Dexcom's next big growth driver hinges on a CMS decision expected this year. The NEJM publication of the landmark CONNECT trial strengthens the case for Medicare coverage of CGM in type 2 non-insulin patients. Amanda Pedersen, Senior Editor, MD+DI, Informa Markets - Engineering November 2, 2026 Dexcom continues to expect CMS to announce a type 2 non-insulin coverage decision this year as the case for continuous glucose monitoring (CGM) reimbursement is strengthening. "Much of this confidence is driven by CONNECT, our type 2 randomized controlled trial, which is now widely recognized as the landmark CGM study for this population," Dexcom CEO Jake Leach said during the company's third-quarter earnings call. Dexcom announced the results of CONNECT at the 2026 American Diabetes Association scientific sessions in June, and the study was recently published in the New England Journal of Medicine (NEJM). Over a six-month study period, the company 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. "These are the strongest A1c results we have generated across our historic randomized controlled trials, which have helped shape standards of care and establish broad reimbursement," Leach said. "MD+DI now expect CONNECT to do the same thing for the type 2 non-insulin population. Leach said publication of the study in the NEJM provides an important level of independent validation and gives the study a prominent platform among clinicians, advocacy organizations, and reimbursement bodies around the world. "This marks the first time in nearly two decades that the New England Journal of Medicine published clinical data on the stand-alone use of CGM. While we believe our results speak for themselves, this publication reinforces both the quality of the data and its potential to reshape clinical practice," Leach said. He noted during the earnings call that Dexcom did provide this publication update directly to the medical directors evaluating the submission for Medicare coverage expansion. The company also anticipates this evidence to be included in upcoming clinical standards, including the ADA standards of care, which he said is expected to be updated in the coming weeks. "CONNECT further strengthened the growing body of evidence supporting the broader benefit of CGM across metabolic health. This includes significant improvements across multiple studies in 10-year cardiovascular disease risk, blood pressure, cholesterol, triglycerides, and kidney disease progression," Leach said. "Our expanding clinical evidence is supported by a product portfolio designed around the distinct needs of each customer." Other key highlights from Dexcom's third quarter: * Revenue grew 11% year-over-year to $1.34 billion on both a reported basis and an organic basis. * U.S. revenue grew 14% year-over-year, and international revenue grew 5% year-over-year on both a reported basis and an organic basis. * GAAP operating income of $327.2 million or 24.3% of revenue, an increase of 420 basis points compared to the third quarter of 2025. Non-GAAP operating income of $339.5 million or 25.3% of reported revenue, an increase of 270 basis points compared to the third quarter of 2025. * Dexcom launched a fully redesigned Stelo app, with enhanced glucose insights, simplified meal logging, and more detailed nutritional information. * The company advanced the rollout of the Dexcom G7 15 Day system in the United States and secured its first two G7 15 Day international regulatory clearances. Senior Editor, MD+DI, Informa Markets - Engineering Amanda Pedersen is a veteran journalist and award-winning columnist with a passion for helping medical device professionals connect the dots between the medtech news of the day and the bigger picture. She has been covering the medtech industry since 2006. Amanda Pedersen poses with her Jesse H. Neal Awards plaque after winning the "Best Commentary" category with Pedersen's POV After 18 years of reporting on the medical device and diagnostics industry, Amanda has no fear of speaking truth to power. That's important in an industry in which over half of the top 100 companies report more than $1 billion in revenue. In her weekly Pedersen's POV opinion column, she isn't afraid to shine a light on industry leaders for bad behavior. Her insights spark conversation about what price is too high to pay for corporate success in medtech. Amanda graduated from Northern Illinois University in 2003 with a B.A. in Communication. After a few years reporting for community newspapers, including the Galesburg Register Mail in Galesburg, IL, and the Marietta Daily Journal in Marietta, GA, Amanda spent 10 years covering the medical device industry for Medical Device Daily (now known as BioWorld MedTech). Amanda joined the editorial staff of MD+DI in December 2016. Want more MD+DI in your search results?

DexCom beat Wall Street revenue expectations in the third quarter of 2026. Sales rose 11.2% year on year to $1.34 billion, against analyst estimates of $1.33 billion. Adjusted earnings were $0.73 per share, 8.3% above consensus. The medical device maker slightly raised its full-year revenue guidance to $5.23 billion at the midpoint, from $5.22 billion. Operating margin reached 24.3%, up from 20.1% a year earlier. Management credited US market share gains, strong demand for its continuous glucose monitoring systems among type 2 diabetes patients not using insulin, and manufacturing improvements. It also cited the CONNECT study, published in the New England Journal of Medicine, as a driver of wider coverage. DexCom also agreed to acquire a major European distributor. Its shares trade at $83.87, up from $79.90 before the results.

DexCom reported third-quarter revenue of $1.34 billion, up 11% from a year earlier. US revenue rose 14% to $970 million, while international revenue grew 5% to $375 million. The glucose monitor maker raised its full-year revenue outlook to $5.20 billion–$5.25 billion. It now expects an adjusted operating margin of about 24% and an adjusted EBITDA margin of about 32%. Net income was $275 million, or $0.73 per share. Gross margin rose to 65.1% from 61.3%, helped by manufacturing efficiencies and lower freight costs. DexCom authorised an extra $1 billion share buyback after completing a $1 billion repurchase this year. It expects Medicare to decide on wider coverage for type 2 diabetes patients not using insulin, with any change taking effect in mid-2027.