Dexcom (NASDAQ: DXCM) posts 15% Q1 revenue growth and raises 2026 profit margin guidance
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Dexcom, Inc. reported strong first quarter 2026 results with faster growth and higher profitability. Revenue rose 15% year-over-year to $1.1919 billion, driven by 11% U.S. growth and 26% international growth. GAAP gross margin improved to 62.9% and non-GAAP gross margin reached 63.5%.
GAAP operating income increased to $255.3 million, or 21.4% of revenue, while non-GAAP operating income was $264.4 million, or 22.2% of revenue, reflecting sizable margin expansion versus 2025. GAAP net income nearly doubled to $199.5 million, or $0.51 per diluted share, and non-GAAP diluted EPS rose to $0.56.
Dexcom ended March 31, 2026 with $2.42 billion in cash, cash equivalents and marketable securities and no borrowings on its revolving credit facility. The company highlighted progress with its G7 15 Day CGM U.S. launch and Stelo platform, and raised 2026 guidance for non-GAAP operating and Adjusted EBITDA margins while reiterating revenue and non-GAAP gross margin targets.
Positive
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Negative
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Insights
Dexcom posted double-digit revenue growth with sharply higher margins and stronger 2026 profit guidance.
Dexcom delivered Q1 2026 revenue of $1.1919 billion, up 15% year-over-year, with international revenue rising faster than U.S. sales. GAAP gross margin expanded from 56.9% to 62.9%, showing better manufacturing efficiency and pricing or mix benefits.
Operating leverage was notable: GAAP operating margin improved from 12.9% to 21.4%, and non-GAAP operating margin increased to 22.2%. GAAP net income climbed to $199.5 million, while non-GAAP net income reached $216.3 million, reflecting strong underlying economics despite ongoing R&D and commercial spending.
For full-year 2026, Dexcom now targets revenue of $5.16-$5.25 billion (about 11–13% growth), non-GAAP gross margin of roughly 63–64%, non-GAAP operating margin of about 23–23.5% and Adjusted EBITDA margin of about 31–31.5%. The $2.42 billion cash balance as of March 31, 2026 provides flexibility to fund capacity expansion and new market initiatives disclosed in the release.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $1.1919 billion
Q1 2026 GAAP Net Income: $199.5 million
Q1 2026 GAAP Diluted EPS: $0.51 per share
+5 more
8 metrics
Q1 2026 Revenue
$1.1919 billion
Worldwide revenue for the quarter ended March 31, 2026; up from $1.036 billion in Q1 2025
Q1 2026 GAAP Net Income
$199.5 million
Net income for the quarter ended March 31, 2026; up from $105.4 million in Q1 2025
Q1 2026 GAAP Diluted EPS
$0.51 per share
GAAP diluted net income per share for the quarter; compared with $0.27 in Q1 2025
Q1 2026 GAAP Gross Margin
62.9% of revenue
GAAP gross profit margin for the quarter; versus 56.9% in Q1 2025
Q1 2026 GAAP Operating Margin
21.4% of revenue
GAAP operating income as a percentage of revenue; compared with 12.9% in Q1 2025
Cash and Marketable Securities
$2.42 billion
Cash, cash equivalents and marketable securities as of March 31, 2026
2026 Revenue Guidance
$5.16–$5.25 billion
Full-year 2026 revenue outlook, approximating 11–13% growth versus 2025
Q1 2026 Adjusted EBITDA
$364.5 million
Adjusted EBITDA for the quarter ended March 31, 2026; up from $230.4 million in Q1 2025
Key Terms
organic revenue, Adjusted EBITDA, non-GAAP operating margin, senior convertible notes, +2 more
6 terms
organic revenue financial
"First quarter 2026 organic revenue was $1.165 billion and excludes $26.6 million of foreign exchange impact."
Organic revenue is the sales a company generates from its regular business activities after stripping out extra effects like revenue added or lost from buying or selling other businesses and from currency swings. Think of it as measuring how much a store’s own customers increased spending, not growth from opening new stores or temporary price moves; investors use it to judge the true strength and sustainability of a company’s core demand.
