Morgan Stanley, Truist Cautious on DexCom (DXCM) Cites Weaker Gross Margins, Modest Q3 Beat

Additionally, connected November 3, Truist besides lowered the firm’s terms people connected DexCom to $82 from $94 with a Buy standing connected the shares. Truist noted that the institution achieved lone a humble bushed connected its Q3 2025  net and gross targets. However, the reported gross margins were weaker than anticipated. The steadfast present expected analysts to little their aboriginal fiscal estimates.

In the said quarter, DexCom reported making $1.21 cardinal successful worldwide revenue, which marked a 22% year-over-year increase, oregon 20% integrated growth. This show resulted successful the institution achieving the highest quarterly EPS successful its history, with a nett income of $242.5 million, oregon $0.61 per share.

Despite the grounds revenue, the company’s gross nett borderline saw a decline, falling to 61.3% from 63% successful Q3 2024 owed to higher-than-expected scrap rates astatine manufacturing facilities. The institution truthful lowered its 2025 non-GAAP gross nett borderline guidance to ~61%. However, DexCom raised its wide gross guidance for the twelvemonth to a scope of $4.630 to $4.650 billion.

DexCom Inc. (NASDAQ:DXCM) is simply a aesculapian instrumentality institution that designs, develops, and commercializes continuous glucose monitoring/CGM systems successful the US and internationally.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.