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DexCom Gears Up to Report Q3 Results: How to Play the Stock?
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Key Takeaways
DexCom's Q3 revenues are projected to rise 9.4% to $1.32 billion, with EPS expected to grow 8.2% to 66 cents.
DXCM's G7 15 Day adoption, strong new-patient starts and broader reimbursement are expected to support growth.
DXCM faces tougher international comparisons, forex pressures and manufacturing costs.
DexCom, Inc. (DXCM - Free Report) is scheduled to report third-quarter 2026 results on Oct. 29, after the closing bell.
In the last reported quarter, the company’s adjusted earnings per share (EPS) of 70 cents surpassed the Zacks Consensus Estimate by 14.75%.
Let us check out the factors that might have shaped DXCM’s performance prior to the announcement.
DXCM’s Q3 Estimates
Currently, the Zacks Consensus Estimate for revenues is pegged at $1.32 billion, indicating growth of 9.4% year over year. The consensus mark for earnings is pinned at 66 cents per share, indicating an improvement of 8.2%.
DexCom is expected to have sustained healthy revenue growth in the third quarter of 2026, supported by continued adoption of its continuous glucose monitoring (CGM) systems, broader reimbursement coverage and market share gains across key patient segments. In the second quarter, the company reported 13% revenue growth and 12% organic revenue growth, reflecting solid demand across U.S. and international markets. Management raised its full-year 2026 revenue outlook to $5.18-$5.25 billion, implying growth of 11-13%, supported by stronger underlying organic growth expectations. For the third quarter, new customer additions, product adoption and expanding access are expected to have supported top-line performance amid tougher international comparisons.
The U.S. business is expected to have benefited from sustained demand across Type 1 diabetes, insulin-using Type 2 diabetes and non-insulin Type 2 diabetes. In the second quarter, U.S. revenues increased 11%, supported by strong new-patient starts and market share gains. Management noted that global new customer starts remained near the record level achieved in the first quarter, with U.S. starts increasing sequentially. Broader commercial reimbursement also remains a key growth driver, with coverage for people with diabetes across the four largest pharmacy benefit managers providing access to more than 7 million non-insulin Type 2 patients. Continued physician education, easier onboarding and efforts to reduce access barriers are expected to have supported further adoption.
International markets are also likely to have contributed to growth, although year-over-year comparisons are expected to become more challenging, particularly in the third quarter. International revenue grew 19% in the second quarter, with organic growth of 16%, aided by reimbursement expansions in markets such as France and Canada. DexCom continues to pursue additional reimbursement opportunities and tender wins across its international markets, supported by a broader product portfolio that includes Dexcom ONE Plus and Dexcom Flex. The launch of Dexcom Flex in Germany expands the company's offerings for Type 2 patients using basal insulin and those not using insulin in select markets. While new access opportunities are expected to support long-term growth, the pace of expansion, stronger prior-year comparisons and foreign exchange movements are likely to impact third-quarter results.
Product innovation and customer experience are expected to have remained key growth catalysts. The G7 15 Day system, which offers extended sensor wear, an improved algorithm and an updated adhesive patch, is likely to have supported adoption and customer retention in the third quarter. Management reported improving customer satisfaction scores for three consecutive quarters and remained on track to convert nearly 50% of its U.S. customer base to G7 15 Day by 2026-end. The system's integration with Tandem's insulin delivery platforms, including Mobi, has expanded its availability to adult G7 customers in the United States. Management expects the product's contribution to increase in the second half of 2026 as more users transition and recurring purchase patterns develop. The company also received Health Canada's clearance for G7 15 Day and plans to launch it in Canada in the second half of 2026, followed by additional international markets as quickly as possible.
DexCom's broader digital health initiatives are also expected to have supported engagement and expanded its addressable market. The redesigned Stelo application, featuring AI-driven insights, enhanced food logging and personalized nutrition analysis, was recently launched broadly and is intended to serve as a foundation for future applications across the product portfolio. The acquisition of Nutrisense is expected to have strengthened these capabilities by integrating CGM-based nutrition insights and coaching into DexCom's offerings.
Meanwhile, the company's Smart Basal pilot has demonstrated encouraging results, with participating practices helping patients reach an optimal basal insulin dose in an average of three weeks compared with 12 weeks or longer in routine care. The FDA's TEMPO digital device pilot also provides an opportunity to advance glucose health programs and explore CGM-based screening for prediabetes. While these initiatives are unlikely to represent material near-term revenue drivers, their potential to improve engagement, expand use cases and strengthen the value proposition of DexCom's technology could support growth over time.
Earnings Beat Unlikely
Our proven model does not predict an earnings beat for DXCM this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP:Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank:The company has a Zacks Rank #3 at present.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:
Phibro Animal Health (PAHC - Free Report) has an Earnings ESP of +2.10% and a Zacks Rank #1. The company is expected to release first-quarter fiscal 2027 results soon.
PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company’s first-quarter EPS indicates an increase of 8.2% from the year-ago quarter’s figure.
IDEXX Laboratories (IDXX - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is slated to release third-quarter 2026 results on Nov. 2.
IDXX’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for the company’s third-quarter EPS implies an increase of 9.1% from the year-ago quarter’s figure.
Becton, Dickinson and Company (BDX - Free Report) or BD has an Earnings ESP of +3.28% and a Zacks Rank #2. The company is due to release fourth-quarter fiscal 2026 results on Nov. 5.
