Dexcom (DXCM) announced a $750 million share repurchase program on May 1, 2025, which is authorized to continue until June 30, 2026.1 As of September 30, 2025, the company had already repurchased 2.4 million shares for $187.2 million under this program, at an average price of $78 per share.2 This leaves $562.8 million remaining for future repurchases.2
To project the potential impact on Earnings Per Share (EPS), we can estimate the total number of shares that could be repurchased if the entire $750 million program is completed. Using the average repurchase price of $78 per share from the initial phase of the program, the company could repurchase approximately 9.615 million shares ($750 million / $78 per share).
Considering Dexcom's institutional shares outstanding are approximately 443.135 million,3 and the projected annual EPS for 2025 is around $2.06,4 we can estimate the impact:
- Estimated Current Net Income: Based on the projected EPS and outstanding shares, the approximate net income would be $912.86 million (443.135 million shares * $2.06/share).
- Estimated Shares After Full Repurchase: If 9.615 million shares are repurchased, the new outstanding shares would be approximately 433.52 million (443.135 million - 9.615 million).
- Projected New EPS: Assuming net income remains constant, the new EPS would be approximately $2.1057 ($912.86 million / 433.52 million shares).
This calculation suggests a potential increase in EPS of about $0.0457, or approximately 2.22%, if the entire $750 million program is completed at an average price of $78 per share.
It's important to note that this is a forward-looking estimate based on several assumptions. The actual impact on EPS will depend on:
- The actual average price paid for the repurchased shares.
- The timing of the repurchases, as the program extends until June 30, 2026.2
- Changes in the company's net income over the repurchase period.
- Market conditions and other factors that could influence the execution of the program.2
Share repurchase programs generally aim to reduce the number of outstanding shares, thereby increasing EPS and potentially signaling management's confidence in the company's valuation. However, the full benefit is realized over time as shares are actually bought back from the open market.
