PODD

A month has gone by since the last earnings report for Insulet (PODD). Shares have added about 8.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Insulet due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Insulet Corporation before we dive into how investors and analysts have reacted as of late. Insulet reported second-quarter 2026 adjusted earnings per share of $1.66, up 41.5% year over year. The bottom line beat the Zacks Consensus Estimate by 15.28%. GAAP earnings per share came in at $1.37 compared with the year-ago quarter’s figure of 32 cents. Revenues of $801.7 million rose 23.5% and surpassed the consensus mark by 1.89%, reflecting broad-based Omnipod demand and favorable price mix. PODD's Omnipod Sales Stay Strong Total Omnipod revenues advanced 24.6% to $795.9 million. U.S. Omnipod revenues increased 20.1% year over year to $544.1 million. Management cited continued demand across type 1 and type 2 customers, with more than 40% of U.S. new customer starts coming from people with type 2 diabetes. International Omnipod revenues climbed 35.5% to $251.8 million, or 32.9% at constant currency. Growth was driven primarily by volume and continued favorable price and mix realization. Omnipod 5 also became the top insulin pump for new users in Australia, while the company recently launched in Spain. PODD's Q2 Margins Adjusted gross margin reached 72.9%, up 320 basis points (bps) year over year. The improvement reflected manufacturing productivity gains at the Acton and Malaysia facilities, positive pricing and higher volumes. Adjusted operating margin expanded 140 bps to 19.3%. Research and development expenses rose 20% to $88.1 million, while selling, general and administrative expenses increased 33.8% to $344.8 million, reflecting investments in the U.S. sales force, customer support and market development. Insulet’s Cash Position Insulet exited the second quarter of 2026 with cash and cash equivalents of $534.9 million compared with $480.4 million at March-end. Cumulative net cash provided by operating activities at the end of the second quarter was $202.2 million compared with $260.3 million in the year-ago period. Insulet’s 2026 Outlook Insulet now expects 2026 total company revenue growth of 20%-22% at constant currency, down from the prior 21%-23% range. Total Omnipod growth is projected at 21%-23% (previously, 22%-24%), while Drug Delivery revenues are expected to decline around 40% compared with the earlier expectation of a roughly 50% drop. Adjusted earnings per share is now projected to grow at least 30%, up from the prior expectation of more than 25%. The Zacks Consensus Estimate for the same stands at $6.51, up 5%. For the third quarter, total company revenues are expected to increase 17.5%-19.5% at constant currency. Total Omnipod growth is projected at 18%-20%, while Drug Delivery is expected to decline approximately 20% year over year. Since the earnings release, investors have witnessed a downward trend in fresh estimates. At this time, Insulet has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Insulet has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Insulet is part of the Zacks Medical - Products industry. Over the past month, Bio-Rad Laboratories (BIO), a stock from the same industry, has gained 13.3%. The company reported its results for the quarter ended June 2026 more than a month ago. Bio-Rad reported revenues of $651 million in the last reported quarter, representing a year-over-year change of -0.1%. EPS of $2.62 for the same period compares with $2.61 a year ago. Bio-Rad is expected to post earnings of $2.61 per share for the current quarter, representing a year-over-year change of +15.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Bio-Rad. Also, the stock has a VGM Score of D. 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 Insulet Corporation (PODD) : Free Stock Analysis Report Bio-Rad Laboratories, Inc. (BIO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the patient monitoring industry, including Insulet (NASDAQ:PODD) and its peers. Patient monitoring companies within the healthcare equipment industry offer devices and technologies that track chronic conditions and support real-time health management, such as continuous glucose monitors (CGMs) and sleep apnea machines. These businesses benefit from recurring revenue from consumables and software subscriptions tied to device sales (razor, razor blade model). The rising prevalence of chronic diseases like diabetes and respiratory disorders due to an aging population as well as growing adoption of digitization are good for the industry. However, these companies face challenges from high R&D costs and reliance on regulatory approvals. Looking ahead, the sector is positioned for growth due to tailwinds like the rising burden of chronic diseases from an aging population, the shift toward value-based care, and increased adoption of digital health solutions. Innovations in AI and machine learning are expected to enhance device accuracy and functionality, improving patient outcomes and driving demand. However, there are headwinds such as pricing pressures as healthcare costs are a key focus, especially in the US. An evolving regulatory landscape and competition from more tech-forward new entrants could present additional challenges. The 4 patient monitoring stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 1.6% below. In light of this news, share prices of the companies have held steady as they are up 2% on average since the latest earnings results. Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ:PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line. Insulet reported revenues of $801.7 million, up 23.5% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations significantly. Insulet scored the fastest revenue growth in the group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 11.6% since reporting and currently trades at $147.50. Is now the time to buy Insulet? Access our full analysis of the earnings results here, it’s free. Pioneering the shift from bulky, short-term heart monitors to sleek, wire-free patches, iRhythm Technologies (NASDAQ:IRTC) provides wearable cardiac monitoring devices and AI-powered analysis services that help physicians detect and diagnose heart rhythm disorders. iRhythm reported revenues of $224.2 million, up 20.08% year on year, outperforming analysts’ expectations by 2.3%. The business had a very strong quarter with a beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations. iRhythm pulled off the biggest analyst estimate beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4.4% since reporting. It currently trades at $122.48. Is now the time to buy iRhythm? Access our full analysis of the earnings results here, it’s free. Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE:RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use. ResMed reported revenues of $1.46 billion, up 8.6% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a beat of analysts’ EPS estimates. ResMed delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 3.4% since the results and currently trades at $230.82. Read our full analysis of ResMed’s results here. Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ:DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks. DexCom reported revenues of $1.31 billion, up 13.1% year on year. This number surpassed analysts’ expectations by 1.4%. It was a strong quarter as it also logged a beat of analysts’ EPS estimates and a narrow beat of analysts’ organic revenue estimates. DexCom had the weakest full-year guidance update among its peers. The stock is up 20.6% since reporting and currently trades at $89.91. Read our full, actionable report on DexCom here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Insulet’s second quarter was marked by strong revenue expansion but a sharp negative market reaction, as investors focused on emerging challenges in the company’s type 2 diabetes segment. While broad-based demand for Omnipod drove growth across both U.S. and international markets, CEO Ashley McEvoy acknowledged that lower-than-expected retention rates among new type 2 users weighed on results. McEvoy stated, “We should have identified the issue sooner,” signaling a more cautious approach to commercial execution and customer onboarding for this group. Is now the time to buy PODD? Find out in our full research report (it’s free). Revenue: $801.7 million vs analyst estimates of $787.1 million (23.5% year-on-year growth, 1.9% beat) Adjusted EPS: $1.66 vs analyst estimates of $1.45 (14.3% beat) Adjusted EBITDA: $199.8 million vs analyst estimates of $187 million (24.9% margin, 6.8% beat) Revenue Guidance for Q3 CY2026 is $833.4 million at the midpoint, below analyst estimates of $847.3 million Operating Margin: 16.2%, down from 18.7% in the same quarter last year Constant Currency Revenue rose 22.7% year on year (31.3% in the same quarter last year) Market Capitalization: $10.04 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Robert Marcus (JPMorgan) asked what changed since previous positive commentary on type 2 and how management accounts for increased competition. CEO Ashley McEvoy admitted, “we should have understood some of these type 2 trends sooner,” and clarified guidance assumes stable pricing and no immediate improvement from current initiatives. Travis Steed (Bank of America) questioned the assumptions for U.S. Omnipod growth and timeline for stabilization in type 2 retention. CFO Flavia Pease responded that guidance reflects a “prudent approach” and includes a range for possible outcomes, with new product launches factored in. Larry Biegelsen (Wells Fargo) asked why management is confident new initiatives will improve retention. McEvoy pointed to the size and unmet need in type 2, while COO Eric Benjamin cited success with pilot programs and early positive data from Omnipod Discover. Jeffrey Johnson (Baird) inquired about pricing dynamics and the effectiveness of efforts to re-engage lapsed users. McEvoy described disciplined pricing and expanding coverage, while Benjamin detailed scaling up personalized support programs shown to improve retention. Kieran Ryan (Deutsche Bank) sought clarity on whether retention or utilization was the bigger issue and how prescriber type affects outcomes. McEvoy stated retention is the main concern and noted higher retention among patients managed by endocrinologists, with expanded outreach to primary care as a strategic priority. Looking ahead, our team will watch (1) whether Insulet’s onboarding and support initiatives for type 2 customers translate into improved retention, (2) the pace of international expansion and Omnipod adoption in new markets like Spain, and (3) progress on the pipeline, particularly the development timelines for Omnipod 6 and the fully closed-loop system for type 2 diabetes. Execution on these priorities will be key to restoring investor confidence. Insulet currently trades at $143.83, down from $166.82 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 8:00 a.m. ET Vice President, Investor Relations - Clare Trachtman President and Chief Executive Officer - Ashley McEvoy Chief Financial Officer - Flavia Pease Chief Operating Officer - Eric Benjamin Operator: Good morning, and welcome to the Insulet Corporation Second Quarter 2026 Earnings Call. As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Clare