DexCom (NASDAQ:DXCM) Posts Earnings Results, Beats Expectations By $0.05 EPS

DexCom (NASDAQ:DXCM) announced its quarterly earnings results on Thursday. The medical device company reported $0.73 earnings per share for the quarter, topping analysts’ consensus estimates of $0.68 by $0.05, FiscalAI reports. DexCom had a return on equity of 35.94% and a net margin of 20.12%. The business had revenue of $1.34 billion for the quarter, compared to analysts’ expectations of $1.33 billion. During the same period in the prior year, the firm earned $0.61 EPS. The business’s quarterly revenue was up 11.1% on a year-over-year basis.

Here are the key takeaways from DexCom’s conference call:

• Q3 revenue rose 11% to $1.34 billion, with U.S. revenue up 14% and continued market-share gains. Management said new patient starts were near record levels and raised full-year revenue guidance to $5.20–$5.25 billion, implying 12%–13% growth.
• Gross margin expanded to 65.1% from 61.3% a year ago, while operating and adjusted EBITDA margins also improved. Dexcom generated more than $900 million in free cash flow through nine months, completed a $1 billion 2026 buyback, and authorized another $1 billion repurchase.
• The company highlighted strong clinical support for broader CGM reimbursement after its CONNECT trial showed a 1.6% A1C reduction in non-insulin-using type 2 patients and was published in the New England Journal of Medicine. Dexcom still expects a CMS coverage decision this year, with potential implementation around mid-2027.
• G7 15 Day adoption is tracking toward nearly 50% of the U.S. customer base by year-end, with improved sensor survivability and positive customer feedback. International launches are beginning in Canada, Japan is targeted for early 2027, and Ireland has started commercial production to expand global capacity.
• International growth slowed to 5% as Dexcom lapped prior reimbursement wins, although management expects normalization in early 2027. A CVS/PBM formulary change could raise out-of-pocket costs for some patients, even though management said the affected PBM represents less than 4% of U.S. revenue and should have limited financial impact next year.

DexCom Price Performance

DXCM stock traded up $1.31 during trading on Thursday, hitting $79.93. The company had a trading volume of 5,916,608 shares, compared to its average volume of 4,297,632. The business has a 50 day moving average of $85.98 and a 200 day moving average of $74.60. The firm has a market capitalization of $30.16 billion, a price-to-earnings ratio of 30.83, a P/E/G ratio of 1.32 and a beta of 1.48. The company has a current ratio of 1.73, a quick ratio of 1.43 and a debt-to-equity ratio of 0.47. DexCom has a fifty-two week low of $54.11 and a fifty-two week high of $92.59.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Argus increased their target price on DexCom from $86.00 to $96.00 and gave the stock a “buy” rating in a research report on Tuesday, August 4th. Raymond James Financial reiterated a “strong-buy” rating and issued a $94.00 target price on shares of DexCom in a research note on Friday, July 31st. Stifel Nicolaus set a $95.00 price target on shares of DexCom and gave the company a “buy” rating in a report on Friday, July 31st. JPMorgan Chase & Co. increased their price objective on shares of DexCom from $65.00 to $82.00 and gave the stock a “neutral” rating in a report on Friday, July 31st. Finally, Citigroup reaffirmed a “buy” rating and issued a $88.00 price objective (up from $84.00) on shares of DexCom in a report on Friday, July 31st. Three equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and a consensus target price of $92.43.

Key Headlines Impacting DexCom

Here are the key news stories impacting DexCom this week:

• Positive Sentiment: Q3 results exceeded expectations: DexCom reported adjusted earnings of $0.73 per share, above consensus estimates of roughly $0.66–$0.68, while revenue reached $1.34 billion versus expectations of $1.33 billion. Revenue increased 11.2% year over year, and gross profit rose 18.2% to $864.4 million. DexCom Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Profitability improved: Operating profit climbed 34.9% to $327.2 million, supporting the investment case that DexCom is expanding margins as its continuous glucose monitoring business grows. The company also raised its 2026 sales guidance and announced a $1 billion share-repurchase authorization. DexCom Q3 2026 Raised Guidance and Buyback
• Positive Sentiment: Product expansion offers another growth catalyst: DexCom plans to launch its G7 15-day continuous glucose monitoring system in Canada in November, potentially increasing product adoption and international sales. DexCom to Launch G7 15-Day System in Canada
• Neutral Sentiment: Cash from operations declined to $325.6 million, and net income attributable to common shareholders fell 3.1% despite higher revenue and operating profit. These trends may prompt investors to monitor cash conversion and one-time items.
• Negative Sentiment: Insider-selling data shows repeated sales without reported purchases over the past six months. EVP Sadie Stern sold 2,565 shares for approximately $202,000 under a pre-arranged Rule 10b5-1 plan, which reduces the signal’s significance but may still weigh modestly on sentiment. DexCom Insider Selling

Insider Activity

In other DexCom news, EVP Jereme M. Sylvain sold 3,638 shares of the business’s stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $83.27, for a total transaction of $302,936.26. Following the sale, the executive vice president directly owned 146,828 shares in the company, valued at approximately $12,226,367.56. The trade was a 2.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Foletta sold 2,000 shares of the company’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $85.32, for a total transaction of $170,640.00. Following the completion of the sale, the director directly owned 48,852 shares of the company’s stock, valued at approximately $4,168,052.64. This represents a 3.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 26,822 shares of company stock worth $2,250,833 in the last 90 days. 0.28% of the stock is currently owned by corporate insiders.

About DexCom

DexCom, Inc develops and commercializes continuous glucose monitoring (CGM) systems for people with diabetes. Its devices use a small wearable sensor to measure glucose levels in real time and transmit readings to compatible smartphones, receivers, smartwatches, and other connected devices, helping users monitor glucose trends and make informed decisions about their health.

The company’s product portfolio includes the Dexcom G7 and Dexcom G6 CGM systems, as well as Dexcom ONE and Dexcom ONE+ products offered in select markets.