DexCom, Inc.

DexCom reported Q2 2026 worldwide revenue of $1.31 billion versus $1.16 billion last year, up 13% reported and 12% organic. U.S. revenue was $933 million, up 11%, and international revenue was $375 million, up 19% reported and 16% organic. Gross profit was $838.5 million, or 64.1% of revenue, versus 60.1% a year ago; operating income was $328.3 million, or 25.1% of revenue, versus $221.8 million and 19.2%; adjusted EBITDA was $421.3 million, or 32.2% of revenue; and net income was $269.1 million, or $0.70 per share, up 46% year over year. For the full year, management raised revenue guidance to $5.18 billion-$5.25 billion (11% to 13% growth), lifted non-GAAP gross margin guidance to approximately 64%, operating margin guidance to 23.5% to 24%, and adjusted EBITDA margin guidance to 31.5% to 32%. Management also said FX should reduce second-half international revenue by about $15 million versus prior guidance, while excluding FX the updated guidance implies more than 50 basis points of organic growth improvement at the midpoint.

Jake Leach framed the quarter as proof that DexCom is executing on a broader growth strategy built around access, customer experience, and international expansion. He highlighted the Connect trial, saying it strengthens the case for expanding CGM to the 25 million U.S. type 2 non-insulin population and supports the company’s 'Road to 100' coverage effort. He also pointed to new product momentum, including the Stelo app redesign, Smart Basal, and G7 15-day expansion, and struck an optimistic tone about extending CGM into metabolic health and prediabetes.

Jereme Sylvain emphasized strong financial leverage and improving economics across the business. He cited 64.1% gross margin, operating income of $328.3 million, adjusted EBITDA of $421.3 million, and more than $600 million in free cash flow in the first half of the year; cash and equivalents ended at about $1.9 billion. He said DexCom repurchased approximately $600 million of stock in Q2 toward the $1 billion 2026 authorization, noted the Nutrisense acquisition is largely immaterial to revenue but folded into the P&L, and explained that the gross margin raise reflects underlying efficiency gains partly offset by Ireland start-up costs and some oil/resin timing effects.

Analysts focused on U.S. CGM growth durability, Connect’s impact on type 2 non-insulin adoption and CMS timing, the FDA Tempo pilot, 15-day conversion and margin contribution, international growth sustainability, and whether there were any quality or operating leverage issues. Management said U.S. growth remains broad-based with around 9 million covered U.S. lives not yet using CGM, Connect should help reimbursement and provider education, CMS is still expected by year-end with coverage assumed to start mid-2027, and Tempo is a regulatory access framework rather than a coverage decision. They also said G7 15-day conversion is tracking to expectations, near-50% U.S. conversion by year-end remains the target, and product performance issues from last year have improved, with complaint levels down and NPS rising for three straight quarters.