Adjusted EBITDA financial
"Adjusted EBITDA was $364.5 million for the first quarter of 2026, compared to $230.4 million for the first quarter of 2025."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP operating margin financial
"Non-GAAP Operating Margin of approximately 23-23.5%."
Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.
senior convertible notes financial
"Long-term senior convertible notes | 1,241.8 | | | 1,240.9 |"
A senior convertible note is a loan a company issues that ranks near the top of payment priority and can be exchanged for the company’s stock under preset terms. Think of it as an IOU that promises interest payments and first dibs on repayments if assets are liquidated, but also gives the lender the option to become an owner later; investors watch these for repayment safety, interest income, and potential stock dilution.
intellectual property litigation costs regulatory
"We have excluded third-party attorney’s fees, costs, and expenses incurred by Dexcom exclusively in connection with Dexcom’s patent infringement litigation against Abbott Diabetes Care, Inc."
Earnings Snapshot
Revenue: $1.1919 billion · Guidance included
Q1 2026
Revenue
$1.1919 billion
+15% year-over-year
GAAP Net Income
$199.5 million
up from $105.4 million in Q1 2025
GAAP Diluted EPS
$0.51
up from $0.27 in Q1 2025
GAAP Gross Margin
62.9%
up from 56.9% in Q1 2025
Non-GAAP Operating Margin
22.2%
up from 13.8% in Q1 2025
Guidance
For fiscal 2026, Dexcom guides to revenue of $5.16–$5.25 billion (about 11–13% growth), non-GAAP gross profit margin of roughly 63–64%, non-GAAP operating margin of about 23–23.5%, and Adjusted EBITDA margin of approximately 31–31.5%.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): April 30, 2026
(Exact Name of the Registrant as Specified in Its Charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of Principal Executive Offices) | (Zip Code) | |||||||
(858 ) 200-0200
(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||||||||||||||
Emerging growth company | ||||||||||||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | |||||||||||||
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On April 30, 2026, DexCom, Inc. (“Dexcom”) issued a press release announcing its financial results for the quarter ended March 31, 2026 and certain other information. A copy of the press release is furnished as Exhibit 99.1 to this report.
The information in this Item 2.02, including Exhibit 99.1 hereto, is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information contained herein and in the accompanying exhibit is not incorporated by reference in any filing of Dexcom under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof and regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
| Number | Description | |||||||
| 99.1 | Press release dated April 30, 2026 | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DEXCOM, INC. | ||||||||
| By: | /s/ JEREME SYLVAIN Jereme Sylvain Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | |||||||
Date: | April 30, 2026 | |||||||
Exhibit 99.1
Dexcom Reports First Quarter 2026 Financial Results
SAN DIEGO - (BUSINESS WIRE-April 30, 2026) - DexCom, Inc. (Nasdaq: DXCM) today reported its financial results as of and for the quarter ended March 31, 2026.
First Quarter 2026 Financial Highlights:
•Revenue grew 15% year-over-year to $1.192 billion on a reported basis and 12% year-over-year on an organic1 basis.
•U.S. revenue grew 11% and international revenue grew 26% on a reported basis and 17% on an organic1 basis, all on a year-over-year basis.
•GAAP operating income of $255.3 million or 21.4% of revenue, an increase of 850 basis points compared to the first quarter of 2025. Non-GAAP operating income* of $264.4 million or 22.2% of reported revenue, an increase of 840 basis points compared to the first quarter of 2025.
First Quarter 2026 Strategic Highlights:
•Expanded the launch of Dexcom G7 15 Day CGM across all channels in the United States.
•Introduced enhanced Smart Meal Logging features to the Stelo platform.
•Showcased extensive clinical evidence at ATTD 2026, including one-year registry data demonstrating that Dexcom G7 delivered significant improvement in A1C for people with type 2 diabetes who are not on insulin therapy.
