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DexCom, Inc. (DXCM - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of 61 cents, which beat the Zacks Consensus Estimate of 57 cents by 7%. The company reported earnings of 45 cents per share in the prior-year quarter.
DXCM registered GAAP net income per share of 70 cents, up from the year-ago quarter’s figure of 34 cents.
Revenue Details of Dexcom
Total revenues grew 21.6% (20% on an organic basis) to $1.21 billion year over year. Revenues beat the Zacks Consensus Estimate by 2.7%. The year-over-year revenue growth was driven by continued strong category demand, focused execution and a growing contribution from recent access wins, especially for type 2 diabetes.
Despite better-than-expected results, shares of DXCM lost almost 12.8% during after-hours trading on Oct.30. The stock has lost 12.3% year to date compared with a 1.6% decline in the industry. The broader S&P 500 Index has increased 18.5% in the same period.
Image Source: Zacks Investment Research
Segmental Details of DXCM
Sensor and other revenues (97% of total revenues) increased 23% on a year-over-year basis to $1.18 billion. Hardware revenues (3%) decreased 19% year over year to $34.2 million.
Dexcom Revenues by Geography
U.S. revenues (70% of total revenues) increased 21% on a year-over-year basis to $851.9 million. International revenues (30%) improved 22% (18% on an organic basis) year over year to $316.1 million.
Margin Analysis of DXCM
Adjusted gross profit totaled $741.3 million, up 23.2% from the prior-year quarter’s level. DexCom reported an adjusted gross margin (as a percentage of revenues) of 61.3%, down 160 basis points year over year.
Research and development expenses totaled $157.5 million, up 16.3% year over year. Selling, general, and administrative expenses totaled $331.4 million, up 8.2% year over year.
The company reported total adjusted operating income of $272.9 million, up 28.7% from the prior-year period’s recorded number. Adjusted operating margin (as a percentage of revenues) was 22.6%, up 130 basis points year over year.
DXCM exited the third quarter with cash, cash equivalents, and marketable securities worth $3.32 billion compared with $2.93 billion in the second quarter of 2025.
Total assets amounted to $7.5 billion, up sequentially from $7.33 billion.
DXCM’s 2025 Guidance
DexCom raised its outlook for 2025 revenues. The company now expects revenues to be in the range of $4.63-$4.65 billion (previously $4.6-$4.625 billion), implying 15% year-over-year growth. The Zacks Consensus Estimate was pegged at $4.62 billion.
DXCM expects adjusted gross margin to be approximately 61%. Adjusted operating margin is projected to be approximately 20-21%.
Wrapping Up
DexCom delivered a solid third-quarter update, marked by double-digit top-line growth and a confident raise in full-year guidance, as it executes on broadening access to CGM and scaling its innovation engine.
Per the third quarter earnings call, strong U.S. momentum came from continued CGM uptake among the fast-growing type 2 population, particularly non-insulin and basal users, supported by broader primary-care reach and expanding commercial coverage. International growth accelerated for the third consecutive quarter, with France and Canada highlighted as standout markets after recent reimbursement wins tied to basal eligibility. Meanwhile, DexCom ONE+ continued aiding competitive positioning in price-sensitive geographies, helping expand the company’s footprint across Europe.
Innovation remains a central driver as DexCom prepares for the broader rollout of its 15-day G7 sensor in the coming weeks, following reimbursement wins across Medicare and major commercial payers. At the same time, DexCom is enhancing its software ecosystem: the new Smart Basal titration module, pending FDA and CE review, is designed to streamline basal insulin initiation by recommending dose and timing based on individual glucose trends, easing prescriber workflow and improving adherence. The company is also scaling Stelo, which surpassed $100 million in revenue within its first 12 months, upgraded its app experience, and is generating growing inbound international interest.
Margins saw temporary pressure, with third-quarter adjusted gross margin at 61.3%, impacted by higher-than-expected scrap rates at manufacturing facilities, though these levels improved versus the second quarter. DexCom expects continued recovery as it resumes ocean freight and increases scrutiny on supplied components to ensure quality.