Trachtman, Vice President, Investor Relations. Clare Trachtman: Good morning, and welcome to our second quarter 2026 earnings call. Joining me today are Ashley McEvoy, President and Chief Executive Officer; Flavia Pease, Chief Financial Officer; and Eric Benjamin, Chief Operating Officer. On the call this morning, we will be discussing Insulet's second quarter results, along with our financial outlook for the third quarter and full year 2026. With that, let me start our prepared remarks by reminding everyone that certain statements, including comments regarding our financial outlook, the anticipated impact of our strategic actions, the potential impact of various regulatory and operational matters and the macroeconomic environment on our results of operations contain forward-looking statements that involve risks and uncertainties. And of course, our actual results could differ materially from our current expectations. Please refer to today's press release and our SEC filings for more detail concerning factors that could cause actual results to differ materially. In addition, on today's call, non-GAAP financial measures will be used to help investors understand Insulet's ongoing business performance, including adjusted operating income, adjusted EPS, adjusted EBITDA, adjusted tax rate and constant currency revenue, which is revenue growth, excluding the effect of foreign exchange. A reconciliation of certain non-GAAP financial measures being discussed today to the comparable GAAP financial measures is included in the accompanying investor presentation and available in our earnings release issued this morning, both of which are available on our website. Additionally, unless otherwise stated, all financial commentary regarding dollar and percentage changes will be on a year-over-year reported basis with the exception of revenue growth rates, which will be on a year-over-year constant currency basis. During the Q&A session this morning, Ashley, Flavia, Eric and myself will be available to address questions. Now I'd like to turn the call over to Ashley. Ashley? Ashley McEvoy: Good morning, everyone, and thank you for joining us. We delivered another quarter of strong revenue growth, expanding profitability and solid cash flow generation. Our performance reflected the strength of our differentiated business model and our team's dedication to improving the lives of people with diabetes around the world. Total company revenue grew 23% year-over-year on a constant currency basis, exceeding our expectations. We saw strong demand for Omnipod across both the U.S. and international markets, along with a benefit from favorable price mix. Importantly, we delivered growth this quarter while continuing to meaningfully improve profitability. Second quarter adjusted operating margin increased 140 basis points year-over-year, supported by increased manufacturing productivity and the benefits of scale. Adjusted earnings per share increased approximately 42%, driven by our strong revenue growth and disciplined operating performance. Demand remained healthy with new customer starts rebounding from the seasonal slowdown in quarter 1. Global new customer starts increased both sequentially and year-over-year, resulting in our second highest quarter ever and contributing to 23% growth in our global customer base. In the U.S., we continue to source more than 85% of new customer starts from MDI users and over 40% of new customer starts were people with type 2 diabetes. Internationally, Omnipod 5 became the #1 insulin pump for new users in Australia. We also recently launched in Spain, marking our entry into an important new market and further expanding our global reach. We continue to expand our prescriber base with more than 32,000 health care providers in the U.S. now prescribing Omnipod, up 27% year-over-year. This growing provider adoption reflects our success in expanding awareness of AID and broadening access to Omnipod across both type 1 and type 2 diabetes. At the same time, this quarter has reinforced that we are still learning how to best serve the type 2 market. While we have more than 25 years of experience serving people with type 1 diabetes, we are still in the early stages of bringing Omnipod 5 to the type 2 community. As we've gained more experience in the type 2 market, we've developed a deeper understanding of the unique needs and behaviors of these Podders. We recognize that we need to adapt our commercial model to better serve this community. Specifically, we are seeing lower rates of utilization and retention among type 2 customers, and these trends were more pronounced this quarter than we anticipated. As we've gathered additional data and experience, we have a better understanding of these dynamics and are now incorporating learnings into our assumptions and outlook. Over the past 9 months, we have driven significant growth in our type 2 starts, particularly through our DTC activations and sampling program. Both initiatives have proven effective in getting people started. However, getting started is not enough. Customers, particularly type 2 customers, need more support to get fully onboarded and for continuity of therapy. The first 90 days on therapy are critical for helping patients become comfortable and confident with the technology and to establish the habits and practices that then lead them to realize the full benefit of Omnipod. There are a number of key moments when our teams need to provide type 2 Podders with a more personal, higher-touch support, like when they're onboarding, their first Pod activation, their first Pod change and the first time that they're refilling their prescription. As a result, we're taking a number of actions to enhance our commercial model and customer support. First, we are expanding our customer care team that supports the onboarding experience, including helping customers navigate the insurance process. Second, we're changing our sales force compensation structure to prioritize and reward longer-term retention, not just new customer starts. Third, we're refining our approach to how we deploy samples to better identify patients who are most likely to benefit from Omnipod and support these customers during the sample process to improve conversion, retention and long-term success. And finally, we are rolling out new technology platforms like Omnipod Discover, which has shown promising early results during its limited market release. This cloud-based platform helps providers and patients identify trends, personalize therapy and make more informed treatment decisions. Early data is providing a glimpse into how Discover may positively influence both clinical outcomes and retention, giving us confidence in its ability to support long-term therapy success. Adoption of Omnipod Discover continues to grow with more than 12,000 people with diabetes and over 1,600 health care professionals using the platform today. Alongside this progress, we are accelerating the development of a modern customer data and engagement platform. By bringing together the data across our interactions with health care professionals and patients, we're building a more complete 360-degree view of each customer. This will enable highly personalized 2-way engagement, allowing us to better anticipate needs, tailor support and improve the overall customer experience. Over time, we expect these capabilities will help to optimize adoption, utilization, retention and lifetime value while supporting better outcomes for the people we serve. We're confident that over time, these actions will help improve long-term success for our type 2 Podders. Importantly, our data show that once type 2 customers remain on Omnipod for the first 90 days, retention rates stabilize, a trend that we also see in our type 1 population as patients gain confidence with the technology and experience the benefits of Omnipod. That's why my conviction in the long-term type 2 opportunity remains high. While the ADA recommends AID as the standard of care, we've just begun the conversion process. Today, just over 5% of the approximately 2.5 million U.S. adult basal-bolus insulin users have converted to AID. Additionally, there are approximately 3 million basal-only insulin users who may also benefit from AID therapy. While we're still in the very early stages of type 2 adoption, the opportunity is substantial with significant runway ahead. Interest in Omnipod is strong among both patients and clinicians, which translated into healthy new customer starts with type 2 representing more than 40% of new customer starts in the second quarter. As we refine our commercial and support model and leverage new technology platforms like Omnipod Discover, we believe we can drive better outcomes, improve retention and expand AID adoption across this large and underpenetrated market. With that context, let me now turn to our updated outlook. We're updating our full year revenue outlook to incorporate the utilization and retention trends we are seeing within our type 2 customer base and to reflect the time required for the actions we are taking to translate into improved customer success. We now expect 2026 total company revenue growth of 20% to 22% and U.S. Omnipod growth of 17% to 19%. We are raising our international revenue growth outlook to 30% to 32%, reflecting the strength of our first half performance and our sustained momentum. As CEO, I take accountability for our reduced U.S. outlook. As we've gained experience in the type 2 market, we've developed a deeper understanding of certain dynamics that were not fully reflected in our initial planning assumptions. We should have identified the issue sooner, and I'm confident in our ability to better serve the type 2 community and in the long-term opportunity ahead. We're acting decisively to enhance our commercial and customer service model, and we will continue to be transparent about what we're learning and how those learnings shape our actions and outlook. As we review our plans for '27 and beyond, we believe it's appropriate to revisit certain assumptions underlying our longer-term revenue outlook given the additional data and experience we have gained, particularly in the type 2 market. We expect to provide an updated view on our long-range outlook on our fourth quarter call. This will give us time to incorporate additional learnings from the actions that we're taking to improve outcomes for our type 2 customers. That said, while we're reassessing our specific long-range revenue growth expectations, we remain highly confident in the significant long-term opportunity ahead and our ability to create value over time. We continue to see a path to delivering top-tier revenue growth, meaningful margin expansion, strong earnings growth and positive free cash flow generation. Importantly, we continue to have strong conviction in the long-term opportunity and in our ability to win in this market. That confidence is grounded in 5 key pillars. First, we're the market leader in one of the fastest-growing segments in med tech. AID remains significantly underpenetrated across both type 1 and type 2 diabetes. And we believe category growth will continue to be driven by conversion from MDI to AID therapy. As new players enter the tubeless AID market, we expect increased awareness to expand the overall category and support broader adoption, further extending our