By Mackenzie Tatananni

DexCom may be a major player in the market for continuous glucose monitors, but that doesn't means it's shielded from concerns over slower-than-expected growth.

Interim CEO Jake Leach indicated on DexCom's third-quarter earnings call Thursday that 2026 revenue growth could miss analysts' forecasts.

While growth is expected to be "certainly in that double-digit range," Leach said, "the top end of our range is probably slightly below where the Street is today for our base case."

Shares fell more than 17% in after-hours trading following his remarks. They continued to decline on Friday, falling 14% to $58.59 and putting DexCom on pace for its lowest close since March 2020, according to Dow Jones Market Data.

DexCom said it plans to provide its outlook for 2026 in the next few months. In the meantime, the maker of glucose monitors raised its 2025 revenue guidance to a range of $4.63 to $4.65 billion from prior guidance of $4.6 billion to $4.625 billion. The updated range represents roughly 15% growth year over year.

Revenue surged 22% to $1.209 billion in the third quarter, topping the $1.182 billion consensus among analysts polled by FactSet. U.S. and international revenue grew 21% and 22%, respectively.

Citi Research analysts took note of the revenue beat, writing Thursday that the company had "secured coverage for any individual with diabetes in the U.S., with all areas of diabetes contributing to new patient starts."

A "decent" amount of Type 1 new starts is contributing to the business despite the high level of penetration, Citi continued, with DexCom citing strong performance across every subsegment of the Type 2 population.

The firm rates DexCom at Buy with a $75 price target, down from $85.

The company is one of the largest makers of diabetes technology in the world, but this has opened it up to increased scrutiny. Shares tumbled in September after a short seller published a scathing report alleging inaccurate readings from DexCom's flagship D7 device had led to patient deaths. The same short seller took aim at DexCom again in a new report on Tuesday.

Leach addressed these concerns during the earnings call, saying the company felt "really good about the quality of the sensors we are producing." Regardless, they likely had "a bit of an impact" on new starts during the quarter, he conceded.

Other factors have been pressuring shares. Earlier in September, CEO Kevin Sayer's leave of medical absence went into effect and Leach was appointed to take his place. Leach had already been selected to assume the role permanently on Jan. 1, 2026, as part of a succession plan.

William Blair analyst Brandon Vazquez identified the latest dip as a buying opportunity, saying he expected trends to improve in the coming year. Vazquez maintained a Buy rating on the stock.

The guidance is a "clear-the-deck moment to set a beatable bar for the new CEO," Vazquez asserted. While DexCom is near record levels of new patient adds currently, "next year will be the smallest level of pricing headwinds in years," contributing to further growth.

DexCom was named a Barron's stock pick in July. After DexCom shifted its focus to the Type 2 population last year, Type 1 sales constricted. However, the company looked ready to "recapture its losses," Barron's argued at the time. Since the recommendation was made on July 9, shares have fallen nearly 31%.

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

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

October 31, 2025 10:17 ET (14:17 GMT)

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