On the cost side, management pointed to tighter operating expenses controls, including more disciplined hiring, better utilization of digital tools, and leveraging past investments in manufacturing and service infrastructure, which helped support a third-quarter adjusted operating margin of 22.6%. The company reiterated that margin improvement remains on track as scrap levels normalize.
The company also emphasized a sharper focus on customer experience. Its newly launched My DexCom Account portal is designed to streamline support, give users real-time visibility into orders and simplify replacement requests. Management noted that recent improvements to adhesive performance, Bluetooth connectivity and deployment reliability are already helping enhance satisfaction with G7.
With broad PBM coverage now extending to approximately six million non-insulin type-2 U.S. lives, about half of the eligible population, DexCom sees coverage expansion to unlock an addressable market of more than 25 million Americans. Combined with a strengthening global access environment, improving manufacturing efficiencies and a growing base of prescribers and end users, DexCom appears well-positioned to sustain leadership in a rapidly expanding CGM landscape.
Zacks Rank and Stocks to Consider
DXCM carries a Zacks Rank #4 (Sell) at present.
Some better-ranked stocks in the broader medical space are Solventum Corporation (SOLV - Free Report) , Boston Scientific Corporation (BSX - Free Report) and HealthEquity (HQY - Free Report) .
Solventum, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 4.1%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.91%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Solventum’s shares have gained 8.2% compared with the industry’s 6.2% growth so far this year.
Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.1%.
Boston Scientific’s shares have gained 13.2% compared with the industry’s 5.6% growth so far this year.
HealthEquity, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21.7%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 11.05%.
HealthEquity’s shares have risen 0.6% compared with the industry’s 6.2% growth so far this year.
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DexCom Stock Falls Despite Q3 Earnings Beat, 2025 Revenue View Raised
Key Takeaways
DexCom, Inc. (DXCM - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of 61 cents, which beat the Zacks Consensus Estimate of 57 cents by 7%. The company reported earnings of 45 cents per share in the prior-year quarter.
DXCM registered GAAP net income per share of 70 cents, up from the year-ago quarter’s figure of 34 cents.
Revenue Details of Dexcom
Total revenues grew 21.6% (20% on an organic basis) to $1.21 billion year over year. Revenues beat the Zacks Consensus Estimate by 2.7%. The year-over-year revenue growth was driven by continued strong category demand, focused execution and a growing contribution from recent access wins, especially for type 2 diabetes.
Despite better-than-expected results, shares of DXCM lost almost 12.8% during after-hours trading on Oct.30. The stock has lost 12.3% year to date compared with a 1.6% decline in the industry. The broader S&P 500 Index has increased 18.5% in the same period.
Image Source: Zacks Investment Research
Segmental Details of DXCM
Sensor and other revenues (97% of total revenues) increased 23% on a year-over-year basis to $1.18 billion. Hardware revenues (3%) decreased 19% year over year to $34.2 million.
Dexcom Revenues by Geography
U.S. revenues (70% of total revenues) increased 21% on a year-over-year basis to $851.9 million. International revenues (30%) improved 22% (18% on an organic basis) year over year to $316.1 million.
Margin Analysis of DXCM
Adjusted gross profit totaled $741.3 million, up 23.2% from the prior-year quarter’s level. DexCom reported an adjusted gross margin (as a percentage of revenues) of 61.3%, down 160 basis points year over year.
Research and development expenses totaled $157.5 million, up 16.3% year over year. Selling, general, and administrative expenses totaled $331.4 million, up 8.2% year over year.
The company reported total adjusted operating income of $272.9 million, up 28.7% from the prior-year period’s recorded number. Adjusted operating margin (as a percentage of revenues) was 22.6%, up 130 basis points year over year.
