Insulet Stock Up Post Q3 Earnings & Revenue Beat, Margins Expand

Insulet Corporation PODD reported third-quarter 2025 adjusted earnings per share (EPS) of $1.24, up 37.8% from the year-ago period’s figure. The bottom line surpassed the Zacks Consensus Estimate by 9.73%.

GAAP EPS was also $1.24, up 14.8% from the year-ago quarter’s figure.

PODD’s Q3 Revenues

Revenues totaled $706.3 million, which beat the Zacks Consensus Estimate by 4.42%. The top line jumped 29.9% year over year and 28.2% at constant exchange rate or CER. CER growth exceeded the company’s high end of the guidance range of 22%-25%.

Since the announcement on Nov. 6, PODD’s share price gained 4.2%, closing at $336.84 yesterday.

PODD’s Q3 Segmental Revenues

Insulet’s total Omnipod revenues of $699.2 million reflected an increase of 31% year over year and 29.3% at CER.

International Omnipod revenues of $202.1 million rose 46.5% (up 39.9% at CER). U.S. Omnipod revenues grew 25.6% year over year to $497.1 million.

Insulet Corporation Price, Consensus and EPS Surprise

Insulet Corporation price-consensus-eps-surprise-chart | Insulet Corporation Quote

The Drug Delivery business’ revenues totaled $7.1 million, down 31.4% year over year.

PODD’s Q3 Margin Performance

The gross profit in the reported quarter was $510.1 million, up 35.3% from the prior-year quarter’s figure. The gross margin of 72.2% expanded 289 basis points year over year.

Selling, general & administrative expenses rose 34.6% year over year to $315.2 million.

Research and development expenses jumped 40.6% year over year to $77.2 million.

The operating profit in the quarter totaled $117.7 million, up 33.6% from the year-ago reported actuals. The operating margin of 16.7% expanded 47 basis points year over year.

Insulet’s Cash Position

Insulet exited the third quarter of 2025 with cash and cash equivalents of $757.4 million compared with $1.12 billion at the end of the second quarter. 

Cumulative net cash provided by operating activities at the end of the third quarter was $386 million compared with $282.7 million in the year-ago period.

PODD’s 2025 & Q4 Outlook

For 2025, the company now expects CER revenue growth to be 28%-29% (earlier 24%-27%). Total Omnipod revenue growth is expected in the range of 29%-30% (previously 25% to 28%). The company expects Drug Delivery revenues to be (15)%-(10)% compared with the earlier range of (30)%-(25)%. The Zacks Consensus Estimate for the company’s 2025 revenues currently stands at $2.69 billion.

For the fourth quarter, Insulet projects revenue growth of 25%-28%. Total Omnipod revenues are anticipated to grow 27%-30%. Drug Delivery revenues are expected in the (95)%-(85)% range. The consensus mark for the company’s fourth-quarter revenues currently stands at $767.7 million.

Our Take on PODD’s Q3 Results

Insulet exited the third quarter of 2025 on a solid note, with both earnings and revenues beating estimates. The company surpassed $700 million in quarterly revenues for the first time, driven by continued strong retention and record growth in new Pod users across the United States and globally, including continued momentum in Type 2. International performance was fueled by robust demand for the company’s Omnipod 5, underscoring its market appeal. The expansion of both margins in the quarter is highly encouraging.

Key developments made include Insulet’s partnership with Pantone to launch Omnipod Mango in a vibrant new palette. The company also secured reimbursement for Omnipod 5 with Dexcom’s G6 and G7 CGM sensors and Abbott's FreeStyle Libre 2 Plus CGM sensor in Norway.

PODD’s Zacks Rank & Other Key Picks

PODD currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks from the broader medical space are Medpace Holdings MEDP, Intuitive Surgical ISRG and Boston Scientific BSX.

Medpace, currently sporting a Zacks Rank #1, reported a third-quarter 2025 EPS of $3.86, which surpassed the Zacks Consensus Estimate by 10.29%. Revenues of $659.9 million beat the Zacks Consensus Estimate by 3.04%. You can see the complete list of today’s Zacks #1 Rank stocks here.

MEDP has an estimated earnings growth rate of 17.1% for 2025 compared with the industry’s 16.6% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 14.28%.

Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a third-quarter 2025 adjusted EPS of $2.40, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $2.51 billion topped the Zacks Consensus Estimate by 3.9%.

ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 11.9% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.34%.

Boston Scientific, currently carrying a Zacks Rank #2, reported a third-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion outperformed the Zacks Consensus Estimate by 1.9%.

BSX has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.36%.

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This article originally published on Zacks Investment Research (zacks.com).

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