DXCM · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

DEXCOM INC · 2026-10-29 · Importance 30 · Surprise 40

For the nine months ended September 30, 2026, income tax expense was $198.0 million, up $19.3 million from 2025, while the estimated annual effective tax rate declined to 21.7% from 22.5%. The lower rate primarily reflected tax benefits from releasing uncertain-tax-position reserves after statutes of limitations expired and the mix of earnings by jurisdiction. These benefits were partly offset by discrete share-based compensation shortfalls, net of nondeductible executive compensation. The 2025 comparison included a tax benefit from commencement of the Malaysia tax holiday.

Key facts

• The third-quarter 2026 effective tax rate decreased versus the same period in 2025 primarily due to tax benefits from releasing uncertain-tax-position reserves upon statute-of-limitations expiration and jurisdictional earnings mix, partly offset by the prior-year initial Malaysia tax-holiday benefit. source
• Nine-month estimated annual effective tax rate was 21.7% in 2026, compared with 22.5% in 2025. source
• The nine-month 2026 effective tax rate decreased versus 2025 primarily due to tax benefits from releases of uncertain-tax-position reserves upon statute-of-limitations expiration and jurisdictional earnings mix. source