“Dexcom delivered strong revenue growth and margin performance to start the year, reflecting healthy demand for Dexcom CGM and continued operational improvement,” said Jake Leach, Dexcom’s president and CEO. “We will work to build on this momentum throughout 2026 and look forward to highlighting Dexcom’s long-term growth opportunity at our Investor Day in the coming weeks.”
2026 Annual Guidance
Dexcom is raising fiscal year 2026 guidance for Non-GAAP Operating Margin and Adjusted EBITDA Margin, and reiterating guidance for Revenue and Non-GAAP Gross Profit Margin at the following levels:
•Revenue of $5.16 - $5.25 billion (approximately 11-13% growth)
•Non-GAAP Gross Profit Margin of approximately 63-64%
•Non-GAAP Operating Margin of approximately 23-23.5%
•Adjusted EBITDA Margin of approximately 31-31.5%
First Quarter 2026 Financial Results
Revenue: In the first quarter of 2026, worldwide revenue grew 15% to $1.192 billion on a reported basis, up from $1.036 billion in the first quarter of 2025.
Gross Profit: GAAP gross profit totaled $750.3 million or 62.9% of revenue for the first quarter of 2026, compared to $589.0 million or 56.9% of revenue in the first quarter of 2025.
Non-GAAP gross profit* totaled $757.4 million or 63.5% of reported revenue for the first quarter of 2026, compared to $596.2 million or 57.5% of reported revenue in the first quarter of 2025.
Operating Income: GAAP operating income for the first quarter of 2026 was $255.3 million or 21.4% of revenue, compared to GAAP operating income of $133.7 million or 12.9% of revenue for the first quarter of 2025.
Non-GAAP operating income* for the first quarter of 2026 was $264.4 million or 22.2% of reported revenue, compared to non-GAAP operating income of $143.1 million or 13.8% of reported revenue for the first quarter of 2025.
1 First quarter 2026 organic revenue was $1.165 billion and excludes $26.6 million of foreign exchange impact.
Net Income and Diluted Net Income Per Share: GAAP net income was $199.5 million, or $0.51 per diluted share, for the first quarter of 2026, compared to GAAP net income of $105.4 million, or $0.27 per diluted share, for the first quarter of 2025.
Non-GAAP net income* was $216.3 million, or $0.56 per diluted share, for the first quarter of 2026, compared to non-GAAP net income of $127.7 million, or $0.32 per diluted share, for the first quarter of 2025. The first quarter 2026 non-GAAP net income excludes $8.0 million of amortization of intangible assets, $1.1 million of business transition and other significant items, and $7.7 million of tax adjustments.
Cash and Liquidity: As of March 31, 2026, Dexcom held $2.42 billion in cash, cash equivalents and marketable securities and our revolving credit facility remains undrawn. The cash balance represents significant financial and strategic flexibility as Dexcom continues to expand production capacity and explore new market opportunities.
* See Table D below for a reconciliation of these GAAP and non-GAAP financial measures.
Conference Call
Management will hold a conference call today starting at 4:30 p.m. (Eastern Time). The conference call will be concurrently webcast. The link to the webcast will be available on the Dexcom Investor Relations website at investors.dexcom.com by navigating to “Events and Presentations,” and will be archived for future reference. To listen to the conference call, please dial (888) 414-4585 (U.S./Canada) or (646) 960-0331 (International) and use the confirmation ID “9430114” approximately five minutes prior to the start time.
Statement Regarding Use of Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), please see the section titled “About Non-GAAP Financial Measures” below as well as the related Table D. We have not reconciled our organic revenue growth, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin, and Adjusted EBITDA Margin estimates for fiscal year 2026 because certain items that impact these figures are uncertain or out of our control and cannot be reasonably predicted. Accordingly, reconciliations of our organic revenue growth, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin and Adjusted EBITDA Margin estimates are not available without unreasonable effort.
About DexCom, Inc.
Dexcom empowers people to take control of health through innovative biosensing technology. Founded in 1999, Dexcom has pioneered and set the standard in glucose biosensing for more than 25 years. Its technology has transformed how people manage diabetes and track their glucose, helping them feel more in control and live more confidently.
Dexcom. Discover what you’re made of. For more information, visit www.dexcom.com.
