Core Insights - DexCom, Inc. reported third-quarter 2025 revenue of $1.209 billion, exceeding analyst expectations of $1.179 billion, with a year-over-year growth of 22% on a reported basis and 20% on an organic basis [1] - The company raised its fiscal 2025 sales guidance to a range of $4.63 billion to $4.65 billion, surpassing the consensus estimate of $4.626 billion [3] Financial Performance - U.S. revenue increased by 21% year-over-year, while international revenue grew by 22% on a reported basis and 18% on an organic basis [1] - GAAP operating income was $242.5 million, representing 20.1% of revenue, an increase of 480 basis points compared to Q3 2024 [1] - Adjusted operating income reached $272.9 million, or 22.6% of reported revenue, up 130 basis points from the previous year [2] - Adjusted earnings were reported at 61 cents, beating the consensus estimate of 57 cents [2] Margin Outlook - The company revised its profit margin expectations, forecasting an adjusted gross profit margin of approximately 61%, operating margin of 20-21%, and EBITDA margin of roughly 29-30% [4] Analyst Commentary - Analysts from William Blair noted that the lower stock price is attributed to concerns over U.S. sales growth and 2026 projections being below market expectations, but they remain optimistic about new patient additions and minimal pricing pressure [5] - William Blair anticipates significant margin expansion as the company overcomes cost headwinds and benefits from the upcoming 15-day sensor launch [5] - BTIG analyst maintains a Buy rating on DexCom but has lowered the price forecast from $109 to $85, with DXCM stock down 11.28% to $60.51 in premarket trading [6]