Voluntary Medical Device Corrections (MDCs) Impact
Two voluntary MDCs for cannula tear issues resulted in a $29.3 million net charge in Q2, with total estimated costs of $60–70 million expected through 2027.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Insulet's Q2 FY2026 was defined by strong 22.7% constant currency revenue growth, fueled by expanding Omnipod 5 adoption in both U.S. and international markets. Operating margin, however, contracted as selling, general and administrative expenses surged 33.8% year-over-year on headcount and market development investments, while a $29.3 million charge for voluntary medical device corrections (MDCs) partially offset gross margin improvement. Net income soared 322.2% to $95.0 million, primarily because the prior-year quarter included an $84.4 million loss from debt extinguishment that did not recur. The company faces ongoing pressure to manage rising costs and quality issues while investing for future growth.
Revenue
$801.7M
+23.51% YoY
EPS (Diluted)
$1.37
+328.13% YoY
Gross Margin
70.2%
+0.5 pts YoY
Operating Income
$129.7M
+7.10% YoY
Source: SEC XBRL
Insulet (PODD) reported Q2 FY2026 revenue of $801.7M, up 23.5% year over year. Operating margin was 16.2%, down 2.5 points from 18.7% a year earlier. PODD's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.66 | 1.48 | Beat +12.2% |
| Mar 2026 | 1.42 | 1.22 | Beat +16.2% |
| Dec 2025 | 1.55 | 1.48 | Beat +4.5% |
| Sep 2025 | 1.24 | 1.16 | Beat +6.5% |
Adjusted (non-GAAP) EPS of $1.66 versus the $1.48 analyst consensus — a +12.2% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.37.
Compiled by AI from 10-Q Item 2 of this filing
Two voluntary MDCs for cannula tear issues resulted in a $29.3 million net charge in Q2, with total estimated costs of $60–70 million expected through 2027.
Source: 10-Q Item 2 MD&A
Omnipod 5 launched in Spain and the Middle East; U.S. rollout of algorithm enhancements including a lower 100mg/dL target glucose set point and integration with Abbott's Freestyle Libre 3 Plus sensor.
Source: 10-Q Item 2 MD&A
SG&A expenses increased 33.8% due to headcount additions, market development investments, and the prior-year reversal of stock-based compensation from the former CEO's departure amplifying the comparison.
Source: 10-Q Item 2 MD&A
Management expects strong U.S. and international revenue growth, net interest expense to rise to approximately $40 million, and capital expenditure increases to support manufacturing expansion.
Source: 10-Q Item 2 MD&A
Free cash flow dropped to $145.4 million from $229.4 million, driven by a $94.5 million working capital outflow and higher capital expenditures for new manufacturing facilities.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
The MDCs and the $29.3 million charge highlight the potential for future manufacturing issues that could lead to recalls, financial penalties, or reputational harm, impacting revenue and margins.
Source: 10-Q Income Statement (XBRL)
SG&A expenses grew 33.8% year-over-year, outpacing revenue growth and compressing operating margin; if this trend continues, profitability could suffer if revenue growth slows.
Source: 10-Q Income Statement (XBRL)
Cash and cash equivalents declined to $534.9 million from $716.1 million, and operating cash flow decreased 22.3% YTD, partly due to working capital outflows; sustained capital returns and capex may strain liquidity.
Source: 10-Q Balance Sheet (XBRL)
Over 99% of revenue comes from the Omnipod platform; any loss of market share, regulatory changes, or technological disruption could materially impact revenue and growth prospects.
Source: 10-Q Income Statement (XBRL)
A $77.4 million semiconductor chip purchase agreement with NXP USA indicates reliance on sole-source suppliers, exposing the company to supply chain disruptions or price fluctuations.
Source: 10-Q MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 801.70 $M | 649.10 $M | +23.51% |
Cost of Revenue $M | 239.10 $M | 196.90 $M | +21.43% |
Gross Profit $M | 562.60 $M | 452.20 $M | +24.41% |
Operating Income $M | 129.70 $M | 121.10 $M | +7.10% |
Net Income $M | 95.00 $M | 22.50 $M | +322.22% |
EPS (Basic) $ | 1.37 $ | 0.32 $ | +328.13% |
EPS (Diluted) $ | 1.37 $ | 0.32 $ | +328.13% |
R&D Expense $M | 88.10 $M | 73.40 $M | +20.03% |
SG&A Expense $M | 344.80 $M | 257.70 $M | +33.80% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
PODD delivered a strong Q1 FY2026 with revenue surging 33.9% YoY to $761.7M and net income more than doubling to $91.1M, while the company returned $300M to shareholders via buybacks.
Insulet Corporation (PODD) delivered strong FY2025 revenue growth of 30.7% to $2.71B, with operating income surging 53.4%, though net income fell 40.9% to $247.1M due to non-operating charges, while operating cash flow reached a record $569.3M.
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