Category: IR
Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements that are not purely historical regarding Dexcom’s or its management’s intentions, beliefs, expectations and strategies for the future, including those related to Dexcom’s future operating results and financial position, including estimated Revenue, Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin, and Adjusted EBITDA Margin for fiscal year 2026, and expected growth rates as compared to the year ended December 31, 2025; future expenses and investments; and potential business plans and opportunities. All forward-looking statements included in this press release are made as of the date of this press release, based on information currently available to Dexcom as of the date hereof. Forward-looking statements deal with future events and are therefore subject to various risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. The risks and uncertainties that may cause actual results to differ materially from Dexcom’s current expectations are more fully described in the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Dexcom’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings filed with the Securities and Exchange Commission. Except as required by law, Dexcom assumes no obligation to update any such forward-looking statement after the date of this communication or to conform these forward-looking statements to actual results.
INVESTOR RELATIONS CONTACT:
Sean Christensen
Senior Vice President - Finance and Investor Relations
investor-relations@dexcom.com
(858) 203-6657
MEDIA CONTACT:
James McIntosh
(619) 884-2118
DexCom, Inc.
Table A
Consolidated Balance Sheets
(In millions, except par value data)
(Unaudited)
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,118.2 | $ | 917.7 | |||||||
| Short-term marketable securities | 1,297.0 | 1,081.0 | |||||||||
| Accounts receivable, net | 1,088.6 | 1,216.1 | |||||||||
| Inventory | 693.6 | 629.1 | |||||||||
| Prepaid and other current assets | 134.3 | 189.4 | |||||||||
| Total current assets | 4,331.7 | 4,033.3 | |||||||||
| Property and equipment, net | 1,559.7 | 1,559.9 | |||||||||
| Operating lease right-of-use assets | 73.1 | 77.4 | |||||||||
| Goodwill | 24.2 | 24.2 | |||||||||
| Intangibles, net | 62.6 | 70.8 | |||||||||
| Deferred tax assets | 296.1 | 295.6 | |||||||||
| Other assets | 285.9 | 278.7 | |||||||||
| Total assets | $ | 6,633.3 | $ | 6,339.9 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued liabilities | $ | 2,073.9 | $ | 1,944.0 | |||||||
| Accrued payroll and related expenses | 121.8 | 169.2 | |||||||||
| Short-term operating lease liabilities | 20.5 | 21.6 | |||||||||
Other current liabilities | 7.6 | 7.7 | |||||||||
| Total current liabilities | 2,223.8 | 2,142.5 | |||||||||
| Long-term senior convertible notes | 1,241.8 | 1,240.9 | |||||||||
| Long-term operating lease liabilities | 69.0 | 73.4 | |||||||||
| Other long-term liabilities | 141.8 | 137.1 | |||||||||
| Total liabilities | 3,676.4 | 3,593.9 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity: | |||||||||||
Preferred stock, $0.001 par value, 5.0 million shares authorized; no shares issued and outstanding at March 31, 2026 and December 31, 2025 | — | — | |||||||||
Common stock, $0.001 par value, 800.0 million shares authorized; 412.3 million and 385.9 million shares issued and outstanding, respectively, at March 31, 2026; and 410.7 million and 384.8 million shares issued and outstanding, respectively, at December 31, 2025 | 0.4 | 0.4 | |||||||||
| Additional paid-in capital | 2,337.5 | 2,281.5 | |||||||||
Accumulated other comprehensive income | 106.2 | 115.0 | |||||||||
| Retained earnings | 2,633.4 | 2,433.9 | |||||||||
Treasury stock, at cost; 26.4 million shares at March 31, 2026 and 25.9 million shares at December 31, 2025 | (2,120.6) | (2,084.8) | |||||||||
| Total stockholders’ equity | 2,956.9 | 2,746.0 | |||||||||
| Total liabilities and stockholders’ equity | $ | 6,633.3 | $ | 6,339.9 | |||||||
DexCom, Inc.
