Insulet Reports Q3 Revenue Growth, Raises Outlook to High End

Insulet (NASDAQ: PODD ) reported third-quarter financial results on Wednesday. The transcript from the company's third-quarter earnings call has been provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

View the webcast at Summary Insulet Corporation reported strong third-quarter 2026 results with a 20% year-over-year revenue increase and guided towards the high end of their full-year outlook. The company achieved significant growth in international markets with a 33% increase and reported increased global customer base growth of over 20%. Insulet announced a $1 billion increase in share repurchase authorization, allocating $400 million for Q4, funded by cash on hand. The company is preparing for the launch of Omnipod 6 in 2027 and expects a more dynamic competitive environment with new products entering the market.

Management remains confident in the company's long-term growth prospects and highlighted advancements in their innovation pipeline, including Omnipod Discover and the fully closed loop system for type 2 diabetes. Full Transcript OPERATOR Good morning and welcome to the Insulet Corporation third quarter 2026 earnings call. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Claire Trachtman, Vice President, Investor Relations.

Please go ahead. Claire Trachtman (Vice President, Investor Relations) Good morning and welcome to our third quarter 2026 earnings call. Joining me today are Ashley McEvoy, President and Chief Executive Officer, and Flavia Peace, Chief Financial Officer. On the call this morning we will be discussing Insulet's third quarter results along with our financial outlook for the fourth 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 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, and I will be available to address any questions. Now I'd like to turn the call over to Ashley. Ashley.

Ashley McEvoy (President & Chief Executive Officer) Good morning everyone and thanks for joining us to discuss our third quarter results. Our teams delivered a strong quarter with U.S. performance in our guidance range and international performance that exceeded our plans. As we near the end of the year, we've narrowed our total company full year outlook to the top end of our prior range to reflect this strength.

Throughout the quarter we continued advancing our strategic priorities, strengthening our commercial capabilities and execution, accelerating innovation and expanding the category by increasing access and building relationships with prescribers. Importantly, we made progress against the type 2 action plans we laid out on our quarter 2 call. We are pleased with our progress in the quarter and I want to take a step back and provide some broader perspective. Insulet has a strong leadership position in one of the largest, fastest growing and most underpenetrated segments in MedTech.

We are actively extending our leadership in automated insulin delivery and are confident that Omnipod will continue winning a leading share of MDI converts to AID, providing the foundation for sustained top-tier growth. We are clear-eyed and confident about Insulet's near and long term prospects for growth and outsized value creation, factoring in new competitive products entering the market as well as our own product pipeline. Let's jump into the details starting with our performance. In the third quarter we achieved revenue of 842 million, up nearly 20% year over year with approximately 15% growth in the U.S.

and 33% growth internationally. Our increased revenue was supported by over 20% growth in our global customer base compared to the prior year period. You may recall that we ended last year with more than 600,000 global customers and we continue to drive a 20% plus growth rate versus year-ago levels. This installed base provides a substantial recurring revenue foundation as well as a growing source of real-world evidence and data.

Globally, new customer starts grew low single digits versus the year-ago period and year to date, new customer starts have grown low double digits. The majority of people with diabetes who convert from MDI to AID choose Omnipod and over 85% of Omnipod new customer starts come from MDI, demonstrating our success growing the category. There continues to be a large delta between CGM and AID across our markets despite ADA guidelines recommending AID as the standard of care and we see a significant opportunity to grow the AID market and reduce the burden of diabetes for millions of people worldwide.

New customer starts in quarter three were again balanced across type 1 and type 2 globally, with type 2 diabetes patients accounting for over 40% of U.S. starts. We have not observed an impact from increased GLP-1 use on type 2 new customer starts and we continue to view GLP-1s as complementary to insulin. We delivered record gross margin and expanded operating margin in the quarter, reflecting Insulet's industry-leading manufacturing capabilities and ongoing productivity improvements.

At the same time, we continue to invest in the company's innovation pipeline and commercial capabilities. As I mentioned, we've narrowed our full year revenue guidance to the top end of our prior range, reflecting third quarter results and our expectations for continued momentum in the fourth quarter. As we get closer to 2027, we are providing an updated perspective for next year. We expect the pace of innovation across the category to increase next year, including our launch of Omnipod 6 which will accelerate market growth over time.

