Tandem Diabetes Care, Inc. TNDM posted a first-quarter 2026 loss of 30 cents per share compared with a loss of $1.97 year ago. The figure was narrower than the Zacks Consensus Estimate of a loss of 67 cents.
TNDM’s Revenues
First-quarter worldwide revenues amounted to $247.2 million, up 5.5% year over year and 2% in constant currency. The figure surpassed the Zacks Consensus Estimate by 3.46%.
Since the earnings announcement on May 7, TNDM shares have dropped 23.6% to close at $14.11 yesterday.
TNDM’s Quarterly Performance in Detail
Tandem Diabetes reports under two primary markets based on the geographic location to which its products are shipped.
Sales in the United States totaled $160.8 million compared with $150.6 million in the prior-year period. The company shipped more than 19,000 pumps in the quarter.
Tandem Diabetes Care, Inc. Price, Consensus and EPS Surprise
Tandem Diabetes Care, Inc. price-consensus-eps-surprise-chart | Tandem Diabetes Care, Inc. Quote
International sales increased 3% to $86.4 million compared with $83.8 million. Sales decreased 5% in constant currency. International shipments were more than 10,000 pumps.
TNDM’s Margins
The gross profit in the reported quarter was $136.8 million, up 15.5% year over year. The gross margin expanded 482 basis points (bps) to 55.3% due to a 4.8% decrease in the cost of sales.
SG&A expenses fell 5% to $108.2 million. R&D expenses increased 27.9% to $42.9 million.
The company registered an adjusted operating loss of $14.3 million compared with a loss of $29 million in the year-ago period.
Financial Position of TNDM
Tandem Diabetes exited the first quarter of 2026 with cash, cash equivalents and short-term investments of $570.3 million compared with $292.7 million at the end of 2025.
Cumulative cash provided by operating activities was $11.1 million compared with cash outflow of $21.2 million a year ago.
TNDM’s 2026 Guidance
The company continues to expect full-year sales to be approximately $1.065 billion to $1.085 billion. Within this, United States sales are projected to be roughly $730 million to $745 million, while International sales are expected between $335 million and $340 million. The Zacks Consensus Estimate for full-year revenues is projected at $1.07 billion.
Gross margin is estimated to be approximately 56% to 57% of sales. TNDM projects Adjusted EBITDA margin to be approximately 5% to 6% of sales.
Our Take
Tandem Diabetes delivered a narrower loss and revenue beat in the first quarter of 2026. Building on last year, the company achieved new first-quarter records for pump shipments, supported by U.S. performance. A key milestone in the quarter was the launch of the pay-as-you-go reimbursement model in the U.S. pharmacy channel. Expansion of gross margin is highly promising. At the same time, Tandem Diabetes is advancing several key initiatives positioning it for immediate impact and long-term growth, including modernizing its commercial operations, reshaping the business model and introducing new technologies.
TNDM’s Zacks Rank and Other Key Picks
Tandem Diabetes currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are BrightSpring Health Services BTSG, Intuitive Surgical ISRG and Labcorp Holdings LH.
BrightSpring Health Services, currently carrying a Zacks Rank #2, reported first-quarter 2026 adjusted EPS of 36 cents, which surpassed the Zacks Consensus Estimate by 34.5%. Revenues of $3.61 billion beat the Zacks Consensus Estimate by 8.35%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BTSG has an estimated long-term earnings growth rate of 47.2% compared with the industry’s 14.5% growth. The company topped earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 14.61%.
Intuitive Surgical, carrying a Zacks Rank #2 at present, posted first-quarter 2026 adjusted EPS of $2.50, exceeding the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% compared to the industry’s negative 0.9% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Labcorp, carrying a Zacks Rank #2 at present, posted first-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 3.8%. Revenues of $3.54 billion outperformed the Zacks Consensus Estimate by 1%.
LH has an earnings yield of 6.9% compared with the industry’s 4.5% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 3.31%.
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This article originally published on Zacks Investment Research (zacks.com).