Insulet drops 20% after cutting guidance on weak Type 2 retention

What happened

Insulet Corporation (NASDAQ: PODD) reported second-quarter 2026 results on August 5 that exceeded analyst estimates for revenue and adjusted earnings per share. However, the company lowered its full-year 2026 constant-currency revenue growth guidance, citing weaker-than-expected retention and usage among type 2 diabetes patients in the first 90 days of Omnipod use.

Shares fell approximately 20% on the day, closing at $133.26, according to market data.

The filing

In its press release, Insulet reported Q2 revenue of $801.7 million, up 23.5% year-over-year and above consensus estimates. Adjusted EPS came in at $1.66, also beating forecasts.

The company cut its full-year 2026 constant-currency total revenue growth guidance to 20%–22% from a prior range of 21%–23%. For U.S. Omnipod specifically, it lowered the growth outlook to 17%–19% from 20%–22%. CEO Jim Hollingshead said the revision reflects weaker retention and lower usage among type 2 diabetes customers during their first 90 days on the device, per the press release and Reuters.

Market reaction

Investors reacted negatively to the reduced guidance, sending Insulet shares down nearly 21% on August 5. The stock closed at $133.26, a decline of $33.57 from the previous close, according to pricing data. The move erased billions in market value and marked one of the stock's largest single-day drops in recent years.