> ## Content Index > Fetch the complete content index at: https://www.bullished.co/llms.txt > Use this file to discover other available public pages before exploring further. # DexCom Says Lost PBM Coverage Is Under 4% Of U.S. Revenue And Won't Dent 2027 Much - URL: https://www.bullished.co/dexcom-says-lost-pbm-coverage-is-under-4-of-u-s-revenue-and-wont-dent-2027-much-20d90b52/ - Published: 2026-10-29T21:54:16.000Z - Updated: 2026-10-29T21:54:16.000Z - Description: The CFO said a pharmacy-benefit manager setback should not significantly hurt next year's results, as payer and pricing questions dominated the call. - Author: Matteo Parrino - Tags: Earnings, DXCM, Industry: Healthcare DexCom Chief Operating Officer and Chief Financial Officer Jereme Sylvain told analysts on the company's third-quarter earnings call Thursday that the pharmacy-benefit manager (PBM) behind a recent coverage loss "represents, you know, less than 4% of our U.S. revenue." [DexCom](https://www.bullished.co/tag/dxcm/), which makes continuous glucose monitors for people with diabetes, [reported](https://www.investors.com/news/technology/dexcom-stock-dexcom-earnings-q3-2026/?ref=bullished.co) third-quarter revenue of $1.34 billion, up 11%. ## Why Management Sees Little 2027 Damage Sylvain said even a preferred one-of-one deal typically captures only about two-thirds of customers, with the rest reaching the product through other routes. He said a move from preferred to secondary status typically brings "a pretty significant price increase," so the company expects the money it earns to change even if patients shift between channels. Pressed by a Baird analyst on how big that increase is, Sylvain said the company would not give specific pricing for competitive reasons. "It's not like a 5% increase. It's much, much, much higher than that," he said. He added that the company will not issue 2027 guidance now, but the PBM's size should help frame the starting point for its long-range plan. ## A Patient Navigation Fallback CEO Jake Leach called the lost contract "a particular portion of a particular PBM access." He said most patients who lose pharmacy coverage still have access through the medical benefit, via durable medical equipment suppliers. DexCom Direct, a patient navigation service built with Medicare expansion in mind, will launch early next year, Leach said. Sylvain said CGM billed through the medical benefit typically carries copays of 10% to 20% of total pay per month, depending on the payer. Asked whether other payers might go exclusive, Leach said most formularies are co-preferred and that 2027 formularies are already locked in, so there is no near-term issue. ## Pricing Worries From Competitors Analysts from Jefferies and JPMorgan asked about competitors' complaints of price pressure. Sylvain said pricing and reimbursement outside the U.S. have been stable and that "we're priced right." He pointed to gross margins he said are the highest since the fourth quarter of 2022. Third-quarter gross margin was 65.1% of revenue, against 61.3% a year earlier. U.S. revenue rose 14% to $970 million, while international revenue grew 5% to $375 million. The company raised its [full-year revenue outlook](https://finance.yahoo.com/healthcare/articles/dexcom-q3-earnings-snapshot-201943390.html?ref=bullished.co) to a range of $5.20 billion to $5.25 billion, growth of 12% to 13%, and announced a new $1 billion [share repurchase authorization](https://seekingalpha.com/news/4660799-dexcom-announces-1b-share-repurchase-program?ref=bullished.co). DexCom also said it signed a deal to buy a business from a partner, letting it sell directly in markets in Europe. Sylvain said the deal has not closed and will close next year. Leach said the company still expects Medicare to announce a coverage decision for Type 2 patients who do not use insulin this year. Learn - [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/) How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording. ### Sources - [Dexcom Handily Beats Earnings Views, Hikes Sales Guide | Investor's Business Daily](https://www.investors.com/news/technology/dexcom-stock-dexcom-earnings-q3-2026/?ref=bullished.co) — investors.com - [DexCom: Q3 Earnings Snapshot](https://finance.yahoo.com/healthcare/articles/dexcom-q3-earnings-snapshot-201943390.html?ref=bullished.co) — Associated Press - [DexCom announces $1B share repurchase program (DXCM:NASDAQ) | Seeking Alpha](https://seekingalpha.com/news/4660799-dexcom-announces-1b-share-repurchase-program?ref=bullished.co) — seekingalpha.com - [DexCom: Q3 Earnings Snapshot – WTOP News](https://wtop.com/national/2026/10/dexcom-q3-earnings-snapshot/?ref=bullished.co) — wtop.com - [DexCom Non-GAAP EPS of $0.73 beats by $0.06, revenue of $1.34B beats by $10M (NASDAQ:DXCM)](https://seekingalpha.com/news/4660742-dexcom-non-gaap-eps-of-0%5F73-beats-by-0%5F06-revenue-of-1%5F34b-beats-by-10m?ref=bullished.co) — seekingalpha.com ### More on DexCom - [Dexcom Raises Margin Targets And Plans $1 Billion Buyback After Sales Climb 11%](https://www.bullished.co/dexcom-raises-margin-targets-and-plans-1-billion-buyback-after-sales-climb-11-28dfd644/) [All DexCom (DXCM) coverage →](https://www.bullished.co/tag/dxcm/)