Tandem Diabetes Tops $1B Sales, Price Target Raised to $30
Tandem Diabetes Care received a BofA upgrade to Neutral with a price target raised to $30 from $15, citing its shift into the pharmacy channel and pay-as-you-go model for higher profitability. The company reported over $1 billion in 2025 sales, record Q4 pump shipments, and a 58% gross margin.
1. BofA Upgrade and Price Target Raise
BofA elevated Tandem Diabetes Care to a Neutral rating, increasing its price target to $30 from $15. The firm highlighted the company’s strategic move into the pharmacy channel and adoption of a pay-as-you-go reimbursement model, which it projects will enhance profitability over the next two years.
2. Pay-as-You-Go Pharmacy Transition
Tandem is transitioning pump reimbursements to a PayGo structure through retail pharmacies, aiming to lower patient out-of-pocket costs and simplify the prescription process. This shift is expected to double lifetime revenue per patient and deliver clearer usage data for payers.
3. Q4 and Annual Sales Performance
The company surpassed $1 billion in 2025 revenue driven by record fourth-quarter pump shipments and double-digit growth in U.S. and international markets. Operational efficiencies lifted Q4 gross margins to a record 58%, fueled by manufacturing gains and reduced non-cash stock-based compensation.