DXCM

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the patient monitoring stocks, including DexCom (NASDAQ:DXCM) and its peers. Patient monitoring companies within the healthcare equipment industry offer devices and technologies that track chronic conditions and support real-time health management, such as continuous glucose monitors (CGMs) and sleep apnea machines. These businesses benefit from recurring revenue from consumables and software subscriptions tied to device sales (razor, razor blade model). The rising prevalence of chronic diseases like diabetes and respiratory disorders due to an aging population as well as growing adoption of digitization are good for the industry. However, these companies face challenges from high R&D costs and reliance on regulatory approvals. Looking ahead, the sector is positioned for growth due to tailwinds like the rising burden of chronic diseases from an aging population, the shift toward value-based care, and increased adoption of digital health solutions. Innovations in AI and machine learning are expected to enhance device accuracy and functionality, improving patient outcomes and driving demand. However, there are headwinds such as pricing pressures as healthcare costs are a key focus, especially in the US. An evolving regulatory landscape and competition from more tech-forward new entrants could present additional challenges. The 4 patient monitoring stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 1.6% below. In light of this news, share prices of the companies have held steady as they are up 2% on average since the latest earnings results. Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ:DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks. DexCom reported revenues of $1.31 billion, up 13.1% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and a narrow beat of analysts’ organic revenue estimates. DexCom delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 20.6% since reporting and currently trades at $89.91. We think DexCom is a good business, but is it a buy today? Read our full report here, it’s free. Pioneering the shift from bulky, short-term heart monitors to sleek, wire-free patches, iRhythm Technologies (NASDAQ:IRTC) provides wearable cardiac monitoring devices and AI-powered analysis services that help physicians detect and diagnose heart rhythm disorders. iRhythm reported revenues of $224.2 million, up 20.1% year on year, outperforming analysts’ expectations by 2.3%. The business had a very strong quarter with a beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations. iRhythm scored the biggest analyst estimate beat and highest full-year guidance raise in the group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4.4% since reporting. It currently trades at $122.48. Is now the time to buy iRhythm? Access our full analysis of the earnings results here, it’s free. Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE:RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use. ResMed reported revenues of $1.46 billion, up 8.6% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a beat of analysts’ EPS estimates. ResMed delivered the weakest performance against analyst estimates and slowest revenue growth among its peers. Interestingly, the stock is up 3.4% since the results and currently trades at $230.82. Read our full analysis of ResMed’s results here. Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ:PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line. Insulet reported revenues of $801.7 million, up 23.5% year on year. This print topped analysts’ expectations by 1.9%. More broadly, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations significantly. Insulet delivered the fastest revenue growth of the whole group. The stock is down 11.6% since reporting and currently trades at $147.50. Read our full, actionable report on Insulet here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Image source: The Motley Fool. Thursday, July 30, 2026 at 4:30 p.m. ET senior vice president of finance and investor relations - Sean Christensen President and Chief Executive Officer - Jacob Steven Leach chief financial officer - Jereme Sylvain Operator: Ladies and gentlemen, welcome to the DexCom Second Quarter 26 Earnings Release Conference Call. My name is Abby, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Peter, we will conduct a question and answer session. During the question-and-answer session, if you have a question, please press *, 1 on your touch-tone session. As a reminder, the conference is being recorded. I will now turn the call over to Sean Christensen, senior vice president of finance and investor relations. Mr. Christensen, you may begin. Sean Christensen: Thank you, operator, and welcome to DexCom's second quarter 26 Earnings Call. Our agenda begins with Jake Leach, DexCom's President and CEO who will summarize our recent highlights and ongoing strategic initiatives. Followed by a financial review and outlook from Jereme Sylvain, our chief financial officer. Following our prepared remarks, we will open the call for your questions. At that time, we ask analysts to limit themselves to 1 question each so we can provide an opportunity for everyone participating today. Please note that there are also slides available related to our second quarter 26 performance on the DexCom Investor Relations website on the Events and Presentations page. With that, let's review our safe harbor statement. Some statements on today's call may constitute forward looking statements. These statements reflect management's intentions, beliefs, and expectations about future events, strategies, competition, products, operating plans, and performance. These statements are made as of the date hereof based on information currently available to Dexcom. Are subject to various risks and uncertainties, that could cause actual results to differ materially. For discussion of these risks, please see Dexcom's annual report on Form 10 k most recent quarterly report on Form 10 Q, and other filings with the Securities and Exchange Commission. Except as required by law, we assume no obligation to update any forward looking statements. Or to conform any forward looking statement to actual results. Additionally, during the call, we will discuss certain non GAAP financial measures. Unless otherwise noted, all financial measures discussed on this call are presented on a non GAAP basis. Non-GAAP measures should not be considered in isolation or as a substitute for or superior to GAAP results. Please refer to the tables in our earnings release and the slides accompanying our second quarter 26 earnings call for reconciliations to the most directly comparable GAAP measure. Now I will turn it over to Jake. Jacob Steven Leach: Thank you, Sean, and thank you, everyone, for joining us. Today, we reported second quarter revenue growth of 13% compared to the second quarter of 25. And organic revenue growth of 12%. We carried forward solid demand from the first quarter for DexCom CGM globally as we benefited from broader access and share gains across several core markets as well as patient categories. The second quarter was also marked by solid execution across the business. This included multiple product launches, strong margin execution, and excellent product performance in the field. In addition, global new customer starts remained in line with our previous record from last quarter. Including a sequential uptick in new customer starts in The US. During the quarter, we had the opportunity to connect with many of you at our 2 thousand 26 Investor Day which we hosted at our Arizona manufacturing facility. Since I stepped into the role of CEO, you have heard me reiterate my 3 priorities for Dexcom's next phase of growth. 1, be the premier glucose sensing solution for all. Second, set the standard for customer experience. And 3rd, expand international market share. This event provided an opportunity to explore each of these topics in much greater detail. During the day, we shared updates on our product road map, reimbursement plans, international strategy, and future market opportunities. We also laid out our new 5 year financial targets and capital allocation plans. Which included a $1 billion share repurchase authorization to be executed in 2026. A key part of our presentation was detailing the pathway to full coverage for the 25 million people in The US with type 2 diabetes not using insulin. In fact, we have an organizational initiative called the Road to 100, which represents our efforts to achieve coverage for all people with diabetes. And while it is only been 2 months since our investor day, we have recently taken an important step forward in advancing that opportunity. As many of you know, at this year's American Diabetes Association Scientific Sessions, we provided a full readout of Connect. Our randomized control trial for people with type 2 diabetes who are not on insulin. For background, Connect enrolled nearly 300 participants across 22 primary care sites in The US and was designed to reflect the widespread spectrum of people with type 2 diabetes. This included individuals across the full range of type 2 medication plans to ensure these results were reflective of real world care. And we could not have been happier with the results. Over the 6-month study period, we saw a 1.6% A1C improvement for the Dexcom CGM group. Which equated to a 0.9% difference in A1C between the CGM arm and the control group. To put this in perspective, these results are even better than what we saw in our landmark diamond and mobile studies. Which ultimately helped shift standards of care and led to full coverage for anyone using insulin. Beyond the strong headline results, several additional outcomes stood out in the connect trial. First, the DexCom CGM arm spent over 5 more hours per day in normal glucose range. Compared to the control group, Importantly, these improvements began within the first week of using Dexcom and were sustained over the 26 week study. These were individuals who have had diabetes for 10+ years on average. And DexCom immediately gave them a path to better glucose control. Second, this real time feedback led to very high engagement throughout the trial. Over the 26 week study, median wear of 97%, which is even higher than what we have seen in some AID trials. And finally, from a medication perspective, the largest relative improvement in A1C was within the cohort using only GLP-1 therapies. This data only further reinforces the complementary relationship between CGM and incretin therapy. The results demonstrated in CONNECT translate to meaningful health outcomes and economic savings. And we are already seeing this recognized by commercial payers. As an example, in collaboration with CVS Health, we published a real world evidence study for non insulin type 2 customers. Over a 3-year period, the study showed a 66% reduction in diabetes related hospitalization after the initiation of CGM. And nearly 50% reduction in microvascular complications. These tangible near term cost savings are a key reason why we have seen commercial coverage build so quickly. As we mentioned in our Q1 call, as of this summer, we now have coverage for all people with diabetes across the 4 largest commercial PBMs. This represents reimbursement for more than 7 million people with type 2 diabetes who are not on insulin. While this is a great start, we have stated previously we will not be satisfied until we have broad global coverage. For all people who can benefit from Dexcom CGM. Including 25 million type 2 non insulin customers in The US. The connect readout adds Level A evidence to the already substantial body of real world type 2 data and our momentum with commercial payers. Historically, this level of evidence has carried outsized influence in both shaping clinical practice and driving coverage forward. Both in The US and across international markets. We are now working with advocacy groups and KOLs across the world to help educate the market on these outcomes. We have also submitted the connect data for publication and provided the evidence to CMS in support of the non insulin coverage expansion. We believe these results only strengthen the case for reimbursement And with roughly half of the Type 2 non insulin population being of Medicare age, this decision has the potential to completely reshape diabetes care in The US. The administration is already demonstrating their commitment to reducing the burden of chronic disease and expanding access to new technologies. Along those lines, we are excited to see the FDA's announcement of Dexcom as the first company chosen to participate in the Tempo digital device pilot. As I shared at investor day, we believe that DexCom's opportunity goes beyond diabetes care and into diabetes prevention. We have 115 million Americans with prediabetes, but only a fraction of them are aware. Under tempo, we will have the ability to demonstrate Dexcom's ability to screen for prediabetes with Dexcom CGM and drive people to better metabolic health. As we continue to expand the horizons of CGM access and metabolic health, we are driving exciting product enhancements that meet the needs of our customers. This includes our fully redesigned Stello app which launched broadly last week. As you saw at Investor Day, this new interface offers a more consumer friendly feel, new AI driven insights, and enhanced food logging capabilities. This Stello update also creates the foundation from which our G Series app will evolve. Providing greater personalization and additional functionality for all customers. More broadly, our technology road map remains focused on delivering innovations that can improve outcomes and the user experience. A great example of this is Dexcom Smart Basal. As a reminder, Smart Basal is a personalized dosing module to help simplify and optimize basal insulin management for both customers and physicians. We developed this technology to address a significant unmet need. As more than 70% of patients on basal insulin fail to achieve target A1C levels after a year of therapy. Often due to the challenges associated with insulin titration. We currently have our pilot program of Smart Basal underway with several key KOLs and the feedback has been great. In fact, across these practices, Smart Basal has helped customers reach an optimal basal dose in only 3 weeks on average. Which is a process that typically takes 12 weeks or longer in routine care. These results validate our belief that Smart Basal has the potential to become the new standard of care for basal insulin management. During the quarter, we also continued to advance the rollout of our G7 15-day system. With the recent integration availability for tandem pump users, including Mobi, our G7 15-day system is now accessible for all adult G7 customers in The US. We are very encouraged by the response we have seen since launch. With great feedback on the new algorithm updated patch, extended wear time, and enhanced customer service. Importantly, these improvements are translating into stronger customer satisfaction. With g 7 net promoter scores increasing in each of the last 3 quarters. Based on this positive customer feedback, strong adoption trends, and growing interest across the market, we remain on track to convert nearly 50% of our U.S. customer base to the G7 15 day system by year end. At investor day, we also discussed our plans to extend this 15-day experience across our international markets. We recently completed an important step on that journey as Health Canada became the first international regulator to clear Dexcom G7 15-day. We look forward to bringing G7 15-day to Canada in the second half of 2 thousand 26 and to the rest of our international markets as quickly as possible. To close, it was great to connect with many of you in Arizona. To share our vision for DexCom's next chapter of growth and to support that vision with a strong quarter of execution. As we discussed at the event, we see a significant opportunity to help millions more people globally. In fact, through our ongoing advocacy work access efforts, market expansion, and product development, we believe we can exit our LRP with an even larger market opportunity than we have today. And we plan to execute on that growth vision with 1 of the more compelling cash flow and margin profiles in the industry. As you can tell from today's updates, we are wasting no time making this vision a reality. With that, I will turn it over to Jereme. Jereme Sylvain: Thank you, Jake. As a reminder, unless otherwise noted, the financial metrics presented today will be discussed on a non GAAP basis. Reconciliations to GAAP can be found in today's earnings release as well as the slide deck on our IR website. For the second quarter of 26, we reported worldwide revenue of $1.31 billion compared to $1.16 billion for the second quarter of 25. Representing growth of 13% on a reported basis and 12% on an organic basis. As a reminder, our definition of organic revenue excludes the impact of foreign exchange, in addition to non CGM revenue acquired or divested in the trailing 12 months. U. S. Revenue totaled $933 million for the second quarter, compared to $841 million in the second quarter of 25. Representing an increase of 11%. We continue to see strong new patient performance and share capture in The US market. With good sequential momentum driven by solid execution in the field. International revenue grew 19%, totaling $375 million in the second quarter. International organic revenue growth was 16% for the second quarter. As we have seen over the past several quarters, some of our strongest performances came from markets where access has recently expanded, such as France and Canada. This is consistent with the international access strategy we outlined at investor day. As reimbursement wins often allow us to drive growth and market share over time. We also continued to expand our international product portfolio during the quarter with the launch of DexCom Flex In Germany. DexCom Flex is our newest 15-day sensor designed to address type 2 basal in the Type 2 non insulin markets in select geographies. We are excited to further roll out this product as type 2 reimbursement continues to build. Our second quarter gross profit was $838.5 million, or 64.1% of revenue, compared to 60.1% of revenue in the second quarter of 25. This was another great quarter for gross margin performance. With margins improving approximately 400 basis points compared to last year. This improvement was driven