By Mackenzie Tatananni

Dexcom, the maker of continuous glucose monitoring systems, posted stronger-than-expected earnings in the first quarter. The stock surged.

Revenue of $1.04 billion topped analysts' calls for $1.02 billion, according to FactSet. The figure represented 12% growth on a reported basis and 14% on an organic basis.

Shares of the medical technology company climbed 16% to $81.42 on Friday and were headed for their largest same-day percentage increase since Oct. 28, 2022, according to Dow Jones Market Data. It was the best-performing stock Friday in the S&P 500.

The San Diego-based company saw revenue increase both at home and abroad. U.S. revenue grew 15% and international revenue grew 7% on a reported basis and 12% on an organic basis.

Management noted that Dexcom secured broader coverage in the U.S., with two of the three largest pharmacy benefit managers now covering Dexcom continuous glucose monitors for patients with diabetes.

Shortly after the end of the quarter, the company received Food and Drug Administration clearance for the Dexcom G7 15 Day, a new CGM that is set to arrive on the market in the second half of the year.

"As we progress through 2025, we will advance our product portfolio with the launch of our Dexcom G7 15 Day system and continue to advocate for expanded global access to our glucose biosensors," CEO Kevin Sayer said in a statement.

Dexcom trimmed its 2025 outlook for adjusted gross profit margin, citing previously disclosed "incremental costs" related to near-term supply dynamics and adjustments in inventory levels.

The medtech also unveiled a $750 million share repurchase program along with first-quarter results.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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May 02, 2025 11:53 ET (15:53 GMT)

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