leadership position. Second, we're advancing one of the most robust innovation road maps in our 25-year-old history to strengthen our competitive position and expand the community we can serve. We expect to deliver annual algorithm enhancements over the next 4 years, beginning with our latest launch in the second quarter. We're encouraged by the early adoption and positive feedback we received from both Podders as well as health care providers. One example is Darla from New Mexico, who lived with type 1 diabetes for more than 40 years. After spending 2 decades on injections and then another 2 decades using a traditional tube pump, she switched to Omnipod 5, 2 years ago. Darla told us she values the freedom and discretion of Omnipod's tubeless design and smartphone control. And after using our new 100-milligram per deciliter glucose target for the past few weeks, she reports tighter glucose control and more time and range. In her words, "I can feel the difference, I would never go back to a tube pump." Looking ahead, we're advancing the next generation of innovation across our pipeline. At ADA, we presented pivotal STRIVE data supporting Omnipod 6, which delivered improved time and range and time and tight range across people with type 1 and type 2 diabetes, while maintaining Omnipod 5's proven safety profile. In the bolus optional phase, users held strong results while requiring significantly less bolusing, shifting the work from the user to the algorithm. Additionally, what we've learned about the type 2 market further reinforces our conviction in our design of our breakthrough fully closed-loop system, which requires no bolusing, no settings and no manual titration. This directly addresses the unmet need for an AID for type 2s that is simpler to start, easier to sustain and less burdensome for both patients as well as providers. Enrollment in EVOLVE, our pivotal study is progressing well, and we continue to expect a 510(k) submission in 2027. While the program remains in development, the clinical results to date are encouraging and support its potential to improve utilization and retention over time and broaden access to AID, particularly among the 70% of type 2 patients managed in primary care. The third pillar is expanding our commercial capabilities to accelerate AID adoption and reach new patient populations. We're investing behind our market-leading brand, DTC activations, professional education, sales force expansion and initiatives to improve access and affordability. We continue to work closely with payers to expand access to Omnipod and make it easier for patients to start and stay on therapy. During the quarter, we added coverage for an additional 6.5 million lives and reduced barriers to therapy by simplifying prior authorization requirements for approximately 10 million lives. Fourth, we have an unmatched manufacturing network. Our scale and operational expertise represent a significant competitive advantage that will take time and substantial investment for others to replicate. Fifth and finally, the strength of our recurring revenue business model generates strong cash flow, giving us significant financial flexibility to continue investing in innovation, our commercial capabilities and our manufacturing network while maintaining disciplined capital allocation. So let me close with this. This quarter reflects both the progress we've made across our business and the important insights we've gained as we deepen our understanding of our type 2 customers. We're listening carefully, learning and acting decisively. Above all, we're committed to improving how we execute to benefit Global Podders and our business. Looking ahead, we're confident in the future. With a differentiated platform, a strong innovation pipeline and an exceptional team, we're well positioned to improve the lives of more people living with diabetes while creating long-term value for all of our stakeholders. With that, I'll turn it over to Flavia to review the financials. Flavia Pease: Thank you, Ashley, and good morning, everyone. The Insulet team delivered another strong quarter with $802 million in total revenue, an increase of 23.5% on a reported basis and 22.7% on a constant currency basis. U.S. Omnipod revenue grew 20% during the quarter, driven by continued demand across both type 1 and type 2 customers. International Omnipod revenue grew over 35% on a reported basis and 33% on a constant currency basis, driven primarily by volume and continued favorable price/mix realization. Second quarter adjusted gross margin was 72.9%, up 320 basis points year-over-year. Adjusted gross margin performance was driven by continued manufacturing productivity gains across our Acton and Malaysia facilities, positive pricing and increased volumes. Turning to operating expenses. Within R&D, we continue to invest in our pipeline in support of the upcoming launch of Omnipod 6 in 2027 and advancing our fully closed loop for type 2 diabetes program as well as progressing on our next-generation technologies and clinical programs. Within SG&A, year-over-year growth was driven primarily by our previously discussed U.S. sales force expansion as well as continued investments in customer support and market development initiatives. Importantly, we continue to balance these investments with disciplined expense management. Second quarter adjusted operating margin was 19.3%, up 140 basis points year-over-year, reflecting strong revenue growth, expanding scale across the business and disciplined execution against our investment priorities. Our ability to continue expanding margins while investing behind innovation, commercial capabilities and future growth opportunities is a key differentiator of Insulet and remains central to our long-term value creation strategy. Second quarter net interest expense was $9.9 million, and our second quarter adjusted tax rate was 19.8%. Second quarter adjusted EPS was $1.66, up 41.5% from $1.17 in the prior year, with adjusted EPS increasing at nearly twice the rate of revenue growth. This performance highlights the earnings leverage inherent in our business model as revenue growth continues to translate into disproportionately stronger EPS growth. Turning to cash and liquidity. We ended the quarter with $535 million in cash and investments and the full $500 million available under our revolving credit facility. Year-to-date, we have generated $145 million of free cash flow, reflecting investments in working capital, inventory and manufacturing capacity to support future growth. Turning to our full year outlook. As Ashley discussed, we are updating our full year revenue outlook to reflect revised retention and utilization assumptions, primarily within our type 2 customer population. Given this change, I want to walk you through the key assumptions embedded in our updated guidance. First, our updated outlook assumes current retention and utilization trends continue through the second half of the year. This revised assumption accounts for approximately 2/3 of the change to our prior guidance. Second, as highlighted last quarter, NCS started the year slower than anticipated. Additionally, while we continue to expect pricing to be positive, it will be at slightly lower level than previously anticipated. This reflects the timing and mix of commercial investments that support customer access and long-term growth rather than any change in the competitive pricing dynamics. Together, these factors account for the remaining 1/3 of our guidance update. Taking these assumptions into account, we now expect full year constant currency revenue growth of 20% to 22% for total company and 21% to 23% for total Omnipod. Foreign exchange is expected to contribute approximately 100 basis points to both measures. For the U.S., we now expect Omnipod revenue growth of 17% to 19% for the full year. We are increasing our full year outlook for international Omnipod to 30% to 32% on a constant currency basis, reflecting strong performance year-to-date and continued momentum across our markets. Foreign exchange is expected to contribute approximately 300 basis points to international growth. Turning to the third quarter. We expect Omnipod revenue growth of 18% to 20% and total company revenue growth of 17.5% to 19.5%. On a reported basis, foreign exchange is expected to be a headwind of approximately 50 basis points to both measures. In the U.S., we expect Omnipod revenue growth of 14% to 16%. And internationally, we expect Omnipod revenue growth of 28% to 30%. On a reported basis, foreign exchange is expected to be a headwind of approximately 200 basis points to international growth. Now turning to operating margin. We remain committed to increasing profitability and continue to expect to drive approximately 100 basis points of operating margin expansion in 2026. Below operating income, we expect approximately $40 million of net interest expense and a non-GAAP tax rate of 20% to 21%. We continue to expect approximately 70 million shares outstanding and now anticipate adjusted EPS growth of at least 30% for the full year. We expect free cash flow to be down modestly from 2025 levels, which reflects the impact from the medical device corrections, but still healthy, supported by strong earnings growth and margin expansion and offset by increasing capital expenditures associated with our manufacturing expansion plans. While we are reassessing the pace of revenue growth, we remain confident in the substantial opportunity to expand Omnipod globally and deliver top-tier growth. We continue to expect adjusted operating margin to expand by approximately 100 basis points annually and adjusted EPS to grow at a CAGR of more than 25% while continuing to generate strong free cash flow. As we continue to assess the impact of the actions we are taking to improve retention and utilization, it is premature to provide formal 2027 guidance today. However, we believe it is important to share some preliminary thoughts on how to think about 2027. Based on the midpoint of our third quarter and full year guidance ranges, we expect total company constant currency revenue growth to exit 2026 in the mid-teens. Our objective in 2027 is to deliver growth consistent with or better than that exit rate, supported by new product launches and the benefits of our sales force expansion. I would note that this preliminary view does not assume any benefit from the actions we are taking to improve retention and utilization. We will provide formal 2027 guidance, along with our updated views on our long-term growth outlook on our fourth quarter earnings call. To close, we delivered another quarter of strong top line growth, continued margin expansion, robust earnings growth and meaningful free cash flow generation. While we are adjusting our revenue assumptions to reflect the additional insights we have gained in the type 2 market, our confidence in the opportunity ahead remains high. We serve a large and underpenetrated global market, continue to take share and remain committed to investing behind innovation while increasing profitability. We believe this combination positions Insulet to create significant long-term value for shareholders while helping more people with diabetes around the world. With that, operator, please open the call for questions. Operator: I would like to remind participants that this call is being recorded, and a digital