10-Q · April 30, 2026
DexCom, Inc. (DXCM) posted strong Q1 2026 results, with revenue reaching $1.192 billion, up 15% year-over-year, exceeding estimates of $1.176 billion. EPS improved significantly to $0.51 from $0.27 in the prior year.…
Earnings analysis · 10-Q
DXCM earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
DexCom delivered strong third-quarter operating performance, with revenue up 11% to $1,344.5 million, gross margin improving to 64.3%, and operating margin reaching 24.3%. Diluted EPS rose to $0.72 despite a 3% decline…
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DexCom delivered strong third-quarter operating performance, with revenue up 11% to $1,344.5 million, gross margin improving to 64.3%, and operating margin reaching 24.3%. Diluted EPS rose to $0.72 despite a 3% decline in net income, supported by a lower share count and substantial share repurchases. The main offsets are weaker operating cash flow, elevated inventory and $117.2 million of year-to-date inventory reserves, continued litigation exposure, and significant planned capital expenditures.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.72
- Segment
- One reportable segment: total revenue $1,344.5 million, up $135.2 million or 11% year over year. U.S. revenue was $969.8 million and international revenue was $374.7 million; distributor revenue was $1,148.0 million and direct revenue was $196.5 million.
What stood out
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Revenue Growth Remained Strong
Third-quarter revenue increased to $1,344.5 million from $1,209.3 million, a $135.2 million or 11% year-over-year increase. Management attributed growth primarily to higher disposable-sensor volume and continued worldwide customer growth.
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Gross Margin Expanded
Gross profit rose 18% to $864.4 million from $731.4 million, lifting gross margin to 64.3% from 60.5% in the prior-year quarter. Management cited G7 15 Day benefits, manufacturing efficiencies, higher production volumes, and favorable mix.
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Operating Leverage Improved
Operating income increased 35% to $327.2 million from $242.5 million, with operating margin expanding to 24.3% from 20.1%. Operating leverage more than offset a $48.3 million increase in total operating expenses.
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EPS Benefited From Lower Share Count
Diluted EPS increased to $0.72 from $0.70 despite net income declining 3% to $275.1 million from $283.8 million, as diluted weighted-average shares declined to 383.5 million from 407.4 million.
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U.S. and International Revenue Grew
Revenue increased across both reported geographic markets: U.S. revenue rose to $969.8 million from $851.9 million, while international revenue rose to $374.7 million from $357.4 million. Nine-month international revenue was $1,109.3 million, up from $959.0 million.
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Liquidity and Revolver Capacity
Liquidity remained substantial, with cash, cash equivalents, and short-term marketable securities totaling $1.82 billion at September 30, 2026. The company also had no outstanding revolver borrowings, $8.7 million of letters of credit, and $191.3 million available under its Credit Facility.
What to watch
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Inventory and G6 Transition Risk
Inventory increased to $770.7 million from $629.1 million at December 31, 2025, while the company recorded $117.2 million of inventory reserve charges in the first nine months. Management said the charges were primarily associated with the planned discontinuation of G6 manufacturing and forecasted demand.
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Working Capital Reduced Cash Conversion
Operating cash flow declined to $1,120.4 million from $1,146.7 million for the first nine months, despite net income increasing by $154.7 million. Management attributed the cash-flow pressure primarily to a $205.6 million decrease in operating-asset and liability benefits, including higher inventory.
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Large Buyback Program Adds Allocation Risk
The newly disclosed 2027 Share Repurchase Program authorizes up to $1.00 billion of buybacks through December 31, 2027, but the company states it may be extended, modified, suspended, or discontinued and does not obligate any repurchases. The filing specifically warns that repurchases could increase share-price volatility and may not positively affect EPS or stock price.
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Product and Securities Litigation
Litigation exposure remains material: six overlapping G6/G7 putative class-action complaints were filed, with five consolidated in federal court, while a separate securities class-action dismissal is under appeal. The company states it cannot reasonably estimate the ultimate outcome of the securities, derivative, and G6/G7 class-action matters.
Management's outlook
The 10-Q does not provide explicit numeric revenue or EPS guidance. Management states that existing cash, short-term investments, future operating cash flow, and the Credit Facility are expected to fund requirements for at least the next 12 months; the filing also states that significant capital expenditures are expected over the next year.
Earlier filings 4
10-K · February 12, 2026
DexCom’s 10-K emphasizes a product-led strategy: roll out the G7 family (including the April 2025 FDA-cleared G7 15 Day) and expand access via Stelo (OTC, launched August 2024) while leveraging integrations with insulin…
10-Q · October 30, 2025
DexCom reported strong Q3 results with revenue of $1,209.3 million, up $215.1 million (21.6%) versus Q3 2024, and net income of $283.8 million driving diluted EPS to $0.70 from $0.34 a year ago. Gross profit expanded to…
10-Q · May 1, 2025
DexCom reported revenue of $1,036.0 million for the quarter ended March 31, 2025, up $115.0 million (12.5%) versus the three months ended March 31, 2024. Gross margin compressed to 56.9% while operating income improved…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.