Oppenheimer has reduced its price target for Insulet Corporation (NASDAQ:PODD) to $300 from $365 but retained an Outperform rating on the medical-device maker. The firm revised its estimates after Insulet released fourth-quarter 2025 results and fiscal 2026 guidance, while market data shows the stock trading at $258.07 and appearing undervalued relative to its Fair Value, with analysts still broadly recommending a buy.
Insulet reported fourth-quarter sales of $784 million, an increase of 29% in constant currency. That topline beat both Oppenheimer’s internal projection of $768 million and the consensus forecast of $769 million. On a trailing-12-month basis the company has demonstrated substantial expansion, with revenue rising 27.11% to a total of $2.52 billion.
For fiscal 2026 the company provided revenue growth guidance of 21% to 23% on a reported basis and 20% to 22% in constant currency. Those ranges compare with Oppenheimer’s previous projection of 20% growth and the consensus estimate of 21%.
Insulet’s market capitalization stands at $18.15 billion, and InvestingPro assigns the company a "GREAT" overall financial health score. That said, the stock trades at a high price-to-earnings multiple of 70.79, reflecting elevated expectations for future profitability.
Analysts at Oppenheimer highlighted product and market dynamics in their note. They identified Type 2 diabetes patients as an important source of new patient starts but cautioned that relative retention and utilization metrics for this cohort are not yet clear. The firm reiterated that Insulet’s O5 patch pump remains the dominant product in the market and judged the company to have significant total addressable market remaining. Oppenheimer characterized Insulet’s long-term plan targeting roughly 20% growth as conservative.
Looking beyond fiscal 2026, Oppenheimer introduced fiscal 2027 estimates and pointed to upcoming product and algorithm milestones as the next key catalysts. Specifically, the O6 form factor and a closed-loop algorithm tailored to Type 2 diabetes were identified as developments to watch.
Other broker reactions were consistent in tone. Canaccord Genuity, which had estimated fourth-quarter revenue at $772.5 million, saw the actual result of $783.8 million as stronger than expected. In response Canaccord lowered its own price target for Insulet from $450 to $435 while keeping a Buy rating. BTIG also reiterated a Buy stance and set a $380 price target, citing the robust fourth-quarter revenue performance.
Insulet’s reported fourth-quarter revenue of $783.8 million represented a 31.2% year-over-year increase in constant currency, topping both Canaccord’s and consensus estimates. U.S. Omnipod revenue reached $567.8 million, up 28% year-over-year, and international Omnipod sales rose 41.7% in constant currency to $214 million. Despite the strong revenue results, earnings per share slightly missed forecasts, coming in at $1.44.
The combined picture from the results and the analyst notes is one of sustained revenue momentum, ongoing product leadership with the O5 patch pump, and near-term investor scrutiny around valuation and early metrics for Type 2 adoption and retention. Analysts have adjusted price targets but largely maintained positive ratings, reflecting continued confidence in Insulet’s growth runway even as some expectations were tempered.
Key takeaways:
- Oppenheimer lowered Insulet’s price target from $365 to $300 but kept an Outperform rating.
- Insulet exceeded fourth-quarter revenue estimates with $784 million in sales and provided fiscal 2026 guidance of 20-23% growth (constant currency: 20-22%).
- Analysts highlighted product leadership of the O5 patch pump and identified the O6 form factor and Type 2 closed-loop algorithm as upcoming catalysts.
Details and context:
- Fiscal metrics show trailing-12-month revenue of $2.52 billion and a market cap of $18.15 billion.
- U.S. Omnipod revenue rose to $567.8 million, international revenue to $214 million; EPS for the quarter was $1.44, slightly missing estimates.
- Canaccord and BTIG also adjusted price targets but maintained Buy ratings, reflecting broad analyst confidence despite target reductions.