Shares of DXCM rose 2% to $76.02 apiece after the market closed today.
The San Diego-based continuous glucose monitor (CGM) maker reported profits of $249.1 million. That equals 64¢ per share on sales of $1.31 billion for the three months ended June 30, 2026.
Dexcom recorded a 38.5% bottom-line gain on a sales increase of 13.1%.
Adjusted to exclude one-time items, earnings per share came in at 70¢. That landed 9¢ ahead of expectations on Wall Street. Sales also topped forecasts as experts projected $1.29 billion in revenue.
Highlights in the quarter included the unveiling of the next-generation G8 CGM at an Investor Day event. Jake Leach, Dexcom’s president and CEO, explained that milestone, as well as the company’s acquisition of Nutrisense, in an interview with Drug Delivery Business News.
During the quarter, Dexcom also announced FDA clearance for its Stelo over-the-counter CGM for children and launched an enhanced Stelo app.
The company raised the midpoint of its fiscal 2026 revenue guidance and increased guidance for its adjusted gross profit margin, operating margin and EBITDA margin. It now expects sales between $5.18 billion and $5.25 billion, marking approximately 11%-13% growth.
“During the quarter, we had the opportunity to host many of you at our 2026 Investor Day, where we highlighted our substantial market opportunity and introduced a new long-term financial outlook through 2030,” said Leach. “This quarter’s performance and the successful outcomes from our CONNECT trial reinforce our confidence in the path ahead and position us well to deliver on our long-range plan.”
The analysts’ take on Dexcom
BTIG analysts Marie Thibault, Alexandra Pang and Sam Eiber maintain a “Buy” rating for Dexcom.
The analysts pointed to broad-based U.S. strengths, while the company’s international business continues to benefit from reimbursement tailwinds. Meanwhile, management continues to expect Medicare coverage expansion for type 2 diabetes patients not on insulin.
Dexcom expects that coverage expansion to go into effect in mid-2027.
Meanwhile, the analysts note that the rollout of the G7 15 Day CGM continues and remains on track for about a 50% U.S. base conversion by the end of the year.
“We view this quarter as a clean, high-quality beat with margin outperformance, and the CONNECT data as a helpful catalyst for the long-term T2D non-insulin opportunity,” the analysts wrote. “We are particularly impressed by the profitability and free cash flow generation. The profitability, product rollout, and potential reimbursement catalysts to come, combined with ~$600M in share repurchases during the quarter, make [Dexcom] a compelling investment.”
