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    DXCM
    Earnings call· Mar 2026(Q1 FY26)

    DEXCOM Q1 FY26 earnings call DXCM

    Apr 30, 2026 Source

    Executive summary

    DexCom Q1 FY26 — Strong Global Growth and G7 15 Day Momentum

    DexCom delivered a strong Q1 FY26, marked by robust global revenue growth and record new patient additions, fueled by the successful launch of G7 15 Day and expanded international access. The company demonstrated significant operational efficiency, leading to improved margins and raised full-year operating profit guidance, despite external cost pressures. Management remains focused on broadening CGM access for all diabetes populations, with key clinical trial readouts and product enhancements expected to drive future growth.

    Highlights

    5

    • Worldwide revenue grew 15% reported and 12% organic to $1.19 billion in Q1 FY26.

    • International organic revenue growth was 17% in Q1 FY26, driven by expanded access in core markets.

    • Non-GAAP gross profit margin improved significantly to 63.5% in Q1 FY26, up from 57.5% in Q1 FY25.

    • Full-year non-GAAP operating profit margin guidance raised to 23-23.5% and adjusted EBITDA margin guidance to 31-31.5%.

    • Record global new patient starts in Q1 FY26, with U.S. new patient starts near a record.

    Concerns

    2

    • Gross margin guidance left unchanged due to potential 50-100 basis points risk from geopolitical uncertainties, fuel prices, and resin costs.

    • U.S. market growth is perceived as slowing by some, with penetration at only 30% of covered lives.

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $5.16 billion to $5.25 billion
    high materiality
    High
    Full-year 2026 Non-GAAP Gross Profit Margin
    63% to 64%
    medium materiality
    High
    Full-year 2026 Non-GAAP Operating Profit Margin
    23% to 23.5%
    high materiality
    High
    Full-year 2026 Adjusted EBITDA Margin
    31% to 31.5%
    high materiality
    High
    G7 15 Day Product Conversion
    nearly 50%
    medium materiality
    Medium

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Worldwide
    Reflected strong demand for DexCom CGM globally, benefiting from broader access, new product launches, and continued active base growth.
    Organic revenue growth: 12%
    		$1.19 billion15%——
    U.S.
    Momentum built across the spectrum of diabetes care, driven by growing awareness of broader type 2 coverage and the G7 15 Day launch.
    		$832 million11%——
    International
    Widespread growth across core markets, with largest increases from geographies with recently expanded access like France and Canada.
    Organic revenue growth: 17%
    		$360 million26%——

    Operational metrics

    21
    Worldwide Revenue
    $1.19 billionup 15% YoY from $1.04 billion
    Q1 FY26

    Reported on a non-GAAP basis.

    Worldwide Organic Revenue Growth
    12%
    Q1 FY26

    Organic revenue excludes impact of foreign exchange and non-CGM revenue acquired or divested in trailing 12 months.

    U.S. Revenue
    $832 millionup 11% YoY from $751 million
    Q1 FY26

    Reported on a non-GAAP basis.

    International Revenue
    $360 millionup 26% YoY
    Q1 FY26

    Reported on a non-GAAP basis.

    International Organic Revenue Growth
    17%
    Q1 FY26

    Organic revenue excludes impact of foreign exchange and non-CGM revenue acquired or divested in trailing 12 months.

    Non-GAAP Gross Profit
    $757.4 million
    Q1 FY26

    Reported on a non-GAAP basis.

    Non-GAAP Gross Profit Margin
    63.5%up from 57.5% in Q1 FY25, flat QoQ
    Q1 FY26

    Reported on a non-GAAP basis. Performance reflected strong execution across operations and supply chain.

    Operating Expenses
    $493.0 millionup from $453.1 million in Q1 FY25
    Q1 FY26

    Reported on a non-GAAP basis.

    Non-GAAP Operating Income
    $264.4 millionup from $143.1 million in Q1 FY25
    Q1 FY26

    Reported on a non-GAAP basis.

    Non-GAAP Operating Margin
    22.2%up from 13.8% in Q1 FY25
    Q1 FY26

    Reported on a non-GAAP basis.

    Adjusted EBITDA
    $364.5 millionup from $230.4 million in Q1 FY25
    Q1 FY26

    Reported on a non-GAAP basis.

    Adjusted EBITDA Margin
    30.6%up from 22.2% in Q1 FY25
    Q1 FY26

    Reported on a non-GAAP basis.

    Net Income
    $216.3 millionup 75% YoY
    Q1 FY26

    Reported on a non-GAAP basis.

    EPS
    $0.56up 75% YoY
    Q1 FY26

    Reported on a non-GAAP basis.

    Cash and Cash Equivalents
    $2.4 billionup over $400 million compared to year-end 2025
    Q1 FY26

    Reflected significant free cash flow performance in Q1.

    Share Buybacks
    $500 million
    H2 FY25

    Executed in the back half of last year.

    Type 2 Non-Insulin Commercial Covered Lives
    7 millionup from 6 million currently
    FY26

    Expected to be covered by end of year, including Prime Therapeutics.

    U.S. CGM Market Penetration
    30%
    Q1 FY26

    Penetration into the covered lives for the category.

    Type 2 Basal Insulin Penetration
    20% to 25%
    Q1 FY26

    Still around this level as a category, indicating growth opportunity.

