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DexCom Stock Up on Q3 Earnings & Revenue Beat, Margins Rise
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Key Takeaways
DexCom's Q3 adjusted EPS rose to 73 cents, while revenues grew 11.2% to $1.34B, beating estimates.
DXCM's U.S. revenues rose 13.8%, while adjusted gross margin expanded 380 basis points to 65.1%.
DexCom raised its 2026 revenue outlook to $5.20-$5.25B and authorized an additional $1B share buyback.
DexCom, Inc. (DXCM - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of 73 cents, which beat the Zacks Consensus Estimate of 66 cents by 10.6%. The company reported adjusted EPS of 61 cents per share in the prior-year quarter.
Revenues increased 11.2% year over year to $1.34 billion and surpassed the consensus mark by 1.64%.
DXCM registered GAAP net income per share of 72 cents, up from the year-ago quarter’s figure of 70 cents.
Following better-than-expected results and raised guidance, shares of DXCM have risen 3.1% in today’s pre-market trading. The stock has gained 25.2% in the year-to-date period compared with 1.6% growth in the industry. The broader S&P 500 Index increased 11.2% in the same period.
Image Source: Zacks Investment Research
DXCM's U.S. Business Delivers Strong Growth
U.S. revenues totaled $969.8 million, up 13.8% from $851.9 million in the year-ago quarter. Growth was supported by broad-based customer demand, market share gains and increasing adoption among people with type 2 diabetes, including non-insulin users.
Management highlighted near-record global new-patient starts during the quarter. New customer additions increased year over year, while retention and utilization initiatives continued to support business performance. The company also reported continued growth in its active customer base.
Dexcom's International Revenues Grow Moderately
International revenues increased 4.8% year over year to $374.7 million. Organic growth was approximately 5%, reflecting a slowdown from the stronger expansion recorded in earlier quarters.
Management attributed the moderation primarily to comparisons with reimbursement expansions secured during the second half of 2025. The company expects international organic growth to return to higher levels in early 2027, supported by additional reimbursement opportunities and product introductions.
Dexcom continues to pursue direct distribution opportunities in selected international markets. It recently signed an agreement to acquire a partner business, enabling direct operations across potentially attractive European markets.
Margin Expansion Boosts DXCM's Profitability
Adjusted gross profit totaled $875.3 million, up 18.1% from $741.3 million in the prior-year quarter. Adjusted gross margin expanded 380 basis points year over year to 65.1%, supported by manufacturing efficiencies, lower freight costs, quality improvements and the growing contribution from G7 15 Day.
Research and development expenses totaled $161.6 million, up 2.6% year over year. Selling, general and administrative expenses increased 13.3% to $375.6 million.
Adjusted operating income rose 24.4% year over year to $339.5 million. Adjusted operating margin expanded 270 basis points to 25.3%, despite incremental investments associated with the Ireland manufacturing facility.
Adjusted EBITDA increased 18.1% to $435.2 million, with the corresponding margin improving 190 basis points to 32.4%.
Dexcom's Financial Position and Cash Flow
DXCM exited the third quarter with cash, cash equivalents and marketable securities worth $1.82 billion compared with $1.95 billion in the second quarter of 2026.
Cumulative cash provided by operating activities at the end of the third quarter of 2026 was $1.12 billion compared with $1.15 billion a year ago.
The company completed its previously announced $1 billion share repurchase objective for 2026 and authorized an additional $1 billion repurchase program alongside its third-quarter results.
DXCM Raises 2026 Revenue and Margin Outlook
DXCM now expects 2026 revenues of $5.20-$5.25 billion compared with its previous projection of $5.18-$5.25 billion. The revised outlook implies annual revenue growth of approximately 12-13%.
Management indicated that the updated revenue midpoint reflects third-quarter outperformance, partially offset by approximately $5 million in incremental foreign-exchange headwinds. The guidance implies fourth-quarter revenue growth of approximately 10% at the midpoint.
The company maintained its adjusted gross margin outlook at approximately 64%. However, it raised adjusted operating margin guidance to approximately 24% from 23.5-24% and adjusted EBITDA margin guidance to approximately 32% from 31.5-32%.
