Insulet Corporation (NASDAQ:PODD) stock is trading higher on Wednesday after the company reported better-than-expected fourth-quarter earnings and 2026 guidance.
Fourth-quarter adjusted earnings reached $1.55 per share, beating the consensus of $1.45.
The automated insulin delivery technology maker reported sales of $783.8 million, up 31.2% year over year or 29% in constant currency (CC), beating the consensus of $768.69 million, exceeding the high end of the company's guidance range of 25% to 28% in constant currency.
Total Omnipod revenue was $781.8 million, up 33.5%, or 31.3% in constant currency. Drug Delivery revenue totaled $2.0 million.
Gross margin of 72.5%, up 40 basis points over the prior year. Operating income of $146.3 million, or 18.7% of revenue, up 40 basis points over the prior year.
Adjusted operating income of $146.2 million, or 18.7% of revenue, up 30 basis points over the prior year
"We ended the year with another excellent quarter, demonstrating the power of our business model, the strength of our technology, and the disciplined execution of our team," said Ashley McEvoy, President and CEO.
Share Buyback
Insulet's board approved a $350 million increase in our share repurchase authorization. The company expects to fund these repurchases with existing cash and plans to allocate approximately $300 million toward repurchases in the first quarter of 2026.
The company on Wednesday said that the expanded authorization reflects Insulet's strong balance sheet, financial flexibility, and disciplined approach.
2026 Guidance
As we move into 2026, we are confident in our ability to grow the global AID market, expand adoption across type 1 and type 2 diabetes, and deliver on the strategic and financial commitments we have laid out," McEvoy commented on Wednesday.
Insulet forecasts fiscal 2026 sales of $3.250 billion-$3.304 billion versus the consensus of $3.25 billion, representing a year-over-year growth of 20%-22%.
The guidance includes the total Omnipod Products growth between 21%-23%.
Adjusted operating margin is expected to expand by approximately 100 basis points, with adjusted earnings per share to grow by over 25%.
The company expects first-quarter 2026 sales between $705.5 million and $716.94 million, compared to the consensus of $713.41 million.
PODD Price Action: Insulet shares are climbing 9.00% to $268.52 at the time of publication on Wednesday, trading 16.7% above its 52-week low, according to Benzinga Pro data.
Photo Courtesy Insulet