replay will be available on the Insulet website. [Operator Instructions] Our first question comes from Robbie Marcus from JPMorgan. Robert Marcus: Really wanted to focus on current trends and '27 update here. It sounds like type 2 is the big issue. So maybe, Ashley and Flavia, you can kind of walk us through exactly what's changed since ADA. It's -- at ADA, the comments were pretty positive. What happened since then in your learnings? When did you really start to see type 2 fall off in terms of attrition? And on '27, it sounds like you still feel like you can accelerate a bit off of exit trends. There's a big view out there and investors are worried hitting the share price about oncoming patch pump competition and potentially pricing in the pharmacy channel. So within the comments on '27, maybe you could walk us through what you're assuming for competition and pricing. And with an exit rate in the U.S. around 10%, what gives you confidence that you could accelerate? And why not take the opportunity to perhaps lower the bar here with '27? Ashley McEvoy: Listen, thank you for the question. I'm going to handle that first part, and then I'll turn it over to Flavi to talk about '27. And let me kind of first start, which is I appreciate that this new outlook comes as a change from the past comments and what I was speaking about. And I just need to acknowledge upfront that we should have understood some of these type 2 trends sooner and done a better job of adapting our commercial and customer service model to the needs of this really important customer base of us, which is the type 2. As CEO, I take accountability for that. As I mentioned in my opening remarks, we've been serving the type 1 community for 25 years, and we're about 20 months in to serving the type 2 community. So let me get specific on some of the timing and the context. So in quarter 2, the quarter started to progress, we did see some emerging trends in retention and utilization, specifically among the type 2 community. And so we dug into the data, and this is what we uncovered. Demand for type 2 is really strong as evidenced in quarter 2 on the customer base as well as NCS. We then looked at retention data and what we identified is past 90 days, they start to get more comfortable, they get more confident and start to realize the benefit of AID therapy and retention stabilizes. Our opportunity is to get much better at the first 90 days of onboarding. We've identified these issues. And as I shared in my opening remarks, we are taking decisive actions in quarter 3 to get people to have better success. But I'll tell you, it's going to take a little bit of time for these actions to translate into improved customer success. So that's why we've updated our guidance to reflect that the trends that we saw in quarter 2, specifically related to the type 2 community on utilization and retention that they continue in the back half of the year until we have sustained evidence that these are really going to have improved outcomes. And I would just kind of wrap, Robbie, before we get to '27 is, listen, I've got absolute conviction in the long-term health of this business. I think that this is an execution challenge. I don't see anything structurally different in the marketplace. Again, this is not due to pricing. This isn't due to competition. This isn't due to GLP-1s. This is due to our execution in serving the type 2 community in the first 90 days. So on that, let me turn this to Flavia, who will talk a bit about '27. Flavia Pease: Thank you, Ashley. As we mentioned, it would be premature at this point to provide guidance for 2027, but we did want to provide some color. To your specific question, our outlook does contemplate competitive entrants in 2027. However, we remain highly confident on our competitive position. Omnipod's very differentiated form factor is only getting better with the algorithm innovations that we continue to launch starting this year with the enhancements to Omnipod 5, next year with Omnipod 6 and then in 2028 with fully closed loop for type 2. The outlook also assumes stable price, and that is consistent with what we've seen in the marketplace. You asked us -- or you asked the question around the philosophy on the guidance. We believe that it does reflect what we're seeing in the marketplace today. It does not contemplate improvements from the actions that Ashley described. And we believe that, that's a prudent way for us to establish this preliminary view for 2027. Operator: Our next question comes from Travis Steed from Bank of America. Travis Steed: I think maybe I'd kind of follow up on the first question. First of all, what gives you the confidence things can stabilize and reaccelerate in 2027 just given you're still kind of working through some of the type 2 stuff today, why go ahead and assume that reaccelerates in '27? And it seems like the exit rate for the U.S. Omnipod growth is around kind of 9% in the guidance. Is that how you'd also think about the '27 view for U.S.? I mean you commented on global, but just curious if that applies to the U.S. Omnipod growth and kind of what you're assuming on the competition piece for '27, given you're still kind of above the market? Ashley McEvoy: Thank you, Travis. Let me start, and then I'll turn it to Flavia. To your question on stabilization, again, the focus for today's conversation is around type 2 and the learning that we've gleaned on type 2 and what we're doing about it. We have not assumed that all of the actions that we're taking right now in quarter 3 are going to be baked into the guidance going forward. So we've assumed that the run rates on utilization and retention that we experienced in type 2 remain constant in the balance to go. Now we have confidence that those actions are going to have an impact, and we're going to be keeping a keen eye. Again, the several things that are very new and different of changing sales force compensation, going from new customer starts to retention, improving our data platform. As I mentioned, we launched our Omnipod Discover. We've got about 12,000 people with type 2 using that. We've got early data back on that in the limited market release. It's showing not just really strong customer satisfaction, but also very improved retention rates. And then clearly, making sure that we have a strengthened customer experience, and we refined our sampling program. And as Flavia mentioned, that we've got -- we're preparing for innovation as we go. So that's what gives us confidence that we're going to end this year, albeit off of our original guidance by a point, but really healthy, strong, med tech revenue growth, expanding operating margins and very strong cash flow generation. So I'm going to turn it to Flavia to talk about exit rates for next year. Flavia Pease: Sure. Travis, just a couple of things. One, the range we provided is relatively wide. And the 9% is the bottom of the range, but the top of that range is 14%. So the midpoint is 12% and it does contemplate the impact of the new product launches as well as the full benefit of our sales force expansion, which will accrue into 2027. So we believe, again, it's a prudent approach, as Ashley said, and we'll provide additional insights in our fourth quarter earnings call. Operator: Our next question comes from Larry Biegelsen from Wells Fargo. Larry Biegelsen: I guess, Ashley, I'll just ask one on the type 2. Maybe if you could share some of the metrics on utilization and retention with us? And why are you confident the actions will have an impact? I mean is it plausible that just type 2 patients are different from type 1? Ashley McEvoy: Yes, Larry, let me -- thank you for type 2. Let me kind of share what we've been learning and some areas that obviously, the whole Pod community, what inspires us to better serve these folks and also some of the challenging aspects of -- in our learning curve. And then really importantly, what are we doing about it? And what KPIs are we going to be looking at to make sure that we're making progress. I would first start with why we're so encouraged and inspired to serve this community. It's a large underpenetrated TAM. There's significant unmet need in this community. We have really strong science and ADA guidelines are on our side. We do have synergy and learning from 25 years serving the type 1 community. And as we stand here in August, we have tens of thousands of type 2s who are using Pod and getting fantastic results. Just last week, I was in the field at one of the largest safety net hospitals in Boston and over -- they serve over 40,000 people with diabetes and 90% of their cohort are people with type 2 diabetes. And what I heard loud and clear is if they have a CGM, if they have phone control, if they're somewhat engaged in their diabetes and they have medical coverage, all of them can benefit from AID therapy. So that's what drives us. Now, some of the challenges in the type 2 community are following a different kind of emotional burden. Our type 1 community and often refers at the point of diagnosis like a tight away that happens to them. The type 2 community says, you know what, it's more like a rising flood. It's slow and progressive, and I did this. There are higher comorbidity rates. There's a different payer mix, 60% in type 2s are on Medicare or Medicaid, whereas type 1 is around 60% commercial. And listen, a slower path to insulin. And predominantly, it's the PCP that is really writing for them. And with that in mind, that's what's led us to the actions I spoke about in my opening remarks. That coupled with our innovation coming within 2 years, which really unlocks the type 2 community. It's specifically designed, it's CGM like. You put it on. There's no bolusing. There's no settings. There's no manual titration. This is really going to unlock the 70% of type 2s who are seen in primary care. So that's what gives us confidence and makes us resolute to go deliver masterful customer service the first 90 days, just like we do with the type 1 community. Operator: Our next question comes from Jeff Johnson from Baird. Jeffrey Johnson: Maybe 2 questions here, if I could squeeze them together. But just one, Ashley, as you talk about those T2s that are tougher to stay adherent, any early evidence that you can go back to some of those patients address those needs and you've brought them back into the fold? I guess what has worked, if anything, so far in trying to reverse some of that adherence issue, number one. Number two, you talked about pricing maybe a little bit less positive in your assumption for this year. There was a big Blue payer that recently rolled back pharmacy access for some of your tube pump competitors. I guess my question there is, is that evidence of you throwing kind of your rebate weight around? Are you using some added rebate dollars to maybe push exclusivities in some markets on the pharmacy side? Or how should we anticipate your pricing comments? Or how should we interpret, I'm sorry, your pricing comments with this change we saw from one of the big Blue payer here recently? Ashley McEvoy: Yes. Thank you for the 2 questions, Jeff. Let me address your last question first, and then I'll have Eric address a little bit of what we've been doing to smooth out some of the pain points in the type 2 community. As Flavia mentioned, our price realization in the United States has been stable to