -85.74M | 33.17M | -186.88M |
| Financing Cash Flow | 277.35M | -43.37M | 8.37M | 4.11M | 16.88M | 51.93M |
Tandem Diabetes Care Technical Analysis
Positive
21.37
Price Trends
18.31
Positive
17.93
Positive
18.97
Negative
Market Momentum
-0.05
Negative
65.25
Neutral
94.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNDM, the sentiment is Positive. The current price of 21.37 is above the 20-day moving average (MA) of 16.54, above the 50-day MA of 18.31, and above the 200-day MA of 18.97, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 65.25 is Neutral, neither overbought nor oversold. The STOCH value of 94.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TNDM.
Tandem Diabetes Care Risk Analysis
Tandem Diabetes Care disclosed 63 risk factors in its most recent earnings report. Tandem Diabetes Care reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tandem Diabetes Care Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $121.25B | 23.18 | 10.60% | 3.02% | 9.77% | 12.28% | |
76 Outperform | $29.65B | 30.34 | 36.19% | ― | 15.54% | 77.43% | |
70 Outperform | $181.48B | 38.84 | 9.12% | 2.40% | 10.00% | ― | |
68 Neutral | $10.35B | 27.85 | 26.69% | ― | 29.41% | 59.39% | |
62 Neutral | $1.11B | -12.21 | -26.30% | ― | 52.54% | 2.69% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $1.32B | -20.35 | -45.97% | ― | 3.92% | 70.03% |
* Healthcare Sector Average
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Tandem Diabetes Care
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.