Insulet (PODD) Stock Forecast & Price Target

Insulet Corporation is projected to achieve substantial revenue growth, with forecasts indicating an increase from $2.7 billion in fiscal year 2025 to $4.2 billion by fiscal year 2028, reflecting a compound annual growth rate (CAGR) of 16.3%. The company recently revised its sales growth guidance for 2025 upwards to 28-29% year-over-year, highlighting its strong position to capture market share in the under-penetrated diabetes market, particularly in regions such as Europe, the Middle East, and Asia. Additionally, Insulet's focus on improving profitability, as evidenced by an increase in gross margin guidance to over 71% and operating margin projections rising to approximately 17.3-17.5%, positions the company favorably for sustained shareholder value creation in the coming years.

Insulet's stock outlook is negatively impacted by the projected decline in Drug Delivery revenue, which is anticipated to decrease by 85-95% year-over-year, significantly worse than earlier expectations of a 92.7% drop. Furthermore, the company's expansion efforts in the U.S. have proven weaker than anticipated, raising concerns about its ability to drive adoption of both existing and new products in a competitive environment. Finally, key risks including increasing macroeconomic challenges, regulatory hurdles, and potential limitations on international growth may further hinder Insulet's financial performance and stock value.