Dexcom Q3 earnings top forecasts, as it looks ahead to type 2 coverage

Dexcom (Nasdaq:DXCM) topped Wall Street’s expectations for third-quarter earnings, and the company nudged up its guidance for the remainder of the year as it looks ahead to a potential Medicare coverage decision that could expand the company’s reach in type 2 diabetes.

Revenue reached $1.34 billion for an 11% gain over the prior year. U.S. sales grew 14% to about $970 million — coming out ahead of analysts’ forecasts, as it continues the domestic rollout of its 15-day G7 continuous glucose monitor — while international revenue fell behind consensus estimates, despite logging 5% growth and about $375 million amid near-record global new patient starts.

Adjusted earnings per share reached 73 cents, beating the Street’s expected 67. GAAP net income came in at $275 million, below 2025’s $284 million, for 72 cents per diluted share. Dexcom’s stock price rose about 3.4% in morning trading following the report, to about $84.

Stateside, the company said its largest increase in CGM sales came from people with type 2 diabetes, including those not taking insulin.

“This is contributing to growth today and preparing the market for a significantly broader coverage environment in the future,” President and CEO Jake Leach said on the company’s earnings call. “Along those lines, we continue to expect CMS to announce a type 2, non-insulin coverage decision this year, as the case for reimbursement is strengthening.”

This past summer Dexcom put forward a randomized clinical study that showed an average reduction in A1C of 1.6 percentage points, including among participants taking GLP-1s, as well as metformin and SGLT-2 medications. People with a baseline A1C greater than 10% saw stronger improvements, with 3.1 percentage points on average.

Related: Dexcom unveils next-gen G8 CGM system, CEO Jake Leach explains new tech

After its results were presented at the American Diabetes Association’s Scientific Sessions in July, the CONNECT study was published earlier this month in the New England Journal of Medicine.

“As a next step towards broader coverage, we provided this publication update directly to the medical directors evaluating the submission for Medicare coverage expansion,” Leach said. “We also look forward to seeing this evidence included in upcoming clinical standards, including the ADA standards of care, which is expected to be updated in the coming weeks.”

Early next year the company also plans to launch the Dexcom Direct program to help users navigate coverage options, including Medicare patients.

Meanwhile, Dexcom said it’s on track to convert nearly half of its U.S. customer base to the 15-day G7 by the end of the year, following its 2025 launch. The extended-wear CGM has also picked up a green light in Canada, with commercialization set to begin there next month, and its rollout is scheduled in Japan early next year following a recent clearance.

Regarding the third quarter’s international sales, their pace coming in below estimates was attributed to global reimbursement cycles, including coverage attained in the latter half of 2025.

“We’ve seen a similar dynamic in prior years, as the timing of these reimbursement decisions can create some quarterly variability in international growth rates,” Chief Financial Officer Jereme Sylvain said on the call with investors. “As usual, we expect this to be a short-term dynamic with international revenue normalizing back to higher organic growth levels at the start of next year.”

Looking ahead, the company upped the lower end of its financial guidance for 2026; it now expects annual revenue to land between $5.20 billion and $5.25 billion, versus the previous bar of $5.18 billion. That would result in 12% to 13% growth, versus the prior forecast of 11% to 13%.

Dexcom also announced a new share repurchasing authorization of up to $1 billion, after completing its previous billion-dollar buyback program earlier this year.