Dexcom (DXCM) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $1.31 billion, up 13% year-over-year, driven by strong global demand, increased sensor sales, and a growing customer base, with record new patient starts and significant U.S. and international gains.

• Net income for Q2 2026 was $249.1 million, a 39% increase year-over-year, with non-GAAP EPS of $0.70 and GAAP EPS of $0.64.

• Gross profit margin improved to 64.1% (non-GAAP) and 63.4% (GAAP), reflecting manufacturing efficiencies and favorable product mix.

• Announced $1 billion share repurchase authorization for 2026, with $600 million repurchased in Q2, and completed the acquisition of Nutrisense to enhance personalized insights.

• CONNECT trial for type 2 non-insulin diabetes showed significant A1C improvement and high engagement, supporting broader coverage and innovation.

Financial highlights

• Q2 2026 worldwide revenue was $1.31 billion, up 13% year-over-year; U.S. revenue grew 11% to $933.4 million, and international revenue rose 19% to $375 million.

• Gross profit was $838.5 million (64.1% margin, non-GAAP), up from 60.1% last year; GAAP gross profit was $830.0 million (63.4% margin).

• Operating income was $328.3 million (25.1% margin, non-GAAP) and $318.3 million (24% margin, GAAP), both up significantly year-over-year.

• Adjusted EBITDA was $421.3 million (32.2% margin); net income grew 46% to $269.1 million (non-GAAP) and 39% to $249.1 million (GAAP).

• Free cash flow exceeded $600 million in H1 2026, with operating cash flow at $794.8 million and cash, cash equivalents, and marketable securities totaling $1.95 billion as of June 30, 2026.

Outlook and guidance

• 2026 revenue guidance raised to $5.18–$5.25 billion (11–13% growth), with non-GAAP gross margin expected at ~64%, operating margin at 23.5–24%, and adjusted EBITDA margin at 31.5–32%.

• Margin expansion expected from G7 15-day adoption, manufacturing efficiencies, and international market conversion.

• Management plans to allocate at least 50% of cash generated from operations, net of capital expenditures, to share repurchases over the long-range plan.