Insulet (PODD) AI Stock Analysis

• Market Cap: $18.15B
• Dividend Yield: N/A
• Average Volume (3M): 973.19K
• Price to Earnings (P/E): 71.2
• Beta (1Y): 0.66
• Revenue Growth: 27.12%
• EPS Growth: -41.72%
• Country: US
• Employees: 3,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 1.55
• Shares Outstanding: 70,346,900
• 10 Day Avg. Volume: 1,035,037
• 30 Day Avg. Volume: 973,193
• PEG Ratio: -1.96
• Price to Book (P/B): 13.20
• Price to Sales (P/S): 7.38
• P/FCF Ratio: 52.94
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 6.88
• Enterprise Value/Gross Profit: 9.63
• Enterprise Value/Ebitda: 38.46
• 1Y Price Target: $353.47
• Price Target Upside: 41.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $281.00 ▲(12.81% Upside)

The score is driven primarily by strong financial performance (high growth, strong margins, improved balance sheet, and positive free cash flow) and supportive earnings-call guidance/margin expansion plans. These positives are meaningfully tempered by weak technicals (downtrend with negative MACD) and a high P/E with no dividend support, which increases sensitivity to any execution or growth slowdowns.

Positive Factors

Durable Revenue Growth & Customer Adoption

Insulet has delivered multi-year, high‑teens to high‑20s revenue growth driven by record new customer starts and strong MDI-to-pump conversions (Q4: ~85% of new starts from MDI; >40% of starts were type 2). This durable adoption trend broadens the addressable market and underpins recurring pod demand and predictable top-line scaling over the next several quarters.

Structural Gross Margin & Operating Leverage

Very high gross margins reflect a favorable product mix (Omnipod 5, DASH-to-5 conversion) and scalable device economics. Combined with manufacturing scale-ups (Malaysia margin accretive and Acton/Malaysia ramps), this supports sustainable margin expansion as volumes rise and automation reduces per‑unit cost over 2–6 months and beyond.

Strong Cash Generation and Capital Flexibility

Positive free cash flow alongside a healthy cash balance and a $500M undrawn facility provide financial flexibility for capex, clinical programs and share repurchases. This combination supports durable capital allocation optionality while funding manufacturing expansions that sustain long‑term growth and defend competitive position.

Negative Factors

Guidance Deceleration and Tougher Comps

Management’s 2026 guidance implies slower growth versus 2025 due to anniversarying the type‑2 launch and prior international rollouts. Durable growth now requires continued penetration of type‑2 and new geographies; execution risk increases because sustaining mid‑20% growth demands consistent conversion and international reimbursement wins over coming quarters.

Rising Financial & Capital Deployment Pressures

Higher interest expense from refinancing and planned capex to expand manufacturing increase fixed costs and cash absorption. Combined with a large near‑term buyback program (~$300M planned in Q1), these durable cash outflows constrain flexibility and raise sensitivity to slower cash conversion or any demand hiccups across the 2–6 month horizon.

Data/Accounting Inconsistencies and One‑time Items

Abrupt debt reductions, reported EBIT margin inconsistencies and a ~$70M one‑time tax benefit in 2025 FCF reduce confidence in trend interpretation. These issues make it harder to assess sustainable margins and underlying cash generation, elevating execution and disclosure risk for investors relying on multi‑quarter fundamentals.

Insulet Business Overview & Revenue Model

Company Description

Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. It offers Omnipod System, a self-adhesive disposable tubeless Omnipod device that is worn on the body for up to three days at a time, as well as its wireless companion, the handheld personal diabetes manager. The company sells its products primarily through independent distributors and pharmacy channels, as well as directly in the United States, Canada, Europe, the Middle East, and Australia. Insulet Corporation was incorporated in 2000 and is headquartered in Acton, Massachusetts.

How the Company Makes Money

Insulet generates revenue primarily through the sale of its Omnipod Insulin Management System, which includes the disposable Omnipod devices and the associated personal diabetes management software. The company earns revenue from both direct sales to patients and through partnerships with healthcare providers and payers that facilitate access to its products. Key revenue streams include the recurring revenue from the sale of disposable pods, which patients require on a regular basis, and revenue from the initial setup of the insulin management system. Additionally, Insulet collaborates with pharmaceutical companies and health systems to integrate its technology into broader diabetes care strategies, further contributing to its earnings.

Insulet Financial Statement Overview

Summary

Strong multi-year revenue scaling and profitability improvement with very high gross margins and positive free cash flow. Balance sheet leverage appears minimal in 2025, improving flexibility. Key offsets are net margin volatility (notably the 2025 step-down), weaker recent free cash flow momentum vs. 2024, and some data-confidence issues (2025 EBIT margin inconsistency and the abrupt debt drop needing validation).

Income Statement

Revenue has scaled strongly over the period (from ~$0.9B in 2020 to ~$2.7B in 2025) with solid recent growth in 2024 and still positive growth in 2025. Profitability improved meaningfully versus the low-profit years (2020–2022), and 2025 shows very strong gross margin (~72%) and a healthy EBITDA margin (~17%). The main weakness is earnings volatility: net margin peaked in 2024 (~20%) but fell materially in 2025 (~9%), and 2025 shows an EBIT margin data inconsistency (reported as 0% despite positive EBIT), which reduces confidence in margin trend interpretation for that year.

