By Sneha S K
(Reuters) -Dexcom shares tumbled 12% in premarket trading on Friday after executives signaled that the medical device maker’s 2026 growth forecast could fall short of Wall Street expectations.
Shares had fallen as much as 17.15% after markets closed on Thursday following the comments.
Speaking at a post earnings conference call late on Thursday, interim CEO Jake Leach hinted that growth may come in “slightly below” current estimates.
“I am certainly in that double-digit range. But I think as we look at our range, the top end of our range is probably slightly below where the Street is today for our base case,” he said.
The company said it would provide official guidance on 2026 in the next few months.
Analysts expect about 14.5% revenue growth for 2026, according to data complied by LSEG.
Shares of the company have been pressured since September after its CEO Kevin Sayer took a leave of medical absence and a short seller said the company’s G7 continuous glucose monitor showed inaccurate readings. However, the company and analysts have said the safety and reliability of the monitor is strong.
“We had heard concerns going into the print that included a belief that Street estimates for 2026 were too high and that noise around accuracy issues would impact new patient starts. (Third quarter) call commentary confirmed both of these fears,” said BTIG analyst Marie Thibault.
The company, however, reported third-quarter results that topped estimates on Thursday, driven by robust demand for its continuous glucose monitoring systems.
“On 2026, our sense is this is management’s clear-the-deck moment to set a beatable bar for the new CEO,” William Blair analyst Brandon Vazquez said.
At least five brokerages have cut their price targets after the comments. However, some analysts viewed the share declines on Thursday and Friday as excessive.
(Reporting by Sneha S K in Bengaluru; Editing by Sahal Muhammed)
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