DexCom Executes $600 Million of Its $1 Billion Share Repurchase Authorization
Key Facts
DexCom converted a substantial portion of its $1.0 billion share repurchase authorization into actual purchases, repurchasing 8.6 million shares for $600.0 million during the three and six months ended June 30, 2026, according to its quarterly filing with the U.S. Securities and Exchange Commission. The board authorized the program on May 14, setting June 30, 2027, as its outside expiration date. The purchases show that the authorization took effect quickly, while the program remained discretionary and the company was not required to exhaust its limit. In third-quarter results published on October 29, the company reported revenue of $1.344 billion, up 11% year over year. It also raised its fiscal 2026 revenue and non-GAAP operating margin outlook.
DexCom announced the new authorization alongside the completion of its previous repurchase program, which still had $250.0 million available for share purchases, according to the company’s disclosure. The current program does not require DexCom to buy a specified amount or number of shares, and it may be extended, modified, suspended or terminated at any time. The authorization therefore sets a cap and a time frame for purchases but does not guarantee that the full amount will be spent. This flexibility comes as the company had recorded $600.0 million in purchases through the end of June, more than half the authorization’s value. The program runs through June 30, 2027, at the latest, unless the company changes its terms or suspends it.
Reported revenue grew 11% in the third quarter to $1.344 billion, compared with growth of 22% and revenue of $1.209 billion in the third quarter of 2025, reflecting a slower pace of annual growth. Revenue had risen 13% in the second quarter of 2026 to $1.308 billion, versus $1.157 billion in the same period a year earlier. By region, U.S. revenue grew 14% year over year in the third quarter, while international revenue increased 5% on both a reported and organic basis. This highlights differing growth rates between the U.S. market and international markets during the period. Chief Executive Jake Leach said the quarter’s performance “once again enabled us to raise our revenue and operating margin outlook for the year.”
Third-quarter GAAP net income was $275.1 million, or $0.72 per diluted share, compared with $283.8 million and $0.70 per share in the third quarter of 2025. GAAP net income therefore declined year over year, while diluted earnings per share increased over the same period. GAAP operating margin was about 24.3% of revenue, up 420 basis points from the year-earlier period. Non-GAAP operating margin was 25.3%, up 270 basis points year over year. The figures place improving operating margins alongside slower revenue growth and lower GAAP net income.
DexCom raised its 2026 revenue outlook to a range of $5.20–$5.25 billion, equivalent to approximate growth of 12% to 13%, and raised its non-GAAP operating margin outlook to about 24%. Its initial outlook, published in February, put revenue at $5.16 billion to $5.25 billion, with expected growth of 11% to 13%. Leach said the quarter’s performance enabled the company to raise its revenue and operating margin outlook again. The company is also maintaining the targets announced at its investor day: organic revenue growth of at least 10% annually through 2030, and a non-GAAP gross margin of 67% to 69% in 2030. It also targets a non-GAAP operating margin of 29% to 30% that year.
Cash, cash equivalents and marketable securities totaled $1.82 billion on September 30, 2026, and the revolving credit facility remained undrawn, according to the company’s results. These figures provide financial context for the repurchase program, alongside $600.0 million in purchases in the first half. After quarter-end, DexCom announced publication of results from the randomized CONNECT trial in The New England Journal of Medicine, and also said it had launched a redesigned version of Stelo and expanded the rollout of its 15-day G7 system. The company announced its third-quarter results on October 29 and held its investor call that day at 4:30 p.m. Eastern time. Before the results announcement, DXCM shares closed at $78.56 on October 27 and then at $78.62 on October 28, according to EL7 data.