Dexcom Advances Product Innovation and CGM Access
Dexcom continued expanding the G7 15 Day system, with management expecting nearly half of its U.S. customer base to transition to the extended-wear product by year-end. The company also secured regulatory clearances in Canada and Japan, with launches planned for November 2026 and early 2027, respectively.
The redesigned Stelo application introduced enhanced glucose insights, simplified meal logging and additional nutritional information. Meanwhile, Dexcom's Ireland manufacturing facility initiated commercial production on schedule, expanding its global production footprint.
Clinical developments provided another important growth catalyst. The CONNECT study, published in The New England Journal of Medicine, demonstrated a 1.6-percentage-point A1C improvement among CGM users, representing a 0.9-percentage-point advantage over the control group.
Management continues to anticipate a Medicare coverage decision for people with type 2 diabetes not using insulin before the end of 2026, with potential implementation around mid-2027. Broader reimbursement coverage could substantially expand Dexcom's addressable market, although the timing remains dependent on regulatory decisions.
DexCom exited the third quarter of 2026 on a strong note, supported by solid U.S. revenue growth, continued margin expansion and sustained momentum across its CGM portfolio. The company advanced the rollout of its G7 15 Day system, with positive customer feedback on extended wear time, sensor performance and improved adhesive design. DexCom remains on track to convert nearly half of its U.S. customer base to the extended-wear system by the end of 2026.
The company also strengthened its international presence, securing regulatory clearance for G7 15 Day in Japan following its earlier approval in Canada. DexCom plans to launch the system in Canada in November 2026 and Japan in early 2027. Additionally, the company initiated commercial production at its Ireland manufacturing facility, expanding its global production capacity and supporting future growth.
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 are OPKO Health (OPK - Free Report) , Globus Medical (GMED - Free Report) and Merit Medical Systems (MMSI - Free Report) .
OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.
Globus Medical, currently carrying a Zacks Rank #2, reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Merit Medical Systems, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.
MMSI has an estimated long-term earnings growth rate of 10.4%. Merit Medical Systems’ earnings surpassed estimates in the trailing four quarters, with the average surprise being 14.1%.
View the Zacks #1 Rank List
Image: Bigstock
DexCom Stock Up on Q3 Earnings & Revenue Beat, Margins Rise
Key Takeaways
DexCom, Inc. (DXCM - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of 73 cents, which beat the Zacks Consensus Estimate of 66 cents by 10.6%. The company reported adjusted EPS of 61 cents per share in the prior-year quarter.
Revenues increased 11.2% year over year to $1.34 billion and surpassed the consensus mark by 1.64%.
DXCM registered GAAP net income per share of 72 cents, up from the year-ago quarter’s figure of 70 cents.
Following better-than-expected results and raised guidance, shares of DXCM have risen 3.1% in today’s pre-market trading. The stock has gained 25.2% in the year-to-date period compared with 1.6% growth in the industry. The broader S&P 500 Index increased 11.2% in the same period.
Image Source: Zacks Investment Research
DXCM's U.S. Business Delivers Strong Growth
U.S. revenues totaled $969.8 million, up 13.8% from $851.9 million in the year-ago quarter. Growth was supported by broad-based customer demand, market share gains and increasing adoption among people with type 2 diabetes, including non-insulin users.
Management highlighted near-record global new-patient starts during the quarter. New customer additions increased year over year, while retention and utilization initiatives continued to support business performance. The company also reported continued growth in its active customer base.
Dexcom's International Revenues Grow Moderately
International revenues increased 4.8% year over year to $374.7 million. Organic growth was approximately 5%, reflecting a slowdown from the stronger expansion recorded in earlier quarters.
Management attributed the moderation primarily to comparisons with reimbursement expansions secured during the second half of 2025. The company expects international organic growth to return to higher levels in early 2027, supported by additional reimbursement opportunities and product introductions.
Dexcom continues to pursue direct distribution opportunities in selected international markets. It recently signed an agreement to acquire a partner business, enabling direct operations across potentially attractive European markets.
