- Price
- $138.77
- Fair value
- $215.00
- Discount
- 35.5%
- Uncertainty
- High
- LSEG rating
- 2.19
- Moat
- Narrow
- Next earnings
- 2026-11-04
- Next earnings is estimate
- No
- Company name
- Insulet
- Sector
- Medical devices
- About
- Insulet makes the Omnipod, a small tubeless insulin pump that the user wears on the body for up to three days. Its main product is Omnipod 5, an automated insulin delivery system that works with continuous glucose monitors from Dexcom and Abbott to adjust insulin by itself. Insulet earns most of its money from the sale of disposable Pods, which users replace every few days, so most revenue repeats. Insulet sells mainly through the pharmacy channel, so users do not need a large payment at the start. Insulet sells Omnipod in 26 countries, and international revenue grew faster than US revenue in 2026. It now also sells Omnipod 5 to people with type 2 diabetes. Revenue was $801.7 million in Q2 2026.
- Thesis
- The market fears that Omnipod growth will slow and that its lead in tubeless pumps is less safe than it was. In August 2026, Insulet cut its 2026 US Omnipod growth outlook to 17% to 19% from 20% to 22%, because type 2 diabetes users adopt the product more slowly than planned. Insulet also issued two Pod corrections in 2026. The May correction covered about 7 million Pods, and shareholders then filed a securities class action. At the same time, competitors bring new patch pumps to market. Beta Bionics received FDA clearance for its patch pump, and MiniMed submitted one for clearance. For the gap to close, three things must be true. US Omnipod revenue must grow within the new guidance, 14% to 16% in Q3 2026 and 17% to 19% for the year. No new Pod quality problem may appear, and warranty costs must fall back. Adjusted EPS must grow more than 30% in 2026, as guided, while new rivals take little share. The Q3 report on November 4, 2026, is the first test, and the Q4 report and the 2027 outlook in February 2027 are the second. If growth holds, the gap can close over the next three to five quarters.
- Risks
- New tubeless patch pumps from Beta Bionics and MiniMed can compete with Omnipod. If they win new users or pharmacy coverage, Omnipod growth can slow further.
Insulet issued two Pod corrections in 2026, and they raised warranty costs. Another quality problem can hurt trust with users and doctors and bring more regulatory action.
Growth in the United States depends more and more on people with type 2 diabetes, who adopted Omnipod more slowly than planned in 2026. Weight-loss and diabetes drugs can also reduce the need for insulin in some patients.
A securities class action filed in July 2026 claims false statements about Pod quality. Insulet does not expect a probable loss, but the case can bring costs.
- Balance sheet
- Cash: $535M
Debt: $961M
Net debt: $426M
Interest cover: 8.9×
Undrawn credit line: $750M
Debt due within 12 months: $19M
Last debt due: 2033
Insulet has moderate debt and a cash cushion. At June 30, 2026, it had $534.9 million of cash. Debt principal was $960.7 million: $450 million of 6.5% senior unsecured notes due April 2033, a $475 million Term Loan B due 2031, and equipment and plant financings. It had no convertible notes left at June 30, 2026. In the first half of 2026, it used $300 million for accelerated share repurchases, so cash fell from $716.1 million at December 31, 2025. Interest swaps fix the rate on part of the term loan. Interest cover is operating income divided by interest expense for the first half of 2026. On September 21, 2026, Insulet refinanced the term loan at a lower interest margin and increased its revolving credit facility to $750 million, with no borrowings.
As of 2026-06-30.
- Checkpoints
- Nov 4, 2026: Q3 2026 results: US Omnipod growth. Pending. Watch: US Omnipod growth within 14% to 16% and no further cut to the full-year outlook pass; growth below the range or a new outlook cut fails.
Feb 2027 (estimate): Q4 2026 results and 2027 outlook. Pending. Watch: A 2027 outlook with US Omnipod growth in the mid-teens or higher and lower warranty costs passes; an outlook with lower growth because of new rivals fails.
- Recent events
- 2026-10-12: Insulet launched Omnipod Discover in the United States.
2026-10-01: Insulet said that it will report its Q3 2026 results on November 4, 2026.
2026-09-21: Insulet refinanced its $475 million term loan at an interest margin 0.25 percentage points lower. It also increased its revolving credit facility by $250 million to $750 million.
2026-09-08: Two directors left the board. Former Chairman Timothy Scannell stepped down for health reasons on September 3, 2026, and Michael Minogue left on September 15, 2026, to run for Governor of Massachusetts. Neither left because of a disagreement with the company.
2026-08-05: Insulet reported Q2 2026 results. Revenue rose 23.5% to $801.7 million, US Omnipod revenue rose 20.1%, and international Omnipod revenue rose 35.5%. Diluted EPS was $1.37, and adjusted EPS rose 41.5% to $1.66. Insulet cut its 2026 US Omnipod growth outlook to 17% to 19% from 20% to 22% because type 2 adoption is slower, but it raised its adjusted EPS growth outlook to more than 30%.
2026-07-02: A shareholder filed a securities class action, Hu v. Insulet Corporation, in the US District Court for the District of Massachusetts. It claims that Insulet made false statements about the quality and safety of Omnipod products. Insulet said that it will defend the case.
2026-05-26: Insulet started a voluntary correction for certain lots of Omnipod 5, DASH and Eros Pods because a tear in the cannula can cause insulin under-delivery. About 7 million Pods, 8.5% of 2025 Pod production, are in scope, and there were 24 reports of serious adverse events and no deaths. This was separate from a correction of certain Omnipod 5 Pods on March 12, 2026.