Insulet Corporation

What they do

Insulet develops, manufactures, and sells the Omnipod platform, which includes Omnipod 5, Omnipod DASH, and Classic Omnipod systems for people with type 1 and type 2 diabetes. It also produces pods for Amgen's Neulasta Onpro kit, a drug delivery system for chemotherapy patients.

Revenue drivers

• U.S. Omnipod Products — Largest revenue segment at $1,919.8 million in 2025 (70.9% of total revenue), primarily driven by recurring disposable Pod sales and growing customer base. Includes $511.6 million of related party revenue in 2025.
• International Omnipod Products — Revenue of $754.3 million in 2025 (27.9% of total), growing 44.1% year-over-year (39.3% constant currency) driven by Omnipod 5 launches and higher average selling price.
• Drug Delivery — Revenue of $34.1 million in 2025 (1.3% of total) from pods sold to Amgen for the Neulasta Onpro kit. Declined 12.3% year-over-year.

Recent performance

In Q2 2026, total revenue was $801.7 million, up 23.5% (22.7% constant currency), exceeding the company's guidance. U.S. Omnipod revenue grew 20.1% to $544.1 million, International Omnipod revenue grew 35.5% to $251.8 million. Net income was $95.0 million ($1.37 diluted EPS) compared to $22.5 million ($0.32) in Q2 2025. Adjusted net income was $115.0 million, up 37.4% year-over-year.

Strategy

Insulet is driving growth through Omnipod 5, which received FDA clearance for type 2 diabetes in August 2024, and by expanding international presence (now 26 countries, 20 with Omnipod 5). The company discontinued Omnipod GO to focus on type 2 market with Omnipod 5. Innovation focuses on next-generation algorithm, broader sensor compatibility (Abbott FreeStyle Libre 3 Plus), and fully closed-loop technology (EVOLUTION 3 study). Partnerships like Calm aim to support whole-person care for the diabetes community.

Risks

• Product Concentration — Insulet derives nearly all revenue from the Omnipod platform; failure to market or retain customers would materially harm results.
• Customer Retention — Revenue growth depends on retaining a high percentage of customers; competitive or product issues could reduce retention.
• Scaling Rapid Growth — Expanding customer base, international operations, and type 2 market entry may strain manufacturing, personnel, and resources.
• Tariff Exposure — If the medical device tariff exemption is eliminated, tariffs would have a material impact on future results of operations.

Outlook

For FY 2026, management expects total Omnipod revenue growth of 21%-23% constant currency, adjusted operating margin expansion of 100 basis points year-over-year, and adjusted EPS growth of 30%. The company revised its U.S. Omnipod guidance down to 17%-19% (from 20%-22%) due to learnings from scaling in type 2 diabetes, but reiterated conviction in the long-term opportunity.