At the same time, we expect the competitive environment to become more dynamic as new products come on the market. We plan to take a more conservative approach to our 2027 outlook. While we remain highly confident in Insulet's long-term growth opportunities, Flavia will walk through what this means in terms of our full year 2026 guidance range and our updated perspective for 2027. Before I turn to our strategic priorities, I want to note the share repurchase we announced this morning.

The Board approved a billion-dollar increase in our share repurchase authorization. The company expects to allocate 400 million toward repurchases in quarter four. Funded with cash on hand, these plans reflect our confidence in the strength of the Omnipod platform, our robust pipeline and the company's long-term trajectory. Insulet has the balance sheet and cash flow to facilitate the repurchases while we continue investing in our future.

Now let me turn to the progress we continue to make against our strategic priorities: strengthening our commercial capabilities and execution, driving innovation, and expanding the category. First, commercial capabilities and execution. We are taking the right actions to build long-term relationships with people with type 1 and type 2 diabetes and the global healthcare providers who care for them. In quarter three, we completed our second U.S.

salesforce expansion in two years, increasing our footprint by nearly 25%. In this latest phase, our field representatives also completed a new four-month certification program preparing them to communicate the clinical and real-world value of Omnipod more effectively. In August, we rolled out the company's first new CRM platform in more than a decade to our U.S. sales team.

Optimization is ongoing and we continue to educate our teams on how to make the most of these new capabilities. We expect the new platform to facilitate better targeting, more effective message delivery, faster decision making and closer collaboration over time. Specific to type 2 diabetes, we have now put in place the action plan we shared with you all on the quarter 2 call and we are pleased with our progress in improving the quality of starts, the onboarding experience and the first 90 days of the customer journey. We adjusted our salesforce compensation so it now adds a customer retention element and refined our approach for deploying samples.

We also continued to strengthen our customer care team by adding clinical specialists focused on retention. We have begun to see an improvement in our sampling program and onboarding and saw type 2 retention rates improve modestly in the third quarter. We expect to see the impact of these initiatives continue to build over time, consistent with our type 2 action plan. As well as our strategic priority to accelerate innovation that improves outcomes, we completed the full market release of Omnipod Discover in the U.S.

in October. Every day our products make over 100 million automated dosing decisions and process over 850 million data messages, giving us one of the largest real-world diabetes data sets. This data enables Omnipod Discover, our proprietary engagement platform, to deliver personalized insights and decision support to strengthen engagement, outcomes and customer loyalty for people with diabetes and healthcare providers using Omnipod. During the Omnipod Discover limited market release, we saw stronger retention, increased time in range and three-quarters of our users reported feeling more confident managing their diabetes.

In October, we began onboarding people with diabetes regardless of healthcare professional enrollment and we have seen very strong engagement. As of this call, Discover has been adopted by more than 35,000 users. We are in the early innings of this platform but believe Omnipod Discover will be another differentiator for Insulet as people seek more connected and self-managed health solutions. Another recent advancement is our new algorithm enhancement, the most significant improvement to Omnipod 5 since its launch.

Now in full retail across the U.S., the updated algorithm adds a new 100 mg per deciliter target and fewer automated delivery restriction alarms so users stay in automated mode longer. Real-world evidence shows users achieve more time in range without a meaningful increase in lows, reinforcing Omnipod 5's leadership in delivering strong outcomes with a simple, seamless experience. Robust algorithm innovation will continue to be an important focus with an emphasis on helping more people address their needs in a differentiated manner.

Our expansive real-world diabetes data set gives us a unique opportunity to continue building upon our industry-leading position while improving outcomes for Omnipod users. We're excited about this flywheel of innovation and patient impact and what it means for people with diabetes and all our stakeholders. In quarter two, we expanded sensor choice through our U.S. integration with FreeStyle Libre 3 Plus and, as of today, we have extended integration to 10 new markets.

The iOS platform for Libre 3 is underway with U.S. limited market release expected in quarter four, providing access to 450,000 MDI users. Our teams are executing against this opportunity. At the same time we are advancing our broader innovation roadmap including Omnipod 6 and Omnipod fully closed loop for type 2 diabetes.

