DexCom Inc. reported preliminary fourth‑quarter and full‑year 2025 financial results that surpassed its own guidance and the consensus estimates. Revenue rose 13% to $1.260 billion in Q4, and the company’s full‑year revenue climbed 16% to $4.662 billion, a $0.029 billion beat over the $4.633 billion consensus estimate. The results were driven by a 11% increase in U.S. sales to $892 million and an 18% jump in international revenue to $368 million, reflecting strong demand for its continuous glucose monitoring (CGM) platform in both domestic and overseas markets.
The U.S. segment, which accounts for roughly 70% of total revenue, grew 11% year‑over‑year, supported by higher sales of the G7 15‑day sensor and the newly launched Stelo over‑the‑counter CGM. International revenue, up 18%, benefited from expanded distribution in Europe and Asia‑Pacific, where the company has been aggressively pursuing new market‑access agreements. Compared with Q4 2024, when revenue was $1.114 billion, the 13% growth represents a solid acceleration in demand for DexCom’s sensor technology.
Gross profit margin expanded to 61.2% from 60.5% in the prior year, while operating margin rose to 20.8% from 20.1%. The margin improvement is largely attributable to a higher mix of high‑margin sensor sales and cost efficiencies in manufacturing and supply‑chain logistics. For 2026, DexCom has raised its non‑GAAP gross‑profit‑margin target to 63‑64% and its operating‑margin target to 22‑23%, reflecting confidence that the new sensor technologies and the Stelo platform will continue to deliver pricing power and scale benefits.
Guidance for 2026 projects revenue of $5.16‑$5.25 billion, an 11‑13% increase over 2025. The company reiterated its full‑year 2025 guidance, indicating that it expects to maintain the same revenue trajectory while benefiting from the higher margin targets. Management highlighted that the margin upgrade is driven by the expected ramp‑up of the G7 15‑day sensor and the broader adoption of Stelo, which together are expected to reduce per‑unit costs and increase average selling price.
Analysts noted that DexCom’s Q4 revenue beat was driven by a 12% lift in U.S. commercial sales and a 20% rise in international commercial sales, both exceeding the $1.114 billion Q4 2024 level. The company’s earnings beat of $0.02 per share over the $0.02 consensus was attributed to disciplined cost management and the favorable product mix. Market observers have responded positively to the higher margin guidance, viewing it as a sign of strong operational execution and a robust pipeline of high‑margin products.
CEO Jake Leach said, “We are pleased to finish 2025 on a strong note with revenue exceeding the high end of our guidance and the initial launch of our latest sensor technology with the G7 15‑day system. With clinical momentum building across the CGM category, we look forward to extending our growth runway through continued innovation and evidence generation in 2026.”
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