Key Highlights

  • Adjusted EPS jumped 59.9% to USD 1.99, well above the USD 1.59 estimate, with GAAP EPS at USD 2.03.
  • Revenue rose 19.2% to USD 842.0 million, topping the USD 832.6 million estimate and the guidance range.
  • International Omnipod Revenue grew 31.7% to USD 266.2 million, while US Omnipod revenue increased 14.7%.
  • The board approved a USD 1 billion buyback, with about USD 400 million allocated to the fourth quarter.

Insulet (NASDAQ:PODD) reported third quarter revenue of USD 842.0 million, up 19.2% from USD 706.3 million and ahead of the USD 832.6 million estimate. Adjusted EPS of USD 1.99 rose from USD 1.24 a year earlier and beat the USD 1.59 estimate. GAAP Net Income was USD 141.1 million, or USD 2.03 per diluted share, compared with USD 87.6 million, or USD 1.24.

Revenue Mix and Growth Drivers

Growth was 19.6% in constant currency, slightly above the top of the 17.5% to 19.5% guidance range. Total Omnipod revenue rose 19.7% to USD 836.6 million. US Omnipod revenue grew 14.7% to USD 570.4 million, and international Omnipod revenue grew 31.7% to USD 266.2 million, or 33.0% in constant currency. Drug Delivery revenue was USD 5.5 million. International results included a 250 basis point benefit from reserve adjustments.

The company said the customer base grew more than 20%, with US customers growing in the high teens and US new customer starts flat. US pricing was down slightly in the quarter. CEO Ashley McEvoy said progress continued on the type 2 action plan, which covers onboarding, customer support, sampling and sales compensation tied to new starts and retention. Omnipod Discover completed its full US release and has drawn more than 35,000 users.

Margins, Cash and Capital Returns

Operating income reached USD 189.8 million, a 22.5% margin, up 590 basis points. Adjusted Operating Income was USD 185.2 million, or 22.0% of revenue, up 490 basis points. GAAP Gross Profit was USD 632.1 million, a 75.1% Margin versus 72.2% a year ago, and the adjusted gross margin was 74.2%, up 200 basis points. Research and Development spending rose to USD 91.6 million from USD 77.2 million, and selling, general and administrative expenses rose to USD 350.7 million from USD 315.2 million.

Net interest expense increased to USD 12.1 million from USD 7.0 million. Cash was USD 584.4 million at quarter end, down from USD 716.1 million at year end. Over nine months, Operating Cash Flow was USD 325.7 million and free cash flow was USD 211.7 million, compared with USD 329.5 million a year earlier, as capital expenditures doubled to USD 113.9 million. The board approved a USD 1 billion repurchase program, with about USD 400 million funded from existing cash in the fourth quarter.

Updated 2026 Guidance

Insulet narrowed its 2026 constant currency revenue growth guidance to 21% to 22%, from 20% to 22% before. Total Omnipod growth is guided to 21.5% to 22.5%, with US Omnipod at 17.5% to 18.5% and international Omnipod at 32% to 33%. Drug Delivery revenue is guided to fall about 40%.

Adjusted Operating Margin is now guided to about 150 basis points of year-over-year expansion, up from about 100 basis points, and adjusted EPS growth is guided above 30%. Management said it plans a more conservative approach to its 2027 outlook, citing a more dynamic competitive environment as new products arrive, alongside the planned Omnipod 6 launch.

Benchmarks Ahead

Third quarter adjusted operating margin of 22.0% compares with a guided 150 basis point full year expansion. Revenue growth of 19.6% in constant currency compares with the full year guide of 21% to 22%, and nine month revenue of USD 2.405 billion compares with USD 1.924 billion a year earlier. Quarterly adjusted EPS of USD 1.99 compares with USD 1.24 a year ago. The USD 400 million fourth quarter repurchase allocation compares with cash of USD 584.4 million at September 30.