By Nicholas G. Miller

Shares of DexCom slid after the company reported mixed third-quarter results that included disappointing new patient numbers and lower gross margin guidance.

The stock fell 15% to $58.10 and is down 25% so far this year.

Morgan Stanley analysts said in a note that reliability concerns with the medical device company's G7 glucose meter caused it to add a disappointing number of new patients in the third quarter and dragged down its gross margin through freight and quality control efforts.

The analysts said that DexCom will likely need to show that the reliability concerns have been resolved and return to record levels of new patient starts for investors to regain trust in the stock.

DexCom also lowered its adjusted gross margin forecast to 61% from 62% and said that the high end of its initial 2026 guidance would likely be lower than Wall Street's estimates.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

October 31, 2025 12:39 ET (16:39 GMT)

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