DexCom Raises Revenue Outlook Midpoint and Unveils $1 Billion Buyback

Dexcom raised the midpoint of its 2026 revenue forecast and lifted its profit-margin targets on Thursday after third-quarter revenue grew 11% to $1.344 billion, and its board authorized a new share buyback of up to $1.0 billion, according to an 8-K the glucose-monitoring company filed after the market close.

The San Diego company now expects full-year revenue of $5.20 billion to $5.25 billion, which it said represents growth of about 12% to 13%. It raised its forecasts for non-GAAP operating margin to about 24% and adjusted EBITDA margin to about 32%, and reiterated its outlook for a non-GAAP gross margin of about 64%.

Margins widen

Revenue rose from $1.209 billion a year earlier, with organic growth also at 11%. U.S. revenue grew 14% to $969.8 million, and international revenue rose 5% to $374.7 million.

Gross margin improved to 64.3% of revenue from 60.5%. GAAP operating income climbed to $327.2 million, or 24.3% of revenue, from $242.5 million, or 20.1%, a gain of 420 basis points. On a non-GAAP basis, operating margin rose 270 basis points to 25.3%.

GAAP net income slipped to $275.1 million from $283.8 million, though diluted EPS edged up to 72 cents from 70 cents on a lower share count. The year-earlier quarter included $109.8 million of other income, compared with $7.5 million this time. Non-GAAP EPS rose to 73 cents from 61 cents.

"This quarter, we continued to build momentum across the business, delivering strong revenue growth and margin progression, strengthening our clinical evidence, and advancing key product and operational initiatives," President and CEO Jake Leach said in the release. He said the performance enabled the company "to again raise our full-year revenue and operating margin guidance."

Product and clinical updates

Dexcom said it continued the U.S. rollout of its Dexcom G7 15 Day System and secured its first two international regulatory clearances for the extended-wear sensor. It also launched a redesigned version of its Stelo product with added glucose insights and simplified meal logging.

After the quarter ended, the company said, results from its CONNECT randomized clinical trial were published in The New England Journal of Medicine. Dexcom said the study showcased outcomes driven by G7 for people with Type 2 diabetes who are not on insulin.

New buyback

The new repurchase program allows Dexcom to buy back up to $1.0 billion of common stock through Dec. 31, 2027, according to the 8-K. Repurchases may be made in the open market, in privately negotiated transactions or through trading plans, and the program does not obligate the company to buy any amount of stock.

Treasury stock rose to 39.7 million shares at Sept. 30 from 25.9 million at the end of 2025, according to the company's balance sheet. Dexcom held $1.82 billion of cash, cash equivalents and marketable securities at quarter-end, and its revolving credit facility remained undrawn.

For the first nine months, revenue rose to $3.84 billion from $3.40 billion, and net income increased to $723.7 million from $569.0 million.

Management scheduled a conference call for 4:30 p.m. ET on Thursday.

Sources

1. DexCom Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001093557-26-000193)

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