Insulet Corporation (NASDAQ:PODD) announced impressive financial results for the fourth quarter of 2023, coupled with optimistic guidance for 2026. The company reported adjusted earnings of $1.55 per share, surpassing analysts’ expectations of $1.45. Insulet’s revenue for the quarter reached $783.8 million, marking a significant year-over-year increase of 31.2% or 29% when adjusted for constant currency.
The company’s revenue from Omnipod products totaled $781.8 million, representing a 33.5% increase year-on-year, or 31.3% in constant currency. The Drug Delivery segment generated revenue of $2.0 million. Insulet achieved a gross margin of 72.5%, which is a 40 basis points improvement over the previous year. Operating income amounted to $146.3 million, equating to 18.7% of revenue, also up by 40 basis points from the prior year.
Ashley McEvoy, President and CEO, expressed confidence in the company’s performance, stating, “We ended the year with another excellent quarter, demonstrating the power of our business model, the strength of our technology, and the disciplined execution of our team.”
Share Buyback Initiative
In conjunction with its strong financial performance, Insulet’s board approved a substantial increase of $350 million in the company’s share repurchase authorization. The company plans to utilize existing cash to fund these repurchases, projecting to allocate approximately $300 million towards buybacks in the first quarter of 2026. This decision reflects Insulet’s robust balance sheet and financial flexibility.
2026 Growth Projections
Looking ahead to 2026, Insulet expressed confidence in expanding its presence in the automated insulin delivery (AID) market and increasing adoption among both type 1 and type 2 diabetes patients. The company forecasts sales for fiscal 2026 to be between $3.250 billion and $3.304 billion, slightly above the consensus estimate of $3.25 billion. This projection indicates a year-over-year growth of 20%-22%, with total Omnipod product growth expected to fall between 21%-23%.
Insulet anticipates an adjusted operating margin expansion of approximately 100 basis points and projects adjusted earnings per share to increase by over 25%. For the first quarter of 2026, the expected sales range is between $705.5 million and $716.94 million, compared to the consensus forecast of $713.41 million.
As of the time of publication, Insulet shares had risen 9% to $268.52, reflecting a 16.7% increase from its 52-week low, according to data from Benzinga Pro. The company’s robust performance and strategic initiatives position it well for continued growth in the competitive diabetes management sector.
