DexCom NASDAQ: DXCM reported second-quarter 2026 revenue growth of 13% from a year earlier, supported by continued demand for continuous glucose monitoring systems, expanding reimbursement access and share gains across several patient groups and markets.
Worldwide revenue totaled $1.31 billion, compared with $1.16 billion in the second quarter of 2025. Organic revenue, which excludes foreign exchange effects and certain acquired or divested non-CGM revenue, increased 12%.
U.S. revenue rose 11% to $933 million, while international revenue increased 19% to $375 million, or 16% on an organic basis. Chief Financial Officer Jereme Sylvain said markets with recently expanded reimbursement access, including France and Canada, were among the strongest international contributors.
Growth Driven by Patient Starts, Access and Product Rollouts
President and CEO Jake Leach said global new-customer starts remained near the previous quarter’s record level, with a sequential increase in U.S. new starts. He said growth was broad-based across patient segments and supported by additional coverage and market-share gains.
Leach pointed to what he described as a sizable remaining U.S. opportunity, saying roughly 9 million people have CGM coverage but are not yet using the technology. The company has also been focused on expanding coverage for people with Type 2 diabetes who do not use insulin.
Dexcom said all people with diabetes are now covered across the four largest commercial pharmacy benefit managers, representing reimbursement for more than 7 million U.S. patients with Type 2 diabetes not using insulin. The company’s longer-term goal is to obtain broad coverage for an estimated 25 million U.S. Type 2 diabetes patients not using insulin.
During the quarter, Dexcom continued rolling out its G7 15-day system. Following availability of integration for Tandem pump users, including Mobi users, the product is now accessible to all adult G7 customers in the U.S., according to Leach. Dexcom remains on track to convert nearly 50% of its U.S. customer base to G7 15-day by the end of 2026.
Health Canada became the first international regulator to clear the G7 15-day system. Dexcom expects to bring the product to Canada during the second half of 2026 and pursue launches in other international markets as approvals are obtained.
The company also launched Dexcom Flex, a 15-day sensor intended for Type 2 basal-insulin and non-insulin markets in selected geographies, in Germany.
CONNECT Study Supports Non-Insulin Coverage Case
Leach highlighted results from Dexcom’s CONNECT randomized controlled trial, which enrolled nearly 300 people with Type 2 diabetes not using insulin across 22 U.S. primary-care sites. Over six months, the CGM group recorded a 1.6% improvement in A1C, equating to a 0.9% difference compared with the control group, he said.
The CGM group also spent more than five additional hours per day within normal glucose range versus the control group. Median CGM usage was 97% over the 26-week study, according to the company.
Dexcom has submitted the CONNECT data to the Centers for Medicare & Medicaid Services in support of expanded non-insulin coverage. Leach said the company expects a CMS decision before the end of 2026 and continues to model implementation around the middle of 2027. He said there was no change to that timing assumption.
Dexcom also cited a real-world evidence study conducted with CVS Health that found a 66% reduction in diabetes-related hospitalizations and nearly a 50% reduction in microvascular complications over three years after CGM initiation among non-insulin Type 2 customers.
The company was selected as the first participant in the FDA’s TEMPO Digital Device Pilot. Leach said the program could allow Dexcom to more rapidly develop and introduce digital technology related to glucose health and screening for prediabetes, though he said it is not directly tied to the broader CMS coverage decision for Type 2 non-insulin patients.
Margins Improve as Company Raises Outlook
Second-quarter gross profit was $838.5 million, or 64.1% of revenue, up from 60.1% a year earlier. Sylvain said the roughly 400-basis-point improvement reflected manufacturing efficiencies, quality-management improvements and the initial customer conversion to G7 15-day.
Operating income reached $328.3 million, or 25.1% of revenue, compared with $221.8 million, or 19.2% of revenue, in the prior-year quarter. Adjusted EBITDA was $421.3 million, or 32.2% of revenue, versus $327.6 million, or 28.3% a year earlier.
Net income was $269.1 million, or $0.70 per share, representing 46% growth from the second quarter of 2025. Dexcom ended the quarter with approximately $1.9 billion in cash and cash equivalents and generated more than $600 million of free cash flow in the first half of 2026, more than double the prior-year period.
The company repurchased approximately $600 million of stock during the second quarter as part of its previously announced $1 billion 2026 share-repurchase authorization.
- Full-year revenue guidance: $5.18 billion to $5.25 billion, representing 11% to 13% growth.
- Full-year non-GAAP gross margin guidance: approximately 64%.
- Full-year non-GAAP operating margin guidance: 23.5% to 24%.
- Full-year adjusted EBITDA margin guidance: 31.5% to 32%.
Sylvain said the updated revenue outlook reflects stronger organic-growth expectations, partially offset by foreign exchange movement expected to reduce second-half international revenue by about $15 million relative to the company’s prior guidance.
Nutrisense Acquisition and Next-Generation Pipeline
Dexcom completed its acquisition of Nutrisense during the quarter. Nutrisense offers a platform that uses CGM data to provide nutrition-focused insights and coaching. Executives said much of Nutrisense’s existing revenue was CGM pass-through revenue already included in Dexcom’s business, while incremental non-CGM revenue was immaterial to the company’s full-year outlook.
Dexcom also introduced a redesigned Stelo app featuring a consumer-oriented interface, artificial-intelligence-driven insights and expanded food-logging capabilities. Leach said the platform is expected to serve as the foundation for future app development, including functionality for G7 users.
Looking further ahead, the company said its G8 sensor development timeline remains intact. Leach said Dexcom expects the glucose version to launch in late 2027 or early 2028, depending on regulatory timing, with a smaller form factor and planned improvements in accuracy and reliability. He added that G8 is designed as a multi-analyte platform that could later support sensing for ketones, potassium and other analytes.
About DexCom (NASDAQ:DXCM)
DexCom, Inc is a medical device company that develops, manufactures and distributes continuous glucose monitoring (CGM) systems for people with diabetes. Its products are designed to provide near real-time glucose readings, trend information and alerts to help patients and clinicians manage insulin dosing and reduce hypoglycemia and hyperglycemia. The company's offerings combine wearable glucose sensors, wireless transmitters and software applications that deliver data to smartphones, dedicated receivers and cloud-based platforms for remote monitoring.
Founded in 1999 and headquartered in San Diego, California, DexCom has focused its business on advancing CGM technology and expanding clinical use beyond traditional insulin-dependent populations.
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