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# Dexcom Raises Margin Targets And Plans $1 Billion Buyback After Sales Climb 11%
- URL: https://www.bullished.co/dexcom-raises-margin-targets-and-plans-1-billion-buyback-after-sales-climb-11-28dfd644/
- Published: 2026-10-29T21:32:35.000Z
- Updated: 2026-10-29T21:32:35.000Z
- Description: The glucose-monitor maker's U.S. revenue grew 14% in the third quarter, and it lifted 2026 margin guidance.
- Author: Matteo Parrino
- Tags: Earnings, DXCM, Industry: Healthcare

Dexcom, which makes continuous glucose monitors for people with diabetes, said third-quarter revenue rose 11% to [$1.344 billion](https://www.sec.gov/Archives/edgar/data/0001093557/000109355726000193/dxcm09302026-exhibit991.htm?ref=bullished.co), and its board authorized a [share buyback of up to $1.0 billion](https://www.sec.gov/Archives/edgar/data/0001093557/000109355726000193/dxcm-20261029.htm?ref=bullished.co). The company also raised its 2026 margin guidance and the midpoint of its revenue outlook, it said Thursday.

## U.S. sales do the heavy lifting

Revenue was [$1.209 billion](https://www.businesswire.com/news/home/20261029820206/en/Dexcom-Reports-Third-Quarter-2026-Financial-Results?ref=bullished.co) a year earlier. On an organic basis, which strips out currency effects and acquired non-CGM revenue, growth was also 11%.

U.S. revenue grew 14% while international revenue grew 5%, both on a reported basis. Operating income under standard accounting was [$327.2 million](https://www.businesswire.com/news/home/20261029820206/en/Dexcom-Reports-Third-Quarter-2026-Financial-Results?ref=bullished.co), or 24.3% of revenue, up 420 basis points (4.2 percentage points) from the third quarter of 2025\. On an adjusted basis it was $339.5 million, or 25.3% of revenue.

Net income under standard accounting was $275.1 million, or $0.72 per diluted share, against $283.8 million, or $0.70, a year earlier. Adjusted net income was $275.0 million, or $0.73 per share, up from $0.61.

## Guidance moves up

Dexcom raised the midpoint of its 2026 revenue guidance to $5.20 billion to $5.25 billion, about 12% to 13% growth. It kept its adjusted gross margin target at about 64% and increased its adjusted operating margin target to about 24% and its adjusted EBITDA margin target to about 32%.

"This performance enabled us to again raise our full-year revenue and operating margin guidance," said Jake Leach, Dexcom's president and CEO.

## A $1 billion repurchase option

The buyback runs through no later than December 31, 2027\. The company has no obligation to buy any set dollar amount or number of shares, and it may extend, modify, suspend or end the program at any time.

Dexcom held $1.82 billion in cash, cash equivalents and marketable securities at September 30, and its revolving credit facility was undrawn. Treasury stock stood at 39.7 million shares at that date, up from 25.9 million at the end of 2025.

On the business side, Dexcom sells the G7 and G7 15 Day systems and Stelo, an over-the-counter biosensor. It said it launched a redesigned Stelo experience, advanced the U.S. rollout of the G7 15 Day System and won its first two international clearances for it.

Management held its conference call at 4:30 p.m. ET Thursday.

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### Sources

- [8-K Filing — DEXCOM INC (DXCM)](https://www.sec.gov/Archives/edgar/data/0001093557/000109355726000193/dxcm-20261029.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit dxcm09302026-exhibit991.htm — DEXCOM INC 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001093557/000109355726000193/dxcm09302026-exhibit991.htm?ref=bullished.co) — SEC EDGAR
- [Dexcom Reports Third Quarter 2026 Financial Results](https://www.businesswire.com/news/home/20261029820206/en/Dexcom-Reports-Third-Quarter-2026-Financial-Results?ref=bullished.co) — businesswire.com