BD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.94%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter’s figure.
View the Zacks #1 Rank List
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DexCom Gears Up to Report Q3 Results: How to Play the Stock?
Key Takeaways
DexCom, Inc. (DXCM - Free Report) is scheduled to report third-quarter 2026 results on Oct. 29, after the closing bell.
In the last reported quarter, the company’s adjusted earnings per share (EPS) of 70 cents surpassed the Zacks Consensus Estimate by 14.75%.
Let us check out the factors that might have shaped DXCM’s performance prior to the announcement.
DXCM’s Q3 Estimates
Currently, the Zacks Consensus Estimate for revenues is pegged at $1.32 billion, indicating growth of 9.4% year over year. The consensus mark for earnings is pinned at 66 cents per share, indicating an improvement of 8.2%.
DexCom, Inc. Price and EPS Surprise
DexCom, Inc. price-eps-surprise | DexCom, Inc. Quote
Factors to Note Before DXCM Reports
DexCom is expected to have sustained healthy revenue growth in the third quarter of 2026, supported by continued adoption of its continuous glucose monitoring (CGM) systems, broader reimbursement coverage and market share gains across key patient segments. In the second quarter, the company reported 13% revenue growth and 12% organic revenue growth, reflecting solid demand across U.S. and international markets. Management raised its full-year 2026 revenue outlook to $5.18-$5.25 billion, implying growth of 11-13%, supported by stronger underlying organic growth expectations. For the third quarter, new customer additions, product adoption and expanding access are expected to have supported top-line performance amid tougher international comparisons.
The U.S. business is expected to have benefited from sustained demand across Type 1 diabetes, insulin-using Type 2 diabetes and non-insulin Type 2 diabetes. In the second quarter, U.S. revenues increased 11%, supported by strong new-patient starts and market share gains. Management noted that global new customer starts remained near the record level achieved in the first quarter, with U.S. starts increasing sequentially. Broader commercial reimbursement also remains a key growth driver, with coverage for people with diabetes across the four largest pharmacy benefit managers providing access to more than 7 million non-insulin Type 2 patients. Continued physician education, easier onboarding and efforts to reduce access barriers are expected to have supported further adoption.
International markets are also likely to have contributed to growth, although year-over-year comparisons are expected to become more challenging, particularly in the third quarter. International revenue grew 19% in the second quarter, with organic growth of 16%, aided by reimbursement expansions in markets such as France and Canada. DexCom continues to pursue additional reimbursement opportunities and tender wins across its international markets, supported by a broader product portfolio that includes Dexcom ONE Plus and Dexcom Flex. The launch of Dexcom Flex in Germany expands the company's offerings for Type 2 patients using basal insulin and those not using insulin in select markets. While new access opportunities are expected to support long-term growth, the pace of expansion, stronger prior-year comparisons and foreign exchange movements are likely to impact third-quarter results.
Product innovation and customer experience are expected to have remained key growth catalysts. The G7 15 Day system, which offers extended sensor wear, an improved algorithm and an updated adhesive patch, is likely to have supported adoption and customer retention in the third quarter. Management reported improving customer satisfaction scores for three consecutive quarters and remained on track to convert nearly 50% of its U.S. customer base to G7 15 Day by 2026-end. The system's integration with Tandem's insulin delivery platforms, including Mobi, has expanded its availability to adult G7 customers in the United States. Management expects the product's contribution to increase in the second half of 2026 as more users transition and recurring purchase patterns develop. The company also received Health Canada's clearance for G7 15 Day and plans to launch it in Canada in the second half of 2026, followed by additional international markets as quickly as possible.
DexCom's broader digital health initiatives are also expected to have supported engagement and expanded its addressable market. The redesigned Stelo application, featuring AI-driven insights, enhanced food logging and personalized nutrition analysis, was recently launched broadly and is intended to serve as a foundation for future applications across the product portfolio. The acquisition of Nutrisense is expected to have strengthened these capabilities by integrating CGM-based nutrition insights and coaching into DexCom's offerings.
Meanwhile, the company's Smart Basal pilot has demonstrated encouraging results, with participating practices helping patients reach an optimal basal insulin dose in an average of three weeks compared with 12 weeks or longer in routine care. The FDA's TEMPO digital device pilot also provides an opportunity to advance glucose health programs and explore CGM-based screening for prediabetes. While these initiatives are unlikely to represent material near-term revenue drivers, their potential to improve engagement, expand use cases and strengthen the value proposition of DexCom's technology could support growth over time.
Earnings Beat Unlikely
Our proven model does not predict an earnings beat for DXCM this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP:Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank:The company has a Zacks Rank #3 at present.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:
Phibro Animal Health (PAHC - Free Report) has an Earnings ESP of +2.10% and a Zacks Rank #1. The company is expected to release first-quarter fiscal 2027 results soon.
PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company’s first-quarter EPS indicates an increase of 8.2% from the year-ago quarter’s figure.
IDEXX Laboratories (IDXX - Free Report) has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is slated to release third-quarter 2026 results on Nov. 2.
IDXX’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for the company’s third-quarter EPS implies an increase of 9.1% from the year-ago quarter’s figure.
Becton, Dickinson and Company (BDX - Free Report) or BD has an Earnings ESP of +3.28% and a Zacks Rank #2. The company is due to release fourth-quarter fiscal 2026 results on Nov. 5.
BD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.94%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter’s figure.