by continued manufacturing efficiencies in quality management, and a benefit from the initial customer switch over to G7 15-day. As Jake mentioned, our execution has been excellent. across our operations and supply chain. This included a return to more optimized shipping patterns, Which helped us manage the fuel price environment in Q2. Operating expenses were $510.2 million for Q2 of 26 compared to $474.1 million in Q2 of 25. Operating income was $328.3 million, or 25.1% of revenue, in the second quarter of 26 compared to $221.8 million, or 19.2% of revenue in the same quarter of 2025. Once again, we delivered nice operating expense leverage during the quarter. Even as we expanded our investment in Ireland to prepare for commercial production later this year. This quarter was another great representation of ongoing cost discipline across our organization, which is driving margin performance and funding growth opportunities across the business. Adjusted EBITDA was $421.3 million, or 32.2% of revenue for the second quarter compared to $327.6 million, or 28.3% of revenue for the second quarter of 25. Net income for the second quarter was $269.1 million, or $0.70 per share. representing 46% growth over the second quarter of 25. We remain in a great financial position. Closing the quarter with approximately $1.9 billion of cash and cash equivalents. Our cash flow generation continues to be a key differentiator. As we delivered more than $600 million in free cash flow in the first half of the year. This was more than double our first half free cash flow levels from 2025. As Jake mentioned, at Investor Day, we announced a commitment to repurchase $1 billion of stock in 2026. Following the event, we quickly started executing that plan. And repurchased approximately $600 million in the second quarter. During the day, we also shared broader framework for our capital allocation decisions. Which includes an ongoing assessment of tuck in M&A and where to invest for future production capacity. As we discussed, 1 area of particular interest is in transactions that have the potential to accelerate our technology pipeline. In line with that framework, we completed the acquisition of Nutrisense during the second quarter. Nutrisense has developed an innovative platform built on CGM data, with a focus on delivering nutrition focused insights. We believe this integration has the potential to enhance our customer experience and provide new personalized insights. Turning to guidance. We are raising the midpoint of our guidance with an updated range of $5.18 billion to $5.25 billion, representing growth of 11% to 13% for the year. This updated revenue guidance reflects stronger organic growth expectations offset by recent movement in foreign exchange rates. Which we expect to have about a $15 million impact to international revenue in the second half of the year relative to our prior guidance. Importantly, excluding the impact of foreign exchange, our updated guidance implies an increase in organic growth by more than 50 basis points at the midpoint. Compared to our prior guide. For margins, we are raising our full year non GAAP gross profit margin guidance to approximately 64%. We are also increasing our non GAAP operating profit margin guidance to a range of 23.5% to 24% and adjusted EBITDA margin guidance to a range of 31.5% to 32%. With that, we can open up the call for Q&A. Sean? Sean Christensen: Thank you, Jereme. As a reminder, we ask our audience to limit to only 1 question at this time and then reenter the queue if necessary. Operator, please provide the Q&A instructions. Operator: Thank you. Then we will now begin the question and answer session. If you wish to be removed from the queue, please press 1 a second time. If you are using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you have a question, it is *, 1 on your touch tone phone. And our first question comes from the line of Travis Lee Steed with Bank of America. Your line is open. Travis Steed: Hey. Congrats on a good quarter. Jereme, I will ask about the U.S. CGM growth for DexCom and also the market, it was nice to see the quarter over quarter uptick in new patient starts. But the market for CGM in the U.S. kind of hanging around that 10% line, just kind of the confidence you are seeing in that sustainability of double digit growth and how to think about some of the new products and expanding coverage as those hit later this year and kind of what you are assuming for Nutrisense in the second half on the guidance? Jereme Sylvain: Yeah. Thanks, Travis. I will take that 1. Yeah. It was another robust quarter of new patient starts, and it was nice to see the sequential uptick in The US. It was pretty broad based across all of our patient segments. As we mentioned in the call, we saw some share taking across those. You know, when you take a step back and you look at The US market, today, there is approximately 9 million people in The United States that have coverage for CGM but are not yet using it. So we do feel that there is there is robust growth still there before we talk about any expansion in coverage. Jacob Steven Leach: And so happy with the patient adds. We are gonna continue to drive and push so that everyone that can benefit from this technology gets it. And as you mentioned, you know, CMS expansion is something that we have targeted for mid-next year is when we believe that coverage will come into place. That obviously gives us a pretty significant runway for future growth. Nutrisense, as you mentioned, is 1 of the acquisitions that we have made. And it really is focused on driving, you know, better insights and more kind of value It was a really exciting technology that the team developed. We have been partners with Nutrisense for quite a while. And as we continue to work with them, we saw just the benefits of that technology could bring to the users. You know, the engagement scores early on are really high because of the personalized nutrition coaching based on CGM that we see with that technology. So we are we are we are to work with it and integrate it into our product portfolio. And we are excited to see where it can drive us. Jereme Sylvain: Yeah. And to your question on guidance, Travis, you know, most of the revenue that ran through Nutrisense was actually the pass through the CGM. So that is always been in our run rate, and that will continue into our run rate. I would say that you know, any other contribution, you know, say, the top line, you know, you can count the millions for the year on 1 hand. So it is really truly immaterial in terms of the impact on to the organization. Terms of the P&L, we are assuming the p and l associated with that into that guidance. Into the range of our guidance. And so all of that is really contemplated in there. Jereme, most importantly, I think the big takeaway here is the run rate that NutriSense had, most of it was already Stello revenue. And so it continues to remain. It does not change the organic growth profile. Operator: And our next question comes from the line of Robert Marcus with JPMorgan. Your line is open. Please check your mute button. Robert Marcus: Oh, great. Sorry. Just jumping back and forth. Appreciate it. Wanted to ask on Connect and the reception amongst doctors following ADA and how you are thinking about how this data set and hopefully the eventual Medicare non-intensive reimbursement might help stimulate and advance adoption in type 2 non-intensives? You know, what is been the feedback and you know, do you think this trial was a door that could open and help drive adoption once reimbursement comes? Thanks. Jacob Steven Leach: Yeah. Thanks. Thanks, Robbie. You know, absolutely, the results from the CONNECT trial, both in terms of the A1C reduction across the broad spectrum of type 2 users on all kinds of different medication plans. As well as the engagement with the technology. You know, it is interesting. Yeah. There the engagement is very, very high in this population. And if you kind of look at it compared to some of the older studies, 1 thing to always remember is that the technology has improved pretty substantially over time. And so I think what we have seen in this study is not only the benefit to these users and their engagement with the product, but also the quality of the product experience. And so if you think about some of the earlier studies, those started back even on g 4. And so now g 7 with all the enhancements we have made to both the ease of use have really driven the capability for these folks to use this product full time. As I mentioned, 97% utilization. And so I think that really resonates with providers because, you know, they if they are writing the prescription for their product, and they want their patient to get it, they want them to use it. And I think this trial is a great proof point in how this product will be used in this population. We saw it in our registry data. We saw great utilization. For those that already are using it. But in this trial, I think that stands out substantially as well as the improvement in a 1 c. And so right now, our we are working with that data. We have submitted it. it is in late stage review for publication. And we will continue to take that data around the world to drive reimbursement. This is the type of trial that previously has driven pretty significant expansions. Our previous trial is obviously for insulin users. This 1 now for the broad segment of type 2, so we do feel that it is a very important part. The evidence was strong before the connect trial. Results were available, but now that they are available, it just really reinforces the benefit that this technology has in the broad base of diabetes. Operator: And our next question comes from the line of Matthew Charles Taylor with Jefferies. Your line is open. Matt Taylor: Hi. Thank you for taking the question. I just wanted to follow-up on Connect and non-insulin type 2. You talked about having submitted the data package to CMS as well. Could you give us any update if there is 1 on the timeline that you might expect for coverage? You said mid 27 previously. Is that still your base case, or could it potentially be sooner with the progress that you have made? Jacob Steven Leach: Yeah. We did submit that the connect data to CMS, and you know, again, it adds to that pretty substantial body of evidence that was already there. there is no change in our assumptions around the coverage decision. We do expect to hear back from CMS on that decision before the end of this year. And in our plans right now, we have got it taking effect in the middle of 2027. You know, that being said, I do believe that Connect is a pretty powerful dataset that not only for CMS, but for the world, will continue to advance reimbursement. For this population. Operator: Our next question comes from the line of Larry Biegelsen with Wells Fargo. Your line is open. Gursimran Kaur: Hi. This is Gursimran on for Larry. Thanks for taking the questions, and congrats on a good quarter here. I will just ask mine about the pilot program with the FDA, Tempo. What does tempo mean for type 2 non insulin and prediabetes coverage? Exactly. Can you just elaborate on the kind of evidence development in the tempo program for those 2 indications and you know, when you could potentially have a prediabetes label. And then, you know, is there any near term revenue benefit from CMS coverage and you know, any kind of read through to just broader type 2 non insulin CMS coverage from you know, it being mentioned alongside the tempo program as well. Jacob Steven Leach: Yeah. Thanks, Gursimran. So Tempo is really it is an innovative regulatory framework. So introduced by the FDA. For so it is really around access to technology for patients. And so it aligns the target areas, for, the tempo framework is around the areas that were identified. By the access program from CMS, which are early stage cardiometabolic conditions and cardiometabolic conditions We are, you know, talking prediabetes, and diabetes, obviously, squarely fit into those. So it is really around allowing the participants of Tempo to release into the market technology digital technologies under basically, it is like an enforcement discretion. So we it basically, what it means for Dex is it allows us to innovate more quickly on our glucose health program as well as some screening techniques that we are looking at using CGM to screen for prediabetes as well as diabetes because of the pretty significant lack of awareness of prediabetes diagnosis We believe that CGM is a really powerful technology to help intervene more earlier in the progression of disease. And so it is it is it is tempo is not really specific to a coverage. it is it is really more a framework to get technology in the hands of users. The access program does add additional payments into the system for Medicare beneficiaries. And so obviously, a technology that under tempo can help there. But it is not connected at all to the kind of general CMS decision for long you know, broad coverage for type 2. it is it is really more specific to the tempo and access programs. Operator: And our next question comes from the line of Matthew O'Brien with Piper Sandler. Your line is open. Anna: Great. Thanks. This is Anna on for Matt. Thanks for taking our question here. I wanted to ask on 15-day. You mentioned the 15% conversion by the end of the year in The U. S. Just wanted to know if there was any color you could provide on conversion to 15-day sits exiting Q2 and how you are thinking about the accretive margin impact from that mix shift for the rest of the year Is that sort of showing up in line with your expectations? Or anything to note there? Thanks. Jereme Sylvain: Sure. Yeah. And I can take that question. You know, the transition is occurring essentially in line with expectations. And so if you think about, you know, all the assumptions as we were going into the year, know, obviously, we really launched it in earnest and full starting in January. We did a little bit of an early release in the DME space in the back half of or the back quarter of last year, but it went into retail at the beginning of this year. And so if you if you kinda think about a line drawing through, there is there is obviously folks that have adopted it over the course first half of the year. 1 of the big gating items was, of course, thinking about its integration with Tandem and Mobi, and Jake alluded to it earlier. that is now gone into full line here as we move into the back half of the year. So our expectations were you would continue to see it ramp up, especially as all of the AID integrations took place. You are seeing, you know, the Tandem coming in now, and it is already connected to beta and So we are making great progress. it is about in line with expectations, and so you are seeing it start to contribute a little bit more here in the second quarter. the expectation is it starts contribute more into the third quarter and the fourth quarter as, you know, your base continues to move over and, you know, as that starts to represent recurring purchase patterns over that time. So the expectation starts to contribute more as we get into the back part of the year. It really starts to contribute next year. Because as you are starting to close in on 50%, you know, that becomes your starting point for 2027, and that starts to get pretty meaningful as you move into the next year. But for now, the way I think about it is it is progressing in line. Great customer feedback. I think we have really gotten all connections on board. And so we are looking forward to continuing to move to that you know, approaching 50% by the end of the year and right on track. Operator: And our next question comes from the line of Joshua Jennings with TD Cowen. Your line is open. Colin Clark: Good evening, guys. Thank you for taking the questions. This is Colin on for Josh. I had a quick 1 curious, now that you have got 7 million-plus covered lives. To play with. what is the kind of awareness level among physicians for the reimbursement already in place? Are physicians identifying which patients can already receive reimbursement with the Medicare decision upcoming. Thank you. Jereme Sylvain: Thanks, Colin. And was cutting out a bit. So I am gonna do my best with the pieces I have heard. I think really what you are getting at is what is the physician awareness of reimbursement How much more needs to take place in lieu of expansion of coverage And there is more kind of knocks down. What are we doing to go about making sure folks are aware of it? that is where you are going. And the answer is, you know, obviously, you know, we have we have been working on this for some time. And you know, if you think about the Salesforce, you know, the salesforce will we have various tools that the Salesforce gets up in front of physicians and really goes through historical claims adjudication by payer to show them in their practice you know, where does coverage exist, where does it not exist, So that more and more physicians can get comfortable that access exists for them. And so that continues to take place, and it takes a little bit of time to continue to make folks aware, especially as we continue to get more coverage. Because every time we show up, we are gonna show them a better enhancement or a better improvement in coverage We have to continue to do that. I also would expect us to continue to bring the connect study with us. Because, obviously, that shows the demonstrates the benefits. So if any folks were on the fence, around, hey. Well, what is this going to do, and how is this going to impact, and will they use it? I think what we can both show is, 1, if they use it, you are going to see these incredible results. Does not matter what medication you are on. We also can show the coverage ahead of time. there is always work to do around it. Remember, there is there is hundreds and hundreds of thousands of prescribers out there, and you know, so there that you know, saying this is in generality. Everybody's kind of at a different point in their education. But that is what the team is doing. And if you were to talk to, you know, our sales leadership team, you know, that is the 1 thing I think they are most excited about is more and more coverage comes you know, kind of the rebuttal of, well, do they have coverage? We can start to show them, especially with these tools, clear line of sight to where their coverage exists today. Where that coverage does not exist today, they certainly have Stello in the bag. And then we