Reasons to Hold Tandem Diabetes Stock in Your Portfolio for Now

Core Insights - Tandem Diabetes Care, Inc. (TNDM) is experiencing significant international expansion, which is expected to enhance growth in upcoming quarters. The company's strategic initiatives present favorable growth opportunities, although there are concerns regarding its heavy reliance on insulin pumps and the impact of macroeconomic challenges [1][9]. Financial Performance - Over the past year, TNDM's shares have declined by 38.7%, while the industry saw a minor decline of 0.3%. In contrast, the S&P 500 composite has increased by 16.4% during the same period. The company has a market capitalization of $1.15 billion and projects a growth rate of 59.2% for 2026 earnings, compared to 14.7% for the S&P 500 [2]. Strategic Developments - Tandem Diabetes is focusing on growth through acquisitions and investments in new technologies. The company has a competitive edge due to its rapid integration of Continuous Glucose Monitoring (CGM) systems, supported by partnerships with Dexcom and Abbott. The t:slim X2 pump is now compatible with Eli Lilly's ultra-rapid-acting insulin, Lyumjev [3][5]. - Operational improvements are being implemented to enhance efficiency, including streamlining processes and increasing automation. In Q3, Tandem achieved significant milestones by expanding pharmacy benefit coverage for Tandem Mobi to over 40% of U.S. covered lives and began selling t:slim supplies through pharmacy benefits [4]. International Market Focus - The International Diabetes Federation projects that by 2030, around 643 million people globally will have diabetes. Tandem's international expansion strategy aligns with this trend, allowing the company to capitalize on substantial market opportunities. In Q3, revenues outside the U.S. increased by 1.8% year-over-year, with approximately 9,000 pumps shipped across 25 markets [5][6][8]. Challenges - Macroeconomic uncertainties pose challenges for TNDM, making it difficult to predict product demand accurately. These conditions could lead to increased expenses and negatively affect financial performance. In Q3, the company reported a net loss of $21.2 million [9]. - TNDM's heavy dependence on insulin pumps is a concern, as these products accounted for 44.2% of worldwide sales in Q3 2025. Factors affecting market acceptance among insulin-dependent diabetes patients and healthcare providers could hinder the company's business and financial results [10]. Revenue Estimates - The Zacks Consensus Estimate for TNDM's 2025 loss per share has narrowed by 5 cents to $2.35 over the past 30 days. Revenue estimates for 2025 are projected at $1.00 billion, indicating a 9.9% increase from the previous year [11].