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

Tandem Diabetes Care, Inc. (NASDAQ:TNDM)’s stock price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. 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 traded.

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

Key Stories Impacting 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

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on TNDM shares. Robert W. Baird set a $30.00 price objective on shares of Tandem Diabetes Care and gave the stock an “outperform” rating in a research note on Tuesday, December 16th. Morgan Stanley set a $23.00 price target on shares of Tandem Diabetes Care and gave the company an “equal weight” rating in a report on Tuesday, December 2nd. The Goldman Sachs Group reiterated a “neutral” rating and set a $25.00 price objective on shares of Tandem Diabetes Care in a research note on Friday, January 9th. Mizuho set a $22.00 price objective on shares of Tandem Diabetes Care and gave the company a “neutral” rating in a report on Friday. Finally, Truist Financial set a $24.00 price objective on shares of Tandem Diabetes Care and gave the stock a “hold” rating in a research note on Thursday, December 18th. One 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 given a Sell rating to the company’s stock. According to data from MarketBeat, Tandem Diabetes Care has an average rating of “Hold” and an average target price of $25.50.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd boosted its stake in Tandem Diabetes Care by 200.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 2,205 shares of the medical device company’s stock valued at $27,000 after acquiring an additional 1,470 shares in the last quarter. Smartleaf Asset Management LLC increased its position 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. Quarry LP lifted its holdings in shares of Tandem Diabetes Care by 2,597.1% during the 3rd quarter. Quarry LP now owns 3,695 shares of the medical device company’s stock valued at $45,000 after purchasing an additional 3,558 shares during the last quarter. CWM LLC boosted its position in shares of Tandem Diabetes Care by 262.6% in the 2nd quarter. CWM LLC now owns 2,796 shares of the medical device company’s stock worth $52,000 after purchasing an additional 2,025 shares in the last quarter. Finally, CoreCap Advisors LLC boosted its position in shares of Tandem Diabetes Care by 270.3% in the 3rd quarter. CoreCap Advisors LLC now owns 4,751 shares of the medical device company’s stock worth $58,000 after purchasing an additional 3,468 shares in the last quarter.

Tandem Diabetes Care Trading Up 32.7%

The company has a 50 day moving average of $20.91 and a two-hundred day moving average of $17.02. The stock has a market capitalization of $1.67 billion, a PE ratio of -8.00 and a beta of 1.68. The company has a debt-to-equity ratio of 2.33, a quick ratio of 1.90 and a current ratio of 2.44.

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.