The 5 Most Interesting Analyst Questions From DexCom's Q3 Earnings Call

DexCom's third quarter was met with a negative market reaction despite outpacing Wall Street’s revenue and adjusted EPS expectations. Management attributed quarterly growth to increased continuous glucose monitoring (CGM) adoption among people with type 2 diabetes, particularly following expanded insurance coverage and deeper reach into primary care. Interim CEO Jacob Leach emphasized the impact of new product features and improved access, but also acknowledged lingering manufacturing and sensor deployment issues that affected sensor supply and user experience. As Leach stated, "We have addressed deployment challenges and continue to improve sensor quality, but will not be satisfied until every customer expectation is met."

Is now the time to buy DXCM? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From DexCom’s Q3 Earnings Call

• Travis Steed (Bank of America) inquired about 2026 growth expectations, to which Interim CEO Jacob Leach said the base case for next year assumes no new coverage, with growth likely in the double-digit range but slightly below current Street consensus.
• Gursimran Kaur (Wells Fargo) asked if recent quality issues with the G7 sensor have been fully resolved and whether they disrupted new patient starts; Leach and CFO Jereme Sylvain acknowledged some near-term impact but reported improving feedback and stable complaint rates.
• Joanne Wuensch (Citibank) questioned the broader rollout and margin impact of the G7 15-day sensor. Leach highlighted positive feedback from the initial launch and Sylvain confirmed minimal margin contribution this year, with greater potential in 2026.
• Matthew O'Brien (Piper Sandler) probed on domestic deceleration and comfort with low double-digit growth expectations for 2026. Sylvain attributed recent trends to normalizing seasonality and stable patient growth, emphasizing confidence in the underlying user base.
• Richard Newitter (Truist Securities) asked how DexCom’s base case outlook for 2026 factors in competitive threats, specifically Abbott’s dual analyte product. Sylvain assured that competitive dynamics and known coverage changes are already incorporated into internal planning.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the pace and breadth of expanded type 2 diabetes coverage and evidence readouts from clinical trials, (2) the full commercial launch and adoption rate of the G7 15-day sensor in the U.S. and key international markets, and (3) progress on manufacturing efficiency and cost controls to restore margins. We will also track how new digital tools improve customer satisfaction and retention.

DexCom currently trades at $59.25, down from $68.21 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).

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