Dexcom reports $1.344 billion in revenue and raises its 2026 annual outlook
Key Facts
Dexcom reported revenue of $1.344 billion in the third quarter of 2026, up 11% year over year, and raised its fiscal-year revenue and operating-margin outlook. Revenue was above $1.209 billion in the third quarter of 2025, according to the company’s statement. Compared with analyst estimates cited by Investing.com, revenue was expected at $1.33 billion and adjusted earnings per share at $0.67. The company reported adjusted earnings per share of $0.73. The results combined revenue growth with wider margins, alongside a clear difference in sales momentum between the United States and international markets.
The U.S. market led sales growth, with revenue up 14% year over year, while international revenue rose 5%, according to Dexcom. This differed from the second quarter, when global revenue grew 13% to $1.308 billion, and U.S. sales rose 11% while international sales increased 19%. U.S. growth therefore accelerated in the third quarter, while international revenue growth slowed from the previous quarter. The statement did not specify the reason for the difference between the two regions. Chief Executive Jake Leach said the company continued “delivering strong revenue growth and margin improvement, strengthening our clinical evidence, and advancing our product and operational initiatives.”
Operating income under GAAP improved to $327.2 million, or 24.3% of revenue, compared with $242.5 million and a 20.1% margin a year earlier. Non-GAAP operating income was about $339.5 million, with a 25.3% margin, according to the statement. GAAP gross profit also rose to $864.4 million, equal to 64.3% of revenue, from $731.4 million and a 60.5% margin in the third quarter of 2025. For net income, Dexcom reported $275.1 million under GAAP, or $0.72 per diluted share, compared with $283.8 million and $0.70 per share a year earlier. Non-GAAP net income was $275.0 million, with earnings per share of $0.73, compared with $242.5 million and $0.61 in the corresponding period.
The company raised its fiscal 2026 revenue range to $5.20–$5.25 billion, equivalent to expected growth of between 12% and 13%. The outlook includes a non-GAAP gross margin of about 64%, an operating margin of about 24%, and an adjusted EBITDA margin of about 32%. Leach said the quarter’s performance enabled the company to “raise our full-year revenue and operating margin guidance again.” The outlook revision followed quarterly results that showed higher gross and operating margins than a year earlier. The statement gave no new figure for its GAAP operating-margin outlook, while setting the guidance on a non-GAAP basis.
On products, Dexcom said it launched a redesigned Stelo experience, with improvements to glucose insights, meal logging and nutrition information. The company continued its U.S. rollout of the 15-day Dexcom G7 system and received its first two international regulatory approvals for the system. After the quarter ended, Dexcom published the randomized CONNECT trial in the New England Journal of Medicine, covering outcomes from G7 use among people with type 2 diabetes who do not use insulin. The company said Leach views the strengthening of clinical evidence as advancing alongside product and operational initiatives. These developments put products and regulatory expansion among the company’s key updates accompanying the results announcement.
Alongside the results, Dexcom announced authorization to repurchase up to $1 billion of shares. As of September 30, it held $1.82 billion in cash, cash equivalents and marketable securities, while its revolving credit facility remained undrawn, according to the statement. Before the results announcement, the stock had closed at $78.62 on October 28, according to EL7 data. An Investing.com report attributed to Reuters said the stock rose 0.6% in after-hours trading following the results announcement. Dexcom had set October 29, 2026 as the date for releasing results after the market close and for a management call that day at 4:30 p.m. Eastern time.