Table B
Consolidated Statements of Operations
(In millions, except per share data)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenue | $ | 1,191.9 | $ | 1,036.0 | |||||||
| Cost of sales | 441.6 | 447.0 | |||||||||
| Gross profit | 750.3 | 589.0 | |||||||||
| Operating expenses: | |||||||||||
| Research and development | 145.3 | 145.2 | |||||||||
| Selling, general and administrative | 349.7 | 310.1 | |||||||||
| Total operating expenses | 495.0 | 455.3 | |||||||||
| Operating income | 255.3 | 133.7 | |||||||||
| Other income, net | 14.2 | 20.6 | |||||||||
| Income before income taxes | 269.5 | 154.3 | |||||||||
| Income tax expense | 70.0 | 48.9 | |||||||||
| Net income | $ | 199.5 | $ | 105.4 | |||||||
| Basic net income per share | $ | 0.52 | $ | 0.27 | |||||||
| Shares used to compute basic net income per share | 385.1 | 391.1 | |||||||||
| Diluted net income per share | $ | 0.51 | $ | 0.27 | |||||||
| Shares used to compute diluted net income per share | 393.6 | 407.5 | |||||||||
DexCom, Inc.
Table C
Revenue by Customer Sales Channel and Geographic Region
(Dollars in millions)
(Unaudited)
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| (In millions) | United States | International | Total | United States | International | Total | |||||||||||||||||||||||||||||
| Distributor | $ | 796.9 | $ | 213.4 | $ | 1,010.3 | $ | 720.6 | $ | 159.4 | $ | 880.0 | |||||||||||||||||||||||
| Direct | 35.4 | 146.2 | 181.6 | 29.9 | 126.1 | 156.0 | |||||||||||||||||||||||||||||
| Total revenue | $ | 832.3 | $ | 359.6 | $ | 1,191.9 | $ | 750.5 | $ | 285.5 | $ | 1,036.0 | |||||||||||||||||||||||
DexCom, Inc.
Table D
Itemized Reconciliation Between GAAP and Non-GAAP Financial Measures
(In millions, except per share data)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| GAAP gross profit | $ | 750.3 | $ | 589.0 | |||||||
Amortization of intangible assets (1) | 7.1 | 7.2 | |||||||||
| Non-GAAP gross profit | $ | 757.4 | $ | 596.2 | |||||||
| GAAP operating income | $ | 255.3 | $ | 133.7 | |||||||
Amortization of intangible assets (1) | 8.0 | 7.9 | |||||||||
Business transition and other significant items (2) | 1.1 | 1.0 | |||||||||
Intellectual property litigation costs (3) | — | 0.5 | |||||||||
| Non-GAAP operating income | $ | 264.4 | $ | 143.1 | |||||||
| GAAP net income | $ | 199.5 | $ | 105.4 | |||||||
Business transition and other significant items (2) | 1.0 | 1.0 | |||||||||
| Depreciation and amortization | 67.1 | 60.0 | |||||||||
Intellectual property litigation costs (3) | — | 0.5 | |||||||||
Loss from equity investments | — | 4.2 | |||||||||
| Share-based compensation | 43.3 | 34.2 | |||||||||
| Interest expense and interest income | (16.4) | (23.8) | |||||||||
| Income tax expense | 70.0 | 48.9 | |||||||||
| Adjusted EBITDA | $ | 364.5 | $ | 230.4 | |||||||
| GAAP net income | $ | 199.5 | $ | 105.4 | |||||||
Amortization of intangible assets (1) | 8.0 | 7.9 | |||||||||
Business transition and other significant items (2) | 1.1 | 1.0 | |||||||||
Intellectual property litigation costs (3) | — | 0.5 | |||||||||
Loss from equity investments | — | 4.2 | |||||||||
Adjustments related to taxes (4) | 7.7 | 8.7 | |||||||||
| Non-GAAP net income | $ | 216.3 | $ | 127.7 | |||||||
DexCom, Inc.