are talking about connect and what connect can mean for CMS coverage. So I think we put all those in front of physicians today. We have to be mindful of, obviously, letting them know that the CMS coverage does not exist today. So if you prescribe it today, you are going to get a non coverage. But I think seeding that is exactly what we are doing, and when we have all the tools to do so and, again, even when there is not coverage, Stella's a great opportunity there. So that helps. Hope that answers the question. If it does not, we can always catch up later. Operator: Appreciate it. And our next question comes from the line of Jayson Bedford with Raymond James. Your line is open. Jayson Bedford: Congrats on the progress. Just a clarification and then a question. I missed the comments around NCS adds. Was the takeaway that 2Q ads were similar to Q1. And then my question is really it is tough not to notice the OpEx leverage. Is there are there timing dynamics at play here or is this the level in which you can kind of leverage the business going forward? Thanks. Jereme Sylvain: Sure, Jayson. Yeah. So, basically, what we are saying is Q2 is in line with Q1. Q1 was a record globally. So Q2 is in line with the record globally. We are still waiting for some final patient data to come in. We are also saying that US is in line with a record globally. Waiting for some final patient data to come in, and usually in The US, it is takes up to 45 days to get it all. what is most important is we do know that US new patient starts sequentially increased from Q1. Did mean the OUS patients came down a bit, but, you know, these things happen with, you know, tenders, timing, all of that. So, hopefully, that gives you some context. Essentially, in line with the record in The US, in line with the record globally. So, hopefully, that is that is that is helpful. You know, to your question on operating leverage, you know, you are right. We are we have had some operating leverage really ahead of plan, and that is why we have increased the guide on the year. And so certainly passing that through. Know, I think over time, the operating leverage that you are seeing and all the work that we have put in place between technology and capability, etcetera, you know, we do expect that to continue to contribute over time. The 1 thing I will say is for this year, and I think you guys you guys know this quite well, Jayson, is as we launch our Ireland factory, you know, what do you do in the quarter ahead of starting manufacturing? that is when you hire all the manufacturing folks. And so we will be doing quite a bit of hiring in Ireland here into the third quarter, and before turning on those lines, and those folks are not producing. They are take they are training. They are they are starting things. And then of that, we will start some depreciation as well. So the so while we have invested in Ireland into the second quarter, we are gonna make some more investments in the third quarter. The good news underneath it all, and I think this is kinda what you are alluding to, Jayson, is the levers we are building in the org organization to achieve operating leverage, they continue. I think we are really proud of that thus far. So, hopefully, it gives you some context Really happy to see it this quarter. Really proud of it. I am glad to pass it along via guidance. Raises on off margin. Operator: And our next question comes from the line of Marie Yoko Thibault with BTIG. Your line is open. Marie Thibault: Hi, good afternoon. Thank you for taking the question. Wanted to ask about international. You had really strong organic growth over there again this quarter. I think the comp may be getting a little bit tougher in the second half. Just wanna understand what pace is sustainable. I know you know, Japan went direct. I believe you mentioned health Canada and the 15 day approval there. So what are some of the catalysts to help, drive international growth through the second half of the year? Thanks. Jacob Steven Leach: Yeah. Thanks, Marie. Yeah. it is the exciting thing about that is the international market is just the tremendous opportunity we have as coverage expands Just as, like, a step back and think about it, we are still working through T1 coverage in a number of our top 10 OUS markets. that is before we even get to Basal and then ultimately NIT. So if you look at those populations, just in that core market, you know, we are well north of 60 million potential lives that we could impact. So, you know, as we think about the second half year, you are right. The comps get a little tougher because we had some great access wins in the back half of last year. Continue to get access wins, though, new tenders. When you when you think about that landscape, you know, much of that is around people having access to Dexcom CGM for the first time because we now have our product portfolio where we can bring DexCom 1 plus or DexCom Flex to patient populations that did not have a choice before. And so as we do that and we win those tenders and we get on there, it gives them access, and we are seeing those wins. We continue to expect more of those to come. So that is why as Jereme sometimes we see new patient numbers kinda go up or down, but in the in the long run, we see a pretty significant opportunity here. Jereme Sylvain: Yeah. And then, you know, to your question on, you know, what to think about for the back half of the year and comps, you are right. The Q4 and the Q3, Q4 comps, especially Q3 got a little bit tougher in the international business. We have been talking about that all year. And so, you know, we have talked about where they get a little bit easier in and OUS a little bit tougher in the in OUS. So it is not it is not too much. But nevertheless, nevertheless, it is something to be mindful of. And, you know, it is always that funny currency thing. You know, at a dollar 17, dollar 18, and the euro, I think that is where about breakeven sits. You know, as of June 30, when we are thinking about a dollar 14, so just being mindful of that as we think about it. If you neutralize that out, organic growth is not as impacted, but we always wanna just be mindful that you have those updated currency assumptions in your model. Operator: And our next question comes from the line of Jeffrey Johnson with Baird. Your line is open. Jeffrey Johnson: Thank you. Good afternoon, guys. Just want to swing back maybe to The U. S. Jereme, could you provide any kind of maybe high level color at least on what is the drivers of getting back to that kind of record equivalent to a record new start in The U. S? You know, was it was it Are we seeing more basal only patients coming in still? I think we are past 3 year anniversary at this point. So is it really basal only doing most of the heavy lifting? Is it share gains in basal only? You know, my gut would tell me that maybe your T1 and intensive T2 new starts on a year over year basis are down a little bit. I do not know if you would wanna comment on that, but just given those penetration rates. So just kind of the mix and makeup of what drove that good U. S. Number this quarter. Thanks. Jereme Sylvain: Sure. Yeah. I can I can cover that? You know, I think it was when we talk about kind of a broad based performance, we did see some step up actually from last quarter even in T1 a little bit. But you really saw a little bit of a step up across the board, across T1, and T2 intensive basal as well and a little bit there in the Type 2 non So it is a little bit across the board. You know, I think a lot of it is a couple fold, you know, and as we think about feedback. So you know, Jake alluded to it earlier. The NPS scores continue to go up. This is our third consecutive quarter. Seeing those go up. And so when you have a new product in hand like G7 15-day, and it really that the algorithm, the wear time, the performance in the field, certainly, addressing some of, you know, the sensor deployment challenges we face. You know, all that as that plays into customers, happy customers combined with the coverage levels, that we have, and we continue to fight for coverage in the even eliminating things like prior authorizations, etcetera, to make it easier for folks I think we are really giving both physicians and customers reasons to come to our product. And so you know, there is there is there is no magic here. We really focus on how to make the customer's life easier, like easier onboarding. Those things in. Sometimes we do not necessarily talk about it, but you are seeing more and more easier onboarding. You are certainly seeing, obviously, you know, sensor out of the box We expect those to go well. The algorithmic improvements And you do not necessarily always talk about those, but word-of-mouth is important there. You know, a lot of folks really enjoy the extended wear time. It really it really has been something we have really seen quite a bit of good feedback on. And so I think as you build that echo and, obviously, there is more and more changes to come as we as we have talked about the product. We have just really seen a lot of interest there. So I would not say there is 1 silver bullet, but the more and more we work on all of those, plus the more we knock down that reimbursement door and make sure folks are aware they have reimbursement, that is really what we have seen over the course of this quarter. Operator: And our next question comes from the line of Joanne Karen Wuensch with Citi. Your line is open. Joanne Wuensch: Good evening, and thank you for taking the questions. Briefly, I wanted to make sure that the G8 sensor timeline was still intact or if you had an update on that. And then it looks like you acquired Nutrisense in early June. Just curious what your thoughts are on that and if it is in guidance. Thank you. Jacob Steven Leach: Yeah. Thanks. Thanks, Joanne. G8 timeline is still very much intact. The team is doing great work there. We are in the middle of doing lots of validation on the product as we prepare to start some very large clinical trials to show the performance levels of this product. Again, as we have mentioned, at investor day, this we expect step change improvement in accuracy and reliability for this product based on brand new technology that is being implemented into the G8 system for the very first time. it is also a wearable that is half the size of G7. And so, you know, more slimmer in terms of height off the body as well as footprint. And so, again, just continuing to make the technology easy to use, fit into patients. Lifestyle. And so very much on track for that you know, end of 2027, early 2020 depending on regulatory timing. But, yeah, very much on track. it is also a multi-analyte platform. So we will be launching with the glucose version first, but multi analytes to come after that as we continue to push towards ketones, potassium, as well as other analytes. We feel that they are an important part of the future for diabetes care and metabolic health. On the Nutrisense point, we did yes. We acquired Nutrisense. They have been a partner of ours for a long time, and we really believe that technology, when you look at the engagement it drives and the insights that can be derived from the work that they have done, they basically built a system that was CGM guided nutrition insights and coaching. And so it was based on professional basically, metabolic health coaches and nutritionists that could basically guide CGM patients. And 1 of the exciting things there is they have lots and lots of history of doing that. And so as we look at that kind of amount of data and the amount of insights they have been able to provide over time and the and the outcomes that they drove with it, we felt like that something that should be part of the Stelo and g 7. And basically our entire product portfolio. So we will be continuing to integrate that technology and advance it with the team with Nutrisense to really make further the insights that our products provide and drive really significant outcomes when you think about just metabolic health in general, such a big part of that is the nutrition component. And so you have seen us continue to expand in our product the ability to capture nutrition, the new Stello app. Now analyzes nutrition and gives you a full breakdown of the meal, whether you barcode scanned it, you know, so a package food or you took a picture of something that was prepared. And so that type of technology that can really help power this. Operator: And, Joanne, to your question on guidance, you know, a big chunk of the revenue that is in Nutrisense is actually CGM pass through revenue, and it is predominantly Stelo. Jereme Sylvain: So there is no real change there. Right? We have always sold it and passed it through. So that is there. The piece that you are referring to is what incremental revenues. And I would say this. I alluded to a little earlier. The revenues that are non CGM related, the millions, you can count on 1 hand. So it is really not a huge revenue item. it is quite small. Relative to at least the size of Dexcom. what is big is the technology. The technology capabilities, and that is ultimately why we did it. The OpEx is has been assumed into it as just typical run rate. We were able to raise the guidance in terms of, you know, operating margin performance and assume those costs in. You know, over the quarter. So, hopefully, that gives you some context. And, you know, sometimes, know, you kind of to give you some a feel for kind of what the commitment in terms of you know, dollars, etcetera, you will see it come out in the 10 q. We did not publicly disclose it, but in the Q, you will see in the cash flows kind of what the cash was in terms of purchase. Operator: Right. And our next question comes from the line of Anthony Petrone with Mizuho. Your line is open. Anthony Petrone: Great, and congrats here on a nice print. A couple on type 2 non-intensive We are hearing from some docs in the field that potentially the coverage decision could have some you know, requirements around it, specifically around a 1 c verification as at various increments, let's say, 6 months, 9 months. So what do you think coverage could potentially look like? Will it have you know, certain verification requirements to keep folks on CGM in this patient category. And then in the study, it had a 97% utilization rate of CGM, very, very high. But when we get to real world, what do you think the utilization intensity for the Type 2 non-intensive patients could look like? Thanks, and congrats again. Jacob Steven Leach: Yeah. Thanks. Thanks. Thanks for the question. So Yeah. Absolutely. Well, just starting with the utilization, first. We have our real world registry, and so we also in that dataset see very high utilization Not quite at 97%, but well above 80% in this population. And I think that speaks to, you know, reimbursed for those that have coverage today in the commercial space for this for the product. The utilization, low out of pocket cost in that environment. Their utilization is really, really quite high. To your question around a 1 c, you know, that is not consistent at all with what we are we hear in our discussion. You know, if you look at the way CGM benefits users, whether they have a low a 1 c, or a high a 1 c, the benefits are for everybody. Right? So those with higher a 1 c's do see larger improvements. But for the whole the whole cohort. See the improvement. And when you think about the ADA standards of care, the focus is 7% A1c c. that is the target goal, and many people who are not using CGM are not achieving that. And so we feel that the Connect study is actually gonna continue to evolve those standards of care even more than we have seen in the past. So that all people with diabetes are recommended to use CGM. And so the other thing to think about too is if there was some sort of a 1 c kind of threshold, which would first off, be inconsistent with what CMS has done in the past. It would also be quite inconsistent with what is already out there with the commercial coverage which is very broad. You know, it is for anyone who is diagnosed with diabetes. So I think it would be quite inconsistent with that and create other issues. So it is not that the type of idea is not consistent with what our discussions that we have been having with CMS and others out there. Operator: And our next question comes from the line of Michael Polark with Wolfe Research. Your line is open. Michael Polark: Good afternoon. Jake, at the beginning of your prepared remarks, you noted product performance was excellent in the quarter. I heard Jereme alluded to some manufacturing quality stuff in response to 1 of the prior questions. But I am hoping you can just unpack excellent product performance a little bit more for us, maybe give us some metrics: scrap, warranty rates, returns, complaints. Obviously, this was a challenge last year, and your rolling out a new product, so it is good to hear things are good. I would love any further color on that mentioned. Thank you. Jacob Steven Leach: Yeah. No. Thanks for the question. Yep. We did see excellent product performance. And 1 of the biggest measures there is NPS, is why I mentioned that. The NPS we are seeing on the G7 product is continued to increase the last 3 quarters in a row and you are right. We had some challenges last year that in particular, in the out of box failure rates that you know, disrupted things. The patients were, you know, upset. It was not a great experience. We have addressed all of that, and the team worked really hard across the board to make sure that we could do that and solve those problems. And you know, really it really comes down to as we continue to advance the technology, our focus is always on building the absolute best customer experience, whether it is in the product, or in their experience with our customer support. And so we have seen complaint levels come down. Because of the enhancements that we have been making. And so I think if you just look across the board, the product's performing We are gonna continue to advance it. We are gonna continue to improve that performance. We are our job there is never done. You know, if you think about the evolution of CGM, over the past 25 years, the products have just gotten better, more reliable, but there is still room to go. As we mentioned with our G8 product, we are very excited about what it is gonna bring in terms of performance to this population that could benefit. And it is really everybody, whether you have diabetes or not, Accurate, reliable