slightly up. And we've been, again, very disciplined in our pricing. We've been continuing to -- because we think that wins for the category as new contenders have entered into the pharmacy, our pricing strategy is extremely disciplined. And we -- as I mentioned in my opening remarks, we continue to experience coverage wins on access as well as really reducing the barriers of prior authorizations. As I shared, we had 10 million reductions of prior authorization. So I would tell you our strategy is working. It's good for Insulet. It's good for patients and it's good for the category. So on the type 2s, I would just open with demand, again, is very strong. We're getting a lot of demand, a lot of people interested and a lot of people on Pod. And we're keeping them retention rates stabilized for type 2. Our opportunity and all of our learning have been around those early pain points, the first 90 days. So Eric is going to elaborate a little bit on that. Thank you, Jeff. Eric Benjamin: Jeff, just a couple of builds in terms of what we've seen in our ability to keep folks a little type 2 engaged and why the actions that we're taking, we believe will be effective there. The first, we've had success reengaging with customers, and we are scaling some things that we've had at pilot scale to provide proactive support and help our type 2 customers through those early moments of truth, the first Pod change or a first refill or a first service interaction. So we've actually had those at pilot scale. We've proven that they work, and now we're scaling them rapidly as we have learned here in the quarter that it's important that we do so. We've also seen that we can adjust some of how we go to market in the field to make sure that the support that we provide with prior authorization and benefits check as easy and as seamless as folks needed to be because we know that's really important to the type 2 customer as well. And finally, Ashley mentioned, we've seen really encouraging early data from Omnipod Discover and the impact that it has on outcome satisfaction and retention. And it puts success metrics right in the palm of the hands of the people who are using Omnipod 5 to help them see the benefits of therapy and stay engaged. So we do have some strong early proof points that give us confidence in the actions that we're taking to have an impact on the important metrics that we need to drive. I'll just hand to Flavia for a quick build. Flavia Pease: Yes. And Jeff, just specifically to address your question about the Blues we are not taking any positions that would result in exclusionary positions in access. So that was not something that was initiated by us, and we don't believe in that. So I just want to specifically address your question. Operator: Our next question comes from Matt Taylor from Jefferies. Matthew Taylor: I just wanted to double-click on some of the questions that were asked about the specific metrics, the retention rates. Could you characterize that at all the difference that you're seeing in the early 90-day retention between type 1 and type 2? And in the changes that you're making, what kind of early success have you had in changing those rates, just so we can understand the quantum of the deltas there? Ashley McEvoy: Yes, Matt, thank you for the question. I would -- what Eric really alluded to, so we are seeing differences in retention and modest differences in utilization in our type 2 community relative to the type 1. I would then first kind of need to underscore that we're in a reoccurring revenue business model. And so it's really worth the investment to go and the time to get them successfully through this 90-day onboarding period because of the lifetime value of these people being on insulin. And so again, I come back to there's -- we've proven that there's healthy demand. It really is those first 90 days. And as Eric mentioned, it's number one, making sure as we get them on a sample, it's making sure that we do the right kind of adjudication on medical coverage, so that's really seamless. It's holding their hand for many of what we call their first. It could be their first Pod change. It could be the first time they actually have to go pick up their prescription. It could be the first time that they're going to take a vacation. We've identified, let's say, 10 of these pain points that we need to offer very strong encouragement to keep them on Pod. And as Eric mentioned, we just completed our limited market release of a very modern new customer data platform that will have several new modules that we're pulling forward on our road map. It's called Omnipod Discover. And again, we have 1,600 clinicians who are using Discover and 12,000 patients -- and basically, what Discover, it gives real lifetime data to patients. It shows them the insulin trends that they're getting. It initiates a really clear conversation they can have with their clinician. Caregivers can have access to that, which is very beneficial. And ultimately, not only does it give them more confidence and more control, it results in better satisfaction, and we've seen early data of meaningfully improved retention rates in this community. Secondly, it's just sales force compensation. Our biggest investment in our P&L is our field. We have the largest field force in the industry, and we are evolving in addition to new customer starts to hold them accountable, but also retention, specifically for the first 45 days. That's going to have a meaningful result and again, really managing those first 90 days. Operator: Our next question comes from Marie Thibault from BTIG. Marie Thibault: I just wanted to try to understand a little bit more what you're building in for potential competition coming, I think, late in the year and a little more detail on sort of the time line for when some of these efforts in the type 2 population might start to show up. I know there's obviously a 90-day kind of cycle for they're coming back. So I want to understand both what's being built into the guidance for competition and any time lines on when we'll see updates on this? Ashley McEvoy: Yes. Thank you, Marie. Let me take your second one on T2, and then I'll speak also about competition and turn it to Flavia. For T2, as I shared, we -- again, 20 months into this, we've identified some trends in quarter 2 that accelerated. We're taking action right now. We thought it was prudent to not bake those actions into the updated guidance that we're providing today. So the updated guidance assumes that the trends that we saw related to attrition and utilization, specifically in the type 2 community in quarter 2 do not improve in the balance to go. And we just thought that, that was a prudent approach. It gives the team time to really see the cause and effect of these interventions. We are monitoring this monthly, and we'll make any kind of adaptations again as we learn how to master this community and customer service the first 90 days. As it relates to competition, I'll turn it to Flavia. Flavia Pease: Sure. And just again, to summarize in terms of our preliminary views for next year, just to reinforce, it does not assume any acceleration of the market exit rate. It does not assume any improvement from the actions, as actually just mentioned. It does assume competition based on what we know so far, and it also assumes a stable pricing environment. And again, what we will benefit from is the impact of the new product launches as well as the sales force expansion that we just completed. Operator: Our next question comes from Richard Newitter from Truist Securities. Richard Newitter: Apologies if this is a little repetitive and may have been answered. But -- so I just want to get a better understanding. You guys have initiatives to try to improve retention and utilization. And a lot of that you feel can be very impactful and crucial during the first 90-day period of onboarding. So should we be thinking that within the next 3 months, you'll see whether or not those initiatives have had their intended impact and that is going to be what leads you to believe whether there's something more structural about this patient population versus type 1 and that's going to inform kind of your go-forward view? I guess I'm just trying to make sure I understand how much of a handle you think you'll have on the underlying market dynamics as this is somewhat new territory for the industry and when? Ashley McEvoy: Yes. Thank you, Rich. I mean, again, I want to first start with we view the type 2 community as a very attractive customer base. Again, we have a reoccurring revenue model. It's worth the investment upfront, specifically the first 90 days to deliver the right kind of onboarding experience so they stay on therapy. It's good for the category. It's good for patient care. It's good for outcomes. Again, we are getting a lot of success. I have to mention that we have tens of thousands of people using Pod right now with very strong clinical outcomes and very strong satisfaction. So I would characterize what we're experiencing as an execution challenge, Rich, not anything structurally related to the market. Again, demand we've seen 20 months into the launch is very healthy and very strong. I mentioned my field experience that clinicians and patients are waiting to go benefit from AID therapy because we do have strong science, and we do have strong pump utilization. And so I think really, it has to do with just the timing. I'm going to come give specificity. We're implementing these programs right now. Eric mentioned, we've had a customer experience support team since the launch. We've added more resources. We've strengthened a lot of their engagement to address the pain points, specifically around insurance and getting -- reducing that barrier. Interestingly enough, we're doing this because we have efficiencies in the business. So this is not a net incremental cost to our business. And I'm just allowing some time to see the impact of those. And that's why we were very prudent with guidance to not assume that these are going to have an immediate impact. And we -- the guidance assumes that the utilization and retention trends that we experienced in quarter 2 continue on for the balance half of the year. Clearly, we aim to beat that and do better, but this is an emerging customer base, and we're very committed to serving them just as well as we're serving our type 1 community. Operator: Our next question comes from John Block from Stifel. Joseph Federico: Joe Federico on for John. Maybe just like almost a follow-up on that last point. I wanted to just ask how you're viewing the returns from the type 2 spending at this point and balancing top line growth goals versus just profitability. The T2 returns have arguably changed a lot with these somewhat new retention dynamics and the market taking longer to cultivate. So I'm just curious how you're viewing that spend going forward. Ashley McEvoy: Yes. Thank you, Joe, for the question. Again, I'm going to come back to that I think the type 2 customer base is strategically very important to us and very attractive to us. We've been 20 months since our type 2 indication. You can look at our performance this quarter in aggregate. We delivered 23% revenue growth. We have expanding operating margins. Our EPS was nearly 2x what revenue growth is. That's all while supporting the type 2 community. And again, we have