DexCom (DXCM, Financials) shares surged more than 15% on Friday after the company beat first-quarter revenue expectations and unveiled a new $750 million stock buyback plan.
Adjusted earnings per share came in at $0.32, narrowly missing expectations by $0.01.
The company reaffirmed its full-year revenue guidance of $4.6 billion and maintained its adjusted operating margin forecast at approximately 21%. The adjusted EBITDA margin outlook also remains around 30%.
However, DexCom revised its 2025 adjusted gross profit margin forecast downward to approximately 62%, citing short-term supply-related cost pressures.
DexCom, headquartered in San Diego, California, develops continuous glucose monitoring systems for diabetes patients. The new buyback plan reflects confidence in its long-term performance despite near-term margin pressure.
Friday's double-digit stock move marked the strongest performance in the S&P 500 and pushed DexCom back into positive territory for 2025. The firm's ability to meet top-line expectations while preserving full-year guidance suggests resilience amid cost headwinds.
Investors will be watching how supply-chain costs evolve in the second half of the year and whether the buyback provides further support to shares.
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