Balance Sheet

The balance sheet looks significantly stronger in 2025, with very low debt (~$18M) against a sizeable equity base (~$1.5B), implying minimal leverage and improved financial flexibility versus 2021–2024 when debt-to-equity was elevated (generally >1x and as high as ~3.0x in 2022). Returns on equity improved sharply from very low levels in 2020–2022 to strong levels in 2023–2025 (mid-teens to mid-30s). A key watch item is the dramatic drop in total debt from 2024 to 2025, which may reflect a major deleveraging event or classification change—investors should validate the sustainability and drivers of that shift.

Cash Flow

Cash generation improved substantially from earlier years, with operating cash flow rising to ~$569M in 2025 and free cash flow positive at ~$378M (a major turnaround versus negative free cash flow in 2020–2022). Cash conversion is generally supportive, with free cash flow running at roughly two-thirds to ~70% of net income in 2023–2025. The weakness is recent momentum: 2025 free cash flow declined versus 2024 (negative free cash flow growth), and operating cash flow has not fully covered reported earnings in recent years (coverage below 1x), suggesting working-capital or timing headwinds.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.52B	2.71B	2.07B	1.70B	1.31B	1.10B
Gross Profit	1.80B	1.94B	1.45B	1.16B	805.60M	752.10M
EBITDA	451.20M	586.90M	423.70M	323.60M	109.00M	139.60M
Net Income	246.20M	247.10M	418.30M	206.30M	4.60M	16.80M
Balance Sheet
Total Assets	3.03B	3.19B	3.09B	2.59B	2.25B	2.05B
Cash, Cash Equivalents and Short-Term Investments	757.40M	716.10M	953.40M	704.20M	674.70M	791.60M
Total Debt	1.03B	1.05B	1.42B	1.45B	1.43B	1.29B
Total Liabilities	1.65B	1.68B	1.88B	1.86B	1.77B	1.49B
Stockholders Equity	1.38B	1.52B	1.21B	732.70M	476.40M	556.30M
Cash Flow
Free Cash Flow	421.20M	377.70M	305.40M	70.10M	-38.30M	-190.80M
Operating Cash Flow	533.70M	569.30M	430.30M	145.70M	119.00M	-68.10M
Investing Cash Flow	-137.90M	-222.70M	-146.20M	-119.40M	-191.10M	-82.70M
Financing Cash Flow	-543.70M	-595.30M	-28.10M	-13.60M	-40.30M	40.70M

Insulet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 249.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PODD, the sentiment is Negative. The current price of 249.1 is below the 20-day moving average (MA) of 254.35, below the 50-day MA of 275.06, and below the 200-day MA of 304.66, indicating a bearish trend. The MACD of -8.82 indicates Negative momentum. The RSI at 41.03 is Neutral, neither overbought nor oversold. The STOCH value of 38.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PODD.

Insulet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DXCM	71 Outperform	$28.02B	34.53	34.50%	―	14.21%	5.66%
STE	69 Neutral	$24.46B	34.50	10.44%	0.94%	5.15%	60.30%
PODD	68 Neutral	$18.15B	71.16	18.12%	―	27.12%	-41.72%
ZBH	65 Neutral	$19.47B	27.68	5.60%	1.05%	5.47%	-23.03%
PHG	64 Neutral	$29.74B	29.52	―	3.30%	-0.76%	-55.03%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TNDM	45 Neutral	$1.28B	-6.07	-109.73%	―	17.87%	-57.03%

Insulet Corporate Events

Insulet Posts Strong Q4 Results, Expands Share Repurchase Program

Insulet reported strong fourth-quarter and full-year 2025 results on February 18, 2026, with revenue up about 31% for both periods and constant-currency growth of roughly 29% to 30%, marking a 10th straight year of at least 20% constant-currency revenue expansion. Growth was driven by the Omnipod franchise, particularly internationally, with higher gross margins, expanding operating margins, robust free cash flow, rising adjusted earnings, and record new customer starts that reinforced its leadership in automated insulin delivery systems.

The company’s board on February 13, 2026, approved a $350 million increase to its stock repurchase authorization, raising the total program to $475 million and leaving $415 million available as of February 16, with about $300 million earmarked for buybacks in the first quarter of 2026. Management framed the enlarged repurchase program and its 2026 guidance for low‑20% revenue growth and further adjusted margin expansion as signals of financial strength, capital discipline, and confidence in Insulet’s long-term competitive position and ability to deliver value to shareholders.

The most recent analyst rating on (PODD) stock is a Hold with a $274.00 price target. To see the full list of analyst forecasts on Insulet stock, see the PODD Stock Forecast page.

Insulet Extends Key Supply Agreement with NXP USA

On January 29, 2026, Insulet Corporation and NXP USA, Inc. entered into a 2026 Addendum, effective January 1, 2026, that extends the term of their existing 2017 purchase agreement and revises conditions related to pricing, product volume, and order flexibility. The amended arrangement is intended to secure continued supply and more adaptable commercial terms, which may enhance Insulet’s operational stability and cost management in its supply chain and could strengthen its positioning in securing critical components for its medical device production.

The most recent analyst rating on (PODD) stock is a Hold with a $280.00 price target. To see the full list of analyst forecasts on Insulet stock, see the PODD Stock Forecast page.

Insulet Revises Annual Incentive Plan for 2026

Insulet announced amendments to its Annual Incentive Plan effective January 1, 2026, with revisions that impact terms regarding termination, retirement eligibility for prorated awards, compensation recoupment, and award limits. These changes aim to refine operational clarity and position the company competitively in managing executive compensations, which may influence stakeholder trust and employee motivation.

The most recent analyst rating on (PODD) stock is a Buy with a $370.00 price target. To see the full list of analyst forecasts on Insulet stock, see the PODD Stock Forecast page.