Dexcom (Nasdaq:DXCM) shares took a hit after hours today on third-quarter results that came in ahead of the consensus forecast.
Shares of DXCM fell more than 8% to $62.69 apiece after the market closed today.
The San Diego-based continuous glucose monitor (CGM) maker reported profits of $283.8 million. That equals 70¢ per share on sales of $1.21 billion for the three months ended Sept. 30, 2025.
Dexcom more than doubled its profits from $134.6 million a year ago on a sales increase of 21.6%. The company said it surpassed $100 million in revenue for its Stelo over-the-counter sensor since its launch in August 2024.
Adjusted to exclude one-time items, earnings per share came in at 61¢. That landed 4¢ ahead of expectations on Wall Street. Sales also topped the forecast as experts projected $1.18 billion in revenue.
Highlights in the quarter included the launch of an AI-powered meal logging feature for its latest CGMs and expanded access to its G7 platform. The company also submitted its new basal insulin titration module within the G7 app to the FDA.
When it announced its second-quarter earnings in July, the company also announced the planned promotion of COO Jake Leach to CEO. He took over in an interim capacity last month when CEO Kevin Sayer took a leave of absence. The company is also currently facing a class action lawsuit related to its G7.
“During the quarter, we delivered strong revenue results, expanded access to Dexcom G7, and introduced multiple enhancements to Dexcom’s digital platform,” said Jake Leach, Dexcom’s president and interim CEO. “I am excited to lead Dexcom forward as we finalize 2025 and capitalize on the incredible opportunity ahead of us.”
Dexcom expects revenues to range between $4.63 billion and $4.65 billion for the full year, marking 15% year-over-year growth. It lowered its non-GAAP gross profit margin projection by 1% from 62% to 61%.
The analysts’ view on Dexcom
BTIG analysts Marie Thibault, Sam Eiber and Alexandra Pang maintain a “Buy” rating for Dexcom. However, they say the “sentiment remains tough” around the company right now.
“Investor sentiment on [Dexcom] has been negative over the past several months and we had heard concerns going into the print that included a belief that Street estimates for 2026 were too high and that noise around accuracy issues would impact new patient starts,” the analysts wrote. “[The] Q3 call commentary confirmed both of these fears.”
Dexcom management’s preliminary outlook on 2026 fell shy of Wall Street’s expectations of 15% year-over-year growth, the analysts said. Management also noted some minor impact to new patient starts in this past quarter related to perceived accuracy of its sensors. However, new starts still remained strong and came in just below record levels.
Management also cited plans to repurchase shares. The analysts say they are surprised by the magnitude of the share sell-off in response to the company’s results, though.
“We have to acknowledge that sentiment is more negative and entrenched than we initially thought and that it will take more time for [Dexcom to rebuild its reputation,” the analysts wrote. “Even at a slightly lower growth rate, we think [Dexcom’s] profitability, product pipeline, market position and potential tailwinds make it a high-quality name. For now, we think the stock deserves to trade in line with its fast-growing peers, with slower sales growth offset by size and profitability.”
