Dexcom raises 2026 revenue forecast and authorizes $1 billion buyback

DexCom, Inc. (DXCM) reported third-quarter 2026 revenue of $1.344 billion on Oct. 29, up 11% from a year earlier, and raised its full-year revenue and operating margin guidance. Shares were little changed in after-hours trading as of 4:35 p.m. ET, from a regular-session close of $79.91.

The company said in a regulatory filing that its board approved a share repurchase program of up to $1.0 billion of common stock, with a repurchase period ending no later than Dec. 31, 2027.

Here's how the company did:

• Revenue: $1.344 billion vs. $1.209 billion a year earlier
• GAAP diluted EPS: $0.72 vs. $0.70 a year earlier
• Non-GAAP diluted EPS: $0.73 vs. $0.61 a year earlier

2026 guidance

The company raised the midpoint of its fiscal 2026 revenue guidance to $5.20 billion to $5.25 billion, which it said represents growth of approximately 12% to 13%. It reiterated its non-GAAP gross profit margin forecast of approximately 64%. It increased its non-GAAP operating margin forecast to approximately 24% and its adjusted EBITDA margin forecast to approximately 32%.

CEO Jake Leach said the quarter showed momentum across the business. "This performance enabled us to again raise our full-year revenue and operating margin guidance and reinforces our confidence in our ability to deliver on the long-term objectives we outlined at Investor Day."

Segment results

U.S. revenue grew 14% year over year, while international revenue grew 5%, both on a reported basis.

Repurchase program terms

Repurchases may be made in the open market, in privately negotiated transactions or by other methods, including Rule 10b5-1 trading plans. The company is not obligated to repurchase any amount of stock, and the program may be modified, suspended or discontinued at any time.

Cash and capital returns

As of Sept. 30, the company held $1.82 billion in cash, cash equivalents and marketable securities, and its revolving credit facility remained undrawn. The company said the cash balance gives it flexibility as it expands production capacity.

GAAP operating income was $327.2 million, or 24.3% of revenue, compared with $242.5 million a year earlier. Non-GAAP operating income was $339.5 million, or 25.3% of reported revenue.

The company also said that after the quarter it published the CONNECT randomized clinical trial in The New England Journal of Medicine, covering outcomes with the Dexcom G7 in people with Type 2 diabetes not on insulin.