Margin Expansion Boosts DXCM's Profitability
Adjusted gross profit totaled $875.3 million, up 18.1% from $741.3 million in the prior-year quarter. Adjusted gross margin expanded 380 basis points year over year to 65.1%, supported by manufacturing efficiencies, lower freight costs, quality improvements and the growing contribution from G7 15 Day.
Research and development expenses totaled $161.6 million, up 2.6% year over year. Selling, general and administrative expenses increased 13.3% to $375.6 million.
Adjusted operating income rose 24.4% year over year to $339.5 million. Adjusted operating margin expanded 270 basis points to 25.3%, despite incremental investments associated with the Ireland manufacturing facility.
Adjusted EBITDA increased 18.1% to $435.2 million, with the corresponding margin improving 190 basis points to 32.4%.
Dexcom's Financial Position and Cash Flow
DXCM exited the third quarter with cash, cash equivalents and marketable securities worth $1.82 billion compared with $1.95 billion in the second quarter of 2026.
Cumulative cash provided by operating activities at the end of the third quarter of 2026 was $1.12 billion compared with $1.15 billion a year ago.
The company completed its previously announced $1 billion share repurchase objective for 2026 and authorized an additional $1 billion repurchase program alongside its third-quarter results.
DXCM Raises 2026 Revenue and Margin Outlook
DXCM now expects 2026 revenues of $5.20-$5.25 billion compared with its previous projection of $5.18-$5.25 billion. The revised outlook implies annual revenue growth of approximately 12-13%.
Management indicated that the updated revenue midpoint reflects third-quarter outperformance, partially offset by approximately $5 million in incremental foreign-exchange headwinds. The guidance implies fourth-quarter revenue growth of approximately 10% at the midpoint.
The company maintained its adjusted gross margin outlook at approximately 64%. However, it raised adjusted operating margin guidance to approximately 24% from 23.5-24% and adjusted EBITDA margin guidance to approximately 32% from 31.5-32%.
Dexcom Advances Product Innovation and CGM Access
Dexcom continued expanding the G7 15 Day system, with management expecting nearly half of its U.S. customer base to transition to the extended-wear product by year-end. The company also secured regulatory clearances in Canada and Japan, with launches planned for November 2026 and early 2027, respectively.
The redesigned Stelo application introduced enhanced glucose insights, simplified meal logging and additional nutritional information. Meanwhile, Dexcom's Ireland manufacturing facility initiated commercial production on schedule, expanding its global production footprint.
Clinical developments provided another important growth catalyst. The CONNECT study, published in The New England Journal of Medicine, demonstrated a 1.6-percentage-point A1C improvement among CGM users, representing a 0.9-percentage-point advantage over the control group.
Management continues to anticipate a Medicare coverage decision for people with type 2 diabetes not using insulin before the end of 2026, with potential implementation around mid-2027. Broader reimbursement coverage could substantially expand Dexcom's addressable market, although the timing remains dependent on regulatory decisions.
DexCom, Inc. Price, Consensus and EPS Surprise
DexCom, Inc. price-consensus-eps-surprise-chart | DexCom, Inc. Quote
Wrapping Up
DexCom exited the third quarter of 2026 on a strong note, supported by solid U.S. revenue growth, continued margin expansion and sustained momentum across its CGM portfolio. The company advanced the rollout of its G7 15 Day system, with positive customer feedback on extended wear time, sensor performance and improved adhesive design. DexCom remains on track to convert nearly half of its U.S. customer base to the extended-wear system by the end of 2026.
The company also strengthened its international presence, securing regulatory clearance for G7 15 Day in Japan following its earlier approval in Canada. DexCom plans to launch the system in Canada in November 2026 and Japan in early 2027. Additionally, the company initiated commercial production at its Ireland manufacturing facility, expanding its global production capacity and supporting future growth.
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 are OPKO Health (OPK - Free Report) , Globus Medical (GMED - Free Report) and Merit Medical Systems (MMSI - Free Report) .
OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.
Globus Medical, currently carrying a Zacks Rank #2, reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Merit Medical Systems, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.
MMSI has an estimated long-term earnings growth rate of 10.4%. Merit Medical Systems’ earnings surpassed estimates in the trailing four quarters, with the average surprise being 14.1%.