Table D (Continued)
Itemized Reconciliation Between GAAP and Non-GAAP Financial Measures
(In millions, except per share data)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| GAAP net income | $ | 199.5 | $ | 105.4 | |||||||
| Interest expense on senior convertible notes, net of tax | 1.6 | 2.9 | |||||||||
GAAP net income used for diluted EPS, if-converted (5) | $ | 201.1 | $ | 108.3 | |||||||
| Non-GAAP net income | $ | 216.3 | $ | 127.7 | |||||||
| Interest expense on senior convertible notes, net of tax | — | 1.2 | |||||||||
Non-GAAP net income used for diluted EPS, if-converted (5) | $ | 216.3 | $ | 128.9 | |||||||
GAAP diluted net income per share (5) | $ | 0.51 | $ | 0.27 | |||||||
Amortization of intangible assets (1) | 0.02 | 0.02 | |||||||||
Business transition and other significant items (2) | — | — | |||||||||
Intellectual property litigation costs (3) | — | — | |||||||||
Loss from equity investments | — | 0.01 | |||||||||
Adjustments related to taxes (4) | 0.02 | 0.02 | |||||||||
Impact of adjustment to GAAP diluted shares (6) | 0.01 | — | |||||||||
Non-GAAP diluted net income per share (5) (7) | $ | 0.56 | $ | 0.32 | |||||||
| GAAP diluted weighted-average shares outstanding | 393.6 | 407.5 | |||||||||
| Non-GAAP diluted weighted-average shares outstanding | 385.9 | 399.8 | |||||||||
| Reconciliation of non-GAAP diluted weighted-average shares outstanding: | |||||||||||
| GAAP diluted weighted-average shares outstanding | 393.6 | 407.5 | |||||||||
Adjustment for dilutive impact of senior convertible notes due 2028 (8) | (7.7) | (7.7) | |||||||||
| Non-GAAP diluted weighted-average shares outstanding | 385.9 | 399.8 | |||||||||
(1) Represents amortization of acquired intangible assets.
(2) For the three months ended March 31, 2026 and March 31, 2025, business transition and other significant items are primarily related to rent for vacated office space in San Diego, California.
(3) We have excluded third-party attorney’s fees, costs, and expenses incurred by Dexcom exclusively in connection with Dexcom’s patent infringement litigation against Abbott Diabetes Care, Inc., as further described in the section titled “Legal Proceedings” in Dexcom’s Annual Report on Form 10-K for the year ended December 31, 2024.
(4) For the three months ended March 31, 2026 and March 31, 2025, tax adjustments are primarily related to the tax effect of non-GAAP adjustments and shortfalls from share-based compensation for employees.
(5) When our senior convertible notes are dilutive on a GAAP or non-GAAP basis, net income used for calculating GAAP and non-GAAP diluted net income per share includes an interest expense add back, net of tax, under the if-converted method. In loss periods, basic and diluted net loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded.
(6) The adjustments are for the transition from GAAP diluted net income per share to non-GAAP diluted net income per share due to our senior convertible notes.
(7) The sum of the non-GAAP per share components may not equal the totals due to rounding.
(8) We adjust for the dilutive effect of our senior convertible notes when the effect is not the same on a GAAP and non-GAAP basis for a given period.
ABOUT NON-GAAP FINANCIAL MEASURES
The accompanying press release dated April 30, 2026 contains non-GAAP financial measures. These non-GAAP financial measures include organic revenue, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted net income per share, and non-GAAP diluted weighted average shares outstanding, as well as Adjusted EBITDA.
We report non-GAAP financial measures in addition to, and not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision making and period-to-period comparisons. We believe that these non-GAAP financial measures provide useful information about operating results, enhance the overall understanding of our operating performance and future prospects, and allow for greater transparency with respect to key metrics used by senior management in our financial and operational decision making. Our non-GAAP financial measures exclude amounts that we do not consider part of ongoing operating results when planning and forecasting and when assessing the performance of the organization and our senior management. While we compute non-GAAP financial measures using a consistent method from quarter to quarter and year to year, we may consider whether other significant items that arise in the future should be excluded from our non-GAAP financial measures.
These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.
We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these financial measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP financial measures. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliations between these presentations, to more fully understand our business.