glucose data is so critical. Even if you are running an AID system. So product performance has been excellent. We are gonna continue to build on that as we launch 15 day around the globe. Jereme Sylvain: I know sometimes you have asked the question about, well, how do I see it? And, certainly, the MPS scores is a good way. The other way to look at it and, you know, it is 1 that is kinda a little bit easier to see even though the it is not clear direct directly as you look at the margin performance. Right? Because some of the things that were impacting margin were freight, Some of that was related to doing the work around product and getting it there. And then, you know, obviously, some of that is related to scrap. And as you have seen that improve pretty steadily as we moved, you know, from Q2 last year into Q3, then again into Q4, obviously, then into this year. You know, that improvement in performance is a lot of the work that team was doing, as Jake alluded, working real hard over the back half of last year and then into this year. So the best proof point is to also look at the results and see that improvement That is a result of a reduction of 1 of them, the significant 1, is the reduction of scrap, which is focusing on quality as it runs through our lines. Operator: And our next question comes from the line of Jonathan Block with Stifel. Your line is open. Jonathan Block: Great. Thanks, guys. Good afternoon. Jereme, maybe just on the financials. You had the gross margin raise of 50 bps Is that a function of a different price of oil assumption, call it, relative 3 months ago, Or is that more, you know, underlying efficiency that you are seeing and you still have some cushion on oil prices built into the guidance? And maybe just like second part, still same question. Based on the guidance, it is seems like the 2H implied gross margin is in line with what you saw in 1H. But you do have a growing percentage contribution from the 15-day as you called out. So what prevents further GM expansion from the 15 day tailwind? Is it Ireland, call it, turning on that negates that tailwind? Thanks, guys. Jereme Sylvain: Yep. Yeah. And I am certainly happy to answer those. Yeah. I think, you know, on your second I will answer your second question first. You hit it spot on. You know, the expectation was always a peak into Q3 in gross margin that was step down as you turned on Ireland, and that is exactly it. You know, underlying the performance in terms of just core performance underneath it, you would expect that to continue to come up, but you do have turning on a factory, and therefore, the cost of each individual product manufactured when you have a factory just turned on. It just it goes up significantly. And then that leverages over time. The underlying question I think you are getting at is, Are you starting to see a manufacturing efficiencies? Are you starting to see 15-day? We are. it is just that I would say there is a little bit of that turning on Ireland. Go back to your first question in terms of then, you know, oil you know, there is a lot of things that you the way the way it kinda works here is as we purchase resins during these windows, you know, it takes a little time for the price changes in oil then to flow through into product, then to flow through into our p and l. You know, we will buy the resins, and you use usually take just like you see at pump, it takes a little bit of time for that to flow through, and I would say, gasoline is much quicker than the flow through in resins. So we have bought in those event. We have made that product. That product gets put on the balance sheet, then it comes through in future periods. So you have seen some of it play through here in the second quarter. You will see still a little bit some of that play through here in the third quarter as we have purchased, capitalized, put on the balance sheet, amortized through. So you know, I think, basically, what you would expect to see is the guidance we gave you last quarter about preparing for some of that headwind associated with the oil prices. About in line with expectations. So the raise is really on underlying performance improvements. On our lines, throughputs, etcetera, based on work we have done over the couple of quarters. Operator: Our next question comes from the line of Issey Kirby with Redburn Atlantic. Your line is open. Issie Kirby: Hey, guys. Thanks for taking my question. I wanted to ask about the Stello app redesign. I appreciate it early, but any feedback on that around engagement with the app? You also mentioned bringing some of these features over to the g 7 app eventually. Which features are you going to be looking at integrating? I am just wondering how you are thinking about app design particularly as you go after this, type 2 non instant population. Thanks. Jacob Steven Leach: Yeah. Thanks for the question. The new app for Stello has been really well received by users. It a lot of it was based a lot of our redesign of the app, both the functionality as well as just the design aesthetic. Was based on user feedback. That we have collected over as Stello has been out for over a year, And so, you know, you look at reviews, you look at customer direct feedback, we got a lot of people using the product. And so you take all that feedback in, and so that is really what is what we built that new app on. It is a completely new ground up rebuild for us, and so it is going to become our platform for future apps. And so the question around you know, moving those features to G7, it is actually about this concept of moving G7 to Stello. And a lot of the functionality there is gonna it is beneficial for all users, the nutrition, the coaching. Obviously, there is some different kind of aspects to it when you think about the alert system that g 7 requires. Right? Stella does not have that, but a big part of g 7 does is the protective features, the predictive alerts, the connectivity with automated insulin delivery, the SharePollow system. So we will basically be bringing that on to the Stello platform app for those g 7 users. And so I think 1 of the exciting things here is that there is a lot of overlap with the user needs in these populations. And so we are using Stello as kind of the tip of the spear for innovation. But with the reception we are seeing from it, it really hits the mark in terms of advancing it. And 1 of the things I am I am really excited about is people who tried Stella maybe in the past and did not get the insights that they were after, but they could not you know, did not see as much value in the real time data. This new Stello brings a lot more contextual insight And so, hopefully, that give that gives them the opportunity to try Stello again. And see if know, it meets their needs. I think we are gonna see a lot more people that are using it a little more consistently than we saw with the original Stello version. Operator: And our final question comes from the line of Rich Newitter with Truist Securities. Your line is open. Richard Newitter: Hi. Thanks for squeezing me in, and, Jereme, just 1 follow-up to Jon's question earlier. On gross margin. You started to get at it You are obviously seeing improved underlying trends in part related to 15 day I guess, when can we expect to see the peak impact from the 15-day compound? You know, is that if you are exiting at 50% this year into next, you know, does that mean, you know, 1 of the quarters in 2027 that will be the final kind of stepped-up run rate? I am just trying to get a sense for kind of when we might feel the max incremental impact of this ongoing tailwind. Thanks. Jereme Sylvain: Yeah. You know, it is a it is a it is a good question. And I and I will and I will kinda point maybe a little bit back to Investor Day. Because, you know, we try to give some context to the cadence of the rollout. And so, you know, what we are talking about is U.S. 15-day G7. And, you know, obviously, we expect to expect it this year at, you know, approaching 50%. If you do an average over the course of the year, you are at 20-25%. Obviously, next year, if your starting point is approaching 50%, and you go up from there, that is a meaningful step up. So certainly in next year, the step up's gonna be more. The other thing you have to be mindful of is there is a lot of things going on around the world today between Dexcom 1 plus and g 7 outside The US. Where that is also going to start to roll in. So it is actually gonna be a multiyear improvement as you as you start to think about sunsetting g 6, which is you know, obviously in process now. You know, as more and more folks move off of g 10 day to 15 day. And then, of course, g 8 is gonna be on a 15 day platform. So what I would say is there is not really 1 quarter where it plateaus. It should be really a steady help. In terms of, you know, The US, which I think is kinda where your focus is, you know, obviously, the biggest the biggest improvements are gonna really start to accrue into next year just given the starting point, for the year is gonna be so much higher. But, nevertheless, I mean, look. it is all good. And I think as we move through, we will keep you apprised in terms of what that transition looks like. We will also keep you apprised as in terms of our OUS markets, and as our OUS markets come and our D-1+ markets come on, I think all those are also really important too as you are building kind a global model. But, again, easiest way to look at the timelines is back to the Investor Day. I think you will see kind of the cadence of when we expect those to hit. The first o US 1, you can see we just got approval in Canada for 15 days. So we are gonna start knocking those down as well. And so it is it is gonna be it is gonna be kind of a steady drip, I think, over time, but certainly a positive 1. And we hope everybody sees the positive quality results that we are seeing here in The US. We expect that. Operator: And that concludes our question and answer session. I would now like to turn the call back over to Mr. Jake Leach for closing remarks. Jacob Steven Leach: Thank you, operator. You know, as we wrap up today, I would like to take a moment to recognize the people who make DexCom what it is. Across our company, our employees show up every day with an unwavering commitment to the people we serve. Our results this quarter are a reflection of their passion and commitment to executing on our mission. We are proud of the momentum we created, but we believe we are still really early in the chapter of a much larger opportunity to transform how diabetes and metabolic health are managed around the world. The road ahead is very exciting, and we are confident in our strategy our innovation pipeline, and most importantly, in our people. Thanks, everybody. Operator: Ladies and gentlemen, this concludes today's call, and we thank you for your participation. You may now disconnect. Before you buy stock in DexCom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DexCom wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!* That performance is why people listen. 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The Motley Fool has a disclosure policy. DexCom (DXCM) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

DexCom, Inc. DXCM reported second-quarter 2026 adjusted earnings per share (EPS) of 70 cents, which beat the Zacks Consensus Estimate of 61 cents by 14.8%. The company reported adjusted EPS of 48 cents per share in the prior-year quarter. Revenues increased 13.1% year over year to $1.31 billion and surpassed the consensus mark of $1.30 billion by 1.01%. DXCM registered GAAP net income per share of 64 cents, up from the year-ago quarter’s figure of 45 cents. Following better-than-expected results and raised guidance, shares of DXCM have risen 8.3% in today’s pre-market trading. The stock has gained 12.3% in the year-to-date period against an 11.7% decline in the industry. The broader S&P 500 Index increased 6.6% in the same period. Image Source: Zacks Investment Research U.S. revenues totaled $933.4 million, up 11% from the year-ago quarter. Growth was supported by strong new-patient additions, share capture and a sequential increase in new customer starts. Management noted that demand remained broad-based across patient categories. Dexcom also highlighted a substantial untapped opportunity, with roughly 9 million people in the United States already covered for continuous glucose monitoring but not yet using the technology. International revenues increased 19% year over year to $375 million. On an organic basis, international sales advanced 16%, benefiting from reimbursement expansion and stronger adoption in markets such as France and Canada. The company also broadened its overseas product portfolio with the launch of Dexcom Flex in Germany. The 15-day sensor targets basal-insulin users and people with type 2 diabetes not using insulin in selected markets. Adjusted gross profit totaled $838.5 million, up 20.6% from the prior-year quarter’s level. DexCom reported an adjusted gross margin (as a percentage of revenues) of 64.1%, up 400 basis points year over year. Research and development expenses totaled $153 million, up 3.2% year over year. Selling, general and administrative expenses totaled $358.7 million, up 9.4% from the year-ago quarter. The company reported adjusted operating income of $328.3 million, up 48% from the prior-year period’s level. Adjusted operating margin (as a percentage of revenues) was 25.1%, up 590 basis points year over year. DXCM exited the second quarter with cash, cash equivalents and marketable securities worth $1.95 billion compared with $2.42 billion in the first quarter of 2026. Cumulative cash provided by operating activities at the end of the second quarter of 2026 was $794.8 million compared with $486.8 million a year ago. The company repurchased approximately $600 million of shares during the quarter under its $1 billion 2026 authorization and completed the acquisition of Nutrisense. DexCom, Inc. price-consensus-eps-surprise-chart | DexCom, Inc. Quote DXCM now expects 2026 revenues of $5.18-$5.25 billion compared with the previous range of $5.16-$5.25 billion. The updated guidance implies annual growth of 11-13% and reflects stronger organic growth expectations, partly offset by an anticipated $15 million foreign-exchange headwind in the second half. The company raised its adjusted gross margin forecast to approximately 64% from 63-64%. It also increased adjusted operating margin guidance to 23.5-24% from 23-23.5% and adjusted EBITDA margin guidance to 31.5-32% from 31-31.5%. DexCom exited the second quarter of 2026 on a strong note, supported by solid revenue growth, continued margin expansion and sustained momentum across its CGM portfolio. The company advanced the rollout of the G7 15 Day system, which is now available to all adult G7 customers in the United States following integration for Tandem pump users, including Mobi. DexCom expects to convert nearly half of its U.S. customer base to the extended-wear system by the end of 2026. The company also achieved an important international milestone as Health Canada cleared G7 15 Day, marking the product’s first regulatory approval outside the United States. DexCom plans to launch the system in Canada during the second half of 2026 and expand it into additional international markets over time, supporting broader access and adoption. DexCom further strengthened its clinical positioning through the CONNECT randomized trial for people with type 2 diabetes not using insulin. Participants using DexCom CGM achieved a 1.6-percentage-point A1C improvement, spent more than five additional hours per day in the target glucose range and recorded median device usage of 97% over 26 weeks. Looking ahead, the company remains focused on expanding access, advancing product innovation and sustaining long-term growth across global CGM markets. DXCM currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader medical space are McKesson MCK, Phibro Animal Health PAHC andCardinal Health CAH. McKesson carries a Zacks Rank #2 at present and has an estimated long-term growth rate of 13.7%. MCK’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.09%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. McKesson’s shares have gained 8.8% against the industry’s 12.7% decline in the year-to-date period. Phibro Animal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21.5%. PAHC’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.25%. Phibro Animal Health stock has climbed 44.2% against the industry’s 17.1% decline in the year-to-date period. Cardinal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 17%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.27%. Cardinal Health’s shares have lost 2.6% compared with the industry’s 3.1% decline in the year-to-date period. