Overview
BTIG reaffirmed a Buy recommendation on Insulet Corporation (NASDAQ: PODD) and kept a $380.00 price target following the company’s fourth-quarter financial release. The designated target represents roughly 47% upside relative to a reference stock price of $258.77.
Top-line performance
Insulet reported fourth-quarter revenue of $783.8 million, an increase of 31.2% year-over-year and 29% in constant currency. The result exceeded the consensus estimate of $769 million and topped the company's implied guidance range of approximately $749 million to $770 million. U.S. Omnipod revenue was $567.8 million, up 28% year-over-year, while international Omnipod revenue reached $214.0 million, rising 41.7% year-over-year in constant currency. The quarter continues a multi-year growth trajectory that corresponds with a reported five-year revenue compound annual growth rate of 23%.
Profitability and margins
Gross margin for the quarter came in at 72.5%, which was 100 basis points higher than the consensus estimate of 71.5%. Adjusted EBIT margin was 18.7%, beating the consensus forecast of 18.1% by 60 basis points despite an increase in research and development expenditures. These margin metrics align with the company’s last twelve months gross profit margin of 70.9% and contribute to an elevated overall financial health assessment.
Forward guidance
For 2026, Insulet provided guidance calling for total sales between $3.277 billion and $3.331 billion. That range implies growth of 21% to 23% on a reported basis and 20% to 22% in constant currency, versus a consensus estimate of $3.254 billion. Within that guidance, U.S. Omnipod revenue is expected to be $2.304 billion to $2.342 billion, while international Omnipod revenue is projected at $958 million to $973 million. The company’s outlook is presented as consistent with its previously stated 30% revenue growth forecast for fiscal 2025.
Valuation and balance-sheet notes
BTIG’s maintained price target reflects application of approximately a 7x multiple to its 12-24 month sales forecast. Insulet’s reported valuation metrics are elevated, with a price-to-earnings ratio of 75.35 and an EV/EBITDA multiple of 36.3. Alongside those high multiples, analysis identifies balance-sheet strengths including liquid assets that exceed short-term obligations and moderate levels of debt.
Earnings per share and market reaction
In related reporting of the quarter, Insulet’s revenue was also noted as $784 million and while revenue exceeded expectations, earnings per share came in slightly below forecasts at $1.44. The marginal EPS miss did not obscure the broader market interest in the company’s positive 2026 outlook, with analysts citing strong revenue growth as a major factor supporting more optimistic sentiment.
Analyst methodology
BTIG’s decision to retain the Buy rating and the $380 target hinges on its multiple-based approach applied to near-term sales projections and on the combination of accelerating top-line growth and robust gross margins. The valuation remains high by conventional metrics, but the firm’s view is balanced by Insulet’s liquidity position and manageable leverage.
Conclusion
The fourth-quarter results present a mixed but largely constructive picture: revenue and margins exceeded expectations and the company issued 2026 guidance that anticipates continued double-digit growth, while adjusted EPS slightly missed estimates. BTIG’s reiteration of its Buy call and the $380 target reflects confidence in Insulet’s revenue trajectory and margin profile despite rich valuation multiples.
Key points
- BTIG reaffirmed a Buy rating and $380.00 price target on Insulet, implying nearly 47% upside from $258.77.
- Q4 revenue of $783.8 million beat consensus; U.S. Omnipod revenue rose 28% and international Omnipod revenue rose 41.7% in constant currency.
- Guidance for 2026 calls for $3.277 billion to $3.331 billion in sales, supporting continued high growth expectations.
Risks and uncertainties
- High valuation multiples - P/E of 75.35 and EV/EBITDA of 36.3 may increase sensitivity to any negative revisions in growth or margins (impacts equity markets and healthcare sector valuations).
- EPS slightly missed expectations at $1.44 despite revenue beat, highlighting potential volatility in per-share profitability (impacts investor sentiment in medtech and growth stocks).
- Guidance and forecasts rely on sustained revenue execution across U.S. and international markets; any deviation could affect expected growth trajectories (impacts revenue-driven forecasts in healthcare and medical device sectors).