Management believes organic revenue is a meaningful metric to investors as it provides a more consistent comparison of Dexcom’s revenue to prior periods as well as to industry peers. We exclude the following items from organic revenue:
•The effect of non-CGM revenue acquired or divested in the trailing twelve months; and
•The effect of foreign currency fluctuations
Management believes that the presentation of operating results that exclude these items provides useful supplemental information to investors and facilitates the analysis of our core operating results and comparison of operating results across reporting periods. Management believes that this supplemental non-GAAP information is therefore useful to investors in analyzing and assessing our past and future operating performance.
Table D reconciles the non-GAAP financial measures included in this press release to the most directly comparable financial measures prepared in accordance with GAAP.
Our policy is to exclude the following items from non-GAAP financial measures for non-GAAP gross profit, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP diluted net income per share:
•Amortization of acquired intangible assets;
•Business transition and related costs associated with acquisition and divestiture, integration and business transition activities, including severance, relocation, consulting, leasehold exit costs, third-party merger and acquisition costs, and other non-recurring significant items;
•Income or loss from equity investments, which includes realized and unrealized gains or losses from marketable and non-marketable equity securities. These amounts may reflect changes in value due to observable price changes or impairments;
•Third-party intellectual property litigation costs in connection with Dexcom’s patent infringement litigation against Abbott Diabetes Care, Inc.;
•Litigation settlement costs;
•Gain or loss on extinguishment of debt; and
•Adjustments related to taxes for the excluded items above, as well as excess benefits or tax deficiencies from share-based compensation, and the quarterly impact of other discrete items
Adjusted EBITDA excludes non-cash operating charges for share-based compensation (including equity-related charges associated with severance, restructuring, or other business transition activities), depreciation and amortization as well as non-operating items such as interest income, interest expense, gain or loss on extinguishment of debt, income or loss from equity investments, and income tax expense or benefit. For the reasons explained above, Adjusted EBITDA also excludes business transition and other significant items, litigation settlement costs, and intellectual property litigation costs.
FAQ
How did Dexcom (DXCM) perform financially in the first quarter of 2026?
Dexcom reported solid Q1 2026 results, with revenue of $1.1919 billion, up 15% year-over-year. GAAP net income increased to $199.5 million, and diluted EPS reached $0.51, while non-GAAP diluted EPS rose to $0.56, reflecting stronger margins.
What were Dexcom’s Q1 2026 profit margins and how did they change?
Dexcom’s profitability improved meaningfully in Q1 2026. GAAP gross margin rose to 62.9%, up from 56.9% a year earlier, and GAAP operating margin climbed to 21.4%. On a non-GAAP basis, operating margin increased to 22.2%, showing greater operating leverage.
What guidance did Dexcom (DXCM) give for full-year 2026?
For 2026, Dexcom projects revenue of $5.16–$5.25 billion, implying about 11–13% growth. It expects a non-GAAP gross profit margin of about 63–64%, non-GAAP operating margin of roughly 23–23.5%, and Adjusted EBITDA margin of around 31–31.5%.
How strong is Dexcom’s balance sheet as of March 31, 2026?
Dexcom held $2.42 billion in cash, cash equivalents and marketable securities as of March 31, 2026. The company’s revolving credit facility remained undrawn, providing additional liquidity and flexibility to support capacity expansion and new market opportunities highlighted in the quarter.
How did Dexcom’s U.S. and international revenues trend in Q1 2026?
In Q1 2026, Dexcom’s U.S. revenue grew 11% year-over-year, while international revenue increased 26% on a reported basis. On an organic basis, international revenue grew 17%, underscoring particularly strong demand for its continuous glucose monitoring systems outside the United States.
What non-GAAP metrics does Dexcom (DXCM) emphasize in its results?
Dexcom highlights several non-GAAP metrics, including non-GAAP gross profit and margin, non-GAAP operating income and margin, non-GAAP net income and diluted EPS, organic revenue, and Adjusted EBITDA, which exclude items like amortization, business transition costs, and certain tax adjustments.