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DexCom, Inc. (DXCM) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026 at 4:30 p.m. ET senior vice president of finance and investor relations - Sean Christensen President and Chief Executive Officer - Jacob Steven Leach chief financial officer - Jereme Sylvain Operator: Ladies and gentlemen, welcome to the DexCom Second Quarter 26 Earnings Release Conference Call. My name is Abby, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Peter, we will conduct a question and answer session. During the question-and-answer session, if you have a question, please press *, 1 on your touch-tone session. As a reminder, the conference is being recorded. I will now turn the call over to Sean Christensen, senior vice president of finance and investor relations. Mr. Christensen, you may begin. Sean Christensen: Thank you, operator, and welcome to DexCom's second quarter 26 Earnings Call. Our agenda begins with Jake Leach, DexCom's President and CEO who will summarize our recent highlights and ongoing strategic initiatives. Followed by a financial review and outlook from Jereme Sylvain, our chief financial officer. Following our prepared remarks, we will open the call for your questions. At that time, we ask analysts to limit themselves to 1 question each so we can provide an opportunity for everyone participating today. Please note that there are also slides available related to our second quarter 26 performance on the DexCom Investor Relations website on the Events and Presentations page. With that, let's review our safe harbor statement. Some statements on today's call may constitute forward looking statements. These statements reflect management's intentions, beliefs, and expectations about future events, strategies, competition, products, operating plans, and performance. These statements are made as of the date hereof based on information currently available to Dexcom. Are subject to various risks and uncertainties, that could cause actual results to differ materially. For discussion of these risks, please see Dexcom's annual report on Form 10 k most recent quarterly report on Form 10 Q, and other filings with the Securities and Exchange Commission. Except as required by law, we assume no obligation to update any forward looking statements. Or to conform any forward looking statement to actual results. Additionally, during the call, we will discuss certain non GAAP financial measures. Unless otherwise noted, all financial measures discussed on this call are presented on a non GAAP basis. Non-GAAP measures should not be considered in isolation or as a substitute for or superior to GAAP results. Please refer to the tables in our earnings release and the slides accompanying our second quarter 26 earnings call for reconciliations to the most directly comparable GAAP measure. Now I will turn it over to Jake. Jacob Steven Leach: Thank you, Sean, and thank you, everyone, for joining us. Today, we reported second quarter revenue growth of 13% compared to the second quarter of 25. And organic revenue growth of 12%. We carried forward solid demand from the first quarter for DexCom CGM globally as we benefited from broader access and share gains across several core markets as well as patient categories. The second quarter was also marked by solid execution across the business. This included multiple product launches, strong margin execution, and excellent product performance in the field. In addition, global new customer starts remained in line with our previous record from last quarter. Including a sequential uptick in new customer starts in The US. During the quarter, we had the opportunity to connect with many of you at our 2 thousand 26 Investor Day which we hosted at our Arizona manufacturing facility. Since I stepped into the role of CEO, you have heard me reiterate my 3 priorities for Dexcom's next phase of growth. 1, be the premier glucose sensing solution for all. Second, set the standard for customer experience. And 3rd, expand international market share. This event provided an opportunity to explore each of these topics in much greater detail. During the day, we shared updates on our product road map, reimbursement plans, international strategy, and future market opportunities. We also laid out our new 5 year financial targets and capital allocation plans. Which included a $1 billion share repurchase authorization to be executed in 2026. A key part of our presentation was detailing the pathway to full coverage for the 25 million people in The US with type 2 diabetes not using insulin. In fact, we have an organizational initiative called the Road to 100, which represents our efforts to achieve coverage for all people with diabetes. And while it is only been 2 months since our investor day, we have recently taken an important step forward in advancing that opportunity. As many of you know, at this year's American Diabetes Association Scientific Sessions, we provided a full readout of Connect. Our randomized control trial for people with type 2 diabetes who are not on insulin. For background, Connect enrolled nearly 300 participants across 22 primary care sites in The US and was designed to reflect the widespread spectrum of people with type 2 diabetes. This included individuals across the full range of type 2 medication plans to ensure these results were reflective of real world care. And we could not have been happier with the results. Over the 6-month study period, we saw a 1.6% A1C improvement for the Dexcom CGM group. Which equated to a 0.9% difference in A1C between the CGM arm and the control group. To put this in perspective, these results are even better than what we saw in our landmark diamond and mobile studies. Which ultimately helped shift standards of care and led to full coverage for anyone using insulin. Beyond the strong headline results, several additional outcomes stood out in the connect trial. First, the DexCom CGM arm spent over 5 more hours per day in normal glucose range. Compared to the control group, Importantly, these improvements began within the first week of using Dexcom and were sustained over the 26 week study. These were individuals who have had diabetes for 10+ years on average. And DexCom immediately gave them a path to better glucose control. Second, this real time feedback led to very high engagement throughout the trial. Over the 26 week study, median wear of 97%, which is even higher than what we have seen in some AID trials. And finally, from a medication perspective, the largest relative improvement in A1C was within the cohort using only GLP-1 therapies. This data only further reinforces the complementary relationship between CGM and incretin therapy. The results demonstrated in CONNECT translate to meaningful health outcomes and economic savings. And we are already seeing this recognized by commercial payers. As an example, in collaboration with CVS Health, we published a real world evidence study for non insulin type 2 customers. Over a 3-year period, the study showed a 66% reduction in diabetes related hospitalization after the initiation of CGM. And nearly 50% reduction in microvascular complications. These tangible near term cost savings are a key reason why we have seen commercial coverage build so quickly. As we mentioned in our Q1 call, as of this summer, we now have coverage for all people with diabetes across the 4 largest commercial PBMs. This represents reimbursement for more than 7 million people with type 2 diabetes who are not on insulin. While this is a great start, we have stated previously we will not be satisfied until we have broad global coverage. For all people who can benefit from Dexcom CGM. Including 25 million type 2 non insulin customers in The US. The connect readout adds Level A evidence to the already substantial body of real world type 2 data and our momentum with commercial payers. Historically, this level of evidence has carried outsized influence in both shaping clinical practice and driving coverage forward. Both in The US and across international markets. We are now working with advocacy groups and KOLs across the world to help educate the market on these outcomes. We have also submitted the connect data for publication and provided the evidence to CMS in support of the non insulin coverage expansion. We believe these results only strengthen the case for reimbursement And with roughly half of the Type 2 non insulin population being of Medicare age, this decision has the potential to completely reshape diabetes care in The US. The administration is already demonstrating their commitment to reducing the burden of chronic disease and expanding access to new technologies. Along those lines, we are excited to see the FDA's announcement of Dexcom as the first company chosen to participate in the Tempo digital device pilot. As I shared at investor day, we believe that DexCom's opportunity goes beyond diabetes care and into diabetes prevention. We have 115 million Americans with prediabetes, but only a fraction of them are aware. Under tempo, we will have the ability to demonstrate Dexcom's ability to screen for prediabetes with Dexcom CGM and drive people to better metabolic health. As we continue to expand the horizons of CGM access and metabolic health, we are driving exciting product enhancements that meet the needs of our customers. This includes our fully redesigned Stello app which launched broadly last week. As you saw at Investor Day, this new interface offers a more consumer friendly feel, new AI driven insights, and enhanced food logging capabilities. This Stello update also creates the foundation from which our G Series app will evolve. Providing greater personalization and additional functionality for all customers. More broadly, our technology road map remains focused on delivering innovations that can improve outcomes and the user experience. A great example of this is Dexcom Smart Basal. As a reminder, Smart Basal is a personalized dosing module to help simplify and optimize basal insulin management for both customers and physicians. We developed this technology to address a significant unmet need. As more than 70% of patients on basal insulin fail to achieve target A1C levels after a year of therapy. Often due to the challenges associated with insulin titration. We currently have our pilot program of Smart Basal underway with several key KOLs and the feedback has been great. In fact, across these practices, Smart Basal has helped customers reach an optimal basal dose in only 3 weeks on average. Which is a process that typically takes 12 weeks or longer in routine care. These results validate our belief that Smart Basal has the potential to become the new standard of care for basal insulin management. During the quarter, we also continued to advance the rollout of our G7 15-day system. With the recent integration availability for tandem pump users, including Mobi, our G7 15-day system is now accessible for all adult G7 customers in The US. We are very encouraged by the response we have seen since launch. With great feedback on the new algorithm updated patch, extended wear time, and enhanced customer service. Importantly, these improvements are translating into stronger customer satisfaction. With g 7 net promoter scores increasing in each of the last 3 quarters. Based on this positive customer feedback, strong adoption trends, and growing interest across the market, we remain on track to convert nearly 50% of our U.S. customer base to the G7 15 day system by year end. At investor day, we also discussed our plans to extend this 15-day experience across our international markets. We recently completed an important step on that journey as Health Canada became the first international regulator to clear Dexcom G7 15-day. We look forward to bringing G7 15-day to Canada in the second half of 2 thousand 26 and to the rest of our international markets as quickly as possible. To close, it was great to connect with many of you in Arizona. To share our vision for DexCom's next chapter of growth and to support that vision with a strong quarter of execution. As we discussed at the event, we see a significant opportunity to help millions more people globally. In fact, through our ongoing advocacy work access efforts, market expansion, and product development, we believe we can exit our LRP with an even larger market opportunity than we have today. And we plan to execute on that growth vision with 1 of the more compelling cash flow and margin profiles in the industry. As you can tell from today's updates, we are wasting no time making this vision a reality. With that, I will turn it over to Jereme. Jereme Sylvain: Thank you, Jake. As a reminder, unless otherwise noted, the financial metrics presented today will be discussed on a non GAAP basis. Reconciliations to GAAP can be found in today's earnings release as well as the slide deck on our IR website. For the second quarter of 26, we reported worldwide revenue of $1.31 billion compared to $1.16 billion for the second quarter of 25. Representing growth of 13% on a reported basis and 12% on an organic basis. As a reminder, our definition of organic revenue excludes the impact of foreign exchange, in addition to non CGM revenue acquired or divested in the trailing 12 months. U. S. Revenue totaled $933 million for the second quarter, compared to $841 million in the second quarter of 25. Representing an increase of 11%. We continue to see strong new patient performance and share capture in The US market. With good sequential momentum driven by solid execution in the field. International revenue grew 19%, totaling $375 million in the second quarter. International organic revenue growth was 16% for the second quarter. As we have seen over the past several quarters, some of our strongest performances came from markets where access has recently expanded, such as France and Canada. This is consistent with the international access strategy we outlined at investor day. As reimbursement wins often allow us to drive growth and market share over time. We also continued to expand our international product portfolio during the quarter with the launch of DexCom Flex In Germany. DexCom Flex is our newest 15-day sensor designed to address type 2 basal in the Type 2 non insulin markets in select geographies. We are excited to further roll out this product as type 2 reimbursement continues to build. Our second quarter gross profit was $838.5 million, or 64.1% of revenue, compared to 60.1% of revenue in the second quarter of 25. This was another great quarter for gross margin performance. With margins improving approximately 400 basis points compared to last year. This improvement was driven by continued manufacturing efficiencies in quality management, and a benefit from the initial customer switch over to G7 15-day. As Jake mentioned, our execution has been excellent. across our operations and supply chain. This included a return to more optimized shipping patterns, Which helped us manage the fuel price environment in Q2. Operating expenses were $510.2 million for Q2 of 26 compared to $474.1 million in Q2 of 25. Operating income was $328.3 million, or 25.1% of revenue, in the second quarter of 26 compared to $221.8 million, or 19.2% of revenue in the same quarter of 2025. Once again, we delivered nice operating expense leverage during the quarter. Even as we expanded our investment in Ireland to prepare for commercial production later this year. This quarter was another great representation of ongoing cost discipline across our organization, which is driving margin performance and funding growth opportunities across the business. Adjusted EBITDA was $421.3 million, or 32.2% of revenue for the second quarter compared to $327.6 million, or 28.3% of revenue for the second quarter of 25. Net income for the second quarter was $269.1 million, or $0.70 per share. representing 46% growth over the second quarter of 25. We remain in a great financial position. Closing the quarter with approximately $1.9 billion of cash and cash equivalents. Our cash flow generation continues to be a key differentiator. As we delivered more than $600 million in free cash flow in the first half of the year. This was more than double our first half free cash flow levels from 2025. As Jake mentioned, at Investor Day, we announced a commitment to repurchase $1 billion of stock in 2026. Following the event, we quickly started executing that plan. And repurchased approximately $600 million in the second quarter. During the day, we also shared broader framework for our capital allocation decisions. Which includes an ongoing assessment of tuck in M&A and where to invest for future production capacity. As we discussed, 1 area of particular interest is in transactions that have the potential to accelerate our technology pipeline. In line with that framework, we completed the acquisition of Nutrisense during the second quarter. Nutrisense has developed an innovative platform built on CGM data, with a focus on delivering nutrition focused insights. We believe this integration has the potential to enhance our customer experience and provide new personalized insights. Turning to guidance. We are raising the midpoint of our guidance with an updated range of $5.18 billion to $5.25 billion, representing growth of 11% to 13% for the year. This updated revenue guidance reflects stronger organic growth expectations offset by recent movement in foreign exchange rates. Which we expect to have about a $15 million impact to international revenue in the second half of the year relative to our prior guidance. Importantly, excluding the impact of foreign exchange, our updated guidance implies an increase in organic growth by more than 50 basis points at the midpoint. Compared to our prior guide. For margins, we are raising our full year non GAAP gross profit margin guidance to approximately 64%. We are also increasing our non GAAP operating profit margin guidance to a range of 23.5% to 24% and adjusted EBITDA margin guidance to a range of 31.5% to 32%. With that, we can open up the call for Q&A. Sean? Sean Christensen: Thank you, Jereme. As a reminder, we ask our audience to limit to only 1 question at this time and then reenter the queue if necessary. Operator, please provide the Q&A instructions. Operator: Thank you. Then we will now begin the question and answer session. If you wish to be removed from the queue, please press 1 a second time. If you are using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you have a question, it is *, 1 on your touch tone phone. And our first question comes from the line of Travis Lee Steed with Bank of America. Your line is open. Travis Steed: Hey. Congrats on a good quarter. Jereme, I will ask about the U.S. CGM growth for DexCom and also the market, it was nice to see the quarter over quarter uptick in new patient starts. But the market for CGM in the U.S. kind of hanging around that 10% line, just kind of the confidence you are seeing in that sustainability of double digit growth and how to think about some of the new products and expanding coverage as those hit later this year and kind of what you are assuming for Nutrisense in the second half on the guidance? Jereme Sylvain: Yeah. Thanks, Travis. I will take that 1. Yeah. It was another robust quarter of new patient starts, and it was nice to see the sequential uptick in The US. It was pretty broad based across all of our patient segments. As we mentioned in the call, we saw some share taking across those. You know, when you take a step back and you look at The US market, today, there is approximately 9 million people in The United States that have coverage for CGM but are not yet using it. So we do feel that there is there is robust growth still there before we talk about any expansion in coverage. Jacob Steven Leach: And so happy with the patient adds. We are gonna continue to drive and push so that everyone that can benefit from this technology gets it. And as you mentioned, you know, CMS expansion is something that we have targeted for mid-next year is when we believe that coverage will come into place. That obviously gives us a pretty significant runway for future growth. Nutrisense, as you mentioned, is 1 of the acquisitions that we have made. And it really is focused