very strong demand with the type 2s. And once we get them on Pod post the 90 days, retention rates stabilize, we have a very attractive reoccurring revenue model, and they're on insulin, unfortunately, for a lifetime. And so our key focus is around the 90 days. We think we can do so in a capital-efficient manner. We always look at our cost to acquire. We look at our cost to serve. Clearly, some of the lifetime value measures right now aren't as attractive as what we anticipate they will be. And I would just say some of the short-term trends are absolutely not reflective of what the long-term opportunity is. Flavia Pease: Yes. Let me build. Ashley talked about the customer lifetime value. When we think also about the cost to acquire and cost to serve the type 2 population, the good news is the actions that we are implementing and that Ashley described, they're not going to have a negative impact on these metrics. Our cost to acquire is stable even as we expand our sales force, and we continue to drive efficiencies in our cost to serve even as we redeploy and add some additional customer care support. The actions we are taking, whether it is the updated incentives for the sales force that Ashley described or optimizing our sampling program and leveraging obviously our really recently launched Discover platform. These are already embedded in our baseline. So they're really not going to have -- not going to create a headwind on the service cost for the type 2 population. And maybe just to close, in the medium term, we have high conviction that the fully closed loop for type 2 will actually meaningfully change both the customer lifetime value as well as the cost to serve that population. Our fully closed loop has been uniquely designed to address some of these challenges that we have been discussing. So we feel really good about the outlook. Operator: Our last question comes from Kieran Ryan from Deutsche Bank. Kieran Ryan: I was wondering if you can maybe just clarify, I think there's the words retention and utilization have both been used here, but it sounds like this is much more of a retention dynamic than necessarily your type 2 users who are staying on Pod just using it less than you originally expected. Is that fair to say? And then maybe just any commentary you might have on how this retention looks between patients that are getting treated by endos versus PCPs and anything we should be thinking about as far as how the type of prescriber might play in here? Ashley McEvoy: Yes. Thank you, Kieran. Let me first talk about -- you're correct. Retention is one that we're seen a little bit more variability than we had expected. Utilization is slightly down, but it's really retention that we're talking about. And I would tell you, obviously, endos are the most comfortable with AID therapy in the type 2 community. So early on, we're getting most of our scripts from endos. We've seen that evolve over the past couple of months as we've expanded our field force on our called-on universe as well as activated DTC. So our mission is to really get PCPs comfortable and confident with the benefits of AID therapy. I will tell you, though, the onboarding experience really is similar regardless of what clinician is recommending them. And so that's why tools that Eric mentioned around a customer data platform like Omnipod Discover that is available to both endos as well as primary care. I'll tell you, endos and PCPs love it. They get to see the insulin trends. It lets them show them exactly how our algorithm is working. So we've gotten really good feedback with that. It gets them both more confident and comfortable in engaging with the community. And then from a patient perspective, we start to see that they, again, can see their own data and get a lot more confident and comfortable and also willingness to engage with us to get encouragement and ask for any kind of clarifying questions. So I'm going to pause there because I know Eric wants to add another comment. Eric Benjamin: Kieran, just a quick build. The other thing as you observed that prescribers who are the most comfortable prescribing AID do have better retention in their offices. And so the sales force expansion that we've just done, which helps us call on and serve another several thousand health care providers also gives us a way to keep better serving this community. And so that is a key part of the strategy going forward. Clare Trachtman: Thank you. That concludes our call today. Ashley McEvoy: Thank you. Operator: Ladies and gentlemen, this concludes today's conference. Thank you for your participation, and have a wonderful day. You may all disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Insulet. The Motley Fool has a disclosure policy. Insulet (PODD) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Insulet Corporation PODD reported second-quarter 2026 adjusted earnings per share (EPS) of $1.66, up 41.5% year over year. The bottom line beat the Zacks Consensus Estimate by 15.28%. GAAP EPS came in at $1.37 compared with the year-ago quarter’s figure of 32 cents. Revenues of $801.7 million rose 23.5% and surpassed the consensus mark by 1.89%, reflecting broad-based Omnipod demand and favorable price mix. Following the announcement on Aug. 5, PODD shares have dropped nearly 20% to end the session at $133.26. Total Omnipod revenues advanced 24.6% to $795.9 million. U.S. Omnipod revenues increased 20.1% year over year to $544.1 million. Management cited continued demand across type 1 and type 2 customers, with more than 40% of U.S. new customer starts coming from people with type 2 diabetes. Insulet Corporation price-consensus-eps-surprise-chart | Insulet Corporation Quote International Omnipod revenues climbed 35.5% to $251.8 million, or 32.9% at constant currency. Growth was driven primarily by volume and continued favorable price, and mix realization. Omnipod 5 also became the top insulin pump for new users in Australia, while the company recently launched in Spain. Adjusted gross margin reached 72.9%, up 320 basis points (bps) year over year. The improvement reflected manufacturing productivity gains at the Acton and Malaysia facilities, positive pricing and higher volumes. Adjusted operating margin expanded 140 bps to 19.3%. Research and development expenses rose 20% to $88.1 million, while selling, general and administrative expenses increased 33.8% to $344.8 million, reflecting investments in the U.S. sales force, customer support and market development. Insulet exited the second quarter of 2026 with cash and cash equivalents of $534.9 million compared with $480.4 million at March-end. Cumulative net cash provided by operating activities at the end of the second quarter was $202.2 million compared with $260.3 million in the year-ago period. Insulet now expects 2026 total company revenue growth of 20%-22% at constant currency, down from the prior 21%-23% range. Total Omnipod growth is projected at 21%-23% (previously, 22%-24%), while Drug Delivery revenues are expected to decline around 40% compared with the earlier expectation of a roughly 50% drop. The Zacks Consensus Estimate for the company’s 2026 revenues is pegged at $3.28 billion, up 21% from the 2025 levels. Adjusted EPS is now projected to grow at least 30%, up from the prior expectation of more than 25%. The Zacks Consensus Estimate for the same stands at $6.51, up 5%. For the third quarter, total company revenues are expected to increase 17.5%-19.5% at constant currency. Total Omnipod growth is projected at 18%-20%, while Drug Delivery is expected to be approximately 20% year over year. The Zacks Consensus Estimate for revenues and EPS is pegged at $835.4 million and $1.59, respectively. Insulet delivered better-than-expected earnings and revenues in the second quarter of 2026. The company witnessed strong demand for Omnipod across both the U.S. and international markets, along with a benefit from favorable price mix. Global new customer starts increased both sequentially and year over year, resulting in the second highest quarter ever. The expansion of adjusted gross and operating margins is also encouraging. Lower-than-expected retention and utilization among type 2 customers prompted Insulet to lower its full-year U.S. Omnipod and total revenue growth outlook. Insulet currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Labcorp Holdings LH, Quest Diagnostics DGX and Medpace MEDP. Labcorp, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $4.99, which surpassed the Zacks Consensus Estimate by 4.18%. Revenues of $3.73 billion beat the Zacks Consensus Estimate by 0.36%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. LH has an earnings yield of 5.9% compared with the industry’s 4.1% yield. The company's earnings beat estimates in each of the trailing four quarters, the average surprise being 3.09%. Quest Diagnostics, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $3.12, exceeding the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion topped the Zacks Consensus Estimate by 2.1%. DGX has an earnings yield of 4.7%, almost in line with the industry’s yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.77%. Medpace, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 4.17%. Revenues of $707.3 million outperformed the consensus mark by 1.12%. MEDP has an historical five-year earnings growth rate of 30.5% compared with the industry’s 5.6% growth. In the trailing four quarters, the company delivered an average earnings beat of 10.16%. 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 Insulet Corporation (PODD) : Free Stock Analysis Report Labcorp Holdings Inc. (LH) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management identified lower-than-anticipated retention and utilization rates within the type 2 customer base, particularly during the critical first 90 days of therapy. The company is shifting its commercial focus from purely driving new customer starts to prioritizing long-term retention through a revised sales force compensation structure. Operational analysis revealed that type 2 patients require higher-touch support during 'moments of truth,' such as the first pod change and initial prescription refills. Strategic investments are being redirected toward a cloud-based data platform, Omnipod Discover, to provide patients and clinicians with real-time insights that improve therapy adherence. Management attributes the U.S. outlook reduction to execution challenges in serving the type 2 community rather than structural market shifts, competition, or GLP-1 impact. The company continues to leverage its manufacturing scale in Acton and Malaysia to drive productivity gains and support a 140 basis point expansion in adjusted operating margin. International momentum remains a primary growth engine, driven by successful launches in new markets like Spain and market leadership in Australia. Full year 2026 revenue guidance was lowered to 20% to 22% to reflect current type 2 retention trends persisting through the second half of the year. The 2027 preliminary outlook assumes a mid-teens revenue exit rate, incorporating competitive entrants and stable pricing without assuming immediate benefits from new retention initiatives. Management is accelerating the development of a fully closed-loop system for type 2 patients, designed to eliminate manual titration and simplify the onboarding process. The company expects to deliver annual algorithm enhancements over the next four years to maintain its competitive advantage in the tubeless AID segment. Future growth assumptions for 2027 and beyond will be formally updated in the fourth quarter call after gathering more data on the effectiveness of the new commercial model. The company is expanding its customer care team to help type 2 patients navigate complex insurance processes, which was identified as a barrier to therapy continuity. A refined sampling program is being implemented to better identify and support patients most likely to convert to long-term users. Free cash flow for 2026 is expected to be down modestly from 2025 levels due to impacts from medical device corrections and increased capital expenditures for manufacturing expansion. Management flagged a slower-than-anticipated start to the year for New Customer Starts (NCS) as a contributing factor to the revised U.S. revenue outlook. