TNDM Q4 Earnings & Revenues Beat Estimates, Gross Margin & Stock Up

Tandem Diabetes Care, Inc. TNDM posted a fourth-quarter 2025 loss of 1 cent per share compared with a loss of 44 cents a year ago. The figure surpassed the Zacks Consensus Estimate of a loss of 5 cents per share.

On a GAAP basis, the company reported a loss of 1 cent per share against the year-ago quarter’s earnings of 1 cent per share.  

Full-year 2025 loss per share was $2.58 compared with the year-ago reported loss of $1.91. 

TNDM’s Revenues

Fourth-quarter non-GAAP revenues amounted to $290.4 million, up 15.1% year over year. The figure surpassed the Zacks Consensus Estimate by 5.2%. 

GAAP revenues in the quarter totaled $290.4 million, up 2.8% from the year-ago quarter’s figure, which included the recognition of $30.2 million in sales related to Tandem Choice. 

Full-year 2025 non-GAAP revenues $1.01 billion, up 7.9% year over year.

Following the earnings announcement, TNDM stock rose 6.7% in after market trading session 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.

The United States

Non-GAAP sales in the United States totaled $210.5 million (same on a GAAP basis), up 14.1% year over year. The company shipped more than 27,000 pumps in the quarter.

Outside the United States

TNDM registered non-GAAP sales of $79.9 million (same on a GAAP basis) compared with $68.1 million in the prior-year period. International shipments were approximately 11,000 pumps.

TNDM’s Margins

The gross profit in the reported quarter was $167.5 million, up 6.3% year over year. The gross margin expanded 196 basis points (bps) to 57.7% due to 1.8% decrease in the cost of sales.

SG&A expenses rose 6.9% to $113.1 million. R&D expenses decreased 11.7% to $46.1 million.

The company registered an adjusted operating profit of $8.3 million in contrast to a loss of $0.6 million in the year-ago period.

Financial Position of TNDM

Tandem Diabetes exited the fourth quarter of 2025 with cash, cash equivalents and short-term investments of $292.7 million compared with $438.3 million at the end of the fourth quarter of 2024. 

Tandem Diabetes Care, Inc. Price, Consensus and EPS Surprise

Tandem Diabetes Care, Inc. price-consensus-eps-surprise-chart | Tandem Diabetes Care, Inc. Quote

TNDM’s 2026 Guidance

The company provided its full-year 2026 GAAP financial guidance.

GAAP sales are estimated to be between $1.065 billion and $1.085 billion. The Zacks Consensus Estimate for full-year 2026 revenues is pegged at $1.10 billion.

GAAP sales in the United States are expected to be in the range of $730-$745 million. Sales outside the United States are projected to be between $335 million and $340 million. 

Our Take

Tandem Diabetes ended fourth-quarter 2025 with better-than-expected results, wherein both earnings and revenues beat estimates. The company achieved record quarterly sales, both in the United States and internationally. This strong performance was driven by TNDM’s expanding product portfolio. Meanwhile, the expansion of gross margin is encouraging. 

During the fourth quarter, TNDM initiated global commercial rollout of t:slim X2 pump integration with the FreeStyle Libre 3 Plus continuous glucose monitoring sensor. Additionally, it began the launch of Android mobile control for the Tandem Mobi insulin delivery system. 

TNDM’s Zacks Rank & Key Picks

TNDM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Cardinal Health CAH and Align Technology ALGN.

Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% rise. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 13.24%.

Cardinal Health, carrying a Zacks Rank #2 (Buy) at present, posted a second-quarter fiscal 2026 adjusted EPS of $2.63, exceeding the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion topped the Zacks Consensus Estimate by 0.9%.

CAH has a long-term earnings growth rate of 15% compared with the industry’s 9.6% rise. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 9.3%.

Align Technology, carrying a Zacks Rank #2 at present, posted a fourth-quarter 2025 adjusted EPS of $3.29, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $1.05 billion outperformed the Zacks Consensus Estimate by 5.3%.

ALGN has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.5% rise. The company’s earnings outpaced estimates in three of the trailing four quarters and missed in one, the average surprise being 6.16%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research