- Total Revenue: $802 million in Q2 2026, up 23.5% on a reported basis and 22.7% on a constant currency basis.
- U.S. Omnipod Revenue: Grew 20% during the quarter.
- International Omnipod Revenue: Grew over 35% on a reported basis and 33% on a constant currency basis.
- Adjusted Gross Margin: 72.9%, up 320 basis points year over year.
- Adjusted Operating Margin: 19.3%, up 140 basis points year over year.
- Adjusted EPS: $1.66, up 41.5% from $1.17 in the prior year.
- Net Interest Expense: $9.9 million in Q2.
- Adjusted Tax Rate: 19.8% for Q2.
- Cash and Investments: $535 million at quarter end, with $500 million available under revolving credit facility.
- Free Cash Flow: $145 million generated year-to-date.
- Full-Year 2026 Revenue Growth Outlook: 20% to 22% for total company and 21% to 23% for total Omnipod on a constant currency basis.
- Full-Year 2026 U.S. Omnipod Revenue Growth Outlook: 17% to 19%.
- Full-Year 2026 International Omnipod Revenue Growth Outlook: 30% to 32% on a constant currency basis.
- Q3 2026 Revenue Growth Outlook: 18% to 20% for Omnipod and 17.5% to 19.5% for total company on a reported basis.
- Q3 2026 U.S. Omnipod Revenue Growth Outlook: 14% to 16%.
- Q3 2026 International Omnipod Revenue Growth Outlook: 28% to 30% on a reported basis.
- Full-Year 2026 Operating Margin Expansion: Approximately 100 basis points expected.
- Full-Year 2026 Net Interest Expense: Approximately $40 million expected.
- Full-Year 2026 Non-GAAP Tax Rate: 20% to 21% expected.
- Full-Year 2026 Adjusted EPS Growth: At least 30% expected.
Release Date: August 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Total company revenue grew 23% year-over-year on a constant currency basis, exceeding expectations, with strong demand for Omnipod in both U.S. and international markets.
- Adjusted operating margin expanded 140 basis points year-over-year, driven by manufacturing productivity gains and scale benefits, while adjusted EPS grew approximately 42%.
- Global new customer starts reached the second highest quarter ever, with over 40% of U.S. new starts being Type 2 diabetes patients, and the prescriber base expanded 27% year-over-year.
- International Omnipod revenue grew over 33% on a constant currency basis, leading to a raised full-year international growth outlook of 30% to 32%.
- The innovation pipeline is robust, with Omnipod 6 pivotal data showing improved time in range, and the fully closed-loop system for Type 2 is on track for a 510(k) submission in 2027.
- The company added coverage for 6.5 million lives and simplified prior authorization for 10 million lives, improving access to Omnipod.
Negative Points
- Type 2 customer retention and utilization trends were worse than anticipated in Q2, leading to a reduced full-year U.S. Omnipod growth outlook of 17% to 19%.
- The company acknowledged it should have identified Type 2 onboarding issues sooner, indicating an execution shortfall in adapting the commercial model.
- Full-year total company revenue growth guidance was lowered to 20% to 22% from previous expectations, with the revised outlook assuming current retention trends continue through H2.
- Pricing is expected to be slightly less positive than previously anticipated due to timing and mix of commercial investments, though not due to competitive dynamics.
- The company is reassessing its long-term revenue outlook and will provide an update on Q4, creating uncertainty for 2027 and beyond.
- Preliminary 2027 growth is expected to be in the mid-teens, with no assumed benefit from retention improvement actions, and competition is factored into the outlook.
Q & A Highlights
Q: What changed in the Type 2 market that led to the reduced U.S. outlook, and what gives you confidence in a reacceleration in 2027?
A: CEO Ashley McEvoy acknowledged accountability for the reduced outlook, stating the company should have identified the Type 2 retention and utilization trends sooner. The issue is an execution challenge in the first 90 days of onboarding, not a structural market change, pricing, or competition issue. CFO Flavia Pease noted the preliminary 2027 view assumes competitive entrance and stable pricing but does not assume improvements from the new retention actions, relying instead on new product launches and the full benefit of the sales force expansion.
Q: Can you quantify the difference in 90-day retention rates between Type 1 and Type 2 patients, and what early success have you seen in changing these rates?
