Dexcom Q2 revenue beats estimates raises outlook; raises FY revenue and margin guidance
DXCM•Full-year outlook raised
The company raised its full-year revenue and margin guidance.
- Dexcom raises midpoint of 2026 revenue guidance to $5.18-$5.25 bln, up 11-13%
- Company expects 2026 non-GAAP gross profit margin of about 64%
- Dexcom sees 2026 adjusted EBITDA margin at 31.5-32%
Drivers behind the results
- International growth - The company said international revenue grew 19% year-over-year on a reported basis and 16% on an organic basis.
- Clinical validation - Positive CONNECT trial results showed Dexcom CGM use improved glucose control for people with type 2 diabetes not using insulin.
- Product innovation - The company initiated launch of a new Stelo app with AI-driven insights and enhanced food logging.
Analyst and valuation backdrop
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
- The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"
- Wall Street's median 12-month price target for Dexcom Inc is $85.00, about 13.1% above its July 29 closing price of $75.14