on driving, you know, better insights and more kind of value It was a really exciting technology that the team developed. We have been partners with Nutrisense for quite a while. And as we continue to work with them, we saw just the benefits of that technology could bring to the users. You know, the engagement scores early on are really high because of the personalized nutrition coaching based on CGM that we see with that technology. So we are we are we are to work with it and integrate it into our product portfolio. And we are excited to see where it can drive us. Jereme Sylvain: Yeah. And to your question on guidance, Travis, you know, most of the revenue that ran through Nutrisense was actually the pass through the CGM. So that is always been in our run rate, and that will continue into our run rate. I would say that you know, any other contribution, you know, say, the top line, you know, you can count the millions for the year on 1 hand. So it is really truly immaterial in terms of the impact on to the organization. Terms of the P&L, we are assuming the p and l associated with that into that guidance. Into the range of our guidance. And so all of that is really contemplated in there. Jereme, most importantly, I think the big takeaway here is the run rate that NutriSense had, most of it was already Stello revenue. And so it continues to remain. It does not change the organic growth profile. Operator: And our next question comes from the line of Robert Marcus with JPMorgan. Your line is open. Please check your mute button. Robert Marcus: Oh, great. Sorry. Just jumping back and forth. Appreciate it. Wanted to ask on Connect and the reception amongst doctors following ADA and how you are thinking about how this data set and hopefully the eventual Medicare non-intensive reimbursement might help stimulate and advance adoption in type 2 non-intensives? You know, what is been the feedback and you know, do you think this trial was a door that could open and help drive adoption once reimbursement comes? Thanks. Jacob Steven Leach: Yeah. Thanks. Thanks, Robbie. You know, absolutely, the results from the CONNECT trial, both in terms of the A1C reduction across the broad spectrum of type 2 users on all kinds of different medication plans. As well as the engagement with the technology. You know, it is interesting. Yeah. There the engagement is very, very high in this population. And if you kind of look at it compared to some of the older studies, 1 thing to always remember is that the technology has improved pretty substantially over time. And so I think what we have seen in this study is not only the benefit to these users and their engagement with the product, but also the quality of the product experience. And so if you think about some of the earlier studies, those started back even on g 4. And so now g 7 with all the enhancements we have made to both the ease of use have really driven the capability for these folks to use this product full time. As I mentioned, 97% utilization. And so I think that really resonates with providers because, you know, they if they are writing the prescription for their product, and they want their patient to get it, they want them to use it. And I think this trial is a great proof point in how this product will be used in this population. We saw it in our registry data. We saw great utilization. For those that already are using it. But in this trial, I think that stands out substantially as well as the improvement in a 1 c. And so right now, our we are working with that data. We have submitted it. it is in late stage review for publication. And we will continue to take that data around the world to drive reimbursement. This is the type of trial that previously has driven pretty significant expansions. Our previous trial is obviously for insulin users. This 1 now for the broad segment of type 2, so we do feel that it is a very important part. The evidence was strong before the connect trial. Results were available, but now that they are available, it just really reinforces the benefit that this technology has in the broad base of diabetes. Operator: And our next question comes from the line of Matthew Charles Taylor with Jefferies. Your line is open. Matt Taylor: Hi. Thank you for taking the question. I just wanted to follow-up on Connect and non-insulin type 2. You talked about having submitted the data package to CMS as well. Could you give us any update if there is 1 on the timeline that you might expect for coverage? You said mid 27 previously. Is that still your base case, or could it potentially be sooner with the progress that you have made? Jacob Steven Leach: Yeah. We did submit that the connect data to CMS, and you know, again, it adds to that pretty substantial body of evidence that was already there. there is no change in our assumptions around the coverage decision. We do expect to hear back from CMS on that decision before the end of this year. And in our plans right now, we have got it taking effect in the middle of 2027. You know, that being said, I do believe that Connect is a pretty powerful dataset that not only for CMS, but for the world, will continue to advance reimbursement. For this population. Operator: Our next question comes from the line of Larry Biegelsen with Wells Fargo. Your line is open. Gursimran Kaur: Hi. This is Gursimran on for Larry. Thanks for taking the questions, and congrats on a good quarter here. I will just ask mine about the pilot program with the FDA, Tempo. What does tempo mean for type 2 non insulin and prediabetes coverage? Exactly. Can you just elaborate on the kind of evidence development in the tempo program for those 2 indications and you know, when you could potentially have a prediabetes label. And then, you know, is there any near term revenue benefit from CMS coverage and you know, any kind of read through to just broader type 2 non insulin CMS coverage from you know, it being mentioned alongside the tempo program as well. Jacob Steven Leach: Yeah. Thanks, Gursimran. So Tempo is really it is an innovative regulatory framework. So introduced by the FDA. For so it is really around access to technology for patients. And so it aligns the target areas, for, the tempo framework is around the areas that were identified. By the access program from CMS, which are early stage cardiometabolic conditions and cardiometabolic conditions We are, you know, talking prediabetes, and diabetes, obviously, squarely fit into those. So it is really around allowing the participants of Tempo to release into the market technology digital technologies under basically, it is like an enforcement discretion. So we it basically, what it means for Dex is it allows us to innovate more quickly on our glucose health program as well as some screening techniques that we are looking at using CGM to screen for prediabetes as well as diabetes because of the pretty significant lack of awareness of prediabetes diagnosis We believe that CGM is a really powerful technology to help intervene more earlier in the progression of disease. And so it is it is it is tempo is not really specific to a coverage. it is it is really more a framework to get technology in the hands of users. The access program does add additional payments into the system for Medicare beneficiaries. And so obviously, a technology that under tempo can help there. But it is not connected at all to the kind of general CMS decision for long you know, broad coverage for type 2. it is it is really more specific to the tempo and access programs. Operator: And our next question comes from the line of Matthew O'Brien with Piper Sandler. Your line is open. Anna: Great. Thanks. This is Anna on for Matt. Thanks for taking our question here. I wanted to ask on 15-day. You mentioned the 15% conversion by the end of the year in The U. S. Just wanted to know if there was any color you could provide on conversion to 15-day sits exiting Q2 and how you are thinking about the accretive margin impact from that mix shift for the rest of the year Is that sort of showing up in line with your expectations? Or anything to note there? Thanks. Jereme Sylvain: Sure. Yeah. And I can take that question. You know, the transition is occurring essentially in line with expectations. And so if you think about, you know, all the assumptions as we were going into the year, know, obviously, we really launched it in earnest and full starting in January. We did a little bit of an early release in the DME space in the back half of or the back quarter of last year, but it went into retail at the beginning of this year. And so if you if you kinda think about a line drawing through, there is there is obviously folks that have adopted it over the course first half of the year. 1 of the big gating items was, of course, thinking about its integration with Tandem and Mobi, and Jake alluded to it earlier. that is now gone into full line here as we move into the back half of the year. So our expectations were you would continue to see it ramp up, especially as all of the AID integrations took place. You are seeing, you know, the Tandem coming in now, and it is already connected to beta and So we are making great progress. it is about in line with expectations, and so you are seeing it start to contribute a little bit more here in the second quarter. the expectation is it starts contribute more into the third quarter and the fourth quarter as, you know, your base continues to move over and, you know, as that starts to represent recurring purchase patterns over that time. So the expectation starts to contribute more as we get into the back part of the year. It really starts to contribute next year. Because as you are starting to close in on 50%, you know, that becomes your starting point for 2027, and that starts to get pretty meaningful as you move into the next year. But for now, the way I think about it is it is progressing in line. Great customer feedback. I think we have really gotten all connections on board. And so we are looking forward to continuing to move to that you know, approaching 50% by the end of the year and right on track. Operator: And our next question comes from the line of Joshua Jennings with TD Cowen. Your line is open. Colin Clark: Good evening, guys. Thank you for taking the questions. This is Colin on for Josh. I had a quick 1 curious, now that you have got 7 million-plus covered lives. To play with. what is the kind of awareness level among physicians for the reimbursement already in place? Are physicians identifying which patients can already receive reimbursement with the Medicare decision upcoming. Thank you. Jereme Sylvain: Thanks, Colin. And was cutting out a bit. So I am gonna do my best with the pieces I have heard. I think really what you are getting at is what is the physician awareness of reimbursement How much more needs to take place in lieu of expansion of coverage And there is more kind of knocks down. What are we doing to go about making sure folks are aware of it? that is where you are going. And the answer is, you know, obviously, you know, we have we have been working on this for some time. And you know, if you think about the Salesforce, you know, the salesforce will we have various tools that the Salesforce gets up in front of physicians and really goes through historical claims adjudication by payer to show them in their practice you know, where does coverage exist, where does it not exist, So that more and more physicians can get comfortable that access exists for them. And so that continues to take place, and it takes a little bit of time to continue to make folks aware, especially as we continue to get more coverage. Because every time we show up, we are gonna show them a better enhancement or a better improvement in coverage We have to continue to do that. I also would expect us to continue to bring the connect study with us. Because, obviously, that shows the demonstrates the benefits. So if any folks were on the fence, around, hey. Well, what is this going to do, and how is this going to impact, and will they use it? I think what we can both show is, 1, if they use it, you are going to see these incredible results. Does not matter what medication you are on. We also can show the coverage ahead of time. there is always work to do around it. Remember, there is there is hundreds and hundreds of thousands of prescribers out there, and you know, so there that you know, saying this is in generality. Everybody's kind of at a different point in their education. But that is what the team is doing. And if you were to talk to, you know, our sales leadership team, you know, that is the 1 thing I think they are most excited about is more and more coverage comes you know, kind of the rebuttal of, well, do they have coverage? We can start to show them, especially with these tools, clear line of sight to where their coverage exists today. Where that coverage does not exist today, they certainly have Stello in the bag. And then we are talking about connect and what connect can mean for CMS coverage. So I think we put all those in front of physicians today. We have to be mindful of, obviously, letting them know that the CMS coverage does not exist today. So if you prescribe it today, you are going to get a non coverage. But I think seeding that is exactly what we are doing, and when we have all the tools to do so and, again, even when there is not coverage, Stella's a great opportunity there. So that helps. Hope that answers the question. If it does not, we can always catch up later. Operator: Appreciate it. And our next question comes from the line of Jayson Bedford with Raymond James. Your line is open. Jayson Bedford: Congrats on the progress. Just a clarification and then a question. I missed the comments around NCS adds. Was the takeaway that 2Q ads were similar to Q1. And then my question is really it is tough not to notice the OpEx leverage. Is there are there timing dynamics at play here or is this the level in which you can kind of leverage the business going forward? Thanks. Jereme Sylvain: Sure, Jayson. Yeah. So, basically, what we are saying is Q2 is in line with Q1. Q1 was a record globally. So Q2 is in line with the record globally. We are still waiting for some final patient data to come in. We are also saying that US is in line with a record globally. Waiting for some final patient data to come in, and usually in The US, it is takes up to 45 days to get it all. what is most important is we do know that US new patient starts sequentially increased from Q1. Did mean the OUS patients came down a bit, but, you know, these things happen with, you know, tenders, timing, all of that. So, hopefully, that gives you some context. Essentially, in line with the record in The US, in line with the record globally. So, hopefully, that is that is that is helpful. You know, to your question on operating leverage, you know, you are right. We are we have had some operating leverage really ahead of plan, and that is why we have increased the guide on the year. And so certainly passing that through. Know, I think over time, the operating leverage that you are seeing and all the work that we have put in place between technology and capability, etcetera, you know, we do expect that to continue to contribute over time. The 1 thing I will say is for this year, and I think you guys you guys know this quite well, Jayson, is as we launch our Ireland factory, you know, what do you do in the quarter ahead of starting manufacturing? that is when you hire all the manufacturing folks. And so we will be doing quite a bit of hiring in Ireland here into the third quarter, and before turning on those lines, and those folks are not producing. They are take they are training. They are they are starting things. And then of that, we will start some depreciation as well. So the so while we have invested in Ireland into the second quarter, we are gonna make some more investments in the third quarter. The good news underneath it all, and I think this is kinda what you are alluding to, Jayson, is the levers we are building in the org organization to achieve operating leverage, they continue. I think we are really proud of that thus far. So, hopefully, it gives you some context Really happy to see it this quarter. Really proud of it. I am glad to pass it along via guidance. Raises on off margin. Operator: And our next question comes from the line of Marie Yoko Thibault with BTIG. Your line is open. Marie Thibault: Hi, good afternoon. Thank you for taking the question. Wanted to ask about international. You had really strong organic growth over there again this quarter. I think the comp may be getting a little bit tougher in the second half. Just wanna understand what pace is sustainable. I know you know, Japan went direct. I believe you mentioned health Canada and the 15 day approval there. So what are some of the catalysts to help, drive international growth through the second half of the year? Thanks. Jacob Steven Leach: Yeah. Thanks, Marie. Yeah. it is the exciting thing about that is the international market is just the tremendous opportunity we have as coverage expands Just as, like, a step back and think about it, we are still working through T1 coverage in a number of our top 10 OUS markets. that is before we even get to Basal and then ultimately NIT. So if you look at those populations, just in that core market, you know, we are well north of 60 million potential lives that we could impact. So, you know, as we think about the second half year, you are right. The comps get a little tougher because we had some great access wins in the back half of last year. Continue to get access wins, though, new tenders. When you when you think about that landscape, you know, much of that is around people having access to Dexcom CGM for the first time because we now have our product portfolio where we can bring DexCom 1 plus or DexCom Flex to patient populations that did not have a choice before. And so as we do that and we win those tenders and we get on there, it gives them access, and we are seeing those wins. We continue to expect more of those to come. So that is why as Jereme sometimes we see new patient numbers kinda go up or down, but in the in the long run, we see a pretty significant opportunity here. Jereme Sylvain: Yeah. And then, you know, to your question on, you know, what to think about for the back half of the year and comps, you are right. The Q4 and the Q3, Q4 comps, especially Q3 got a little bit tougher in the international business. We have been talking about that all