DexCom, Inc. Price, Consensus and EPS Surprise
DexCom, Inc. price-consensus-eps-surprise-chart | DexCom, Inc. Quote
Financial Position of Dexcom
DXCM exited the third quarter with cash, cash equivalents, and marketable securities worth $3.32 billion compared with $2.93 billion in the second quarter of 2025.
Total assets amounted to $7.5 billion, up sequentially from $7.33 billion.
DXCM’s 2025 Guidance
DexCom raised its outlook for 2025 revenues. The company now expects revenues to be in the range of $4.63-$4.65 billion (previously $4.6-$4.625 billion), implying 15% year-over-year growth. The Zacks Consensus Estimate was pegged at $4.62 billion.
DXCM expects adjusted gross margin to be approximately 61%. Adjusted operating margin is projected to be approximately 20-21%.
Wrapping Up
DexCom delivered a solid third-quarter update, marked by double-digit top-line growth and a confident raise in full-year guidance, as it executes on broadening access to CGM and scaling its innovation engine.
Per the third quarter earnings call, strong U.S. momentum came from continued CGM uptake among the fast-growing type 2 population, particularly non-insulin and basal users, supported by broader primary-care reach and expanding commercial coverage. International growth accelerated for the third consecutive quarter, with France and Canada highlighted as standout markets after recent reimbursement wins tied to basal eligibility. Meanwhile, DexCom ONE+ continued aiding competitive positioning in price-sensitive geographies, helping expand the company’s footprint across Europe.
Innovation remains a central driver as DexCom prepares for the broader rollout of its 15-day G7 sensor in the coming weeks, following reimbursement wins across Medicare and major commercial payers. At the same time, DexCom is enhancing its software ecosystem: the new Smart Basal titration module, pending FDA and CE review, is designed to streamline basal insulin initiation by recommending dose and timing based on individual glucose trends, easing prescriber workflow and improving adherence. The company is also scaling Stelo, which surpassed $100 million in revenue within its first 12 months, upgraded its app experience, and is generating growing inbound international interest.
Margins saw temporary pressure, with third-quarter adjusted gross margin at 61.3%, impacted by higher-than-expected scrap rates at manufacturing facilities, though these levels improved versus the second quarter. DexCom expects continued recovery as it resumes ocean freight and increases scrutiny on supplied components to ensure quality.
On the cost side, management pointed to tighter operating expenses controls, including more disciplined hiring, better utilization of digital tools, and leveraging past investments in manufacturing and service infrastructure, which helped support a third-quarter adjusted operating margin of 22.6%. The company reiterated that margin improvement remains on track as scrap levels normalize.
The company also emphasized a sharper focus on customer experience. Its newly launched My DexCom Account portal is designed to streamline support, give users real-time visibility into orders and simplify replacement requests. Management noted that recent improvements to adhesive performance, Bluetooth connectivity and deployment reliability are already helping enhance satisfaction with G7.
With broad PBM coverage now extending to approximately six million non-insulin type-2 U.S. lives, about half of the eligible population, DexCom sees coverage expansion to unlock an addressable market of more than 25 million Americans. Combined with a strengthening global access environment, improving manufacturing efficiencies and a growing base of prescribers and end users, DexCom appears well-positioned to sustain leadership in a rapidly expanding CGM landscape.
Zacks Rank and Stocks to Consider
DXCM carries a Zacks Rank #4 (Sell) at present.
Some better-ranked stocks in the broader medical space are Solventum Corporation (SOLV - Free Report) , Boston Scientific Corporation (BSX - Free Report) and HealthEquity (HQY - Free Report) .
Solventum, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 4.1%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.91%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Solventum’s shares have gained 8.2% compared with the industry’s 6.2% growth so far this year.
Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.1%.
Boston Scientific’s shares have gained 13.2% compared with the industry’s 5.6% growth so far this year.
HealthEquity, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21.7%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 11.05%.
HealthEquity’s shares have risen 0.6% compared with the industry’s 6.2% growth so far this year.