DexCom, Inc. (DXCM Quick QuoteDXCM - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 56 cents, which beat the Zacks Consensus Estimate of 47 cents by 19.2%. The company reported adjusted EPS of 32 cents per share in the prior-year quarter.

DXCM registered GAAP net income per share of 51 cents, up from the year-ago quarter’s figure of 27 cents.

Q1 Revenue Details of Dexcom

DexCom reported first-quarter 2026 revenues of $1.19 billion, up 15% year over year (12% on an organic basis), beating the Zacks Consensus Estimate by 1.3%.

The growth was driven by strong global demand for its continuous glucose monitoring (“CGM”) systems, supported by expanding access, new product launches and a growing active user base, with international markets serving as a key growth engine.

Shares of DXCM almost gained 3.5% during yesterday’s trading session. However, the stock has lost 10.2% in the year-to-date period compared with a 17.4% decline in the industry. The broader S&P 500 Index increased 6.2% in the same period.

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Dexcom Revenues by Geography

U.S. revenues (69.8% of total) increased 11% on a year-over-year basis to $832.3 million. International revenues (30.2%) improved 26% (17% on an organic basis) year over year to $359.6 million.

Margin Analysis of DXCM

Adjusted gross profit totaled $757.4 million, up 27% from the prior-year quarter’s level. DexCom reported an adjusted gross margin (as a percentage of revenues) of 63.5%, up 600 basis points year over year.

Research and development expenses totaled $145.3 million, flat year over year. Selling, general and administrative expenses totaled $349.7 million, up 12.8% year over year.

The company reported total adjusted operating income of $264.4 million, up 84.8% from the prior-year period’s recorded number. Adjusted operating margin (as a percentage of revenues) was 22.2%, up 840 basis points year over year.

Financial Position of Dexcom

DXCM exited the first quarter with cash, cash equivalents and marketable securities worth $2.42 billion compared with $2 billion in the fourth quarter of 2025.

Total assets amounted to $6.63 billion, up sequentially from $6.34 billion.

DXCM’s 2026 Guidance

DexCom reaffirmed its fiscal 2026 revenue guidance, expecting sales in the range of $5.16-$5.25 billion, indicating 11-13% year-over-year growth. The company also maintained its non-GAAP gross margin outlook at approximately 63-64%. The Zacks Consensus Estimate is pegged at $5.22 billion.

At the same time, DexCom raised its profitability outlook, now projecting an adjusted operating margin of 23-23.5% and an adjusted EBITDA margin of 31-31.5%.

DexCom, Inc. Price, Consensus and EPS Surprise

DexCom, Inc. price-consensus-eps-surprise-chart | DexCom, Inc. Quote

Wrapping Up

DexCom exited the first quarter of 2026 on a strong note, supported by solid revenue growth, margin expansion and continued momentum across its CGM portfolio. The company expanded the launch of its G7 15 Day system across all channels in the United States, receiving encouraging feedback from both patients and physicians due to improved accuracy, reliability and extended wear duration. Alongside hardware innovation, DexCom continues to enhance its digital ecosystem, introducing upgraded Smart Meal Logging features within its Stelo platform to drive deeper user engagement and personalization.

The company also strengthened its clinical positioning during the quarter, showcasing extensive data at the Advanced Technologies & Treatments for Diabetes 2026, including one-year registry results demonstrating meaningful A1C reductions among type 2 diabetes patients not using insulin. Growth in the United States was fueled by expanding access and rising adoption, particularly within this large and underpenetrated population, while international markets continued to benefit from broader reimbursement and strong uptake.

Looking ahead, DexCom raised its margin outlook for 2026, reflecting operational discipline, while remaining focused on innovation, access expansion and long-term market leadership.

DXCM’s Zacks Rank & Other Stocks to Consider

DXCM currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the broader medical space that are expected to report earnings soon are Encompass Health Corporation (EHC Quick QuoteEHC - Free Report) , Phibro Animal Health (PAHC Quick QuotePAHC - Free Report) and The Cooper Companies, Inc. (COO Quick QuoteCOO - Free Report) .

Encompass Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter 2026 adjusted EPS is currently pegged at $1.51. The same for revenues is pegged at $1.57 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Encompass Health has an estimated long-term growth rate of 8.8%. EHC’s earnings yield of 5.9% compares favorably with the industry’s 5.6%.

Phibro Animal Health holds a Zacks Rank #2 at present. Estimates for Phibro Animal Health’s third-quarter fiscal 2026 EPS have remained constant at 72 cents in the past 30 days. Shares of the company have risen 41.1% in the year-to-date period.

PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.15%. In the last reported quarter, it delivered an earnings surprise of 26.09%.

Cooper Companies currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2026 adjusted EPS is currently pegged at $1.10. The same for its revenues is pegged at $1.05 billion.

Cooper Companies has an estimated long-term growth rate of 8.4%. COO’s earnings yield of 7.2% compares favorably with the industry’s 6.1%.