Tandem Diabetes Care Stock Plunges 25% Amid Quarterly Losses and Device Correction

Tandem Diabetes Care (TNDM) stock has dropped 25% due to an adjusted net loss and a voluntary device correction issue. Despite a 9% YoY revenue increase, analysts expect a significant price rise based on one-year targets. GuruFocus estimates indicate a potential 338.55% upside from the current stock price.

Tandem Diabetes Care (TNDM) stock experienced a significant drop of 25% on Thursday, July 1, 2025, following the announcement of a voluntary medical device correction for its insulin pumps and a wider-than-expected second-quarter loss. The stock declined to a 52-week low of $9.98, down from a previous close of $14.00 [1].

The San Diego-based diabetes technology company disclosed that it had issued a voluntary correction for its t:slim X2 insulin pumps to address a potential speaker-related issue. This issue can trigger an error, resulting in a discontinuation of insulin delivery. Notices were sent to impacted U.S. customers between July 22 and July 24. The company reported 700 confirmed adverse events, including 59 injuries [1].

Tandem Diabetes Care's adjusted net loss for the second quarter was $52.4 million, or 78 cents per share, compared to a loss of $30.8 million, or 47 cents per share, in the same period last year. The company also reported sales of $240.7 million, an 8.5% increase year-over-year, which exceeded analyst expectations of $238.6 million [1].

Despite the earnings miss, analysts remain cautiously optimistic about Tandem Diabetes Care's future prospects. The company expects full-year sales of $1 billion, up from its previously issued range of $997 million to $1 billion [1]. GuruFocus estimates indicate a potential 338.55% upside from the current stock price [3].

Analysts have provided a range of price targets for Tandem Diabetes Care, with an average target of $19.00, a high estimate of $24.00, and a low estimate of $14.00. The current average price target is lower than the previous average of $24.67, reflecting a 22.98% decline in the stock price [3].

The company's revenue growth over the past three months has been noteworthy, with a 22.3% increase in revenue as of March 31, 2025. However, Tandem Diabetes Care's net margin lags behind industry averages, suggesting operational challenges [3].

The stock's immediate price movement will depend on management's commentary on the earnings call and future earnings expectations. Investors should monitor the company's earnings outlook and analyst ratings for further insights into its market performance [2].

References:
[1] https://www.marketwatch.com/story/tandem-diabetes-care-shares-slide-after-disclosing-insulin-pump-injuries-2q-results-bf17fee1
[2] https://www.nasdaq.com/articles/tandem-diabetes-care-inc-tndm-reports-q2-loss-beats-revenue-estimates
[3] https://www.benzinga.com/insights/analyst-ratings/25/08/46961056/forecasting-the-future-4-analyst-projections-for-tandem-diabetes-care