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management admitted they should have identified type 2 trends sooner and are now acting decisively to fix the first 90-day onboarding experience. Data shows that once type 2 patients pass the 90-day mark, their retention rates stabilize and mirror the more established type 1 population. The 2027 outlook assumes stable pricing and the entry of new patch pump competitors, but management remains confident in their differentiated form factor and innovation roadmap. Management clarified they are not pursuing exclusionary pharmacy access positions that would limit patient choice, despite competitor movements in the channel. Early data from a limited market release showed that the 12,000 patients using the Discover platform experienced meaningfully improved retention and satisfaction. The platform bridges the gap between patients and primary care physicians (PCPs) by providing actionable insulin trends and data.

Interested in Insulet Corporation? Here are five stocks we like better. Strong Q2 performance: Insulet reported revenue of $802 million, up 22.7% on a constant-currency basis, while adjusted EPS rose 41.5% to $1.66. International Omnipod revenue grew 33% on a constant-currency basis, outpacing 20% U.S. growth. Type 2 retention pressured the outlook: Lower-than-expected utilization and retention during the first 90 days among Type 2 customers led Insulet to reduce its 2026 U.S. and total-company growth forecasts. Management plans to improve onboarding, customer support, sales incentives and patient targeting. International growth and pipeline remain key positives: Insulet raised its 2026 international growth outlook to 30%–32% and continues developing Omnipod 6 and a fully closed-loop system targeting Type 2 diabetes, with potential launches or regulatory submissions in 2027. 3 Medical Technology Stocks Outperforming in 2025 Insulet (NASDAQ:PODD) reported second-quarter revenue growth of 23% on a constant-currency basis, supported by demand for its Omnipod insulin-delivery system in the U.S. and international markets, while raising its international outlook and reducing its U.S. and total-company revenue-growth expectations for 2026. The company generated $802 million in second-quarter revenue, up 23.5% on a reported basis and 22.7% on a constant-currency basis. U.S. Omnipod revenue increased 20%, while international Omnipod revenue rose 35% on a reported basis and 33% on a constant-currency basis, driven mainly by volume and favorable price mix. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Insulet Surges on Q1 Beat, Emerges as a Top S&P 500 Performer Adjusted earnings per share rose 41.5% to $1.66 from $1.17 a year earlier. Adjusted gross margin expanded 320 basis points to 72.9%, while adjusted operating margin increased 140 basis points to 19.3%. Chief Executive Officer Ashley McEvoy said the company’s global customer base grew 23%, aided by its second-highest quarter ever for new customer starts. More than 85% of U.S. new customer starts came from multiple daily injection, or MDI, users, and more than 40% of starts involved people with Type 2 diabetes. → 3 Drone Stocks That Should Soar After the Summer Slump Are These 5 Undervalued Stocks Ready to Break Out? Despite healthy demand and new customer starts, Insulet said it has identified lower-than-anticipated utilization and retention among Type 2 customers, particularly during the first 90 days of therapy. McEvoy said the company is still early in its efforts to serve the Type 2 population, having launched into that market about 20 months ago after more than 25 years serving Type 1 diabetes patients. “We should have identified the issue sooner,” McEvoy said, taking accountability for the lower U.S. outlook. She characterized the issue as an execution challenge rather than a structural change in the market, and said it was not caused by pricing, competition or GLP-1 therapies. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Management said Type 2 retention stabilizes after patients have remained on Omnipod for 90 days, as users gain comfort with the technology and its benefits. The company said it is taking steps to improve onboarding and support during early patient interactions, including the first pod activation, pod change and prescription refill. Expanding customer-care resources, including insurance-navigation support. Changing sales-force compensation to emphasize retention in addition to new customer starts. Refining sampling programs to identify patients most likely to benefit and to improve conversion and retention. Expanding use of Omnipod Discover, a cloud-based platform designed to help patients and providers monitor trends and personalize therapy. McEvoy said Omnipod Discover had more than 12,000 people with diabetes and over 1,600 healthcare professionals using the platform. Chief Operating Officer Eric Benjamin said limited-market-release data showed encouraging results for patient outcomes, satisfaction and retention, though the company did not disclose specific retention metrics. Insulet now expects 2026 total-company revenue growth of 20% to 22% on a constant-currency basis, with total Omnipod revenue growth of 21% to 23%. The company expects foreign exchange to add about 100 basis points to reported growth for both measures. U.S. Omnipod revenue is now projected to rise 17% to 19%, while international Omnipod revenue is expected to grow 30% to 32%, an increase to the international forecast reflecting first-half performance and continued momentum in overseas markets. Chief Financial Officer Flavia Pease said roughly two-thirds of the reduction to the prior outlook reflects the assumption that current Type 2 utilization and retention trends continue through the second half of 2026. The remaining one-third reflects slower-than-anticipated new customer starts at the beginning of the year and slightly lower expected positive pricing. For the third quarter, Insulet forecast total-company revenue growth of 17.5% to 19.5% and Omnipod revenue growth of 18% to 20%. It expects U.S. Omnipod growth of 14% to 16% and international Omnipod growth of 28% to 30% on a constant-currency basis. The company maintained its expectation for about 100 basis points of adjusted operating-margin expansion in 2026 and said it now expects adjusted EPS growth of at least 30% for the year. Insulet ended the quarter with $535 million in cash and investments, $500 million available under its revolving credit facility and $145 million in year-to-date free cash flow. Internationally, Insulet said Omnipod 5 became the leading insulin pump for new users in Australia. The company also launched in Spain during the quarter. Management said it added coverage for 6.5 million additional lives and simplified prior-authorization requirements for about 10 million lives. The company continues to invest in its product pipeline, including Omnipod 6, which it expects to launch in 2027, and a fully closed-loop system aimed at Type 2 diabetes. Insulet said enrollment is progressing in its pivotal Evolve study for the fully closed-loop program and continues to target a 510(k) submission in 2027. McEvoy said the fully closed-loop system is designed to require no bolusing, settings or manual titration, potentially addressing needs among Type 2 patients and primary-care providers. The company said 70% of Type 2 patients are managed in primary care. Insulet did not provide formal 2027 guidance, saying it needs more time to assess the effects of its retention and utilization initiatives. However, Pease said the company expects to exit 2026 with total-company constant-currency revenue growth in the mid-teens, based on the midpoints of its third-quarter and full-year guidance ranges. The company’s objective for 2027 is to deliver growth consistent with or above that exit rate, supported by product launches and the benefits of sales-force expansion. Management said this preliminary view assumes competitive entrants in 2027 and a stable pricing environment, but does not assume improvements from the actions being taken to improve Type 2 retention and utilization. Insulet plans to provide formal 2027 guidance and an updated long-range outlook on its fourth-quarter earnings call. Insulet Corporation is a medical device company headquartered in Acton, Massachusetts, that develops, manufactures and sells insulin-delivery systems for people with diabetes. The company's core business is the design and commercialization of its Omnipod family of tubeless, wearable insulin pumps and the consumable Pods that deliver insulin. Insulet's products aim to simplify insulin delivery for people with type 1 diabetes and insulin-requiring type 2 diabetes by offering an alternative to traditional insulin pens and tethered pump systems. The company's product portfolio includes the Omnipod System line—disposable, waterproof Pods that adhere to the skin and deliver insulin—and the associated controllers and mobile applications used to program and monitor insulin delivery. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Insulet Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Insulet (PODD) came out with quarterly earnings of $1.66 per share, beating the Zacks Consensus Estimate of $1.44 per share. This compares to earnings of $1.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +15.28%. A quarter ago, it was expected that this maker of insulin infusion systems would post earnings of $1.14 per share when it actually produced earnings of $1.42, delivering a surprise of +24.56%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Insulet, which belongs to the Zacks Medical - Products industry, posted revenues of $801.7 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.89%. This compares to year-ago revenues of $649.1 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Insulet shares have lost about 41.3% since the beginning of the year versus the S&P 500's gain of 13%. While Insulet has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Insulet was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.61 on $842.87 million in revenues for the coming quarter and $6.45 on $3.31 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Canopy Growth Corporation (CGC), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This company is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of +71.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Canopy Growth Corporation's revenues are expected to be $58.52 million, up 12.3% from the year-ago quarter. 