year. And so, you know, we have talked about where they get a little bit easier in and OUS a little bit tougher in the in OUS. So it is not it is not too much. But nevertheless, nevertheless, it is something to be mindful of. And, you know, it is always that funny currency thing. You know, at a dollar 17, dollar 18, and the euro, I think that is where about breakeven sits. You know, as of June 30, when we are thinking about a dollar 14, so just being mindful of that as we think about it. If you neutralize that out, organic growth is not as impacted, but we always wanna just be mindful that you have those updated currency assumptions in your model. Operator: And our next question comes from the line of Jeffrey Johnson with Baird. Your line is open. Jeffrey Johnson: Thank you. Good afternoon, guys. Just want to swing back maybe to The U. S. Jereme, could you provide any kind of maybe high level color at least on what is the drivers of getting back to that kind of record equivalent to a record new start in The U. S? You know, was it was it Are we seeing more basal only patients coming in still? I think we are past 3 year anniversary at this point. So is it really basal only doing most of the heavy lifting? Is it share gains in basal only? You know, my gut would tell me that maybe your T1 and intensive T2 new starts on a year over year basis are down a little bit. I do not know if you would wanna comment on that, but just given those penetration rates. So just kind of the mix and makeup of what drove that good U. S. Number this quarter. Thanks. Jereme Sylvain: Sure. Yeah. I can I can cover that? You know, I think it was when we talk about kind of a broad based performance, we did see some step up actually from last quarter even in T1 a little bit. But you really saw a little bit of a step up across the board, across T1, and T2 intensive basal as well and a little bit there in the Type 2 non So it is a little bit across the board. You know, I think a lot of it is a couple fold, you know, and as we think about feedback. So you know, Jake alluded to it earlier. The NPS scores continue to go up. This is our third consecutive quarter. Seeing those go up. And so when you have a new product in hand like G7 15-day, and it really that the algorithm, the wear time, the performance in the field, certainly, addressing some of, you know, the sensor deployment challenges we face. You know, all that as that plays into customers, happy customers combined with the coverage levels, that we have, and we continue to fight for coverage in the even eliminating things like prior authorizations, etcetera, to make it easier for folks I think we are really giving both physicians and customers reasons to come to our product. And so you know, there is there is there is no magic here. We really focus on how to make the customer's life easier, like easier onboarding. Those things in. Sometimes we do not necessarily talk about it, but you are seeing more and more easier onboarding. You are certainly seeing, obviously, you know, sensor out of the box We expect those to go well. The algorithmic improvements And you do not necessarily always talk about those, but word-of-mouth is important there. You know, a lot of folks really enjoy the extended wear time. It really it really has been something we have really seen quite a bit of good feedback on. And so I think as you build that echo and, obviously, there is more and more changes to come as we as we have talked about the product. We have just really seen a lot of interest there. So I would not say there is 1 silver bullet, but the more and more we work on all of those, plus the more we knock down that reimbursement door and make sure folks are aware they have reimbursement, that is really what we have seen over the course of this quarter. Operator: And our next question comes from the line of Joanne Karen Wuensch with Citi. Your line is open. Joanne Wuensch: Good evening, and thank you for taking the questions. Briefly, I wanted to make sure that the G8 sensor timeline was still intact or if you had an update on that. And then it looks like you acquired Nutrisense in early June. Just curious what your thoughts are on that and if it is in guidance. Thank you. Jacob Steven Leach: Yeah. Thanks. Thanks, Joanne. G8 timeline is still very much intact. The team is doing great work there. We are in the middle of doing lots of validation on the product as we prepare to start some very large clinical trials to show the performance levels of this product. Again, as we have mentioned, at investor day, this we expect step change improvement in accuracy and reliability for this product based on brand new technology that is being implemented into the G8 system for the very first time. it is also a wearable that is half the size of G7. And so, you know, more slimmer in terms of height off the body as well as footprint. And so, again, just continuing to make the technology easy to use, fit into patients. Lifestyle. And so very much on track for that you know, end of 2027, early 2020 depending on regulatory timing. But, yeah, very much on track. it is also a multi-analyte platform. So we will be launching with the glucose version first, but multi analytes to come after that as we continue to push towards ketones, potassium, as well as other analytes. We feel that they are an important part of the future for diabetes care and metabolic health. On the Nutrisense point, we did yes. We acquired Nutrisense. They have been a partner of ours for a long time, and we really believe that technology, when you look at the engagement it drives and the insights that can be derived from the work that they have done, they basically built a system that was CGM guided nutrition insights and coaching. And so it was based on professional basically, metabolic health coaches and nutritionists that could basically guide CGM patients. And 1 of the exciting things there is they have lots and lots of history of doing that. And so as we look at that kind of amount of data and the amount of insights they have been able to provide over time and the and the outcomes that they drove with it, we felt like that something that should be part of the Stelo and g 7. And basically our entire product portfolio. So we will be continuing to integrate that technology and advance it with the team with Nutrisense to really make further the insights that our products provide and drive really significant outcomes when you think about just metabolic health in general, such a big part of that is the nutrition component. And so you have seen us continue to expand in our product the ability to capture nutrition, the new Stello app. Now analyzes nutrition and gives you a full breakdown of the meal, whether you barcode scanned it, you know, so a package food or you took a picture of something that was prepared. And so that type of technology that can really help power this. Operator: And, Joanne, to your question on guidance, you know, a big chunk of the revenue that is in Nutrisense is actually CGM pass through revenue, and it is predominantly Stelo. Jereme Sylvain: So there is no real change there. Right? We have always sold it and passed it through. So that is there. The piece that you are referring to is what incremental revenues. And I would say this. I alluded to a little earlier. The revenues that are non CGM related, the millions, you can count on 1 hand. So it is really not a huge revenue item. it is quite small. Relative to at least the size of Dexcom. what is big is the technology. The technology capabilities, and that is ultimately why we did it. The OpEx is has been assumed into it as just typical run rate. We were able to raise the guidance in terms of, you know, operating margin performance and assume those costs in. You know, over the quarter. So, hopefully, that gives you some context. And, you know, sometimes, know, you kind of to give you some a feel for kind of what the commitment in terms of you know, dollars, etcetera, you will see it come out in the 10 q. We did not publicly disclose it, but in the Q, you will see in the cash flows kind of what the cash was in terms of purchase. Operator: Right. And our next question comes from the line of Anthony Petrone with Mizuho. Your line is open. Anthony Petrone: Great, and congrats here on a nice print. A couple on type 2 non-intensive We are hearing from some docs in the field that potentially the coverage decision could have some you know, requirements around it, specifically around a 1 c verification as at various increments, let's say, 6 months, 9 months. So what do you think coverage could potentially look like? Will it have you know, certain verification requirements to keep folks on CGM in this patient category. And then in the study, it had a 97% utilization rate of CGM, very, very high. But when we get to real world, what do you think the utilization intensity for the Type 2 non-intensive patients could look like? Thanks, and congrats again. Jacob Steven Leach: Yeah. Thanks. Thanks. Thanks for the question. So Yeah. Absolutely. Well, just starting with the utilization, first. We have our real world registry, and so we also in that dataset see very high utilization Not quite at 97%, but well above 80% in this population. And I think that speaks to, you know, reimbursed for those that have coverage today in the commercial space for this for the product. The utilization, low out of pocket cost in that environment. Their utilization is really, really quite high. To your question around a 1 c, you know, that is not consistent at all with what we are we hear in our discussion. You know, if you look at the way CGM benefits users, whether they have a low a 1 c, or a high a 1 c, the benefits are for everybody. Right? So those with higher a 1 c's do see larger improvements. But for the whole the whole cohort. See the improvement. And when you think about the ADA standards of care, the focus is 7% A1c c. that is the target goal, and many people who are not using CGM are not achieving that. And so we feel that the Connect study is actually gonna continue to evolve those standards of care even more than we have seen in the past. So that all people with diabetes are recommended to use CGM. And so the other thing to think about too is if there was some sort of a 1 c kind of threshold, which would first off, be inconsistent with what CMS has done in the past. It would also be quite inconsistent with what is already out there with the commercial coverage which is very broad. You know, it is for anyone who is diagnosed with diabetes. So I think it would be quite inconsistent with that and create other issues. So it is not that the type of idea is not consistent with what our discussions that we have been having with CMS and others out there. Operator: And our next question comes from the line of Michael Polark with Wolfe Research. Your line is open. Michael Polark: Good afternoon. Jake, at the beginning of your prepared remarks, you noted product performance was excellent in the quarter. I heard Jereme alluded to some manufacturing quality stuff in response to 1 of the prior questions. But I am hoping you can just unpack excellent product performance a little bit more for us, maybe give us some metrics: scrap, warranty rates, returns, complaints. Obviously, this was a challenge last year, and your rolling out a new product, so it is good to hear things are good. I would love any further color on that mentioned. Thank you. Jacob Steven Leach: Yeah. No. Thanks for the question. Yep. We did see excellent product performance. And 1 of the biggest measures there is NPS, is why I mentioned that. The NPS we are seeing on the G7 product is continued to increase the last 3 quarters in a row and you are right. We had some challenges last year that in particular, in the out of box failure rates that you know, disrupted things. The patients were, you know, upset. It was not a great experience. We have addressed all of that, and the team worked really hard across the board to make sure that we could do that and solve those problems. And you know, really it really comes down to as we continue to advance the technology, our focus is always on building the absolute best customer experience, whether it is in the product, or in their experience with our customer support. And so we have seen complaint levels come down. Because of the enhancements that we have been making. And so I think if you just look across the board, the product's performing We are gonna continue to advance it. We are gonna continue to improve that performance. We are our job there is never done. You know, if you think about the evolution of CGM, over the past 25 years, the products have just gotten better, more reliable, but there is still room to go. As we mentioned with our G8 product, we are very excited about what it is gonna bring in terms of performance to this population that could benefit. And it is really everybody, whether you have diabetes or not, Accurate, reliable glucose data is so critical. Even if you are running an AID system. So product performance has been excellent. We are gonna continue to build on that as we launch 15 day around the globe. Jereme Sylvain: I know sometimes you have asked the question about, well, how do I see it? And, certainly, the MPS scores is a good way. The other way to look at it and, you know, it is 1 that is kinda a little bit easier to see even though the it is not clear direct directly as you look at the margin performance. Right? Because some of the things that were impacting margin were freight, Some of that was related to doing the work around product and getting it there. And then, you know, obviously, some of that is related to scrap. And as you have seen that improve pretty steadily as we moved, you know, from Q2 last year into Q3, then again into Q4, obviously, then into this year. You know, that improvement in performance is a lot of the work that team was doing, as Jake alluded, working real hard over the back half of last year and then into this year. So the best proof point is to also look at the results and see that improvement That is a result of a reduction of 1 of them, the significant 1, is the reduction of scrap, which is focusing on quality as it runs through our lines. Operator: And our next question comes from the line of Jonathan Block with Stifel. Your line is open. Jonathan Block: Great. Thanks, guys. Good afternoon. Jereme, maybe just on the financials. You had the gross margin raise of 50 bps Is that a function of a different price of oil assumption, call it, relative 3 months ago, Or is that more, you know, underlying efficiency that you are seeing and you still have some cushion on oil prices built into the guidance? And maybe just like second part, still same question. Based on the guidance, it is seems like the 2H implied gross margin is in line with what you saw in 1H. But you do have a growing percentage contribution from the 15-day as you called out. So what prevents further GM expansion from the 15 day tailwind? Is it Ireland, call it, turning on that negates that tailwind? Thanks, guys. Jereme Sylvain: Yep. Yeah. And I am certainly happy to answer those. Yeah. I think, you know, on your second I will answer your second question first. You hit it spot on. You know, the expectation was always a peak into Q3 in gross margin that was step down as you turned on Ireland, and that is exactly it. You know, underlying the performance in terms of just core performance underneath it, you would expect that to continue to come up, but you do have turning on a factory, and therefore, the cost of each individual product manufactured when you have a factory just turned on. It just it goes up significantly. And then that leverages over time. The underlying question I think you are getting at is, Are you starting to see a manufacturing efficiencies? Are you starting to see 15-day? We are. it is just that I would say there is a little bit of that turning on Ireland. Go back to your first question in terms of then, you know, oil you know, there is a lot of things that you the way the way it kinda works here is as we purchase resins during these windows, you know, it takes a little time for the price changes in oil then to flow through into product, then to flow through into our p and l. You know, we will buy the resins, and you use usually take just like you see at pump, it takes a little bit of time for that to flow through, and I would say, gasoline is much quicker than the flow through in resins. So we have bought in those event. We have made that product. That product gets put on the balance sheet, then it comes through in future periods. So you have seen some of it play through here in the second quarter. You will see still a little bit some of that play through here in the third quarter as we have purchased, capitalized, put on the balance sheet, amortized through. So you know, I think, basically, what you would expect to see is the guidance we gave you last quarter about preparing for some of that headwind associated with the oil prices. About in line with expectations. So the raise is really on underlying performance improvements. On our lines, throughputs, etcetera, based on work we have done over the couple of quarters. Operator: Our next question comes from the line of Issey Kirby with Redburn Atlantic. Your line is open. Issie Kirby: Hey, guys. Thanks for taking my question. I wanted to ask about the Stello app redesign. I appreciate it early, but any feedback on that around engagement with the app? You also mentioned bringing some of these features over to the g 7 app eventually. Which features are you going to be looking at integrating? I am just wondering how you are thinking about app design particularly as you go after this, type 2 non instant population. Thanks. Jacob Steven Leach: Yeah. Thanks for the question. The new app for Stello has been really well received by users. It a lot of it was based a lot of our redesign of the app, both the functionality as well as just the design aesthetic. Was based on user feedback. That we have collected over as Stello has been out for over a year, And so, you know, you look at reviews, you look at customer direct feedback, we got a lot of people using the product. And so you take all that feedback in, and so that is really what is what we built that new app on. It is a completely new ground up rebuild for us, and so it is going to become our platform for future apps. And so the question around you know, moving those features to G7, it is actually about this concept of moving G7 to