Tandem Diabetes Care's stock surged 8.23% in pre-market trading on Friday, following the release of its first-quarter financial results that significantly exceeded analyst expectations.

The medical device maker reported quarterly revenue of $247.2 million, representing a 5% year-over-year increase and surpassing the consensus estimate of $241.13 million. The company's adjusted loss per share of $0.30 beat analyst expectations of a $0.45 loss, while its net loss narrowed substantially to $20.4 million from $130.6 million a year earlier. Gross margin improved to 55%, up 4.8 percentage points from the prior year, reflecting operational efficiency gains.

Business developments including record worldwide pump shipments exceeding 29,000 units, the launch of a new pay-as-you-go reimbursement model in the U.S. pharmacy channel, and expansion of its connected care ecosystem contributed to the positive results. The company reaffirmed its full-year 2026 sales guidance of $1.065 billion to $1.085 billion and projected gross margin of 56%-57%. Analyst sentiment remained positive with TD Cowen maintaining a Buy rating and $28 price target, citing strengthening fundamentals.