What Happened?
Shares of diabetes technology company Tandem Diabetes Care (NASDAQ: TNDM) fell 5.1% in the morning session after analyst projections for its third-quarter 2025 earnings pointed to a year-on-year revenue decline.
For the quarter, analysts expected revenue to fall 3.3% to $236 million, a sharp reversal from the 31.4% increase the company posted in the same period of the previous year. The company was also projected to report an adjusted loss of $0.34 per share. Compounding these concerns, the company had missed Wall Street's revenue estimates twice over the past two years. This outlook followed a challenging period for the company, which in August 2025, had announced a voluntary medical device correction for some of its t:slim X2 insulin pumps due to a speaker-related issue.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Tandem Diabetes? Access our full analysis report here.
What Is The Market Telling Us
Tandem Diabetes’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock dropped 6% on the news that investor concerns were sparked by a disappointing financial outlook from peer DexCom. DexCom, a major company in the glucose monitoring market, reported its third-quarter financial results. Although the company's earnings and revenue surpassed targets, its stock fell sharply by around 11% to 12%. The drop was triggered after company executives provided a growth forecast for 2026 that might not meet Wall Street's expectations and also signaled a lower margin forecast. This negative outlook from a key industry player appeared to create wider concerns, weighing on shares of related companies like Tandem Diabetes.
Tandem Diabetes is down 62.6% since the beginning of the year, and at $13.39 per share, it is trading 64.3% below its 52-week high of $37.53 from January 2025. Investors who bought $1,000 worth of Tandem Diabetes’s shares 5 years ago would now be looking at an investment worth $114.46.
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