Stello. And a lot of the functionality there is gonna it is beneficial for all users, the nutrition, the coaching. Obviously, there is some different kind of aspects to it when you think about the alert system that g 7 requires. Right? Stella does not have that, but a big part of g 7 does is the protective features, the predictive alerts, the connectivity with automated insulin delivery, the SharePollow system. So we will basically be bringing that on to the Stello platform app for those g 7 users. And so I think 1 of the exciting things here is that there is a lot of overlap with the user needs in these populations. And so we are using Stello as kind of the tip of the spear for innovation. But with the reception we are seeing from it, it really hits the mark in terms of advancing it. And 1 of the things I am I am really excited about is people who tried Stella maybe in the past and did not get the insights that they were after, but they could not you know, did not see as much value in the real time data. This new Stello brings a lot more contextual insight And so, hopefully, that give that gives them the opportunity to try Stello again. And see if know, it meets their needs. I think we are gonna see a lot more people that are using it a little more consistently than we saw with the original Stello version. Operator: And our final question comes from the line of Rich Newitter with Truist Securities. Your line is open. Richard Newitter: Hi. Thanks for squeezing me in, and, Jereme, just 1 follow-up to Jon's question earlier. On gross margin. You started to get at it You are obviously seeing improved underlying trends in part related to 15 day I guess, when can we expect to see the peak impact from the 15-day compound? You know, is that if you are exiting at 50% this year into next, you know, does that mean, you know, 1 of the quarters in 2027 that will be the final kind of stepped-up run rate? I am just trying to get a sense for kind of when we might feel the max incremental impact of this ongoing tailwind. Thanks. Jereme Sylvain: Yeah. You know, it is a it is a it is a good question. And I and I will and I will kinda point maybe a little bit back to Investor Day. Because, you know, we try to give some context to the cadence of the rollout. And so, you know, what we are talking about is U.S. 15-day G7. And, you know, obviously, we expect to expect it this year at, you know, approaching 50%. If you do an average over the course of the year, you are at 20-25%. Obviously, next year, if your starting point is approaching 50%, and you go up from there, that is a meaningful step up. So certainly in next year, the step up's gonna be more. The other thing you have to be mindful of is there is a lot of things going on around the world today between Dexcom 1 plus and g 7 outside The US. Where that is also going to start to roll in. So it is actually gonna be a multiyear improvement as you as you start to think about sunsetting g 6, which is you know, obviously in process now. You know, as more and more folks move off of g 10 day to 15 day. And then, of course, g 8 is gonna be on a 15 day platform. So what I would say is there is not really 1 quarter where it plateaus. It should be really a steady help. In terms of, you know, The US, which I think is kinda where your focus is, you know, obviously, the biggest the biggest improvements are gonna really start to accrue into next year just given the starting point, for the year is gonna be so much higher. But, nevertheless, I mean, look. it is all good. And I think as we move through, we will keep you apprised in terms of what that transition looks like. We will also keep you apprised as in terms of our OUS markets, and as our OUS markets come and our D-1+ markets come on, I think all those are also really important too as you are building kind a global model. But, again, easiest way to look at the timelines is back to the Investor Day. I think you will see kind of the cadence of when we expect those to hit. The first o US 1, you can see we just got approval in Canada for 15 days. So we are gonna start knocking those down as well. And so it is it is gonna be it is gonna be kind of a steady drip, I think, over time, but certainly a positive 1. And we hope everybody sees the positive quality results that we are seeing here in The US. We expect that. Operator: And that concludes our question and answer session. I would now like to turn the call back over to Mr. Jake Leach for closing remarks. Jacob Steven Leach: Thank you, operator. You know, as we wrap up today, I would like to take a moment to recognize the people who make DexCom what it is. Across our company, our employees show up every day with an unwavering commitment to the people we serve. Our results this quarter are a reflection of their passion and commitment to executing on our mission. We are proud of the momentum we created, but we believe we are still really early in the chapter of a much larger opportunity to transform how diabetes and metabolic health are managed around the world. The road ahead is very exciting, and we are confident in our strategy our innovation pipeline, and most importantly, in our people. Thanks, everybody. Operator: Ladies and gentlemen, this concludes today's call, and we thank you for your participation. You may now disconnect. Before you buy stock in DexCom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DexCom wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* That performance is why people listen. 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The Motley Fool has a disclosure policy. DexCom (DXCM) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

SAN DIEGO, July 30, 2026--(BUSINESS WIRE)--DexCom, Inc. (Nasdaq: DXCM) today reported its financial results as of and for the quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights: Revenue grew 13% year-over-year to $1.308 billion on a reported basis and 12% year-over-year on an organic1 basis. U.S. revenue grew 11% and international revenue grew 19% on a reported basis and 16% on an organic1 basis, all on a year-over-year basis. GAAP operating income of $318.3 million or 24.3% of revenue, an increase of 590 basis points compared to the second quarter of 2025. Non-GAAP operating income* of $328.3 million or 25.1% of reported revenue, an increase of 590 basis points compared to the second quarter of 2025. Second Quarter 2026 Strategic Highlights: Hosted 2026 Investor Day, highlighting market opportunities, business strategy, innovation efforts, and a new long-term financial outlook. Announced positive results from the CONNECT randomized controlled trial, demonstrating that Dexcom CGM use among people with type 2 diabetes not using insulin resulted in clinically meaningful and statistically significant improvements in glucose control compared to routine care. Initiated launch of the fully reimagined Stelo app experience, bringing a more consumer-friendly feel, new AI-driven insights, and enhanced food logging capabilities to Stelo customers. "During the quarter, we had the opportunity to host many of you at our 2026 Investor Day, where we highlighted our substantial market opportunity and introduced a new long-term financial outlook through 2030," said Jake Leach, Dexcom’s president and CEO. "This quarter’s performance and the successful outcomes from our CONNECT trial reinforce our confidence in the path ahead and position us well to deliver on our long-range plan." 2026 Annual Guidance Dexcom is raising the midpoint of fiscal year 2026 Revenue guidance and increasing fiscal year 2026 guidance for Non-GAAP Gross Profit Margin, Non-GAAP Operating Margin, and Adjusted EBITDA Margin to the following levels: Revenue of $5.18 - $5.25 billion (approximately 11-13% growth) Non-GAAP Gross Profit Margin of approximately 64% Non-GAAP Operating Margin of approximately 23.5-24% Adjusted EBITDA Margin of approximately 31.5-32% Second Quarter 2026 Financial Results Revenue: In the second quarter of 2026, worldwide revenue grew 13% to $1.308 billion on a reported basis, up from $1.157 billion in the second quarter of 2025. Gross Profit: GAAP gross profit totaled $830.0 million or 63.4% of revenue for the second quarter of 2026, compared to $688.8 million or 59.5% of revenue in the second quarter of 2025. Non-GAAP gross profit* totaled $838.5 million or 64.1% of reported revenue for the second quarter of 2026, compared to $695.9 million or 60.1% of reported revenue in the second quarter of 2025. Operating Income: GAAP operating income for the second quarter of 2026 was $318.3 million or 24.3% of revenue, compared to GAAP operating income of $212.6 million or 18.4% of revenue for the second quarter of 2025. Non-GAAP operating income* for the second quarter of 2026 was $328.3 million or 25.1% of reported revenue, compared to non-GAAP operating income of $221.8 million or 19.2% of reported revenue for the second quarter of 2025. Net Income and Diluted Net Income Per Share: GAAP net income was $249.1 million, or $0.64 per diluted share, for the second quarter of 2026, compared to GAAP net income of $179.8 million, or $0.45 per diluted share, for the second quarter of 2025. Non-GAAP net income* was $269.1 million, or $0.70 per diluted share, for the second quarter of 2026, compared to non-GAAP net income of $192.8 million, or $0.48 per diluted share, for the second quarter of 2025. The second quarter 2026 non-GAAP net income excludes $9.4 million of amortization of intangible assets, $0.6 million of business transition and other significant items, and $10.0 million of loss from equity investments. Cash and Liquidity: As of June 30, 2026, Dexcom held $1.95 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. ABOUT NON-GAAP FINANCIAL MEASURES The accompanying press release dated July 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730069364/en/ Contacts INVESTOR RELATIONS CONTACT:Sean ChristensenSenior Vice President - Finance and Investor [email protected] (858) 203-6657 MEDIA CONTACT:[email protected]

Interested in DexCom, Inc.? Here are five stocks we like better. DexCom’s Q2 revenue rose 13% year over year to $1.31 billion, driven by continued CGM demand, new-customer starts, expanded reimbursement and market-share gains. U.S. revenue increased 11%, while international revenue grew 19%. The company raised or reaffirmed a strong full-year outlook, including revenue of $5.18 billion to $5.25 billion and an adjusted EBITDA margin of 31.5% to 32%. Gross margin improved to 64.1% from 60.1% a year earlier, while net income climbed 46% to $269.1 million. DexCom is expanding access for non-insulin Type 2 diabetes patients, supported by positive CONNECT trial results submitted to CMS. Product momentum includes the G7 15-day rollout, the Nutrisense acquisition and plans for a smaller, multi-analyte G8 sensor launching in late 2027 or early 2028. 3 Non-Pharma Firms That Could Benefit From the GLP-1 Trend 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%. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 3 Stocks Doing the Heavy Lifting in Healthcare’s Rebound 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. 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. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Sell in May and Go Away—Starting With These 3 Stocks 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. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? 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. 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. 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. 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. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "DexCom Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

DexCom (DXCM) came out with quarterly earnings of $0.7 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.75%. A quarter ago, it was expected that this medical device company would post earnings of $0.47 per share when it actually produced earnings of $0.56, delivering a surprise of +19.15%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. DexCom, which belongs to the Zacks Medical - Instruments industry, posted revenues of $1.31 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.01%. This compares to year-ago revenues of $1.16 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. DexCom shares have added about 13.2% since the beginning of the year versus the S&P 500's gain of 6.9%. While DexCom has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for DexCom was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.67 on $1.35 billion in revenues for the coming quarter and $2.57 on $5.22 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Instruments is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Teleflex (TFX), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This medical equipment maker is expected to post quarterly earnings of $1.28 per share in its upcoming report, which represents a year-over-year change of -65.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Teleflex's revenues are expected to be $559.76 million, down 28.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DexCom, Inc. (DXCM) : Free Stock Analysis Report Teleflex Incorporated (TFX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Stryker Corporation SYK is scheduled to release second-quarter 2026 results on July 30, after market close. In the last reported quarter, the company delivered a negative earnings surprise of 12.57%. The Zacks Consensus Estimate for earnings is pegged at $3.46 per share, indicating an increase of 10.5% year over year. The consensus mark for revenues is pinned at $6.56 billion, implying growth of 8.9% from the prior-year reported figure. DexCom, Inc. price-eps-surprise | DexCom, Inc. Quote Stryker is expected to report another quarter of healthy underlying performance, supported by resilient procedural demand, continued robotic surgery adoption and strong capital equipment orders. While the company’s first-quarter results were significantly disrupted by a cyber incident that delayed shipments and revenue recognition, management emphasized that underlying market demand remained healthy and reaffirmed full-year organic sales growth guidance of 8-9.5%. The upcoming quarterly results are likely to reflect the initial recovery from deferred first-quarter revenues, particularly from revenue recognition catch-up in Orthopaedics, while additional recovery from delayed capital equipment shipments is also expected to continue through the second half of the year. Within the Orthopaedics segment, growth is likely to have been supported by robust procedural volumes, continued market share gains and sustained momentum for the Mako robotic platform. The company delivered a record first quarter for Mako installations despite the cyber disruption, with utilization rates continuing to improve globally. New product launches, including Mako 4, Mako Shoulder, Mako RPS and Triathlon Gold, are expected to have supported customer interest, while the recently formed Ortho Tech business should have improved commercial execution by combining Mako, enabling technologies and orthopaedic instruments under one organization. Trauma is also likely to have benefited from continued adoption of the Pangea plating system, with European approvals providing an additional growth opportunity. The MedSurg and Neurotechnology segment is expected to have experienced a more gradual recovery, as capital-intensive businesses such as Medical and Endoscopy were more heavily affected by production shutdowns during the cyber incident. Management indicated that delayed manufacturing of made-to-order products, including beds and other capital equipment, would primarily recover during the second half of the year. Nevertheless, underlying hospital capital spending remains healthy, with an elevated order backlog supporting demand. Continued adoption of LIFEPAK 35, Smart Hospital solutions integrating Vocera and care.ai, and upcoming launches such as Sonopet 4 should provide additional growth support. Meanwhile, margins are expected to improve sequentially as production normalizes, although tariff-related costs and higher input prices may continue to weigh on gross margin. First-quarter profitability was pressured by lower manufacturing absorption, tariffs and higher interest expense following the Inari acquisition. However, management maintained its full-year adjusted EPS guidance of $14.90-$15.10, reflecting confidence that deferred revenue recovery, continued pricing discipline, manufacturing efficiencies and operational excellence initiatives will offset near-term cost headwinds as the year progresses. Our proven model does not conclusively predict an earnings beat for Stryker this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below. Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% for SYK. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Zacks Rank: The company carries a Zacks Rank #3 at present. So far this year, Stryker’s shares have lost 6% compared with the industry’s 20.4% decline. The S&P 500 has gained 7.5% during the said period. Image Source: Zacks Investment Research Here are some stocks worth considering from the broader medical sector, as these have the right combination of elements to post an earnings beat this reporting cycle. Cardinal Health CAH has an Earnings ESP of +1.24% and a Zacks Rank #2 at present. The company is set to release fourth-quarter fiscal 2026 results on Aug. 11. You can see the complete list of today’s Zacks #1 Rankstocks here. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.27%. The Zacks Consensus Estimate for CAH’s fourth-quarter EPS indicates an improvement of 16.4% from the year-ago reported figure. Henry Schein HSIC has an Earnings ESP of +0.41% and a Zacks Rank #3 (Hold) at present. The company is scheduled to release second-quarter 2026 results on Aug. 4. HSIC’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 3.74%. The Zacks Consensus Estimate for HSIC’s second-quarter EPS implies an improvement of 10.9% from the year-ago reported figure. Agilent Technologies A has an Earnings ESP of +1.02% and a Zacks Rank of 3 at present. A’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 1.61%. The Zacks Consensus Estimate for A’s third-quarter fiscal 2026 EPS calls for an improvement of 8% from the year-ago reported figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stryker Corporation (SYK) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report Henry Schein, Inc. (HSIC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research