DexCom (NASDAQ:DXCM) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

DexCom (NASDAQ:DXCM) posted its quarterly earnings results on Thursday. The medical device company reported $0.73 EPS for the quarter, topping the consensus estimate of $0.68 by $0.05, FiscalAI reports. The business had revenue of $1.34 billion during the quarter, compared to analysts’ expectations of $1.33 billion. DexCom had a net margin of 20.12% and a return on equity of 35.94%. The firm’s quarterly revenue was up 11.1% compared to the same quarter last year. During the same period last year, the company posted $0.61 earnings per share.

Here are the key takeaways from DexCom’s conference call:

• Q3 revenue rose 11% to $1.34 billion, with U.S. revenue up 14% and continued market-share gains. Management said new patient starts were near record levels and raised full-year revenue guidance to $5.20–$5.25 billion, implying 12%–13% growth.
• Gross margin expanded to 65.1% from 61.3% a year ago, while operating and adjusted EBITDA margins also improved. Dexcom generated more than $900 million in free cash flow through nine months, completed a $1 billion 2026 buyback, and authorized another $1 billion repurchase.
• The company highlighted strong clinical support for broader CGM reimbursement after its CONNECT trial showed a 1.6% A1C reduction in non-insulin-using type 2 patients and was published in the New England Journal of Medicine. Dexcom still expects a CMS coverage decision this year, with potential implementation around mid-2027.
• G7 15 Day adoption is tracking toward nearly 50% of the U.S. customer base by year-end, with improved sensor survivability and positive customer feedback. International launches are beginning in Canada, Japan is targeted for early 2027, and Ireland has started commercial production to expand global capacity.
• International growth slowed to 5% as Dexcom lapped prior reimbursement wins, although management expects normalization in early 2027. A CVS/PBM formulary change could raise out-of-pocket costs for some patients, even though management said the affected PBM represents less than 4% of U.S. revenue and should have limited financial impact next year.

DexCom Stock Up 1.7%

Shares of DXCM stock opened at $79.93 on Friday. The stock’s 50 day simple moving average is $85.98 and its 200 day simple moving average is $74.60. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.43 and a current ratio of 1.73. DexCom has a twelve month low of $54.11 and a twelve month high of $92.59. The company has a market capitalization of $30.16 billion, a price-to-earnings ratio of 31.59, a PEG ratio of 1.32 and a beta of 1.48.

More DexCom News

Here are the key news stories impacting DexCom this week:

• Positive Sentiment: Q3 earnings beat expectations: DexCom reported adjusted EPS of $0.73, above the $0.68 consensus estimate, while revenue rose 11.1% year over year to $1.34 billion, slightly exceeding expectations. DexCom Q3 2026 earnings results
• Positive Sentiment: Profitability improved: Gross profit increased 18.2% to $864.4 million and operating profit rose 34.9% to $327.2 million, indicating favorable margin expansion despite slower overall revenue growth. DexCom stock rises on Q3 earnings
• Positive Sentiment: Buyback supports the stock: DexCom authorized an equity repurchase program worth up to $1 billion, potentially reducing the share count and signaling management’s confidence in the company’s valuation and cash-generation outlook. DexCom announces $1 billion equity buyback
• Positive Sentiment: Guidance was raised: Reports indicate DexCom increased its 2026 sales outlook, reinforcing expectations for continued demand for its continuous glucose-monitoring products. DexCom raised guidance and buyback
• Neutral Sentiment: DexCom plans to launch its G7 15-Day CGM system in Canada in November, expanding the company’s product availability and potentially supporting international growth. DexCom G7 15-Day Canada launch
• Negative Sentiment: Cash from operating activities declined to $325.6 million, and net income attributable to common shareholders fell 3.1% year over year, tempering the otherwise strong operating-profit performance.
• Negative Sentiment: An executive sold 2,565 shares under a pre-arranged Rule 10b5-1 plan; broader recent insider activity has also been weighted toward selling, which may modestly pressure sentiment. DexCom insider selling

Insider Activity

In related news, Director Mark Foletta sold 2,000 shares of the firm’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $85.32, for a total value of $170,640.00. Following the transaction, the director directly owned 48,852 shares in the company, valued at approximately $4,168,052.64. This trade represents a 3.93% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jereme M. Sylvain sold 3,638 shares of the firm’s stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $83.27, for a total value of $302,936.26. Following the completion of the sale, the executive vice president directly owned 146,828 shares in the company, valued at approximately $12,226,367.56. This represents a 2.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 24,822 shares of company stock valued at $2,090,833. Insiders own 0.28% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. UBS Group set a $96.00 target price on shares of DexCom and gave the company a “buy” rating in a research note on Tuesday, July 28th. Piper Sandler reiterated an “overweight” rating and set a $95.00 price objective (up from $88.00) on shares of DexCom in a report on Friday, July 31st. Wall Street Zen upgraded DexCom from a “hold” rating to a “buy” rating in a research note on Sunday, September 6th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $105.00 target price (up from $90.00) on shares of DexCom in a research report on Thursday, October 1st. Finally, Weiss Ratings raised DexCom from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, October 6th. Three analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $92.57.

DexCom Company Profile

DexCom, Inc develops and commercializes continuous glucose monitoring (CGM) systems for people with diabetes. Its devices use a small wearable sensor to measure glucose levels in real time and transmit readings to compatible smartphones, receivers, smartwatches, and other connected devices, helping users monitor glucose trends and make informed decisions about their health.

The company’s product portfolio includes the Dexcom G7 and Dexcom G6 CGM systems, as well as Dexcom ONE and Dexcom ONE+ products offered in select markets.