Tandem Diabetes Care (NASDAQ:TNDM) Shares Gap Up Following Strong Earnings

Tandem Diabetes Care, Inc. (NASDAQ:TNDM)’s stock price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $18.52, but opened at $22.75. Tandem Diabetes Care shares last traded at $24.0340, with a volume of 1,091,677 shares.

The medical device company reported ($0.01) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.05) by $0.04. Tandem Diabetes Care had a negative return on equity of 70.01% and a negative net margin of 20.17%.The company had revenue of $290.38 million during the quarter, compared to analysts’ expectations of $277.14 million. During the same quarter last year, the firm earned $0.01 earnings per share. The firm’s quarterly revenue was up 15.1% compared to the same quarter last year.

Trending Headlines about Tandem Diabetes Care

Here are the key news stories impacting Tandem Diabetes Care this week:

• Positive Sentiment: Q4 beat on top- and bottom-line metrics — revenue of $290.4M (vs. consensus ~$277M), EPS loss narrower than expected and record quarterly sales and pump shipments; management highlighted margin expansion. Tandem Diabetes Care Announces Fourth Quarter and Full Year 2025 Financial Results and 2026 Financial Guidance
• Positive Sentiment: Market reaction: shares surged intraday after the results and outlook, reflecting investor enthusiasm for the beat, margin momentum and sales growth. Tandem Diabetes Shares Rise 33% On Earnings Beat, Margin Expansion, Growth Outlook
• Positive Sentiment: Analyst upgrades/raise: BofA moved TNDM from Underperform to Neutral and raised its target to $30, and several analysts raised forecasts or price targets after the upbeat quarter. These upgrades support further upside momentum. B of A Securities upgrades Tandem Diabetes Care (TNDM)
• Neutral Sentiment: FY‑2026 revenue guidance (~$1.1B) was reiterated/issued and generally in line with consensus — provides visibility but isn’t a clear upside surprise. Tandem Diabetes Care Announces Fourth Quarter and Full Year 2025 Financial Results and 2026 Financial Guidance
• Neutral Sentiment: New pay-as-you-go (subscription) model announced — could expand long-term addressable market and recurring revenue but timing and transition impact are unclear. Tandem stock rises on Q4 beats, new pay-as-you-go model
• Negative Sentiment: Analyst caution: UBS and other analysts maintained Hold ratings, flagging pay‑go transition uncertainty and competitive headwinds that could limit near-term upside — supporting more conservative views. Tandem Diabetes Care: Solid Q4 Beat Offset by PayGo Transition Uncertainty and Competitive Headwinds Supporting Hold Rating
• Negative Sentiment: Mixed price-target moves: some firms raised targets but others (e.g., Stifel’s $22 target) still imply limited near-term upside versus the current price, underscoring divergent analyst views. Tandem Diabetes price target raised by Stifel

Wall Street Analyst Weigh In

TNDM has been the subject of several research reports. Bank of America raised Tandem Diabetes Care from an “underperform” rating to a “neutral” rating and lifted their target price for the company from $15.00 to $30.00 in a research report on Friday. The Goldman Sachs Group reissued a “neutral” rating and issued a $25.00 price objective on shares of Tandem Diabetes Care in a research note on Friday, January 9th. Robert W. Baird set a $30.00 target price on shares of Tandem Diabetes Care and gave the stock an “outperform” rating in a research note on Tuesday, December 16th. Mizuho set a $22.00 target price on shares of Tandem Diabetes Care and gave the stock a “neutral” rating in a report on Friday. Finally, UBS Group reissued a “neutral” rating and issued a $22.00 price target (up previously from $17.00) on shares of Tandem Diabetes Care in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Tandem Diabetes Care presently has a consensus rating of “Hold” and an average price target of $25.50.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. State of Alaska Department of Revenue increased its position in shares of Tandem Diabetes Care by 1.4% in the 4th quarter. State of Alaska Department of Revenue now owns 38,676 shares of the medical device company’s stock valued at $849,000 after purchasing an additional 523 shares during the last quarter. ProShare Advisors LLC lifted its position in shares of Tandem Diabetes Care by 4.6% during the 4th quarter. ProShare Advisors LLC now owns 13,185 shares of the medical device company’s stock worth $290,000 after purchasing an additional 579 shares during the last quarter. Smartleaf Asset Management LLC grew its stake in shares of Tandem Diabetes Care by 80.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,330 shares of the medical device company’s stock worth $30,000 after purchasing an additional 593 shares in the last quarter. Natixis Advisors LLC increased its holdings in Tandem Diabetes Care by 1.1% in the fourth quarter. Natixis Advisors LLC now owns 57,021 shares of the medical device company’s stock valued at $1,253,000 after buying an additional 617 shares during the last quarter. Finally, Amalgamated Bank increased its holdings in Tandem Diabetes Care by 3.5% in the third quarter. Amalgamated Bank now owns 19,617 shares of the medical device company’s stock valued at $238,000 after buying an additional 657 shares during the last quarter.

Tandem Diabetes Care Stock Performance

The company has a market capitalization of $1.67 billion, a price-to-earnings ratio of -8.00 and a beta of 1.68. The company has a debt-to-equity ratio of 2.33, a current ratio of 2.44 and a quick ratio of 1.90. The stock has a 50 day simple moving average of $20.91 and a two-hundred day simple moving average of $17.01.

Tandem Diabetes Care Company Profile

Tandem Diabetes Care, Inc (NASDAQ: TNDM), headquartered in San Diego, California, is a medical device company focused on the design, development and commercialization of innovative insulin delivery systems for people with insulin-dependent diabetes. Founded in 2006, the company introduced its first product, the t:slim® Insulin Pump, in 2011 and has since built a portfolio of next-generation pumps featuring touchscreen interfaces, remote software updates and integrated continuous glucose monitoring (CGM) capabilities.

The company’s flagship offering, the t:slim X2® Insulin Pump, is engineered to work with leading CGM sensors and features automated insulin delivery algorithms that adjust basal insulin rates based on real-time glucose trends.