    Utilization Rate
    70% to 80%
    Ongoing

    Value is a little bit less for these use cases, but still a massive unmet need.

    R&D Spend YoY Change
    flatYoY
    Q1 FY26

    Management expects R&D spend to increase over the year.

    Industry KPIs

    7
    MetricValueDetails
    System utilization70% to 80%%
    New product launch rampG7 15 Day
    FCF conversion leverage guidancesignificant
    Segment franchise organic growth12%%
    Sales force commercial capacity buildexpanded
    Indicated addressable patient population6 millionlives
    Pivotal trial clinical evidence milestonesRCT completion and readout

    Product announcements

    6
    ProductTypeDetails
    DexCom G7 15 Daylaunch
    New Patch Technologyupdate
    Stelo (Redesigned App)update
    DexCom Smart Basalmilestone
    Stelo (International Launch)launch
    New CGM System (International Launch)launch

    Deals & partnerships

    1
    Prime TherapeuticsCommercial coverage for DexCom CGM

    Prime Therapeutics will begin covering DexCom CGM for all people with diabetes as of this summer.

    Risks & headwinds

    3
    Geopolitical environment and commodity price volatilityFull-year 2026

    50-100 basis points potential risk to gross margin

    Mitigation: Strong cost control and operational discipline; gross margin guidance left unchanged to account for this uncertainty.

    Slower U.S. market growth perceptionOngoing

    30% penetration into covered lives

    Mitigation: Focus on expanding access (e.g., Prime Therapeutics), driving awareness, new product launches (G7 15 Day), and improving customer experience to increase penetration.

    R&D spend not translating to pipeline outputQ1 FY26

    R&D spend flat YoY in Q1 FY26

    Mitigation: Management expects R&D spend to increase over the course of the year, emphasizing continued investment in innovation and efficiency through AI.

    What to watch in Q2 FY26

    5

    Type 2 Non-Insulin RCT Readout

    next month (June 2026)
    CurrentCompleting trial
    TargetFull readout at ADA 2026

    Why it matters

    This trial is expected to be the defining study for the non-insulin population and a cornerstone for global payer evidence, unlocking significant market opportunity.

    We look forward to sharing a full readout of this study with you at the ADA's 2026 Scientific sessions in a few weeks.

    Q&A highlights

    5

    Analyst notes perceived slower U.S. market growth and asks for DexCom's perspective, U.S. guidance assumptions, and new patient metrics.

    Management states the U.S. market still has significant opportunity with only 30% penetration of covered lives. Q1 FY26 saw a global record for new patient starts, and U.S. new patient starts were very close to a record. New PBM coverage (Prime Therapeutics) will add 1 million non-insulin lives by year-end.

    “If we just focus in on the U.S., there's still a long runway to go. We mentioned a new PBM now covering CGM by the end of the year, that's going to add another 1 million lives to that noninsulin-using population.”

    asked by David Roman · answered by Jacob Leach

    2 min read6 chapters

    Detailed Narrative

    01

    Type 2 Non-Insulin Market Expansion

    DexCom is actively expanding its reach in the type 2 non-insulin diabetes market, benefiting from growing clinical awareness and expanded coverage. Prime Therapeutics will begin covering DexCom CGM for all people with diabetes by summer, adding over 1 million lives and bringing total commercial coverage for type 2 non-insulin lives to over 7 million by year-end. The company is completing a randomized controlled trial (RCT) for this population, with full results expected at ADA 2026, which is anticipated to be a cornerstone for global payer evidence.

    02

    G7 15 Day Launch Success

    The expanded launch of DexCom G7 15 Day across all U.S. channels has been very well received, with positive feedback on longer wear time and improved accuracy from the new sensor algorithm. This product is contributing to new patient starts and the company expects nearly 50% of its existing base to convert to G7 15 Day by the end of the year.

    03

    Product Innovation and Software Updates

    DexCom is continuously improving its product portfolio, including a new patch technology for enhanced sensor survivability and upcoming software updates. A complete redesign of the Stelo app will offer a more consumer-friendly experience with AI-driven personalized insights and advanced food logging. The company is also expanding access for its Smart Basal feature, a personalized dosing module aimed at reinventing basal insulin management.

    04

    International Growth Strategy

    International markets continue to be a strong growth driver, with 26% reported and 17% organic revenue growth in Q1 FY26. This success is attributed to a portfolio approach tailored to local markets and reimbursement systems, leading to broader access. Future international launches include Stelo and a new CGM system designed to further extend market reach.

    05

    Operational Efficiency and Margin Improvement

    The company demonstrated strong operational execution, leading to a significant year-over-year improvement in gross profit margin to 63.5% in Q1 FY26. This was driven by manufacturing efficiencies, normalized freight costs, and initial benefits from the G7 15 Day transition. Despite potential headwinds from fuel and resin costs, the company raised its full-year operating profit and adjusted EBITDA margin guidance, reflecting sustained cost control.

    06

    Capital Allocation and Financial Strength

    DexCom ended Q1 FY26 with approximately $2.4 billion in cash and cash equivalents, up over $400 million from year-end 2025, reflecting strong free cash flow generation. The company plans to discuss its capital allocation strategy, including potential tuck-in M&A and share buybacks, in more detail at its upcoming Investor Day.

    AI-generated summary of the company’s earnings call. Not investment advice.