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 Insulet Corporation (PODD) : Free Stock Analysis Report Canopy Growth Corporation (CGC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenue: $802 million in Q2 2026, up 23.5% on a reported basis and 22.7% on a constant currency basis. U.S. Omnipod Revenue: Grew 20% during the quarter. International Omnipod Revenue: Grew over 35% on a reported basis and 33% on a constant currency basis. Adjusted Gross Margin: 72.9%, up 320 basis points year over year. Adjusted Operating Margin: 19.3%, up 140 basis points year over year. Adjusted EPS: $1.66, up 41.5% from $1.17 in the prior year. Net Interest Expense: $9.9 million in Q2. Adjusted Tax Rate: 19.8% for Q2. Cash and Investments: $535 million at quarter end, with $500 million available under revolving credit facility. Free Cash Flow: $145 million generated year-to-date. Full-Year 2026 Revenue Growth Outlook: 20% to 22% for total company and 21% to 23% for total Omnipod on a constant currency basis. Full-Year 2026 U.S. Omnipod Revenue Growth Outlook: 17% to 19%. Full-Year 2026 International Omnipod Revenue Growth Outlook: 30% to 32% on a constant currency basis. Q3 2026 Revenue Growth Outlook: 18% to 20% for Omnipod and 17.5% to 19.5% for total company on a reported basis. Q3 2026 U.S. Omnipod Revenue Growth Outlook: 14% to 16%. Q3 2026 International Omnipod Revenue Growth Outlook: 28% to 30% on a reported basis. Full-Year 2026 Operating Margin Expansion: Approximately 100 basis points expected. Full-Year 2026 Net Interest Expense: Approximately $40 million expected. Full-Year 2026 Non-GAAP Tax Rate: 20% to 21% expected. Full-Year 2026 Adjusted EPS Growth: At least 30% expected. Warning! GuruFocus has detected 12 Warning Signs with TX. Is PODD fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total company revenue grew 23% year-over-year on a constant currency basis, exceeding expectations, with strong demand for Omnipod in both U.S. and international markets. Adjusted operating margin expanded 140 basis points year-over-year, driven by manufacturing productivity gains and scale benefits, while adjusted EPS grew approximately 42%. Global new customer starts reached the second highest quarter ever, with over 40% of U.S. new starts being Type 2 diabetes patients, and the prescriber base expanded 27% year-over-year. International Omnipod revenue grew over 33% on a constant currency basis, leading to a raised full-year international growth outlook of 30% to 32%. The innovation pipeline is robust, with Omnipod 6 pivotal data showing improved time in range, and the fully closed-loop system for Type 2 is on track for a 510(k) submission in 2027. The company added coverage for 6.5 million lives and simplified prior authorization for 10 million lives, improving access to Omnipod. Type 2 customer retention and utilization trends were worse than anticipated in Q2, leading to a reduced full-year U.S. Omnipod growth outlook of 17% to 19%. The company acknowledged it should have identified Type 2 onboarding issues sooner, indicating an execution shortfall in adapting the commercial model. Full-year total company revenue growth guidance was lowered to 20% to 22% from previous expectations, with the revised outlook assuming current retention trends continue through H2. Pricing is expected to be slightly less positive than previously anticipated due to timing and mix of commercial investments, though not due to competitive dynamics. The company is reassessing its long-term revenue outlook and will provide an update on Q4, creating uncertainty for 2027 and beyond. Preliminary 2027 growth is expected to be in the mid-teens, with no assumed benefit from retention improvement actions, and competition is factored into the outlook. Q: What changed in the Type 2 market that led to the reduced U.S. outlook, and what gives you confidence in a reacceleration in 2027?A: CEO Ashley McEvoy acknowledged accountability for the reduced outlook, stating the company should have identified the Type 2 retention and utilization trends sooner. The issue is an execution challenge in the first 90 days of onboarding, not a structural market change, pricing, or competition issue. CFO Flavia Pease noted the preliminary 2027 view assumes competitive entrance and stable pricing but does not assume improvements from the new retention actions, relying instead on new product launches and the full benefit of the sales force expansion. Q: Can you quantify the difference in 90-day retention rates between Type 1 and Type 2 patients, and what early success have you seen in changing these rates?A: CEO Ashley McEvoy confirmed there are differences in retention and modest differences in utilization between Type 2 and Type 1 communities. The company has identified roughly 10 key "pain points" in the first 90 days (e.g., first pod change, first refill). Early data from the Omnipod Discover platform shows "meaningfully improved retention rates" in the Type 2 community, and the company is scaling proactive support pilots that have proven effective. Q: What are the specific drivers behind the updated 2026 guidance, and what are the key assumptions for the second half of the year?A: CFO Flavia Pease detailed that the revised outlook assumes current retention and utilization trends continue through the second half, accounting for two-thirds of the guidance change. The remaining one-third is due to slower-than-anticipated new customer starts and slightly lower positive pricing, reflecting the timing and mix of commercial investments rather than competitive dynamics. The company now expects total company constant currency revenue growth of 20% to 22% and U.S. Omnipod growth of 17% to 19%. Q: How are you balancing Type 2 spending with profitability goals, given the changing return dynamics?A: CEO Ashley McEvoy emphasized the strategic importance of the Type 2 customer base, noting the company delivered 23% revenue growth with expanding margins and EPS growth nearly double revenue growth. CFO Flavia Pease added that the new actions (sales force incentives, sampling optimization, Discover platform) are already embedded in the baseline and will not create a headwind on service costs. The fully closed-loop system for Type 2 is expected to meaningfully change customer lifetime value and cost to serve in the medium term. Q: Is the issue more about retention or utilization, and how does the prescriber type (endos vs. PCPs) impact these trends?A: CEO Ashley McEvoy clarified that retention is the primary issue, with utilization only slightly down. While endos are more comfortable with AID therapy, the onboarding experience is similar regardless of prescriber type. COO Eric Benjamin added that prescribers most comfortable with AID have better retention in their offices, and the recent sales force expansion to serve several thousand more healthcare providers is a key part of the strategy to improve retention. Q: What is the expected U.S. exit rate for 2026, and how should we think about the 2027 growth trajectory?A: CFO Flavia Pease clarified that the U.S. exit rate range is 9% to 14%, with a midpoint of 12%. The preliminary 2027 objective is to deliver growth consistent with or better than the mid-teens total company exit rate, supported by new product launches (Omnipod 6) and the full benefit of the sales force expansion. The company will provide formal 2027 guidance and updated long-term outlook on the fourth-quarter call. Q: What specific actions are you taking to improve Type 2 retention, and what KPIs will you monitor?A: CEO Ashley McEvoy outlined four key actions: expanding the customer care team for onboarding and insurance navigation, changing sales force compensation to reward retention (specifically the first 45 days), refining the sampling program to identify patients most likely to benefit, and rolling out Omnipod Discover. The company is monitoring these metrics monthly and will adapt as they learn to master customer service in the first 90 days. Q: How should we interpret the recent pricing comments, and are you using rebates to push exclusivity in the pharmacy channel?A: CFO Flavia Pease directly addressed this, stating the company is not taking any positions that would result in exclusionary access. CEO Ashley McEvoy noted U.S. price realization has been stable to slightly up, and the company's disciplined pricing strategy has resulted in coverage wins and reduced prior authorization barriers (10 million lives simplified), which is good for patients and the category. Q: What is the timeline for seeing the impact of the Type 2 retention initiatives, and how will you know if the issue is structural?A: CEO Ashley McEvoy stated the updated guidance prudently assumes no improvement from the actions in the second half of 2026. The company is implementing programs now and will monitor monthly to see cause and effect. She reiterated confidence that this is an execution challenge, not a structural market issue, citing strong demand and the fact that retention stabilizes after the 90-day mark. Q: Can you provide more detail on the Omnipod Discover platform and its early impact on retention?A: CEO Ashley McEvoy noted that Omnipod Discover, a cloud-based platform, has over 12,000 patients and 1,600 healthcare professionals using it. COO Eric Benjamin added that early data from the limited market release shows the platform positively influences clinical outcomes, satisfaction, and retention by putting success metrics in the hands of users and facilitating better conversations with clinicians. The company is accelerating development of a modern customer data and engagement platform to build a 360-degree view of each customer. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

GE HealthCare Technologies (GEHC) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $1.04 per share. This compares to earnings of $1.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.65%. A quarter ago, it was expected that this medical technology company would post earnings of $1.07 per share when it actually produced earnings of $0.99, delivering a surprise of -7.48%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. GE HealthCare, which belongs to the Zacks Medical - Products industry, posted revenues of $5.3 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.41%. This compares to year-ago revenues of $5.01 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. GE HealthCare shares have lost about 21.8% since the beginning of the year versus the S&P 500's gain of 8.5%. While GE HealthCare has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for GE HealthCare was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.25 on $5.4 billion in revenues for the coming quarter and $4.89 on $21.71 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Insulet (PODD), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This maker of insulin infusion systems is expected to post quarterly earnings of $1.38 per share in its upcoming report, which represents a year-over-year change of +18%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. Insulet's revenues are expected to be $786.82 million, up 21.2% from the year-ago quarter. 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 GE HealthCare Technologies Inc. (GEHC) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research