Key financial results
- Worldwide revenue: Worldwide revenue for the third quarter of 2026 was $1.34 billion, representing growth of 11% on both a reported and organic basis compared to $1.21 billion in the third quarter of 2025.
worldwide revenue of $1.34 billion compared to $1.21 billion for the third quarter of 2025, representing growth of 11% on both a reported basis and organic basis.
- U.S. revenue: U.S. revenue totaled $970 million, up 14% from $852 million in the prior year period.
U.S. revenue totaled $970 million for the third quarter compared to $852 million in the third quarter of 2025, representing an increase of 14%.
- International revenue: International revenue grew 5% on both a reported and organic basis to $375 million.
International revenue grew 5% on both on a reported and organic basis. totaling $375 million in the third quarter.
- Gross profit: Gross profit for the third quarter was $875.3 million, or 65.1% of revenue, compared to 61.3% of revenue in the third quarter of 2025.
Our third quarter gross profit was $875.3 million or 65.1% of revenue compared to 61.3% of revenue in the third quarter of 2025.
- Operating income: Operating income was $339.5 million, or 25.3% of revenue, compared to $272.9 million, or 22.6% of revenue in the same quarter of 2025.
Operating income was $339.5 million or 25.3% of revenue in the third quarter of 2026, compared to $272.9 million or 22.6% of revenue in the same quarter of 2025.
- Adjusted EBITDA: Adjusted EBITDA was $435.2 million, or 32.4% of revenue, compared to $368.4 million, or 30.5% of revenue in the third quarter of 2025.
Adjusted EBITDA was $435.2 million or 32.4% of revenue for the third quarter compared to $368.4 million or 30.5% of revenue for the third quarter of 2025.
- Net income: Net income for the third quarter was $275 million, or $0.73 per share.
Net income for the third quarter was $275 million or $0.73 per share.
- Balance sheet and cash flow: The company ended the quarter with approximately $1.8 billion of cash and cash equivalents and generated over $900 million of free cash flow through the first three quarters of the year.
Business segment results
- U.S. market: U.S. revenue grew 14% driven by market share gains across all customer segments, with the largest increase coming from customers with type 2 diabetes not on insulin.
U.S. revenue totaled $970 million for the third quarter compared to $852 million in the third quarter of 2025, representing an increase of 14%.
- New patient starts: Global new patient starts were near record levels in the third quarter.
global new patient starts were near record levels in Q3, consistent with our expectation as seasonality continues to evolve in the business.
- International market: International revenue grew 5% as the company lapped multiple reimbursement wins from the second half of 2025.
International revenue grew 5% on both on a reported and organic basis. totaling $375 million in the third quarter.
Capital allocation
- Share repurchase: DexCom completed its Investor Day goal of repurchasing $1 billion of stock in 2026.
enabled us to already execute our Investor Day goal of repurchasing $1 billion of stock in 2026.
- New authorization: Management announced a new $1 billion share repurchase authorization, committing to deploy at least 50% of free cash flow generated over the course of 2027.
- M&A: The company signed an agreement to acquire an international distribution business from a partner to transition to direct operations across high-potential markets in Europe.
Industry trends and dynamics
- Category growth: Management noted that the overall CGM category growth remains stable in the low double digits in the U.S.
- Pricing environment: The company has not seen significant changes to the pricing environment or degradation of pricing around the world.
We have not seen significant changes to our pricing environment
Competitive landscape
- Market share: DexCom continued to extend a multi-quarter trend of U.S. market share gains, particularly among type 2 diabetes customers not on insulin.
This extended a multi-quarter trend of share gains in the U.S. with our largest increase coming from customers with type 2 diabetes, including those not on insulin.
- PBM contract: Management addressed a recent PBM contract loss, noting it represents less than 4% of U.S. revenue and is expected to have an insignificant financial impact for next year.
The PBM we're talking about represents less than 4% of our U.S. revenue results. So relatively small in the context of our overall company.
Macroeconomic environment
- Foreign exchange: Foreign exchange headwinds resulted in approximately $5 million of incremental impact since the prior quarter, which was factored into the revised revenue guidance.
passes through the third quarter revenue outperformance partially offset by approximately $5 million of incremental foreign exchange headwinds since last quarter.
Growth opportunities and strategies
- Connect study: The Connect type 2 randomized controlled trial was published in the New England Journal of Medicine, showing a 1.6% A1c improvement for the Dexcom CGM group and a 0.9% difference between the CGM arm and control group.
- CMS coverage: Management expects CMS to announce a type 2 non-insulin coverage decision this year, with coverage taking effect in the middle of next year.
we continue to expect CMS to announce a type 2 non-insulin coverage decision this year as the case for reimbursement is strengthening.
- Stelo app: The company launched a fully redesigned Stelo app during the third quarter, offering enhanced glucose insights and simplified meal logging.
During the third quarter, we launched a fully redesigned Stelo app.
- G7 15-day rollout: Rollout of the G7 15-day system is on track to convert nearly 50% of the U.S. customer base by year-end, with international launches slated for Canada in November and Japan in early 2027.
This leaves us on track to convert nearly 50% of our U.S. customer base, the G7 15-day by year-end.
- Manufacturing capacity: The Ireland manufacturing facility recently initiated commercial production on schedule, expanding capacity and supply chain resilience.
We also reached an important milestone at our Ireland facility, which recently initiated commercial production on schedule.
Financial guidance and outlook
- Revenue guidance: Full year 2026 revenue guidance was updated to a range of $5.20 billion to $5.25 billion, representing 12% to 13% growth.
We are updating our revenue guidance to be in the range of $5.20 billion to $5.25 billion, representing growth of 12% to 13% for the year.
- Gross margin guidance: Full year non-GAAP gross profit margin guidance was maintained at approximately 64%.
we are maintaining our full year non-GAAP gross profit margin guidance at approximately 64%.
- Operating and EBITDA margin guidance: Non-GAAP operating profit margin guidance was increased to approximately 24%, and adjusted EBITDA margin guidance was increased to approximately 32%.
We are increasing our non-GAAP operating profit margin guidance to approximately 24% and adjusted EBITDA margin guidance to approximately 32%.
Q3 FY2026 results
| Metric | Result | Change |
|---|---|---|
| Worldwide Revenue | $1.34 billion | 11% growth |
| U.S. Revenue | $970 million | 14% increase |
| International Revenue | $375 million | 5% growth |
| Gross Profit | $875.3 million | 65.1% of revenue |
| Operating Income | $339.5 million | 25.3% of revenue |
| Net Income | $275 million | $0.73 per share |
How management sounded
Balanced (+25 on our -100 to +100 scale). Management expressed strong confidence in their long-range plan and recent product momentum, backed by raising full-year revenue guidance. Management sounded more upbeat than on 6% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- CMS coverage decision for type 2 non-insulin CGM use expected later this year.
- Commercial rollout and adoption milestones of the G7 15-day system.
- Closing and integration of the newly announced European distributor acquisition.
- Commercial production ramp-up at the Ireland manufacturing facility.
Earlier calls
- Q2 2026 (Jul 30, 2026), tone Balanced: Dexcom reported second quarter revenue growth of 13% and raised its full year revenue and margin guidance ranges.
