Key Highlights

● DexCom shares were up 3.09% at $82.40 pre-market as of 8:23 a.m. ET.

● Third-quarter Revenue rose 11% to $1.344 billion, with US sales up 14%.

● 2026 revenue guidance is now $5.20 billion to $5.25 billion, with a higher midpoint.

● The board authorized repurchases of up to $1.0 billion.

DexCom (NASDAQ:DXCM) shares were higher before Friday's open after the glucose-monitor maker raised its full-year targets and unveiled a new buyback. A pre-market table showed the stock at $82.40, up 3.09%, as of 8:23 a.m. ET.

Guidance lift sparks early buying

The San Diego company reported third-quarter results shortly after 4 p.m. ET on Thursday. Revenue rose 11% to $1.344 billion, on both a reported and organic basis. US sales grew 14% to $969.8 million, while international revenue rose 5% to $374.7 million, according to the company's release filed with the SEC.

Profitability improved faster than sales. Non-GAAP gross Margin widened to 65.1% from 61.3% a year earlier, and non-GAAP Operating Income reached $339.5 million, or 25.3% of revenue. Adjusted Earnings came to $0.73 per share, up from $0.61 a year ago; GAAP earnings were $0.72.

A higher bar for 2026, plus product momentum

DexCom now expects 2026 revenue of $5.20 billion to $5.25 billion, which it says represents growth of roughly 12% to 13%. The company said it raised the midpoint of that range, though the release did not restate the previous figures. It also lifted its non-GAAP Operating Margin target to about 24% and its adjusted EBITDA margin target to about 32%, while reiterating a gross margin goal of about 64%.

On top of that, the board authorized repurchases of up to $1.0 billion. The company held $1.82 billion in cash and marketable securities at quarter-end and had not drawn on its revolving Credit line.

"This performance enabled us to again raise our full-year revenue and operating margin guidance," President and CEO Jake Leach said in the release, adding that the results reinforce confidence in the long-term goals laid out at the company's investor day.

DexCom makes continuous glucose monitors, wearable sensors that track blood sugar for people with diabetes. The company pointed to the CONNECT randomized trial, published in The New England Journal of Medicine after the quarter ended, which examined its G7 system in people with Type 2 diabetes who do not use insulin. That population is a large potential market beyond the insulin users who have been the core of the business.

It also launched a redesigned version of Stelo, its over-the-counter sensor, advanced the US rollout of the G7 15 Day system and won its first two international clearances for that product.

As an S&P 500 member, DexCom's moves feed into the benchmark's health care sector, which has been one of the market's few bright spots. The Health Care Select Sector SPDR fund rose 2.4% on Thursday to a record, according to market data, as investors moved away from tech.

That rotation is visible again Friday. Nasdaq-100 futures were down about 2.6% around 8 a.m. ET, per market quotes, after Amazon (NASDAQ:AMZN) and Intel (NASDAQ:INTC) results revived fears about AI spending, while S&P 500 futures were down about 1.1%. A medical device maker with growing margins and a new buyback fits the profile investors have been looking for.

Risks and next steps

International growth of 5% trails the US by a wide margin, and competition in glucose monitoring remains intense. Reimbursement decisions and pricing pressure are ongoing risks, and a 3% pre-market gain can fade quickly in a weak market.

Investors will look for details on how quickly DexCom plans to deploy the buyback, for updates on the 15-day sensor rollout and for signs that the non-insulin Type 2 market is converting into sales. The next scheduled catalyst is fourth-quarter results, expected early next year.