A: CEO Ashley McEvoy confirmed there are differences in retention and modest differences in utilization between Type 2 and Type 1 communities. The company has identified roughly 10 key "pain points" in the first 90 days (e.g., first pod change, first refill). Early data from the Omnipod Discover platform shows "meaningfully improved retention rates" in the Type 2 community, and the company is scaling proactive support pilots that have proven effective.
Q: What are the specific drivers behind the updated 2026 guidance, and what are the key assumptions for the second half of the year?
A: CFO Flavia Pease detailed that the revised outlook assumes current retention and utilization trends continue through the second half, accounting for two-thirds of the guidance change. The remaining one-third is due to slower-than-anticipated new customer starts and slightly lower positive pricing, reflecting the timing and mix of commercial investments rather than competitive dynamics. The company now expects total company constant currency revenue growth of 20% to 22% and U.S. Omnipod growth of 17% to 19%.
Q: How are you balancing Type 2 spending with profitability goals, given the changing return dynamics?
A: CEO Ashley McEvoy emphasized the strategic importance of the Type 2 customer base, noting the company delivered 23% revenue growth with expanding margins and EPS growth nearly double revenue growth. CFO Flavia Pease added that the new actions (sales force incentives, sampling optimization, Discover platform) are already embedded in the baseline and will not create a headwind on service costs. The fully closed-loop system for Type 2 is expected to meaningfully change customer lifetime value and cost to serve in the medium term.
Q: Is the issue more about retention or utilization, and how does the prescriber type (endos vs. PCPs) impact these trends?
A: CEO Ashley McEvoy clarified that retention is the primary issue, with utilization only slightly down. While endos are more comfortable with AID therapy, the onboarding experience is similar regardless of prescriber type. COO Eric Benjamin added that prescribers most comfortable with AID have better retention in their offices, and the recent sales force expansion to serve several thousand more healthcare providers is a key part of the strategy to improve retention.
Q: What is the expected U.S. exit rate for 2026, and how should we think about the 2027 growth trajectory?
A: CFO Flavia Pease clarified that the U.S. exit rate range is 9% to 14%, with a midpoint of 12%. The preliminary 2027 objective is to deliver growth consistent with or better than the mid-teens total company exit rate, supported by new product launches (Omnipod 6) and the full benefit of the sales force expansion. The company will provide formal 2027 guidance and updated long-term outlook on the fourth-quarter call.
Q: What specific actions are you taking to improve Type 2 retention, and what KPIs will you monitor?
A: CEO Ashley McEvoy outlined four key actions: expanding the customer care team for onboarding and insurance navigation, changing sales force compensation to reward retention (specifically the first 45 days), refining the sampling program to identify patients most likely to benefit, and rolling out Omnipod Discover. The company is monitoring these metrics monthly and will adapt as they learn to master customer service in the first 90 days.
Q: How should we interpret the recent pricing comments, and are you using rebates to push exclusivity in the pharmacy channel?
A: CFO Flavia Pease directly addressed this, stating the company is not taking any positions that would result in exclusionary access. CEO Ashley McEvoy noted U.S. price realization has been stable to slightly up, and the company's disciplined pricing strategy has resulted in coverage wins and reduced prior authorization barriers (10 million lives simplified), which is good for patients and the category.
Q: What is the timeline for seeing the impact of the Type 2 retention initiatives, and how will you know if the issue is structural?
A: CEO Ashley McEvoy stated the updated guidance prudently assumes no improvement from the actions in the second half of 2026. The company is implementing programs now and will monitor monthly to see cause and effect. She reiterated confidence that this is an execution challenge, not a structural market issue, citing strong demand and the fact that retention stabilizes after the 90-day mark.
Q: Can you provide more detail on the Omnipod Discover platform and its early impact on retention?
A: CEO Ashley McEvoy noted that Omnipod Discover, a cloud-based platform, has over 12,000 patients and 1,600 healthcare professionals using it. COO Eric Benjamin added that early data from the limited market release shows the platform positively influences clinical outcomes, satisfaction, and retention by putting success metrics in the hands of users and facilitating better conversations with clinicians. The company is accelerating development of a modern customer data and engagement platform to build a 360-degree view of each customer.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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