Omnipod 6 adapts to how you bolus; with 40% fewer boluses, adults and adolescents with type 1 diabetes spent 76% of time in range on Omnipod 6. We have submitted the second and final 510(k) for Omnipod 6 and continue to expect launch in 2027. We believe we are better prepared for the Omnipod 6 launch than we have been for any launch in our history, from customer targeting and marketing to manufacturing and international expansion. Our fully closed loop system for people with type 2 diabetes is a transformational opportunity to move additional MDI users onto AID.

It offers people with type 2 diabetes a user-friendly experience nearly identical to CGM with no user boluses or settings required and training completed at home in less than 40 minutes. Last month at EASD we highlighted the significance of this innovation with the Evolution 3 feasibility study which demonstrated adults with type 2 diabetes using both a GLP-1 and CGM saw additional time in range benefit and had no user-initiated boluses. We completed enrollment in the Evolve pivotal study and continue to target a 510(k) submission in 2027 with a planned launch in 2028. Our market-leading innovation and R&D spend will drive significant future product differentiation.

Now turning to our last strategic priority, expanding access and developing the category. In the U.S. we continue to extend our prescriber base this quarter with nearly 34,000 healthcare providers now prescribing Omnipod, up more than 20% year over year. Outside of the United States, we successfully launched in Spain which has 175,000 people with type 1 diabetes and 200,000 people with type 2 diabetes on MDI.

In the U.S. we have finalized one of our three PBM contracts for 2027 and expect to complete the remaining two in the next few weeks. Our goal is to maintain broad access to Omnipod and strengthen our leading position across the pharmacy channel. We have a broad-based supply chain network across Acton, Malaysia and, in the coming years, Costa Rica which provides us with the resiliency and capital efficiency to produce tens of millions of pods every year.

Our execution against these strategic priorities positions us to extend Insulet's leadership position in AID even with new products coming to market and continue to deliver top-tier revenue growth and value creation. Omnipod 5 captures the majority of new AID customers today and AID is one of the largest, fastest growing and most underpenetrated segments in MedTech. Over the past five years, Insulet has driven two-thirds of global market growth. Our SG&A is over half of category spend and our R&D is nearly half of category spend.

Across our markets there is still a significant delta between AID and CGM penetration, providing a meaningful opportunity for us to continue to grow the category. Based on our latest survey across six countries, Omnipod is the number one AID choice among providers and people with diabetes. Awareness of Omnipod among people on MDI is now 67% in the U.S., 84% in the U.K. and 74% in Canada, up significantly in each market versus last year and well ahead of other AID brands.

Across every market studied, lifestyle fit and confidence in managing diabetes ranked among the most important factors associated with patients' choice of AID and these are the reasons people with diabetes choose Omnipod. And it's not just our customers. Prescribers view Omnipod as the most differentiated AID on the market. Omnipod continues to lead among U.S.

healthcare professionals on key measures: preference, prescribing intent, satisfaction, trust and brand affinity. We continue to strengthen prescriber perception of Omnipod across markets through professional education, clinical evidence and innovation. At EASD we presented our largest data set of international real-world data to date showing consistent time in range improvements across more than 384,000 people with type 1 diabetes in 17 countries and we are not slowing down. Our innovation pipeline is the strongest in the company's history and provides a clear pathway for us to remain the AID of choice among new and existing AID users.

In addition to our unique form factor and highly differentiated customer experience, we have manufacturing and operating scale and unrivaled financial capacity which provide durable competitive moats. We invested billions of dollars over decades to build our manufacturing capabilities and scale. Competitors will be producing a fraction of what we make in their initial years on the market. We will also benefit from our well-established market-leading position.

Insulet has the largest customer base, the highest brand awareness, one of the largest data sets of real-world diabetes evidence and we are the number one most requested and number one most prescribed brand for people with diabetes. For all of these reasons we are going to continue to get a disproportionate share of new starts, and studies show that once people with diabetes convert to an AID they are unlikely to switch brands. The path forward is clear. We will continue to expand the AID market and as the AID market grows, we grow too.

To close, our quarter 3 results reflect the strength of Insulet's model. We are enhancing the customer experience and onboarding journey, accelerating our innovation roadmap and expanding the category.