DexCom Q2 Earnings Beat Expectations, Raises 2025 Revenue Outlook

DexCom's Q2 earnings beat the Zacks Consensus Estimate with a 15.2% YoY revenue growth to $1.16 billion. Despite this, shares declined 5.5% during after-hours trading. The company raised its 2025 revenue guidance to $4.6-$4.625 billion, a 14-15% YoY growth.

DexCom, Inc. (Nasdaq: DXCM) reported its second-quarter 2025 financial results, which exceeded market expectations. The company's revenue grew by 15.2% year-over-year (YoY) to $1.16 billion, surpassing the Zacks Consensus Estimate [1]. Despite this strong performance, shares of the company declined by 5.5% during after-hours trading.

Key financial highlights include a 15.2% YoY revenue growth, driven by a 15% increase in U.S. revenue and a 16% rise in international revenue on a reported basis [1]. The company's GAAP operating income of $212.6 million or 18.4% of revenue, represented a significant increase of 270 basis points compared to the same period last year [1].

DexCom also announced the FDA clearance for its Dexcom G7 15 Day Continuous Glucose Monitoring (CGM) System and showcased extensive clinical evidence at the American Diabetes Association’s 85th Scientific Sessions [1]. The company launched an AI-based Smart Food Logging feature and enhanced the Stelo customer experience with new software features and digital health partnerships [1].

The company raised its 2025 revenue guidance to a range of $4.600 to $4.625 billion, representing a 14% to 15% YoY growth. This guidance includes a Non-GAAP Gross Profit Margin of approximately 62%, a Non-GAAP Operating Margin of approximately 21%, and an Adjusted EBITDA Margin of approximately 30% [1].

Additionally, DexCom announced the promotion of Jake Leach to CEO and to the Dexcom Board of Directors, effective January 1, 2026. Current CEO Kevin Sayer will continue to work closely with Jake during the transition period and will remain executive chairman of the board of directors [1].

Despite the positive financial results, the stock's decline during after-hours trading could be attributed to several factors, including market expectations and investor sentiment. DexCom's strong revenue growth and guidance suggest continued growth momentum, but the stock's performance highlights the importance of investor sentiment and market expectations in determining share prices.

References:
[1] Dexcom Reports Second Quarter 2025 Financial Results, Updates Full Year 2025 Guidance and Announces CEO Succession Plan. Retrieved from https://investors.dexcom.com/news/news-details/2025/Dexcom-Reports-Second-Quarter-2025-Financial-Results-Updates-Full-Year-2025-Guidance-and-Announces-CEO-Succession-Plan/