Key Highlights

  • CareDx reported Revenue up 39% to $139.4 million, with testing services revenue up 65% to $119.2 million.
  • Dexcom reported revenue up 11% to $1.34 billion and Operating Income up 35% to $327.2 million, while Net Income slipped 3%.
  • Illumina reported revenue of $1.13 billion, up 4.2%, and raised full year non-GAAP EPS guidance to $5.40 to $5.45 excluding Tariff refunds.
  • ResMed reported fiscal first quarter diluted EPS of $2.92, including a $62 million MatrixCare divestment gain.
  • Calculated, about 45% of CareDx's net income came from an $8.6 million tax benefit.

What Did Diagnostics, Monitoring and Sleep-Health Companies Report?

Five healthcare technology companies reported results for the quarter ended September 30, 2026, although Illumina's period ended September 27, 2026. Dexcom (NASDAQ:DXCM) posted revenue of $1,344.5 million, up 11%, with diluted EPS of $0.72. Illumina (NASDAQ:ILMN) posted revenue of $1.13 billion, up 4.2%, with GAAP diluted EPS of $1.43. CareDx (NASDAQ:CDNA) recorded revenue of $139.4 million, up 39%, and net income of $19.3 million.

ResMed (NYSE:RMD) reported fiscal first quarter 2027 revenue of $1,415 million, up 6%, and diluted EPS of $2.92. Alphatec (NASDAQ:ATEC), a spine surgery company rather than a diagnostics business, reported revenue of $221.2 million, up 13%, and is included for its change at the operating line.

Dexcom: Why Did Operating Income Rise 35% as Net Income Slipped 3%?

Dexcom's gross Margin climbed to 64% from 60%, and operating income increased to $327.2 million from $242.5 million. Other income, net, dropped to $7.5 million from $109.8 million, since the prior year included an $82.5 million gain on Equity investments. As a result, net income eased to $275.1 million from $283.8 million.

Diluted EPS still edged up to $0.72 from $0.70, because diluted shares fell to 383.5 million from 407.4 million. U.S. revenue increased to $969.8 million from $851.9 million, while international revenue came in at $374.7 million against $357.4 million. Third quarter Operating Cash Flow was $325.6 million, a 51% decline. In October 2026, the board authorized a new repurchase program of up to $1.00 billion, which runs through no later than December 31, 2027.

Illumina: How Big Was the Effect of Tariff Refunds?

Illumina recognized a benefit of about $79 million, booked as a reduction to cost of revenue, from expected tariff refunds. It also booked a $37 million reduction to revenue for the portion it expects to Credit to customers. Excluding the refunds, revenue was $1.17 billion.

Non-GAAP diluted EPS was $1.62, compared with $1.34 a year earlier, and $1.44 without the refunds. Product revenue came in at $946 million against $927 million, while service and other revenue was $183 million against $157 million. GAAP Operating Margin reached 27.0% from 21.0%, and free cash flow was $378 million, compared with $253 million. Illumina raised its fiscal 2026 revenue guidance to $4.64 billion to $4.66 billion from $4.60 billion to $4.64 billion, excluding tariff refunds.

CareDx: How Much of Its Net Income Was Due to a Tax Benefit?

CareDx reported net income of $19.3 million on income before taxes of $10.7 million, so an $8.6 million income tax benefit lifted the bottom line. That benefit mainly reflected a $9.8 million deferred tax benefit from a valuation allowance release tied to the Naveris transaction.

Income from operations was $8.1 million, compared with a $0.2 million loss. Testing services revenue rose 65% on Volume of about 75,900 tests, up 51%, and $17.3 million of revenue was recognized for tests performed in prior periods. CareDx completed the Naveris Acquisition on July 1, 2026, for total consideration of $203.3 million. The company held $250.5 million of cash with no debt, and $100.0 million remains under its repurchase program.

ResMed: Was the MatrixCare Gain Behind the Higher EPS?

ResMed's diluted EPS of $2.92 compares with $2.37 a year earlier, and a $62 million gain on the MatrixCare divestment is recorded in other income. Non-GAAP diluted EPS, which strips out that gain, was $2.91 against $2.55.

Sleep and Breathing Health revenue grew 8% to $1,260 million, while Residential Care Software revenue fell 7% to $155 million, mainly due to the MatrixCare sale. Gross margin was 61.5% against 61.2%, and operating cash flow was $422 million, compared with $457 million. The company entered a $450 million accelerated share repurchase and held $1.0 billion of cash at September 30, 2026. The board declared a quarterly Dividend of $0.66, payable on December 17, 2026.

Alphatec: What Pushed the Operating Line Into Positive Territory?

Alphatec's revenue increased to $221.2 million from $196.5 million, while cost of sales grew just 6% to $62.9 million. Litigation-related expenses were $6.5 million, compared with a $5.9 million credit a year earlier.

On a calculated basis, operating income was about $3.2 million against a loss of about $15.9 million, and Gross Profit was about 71.5% of revenue, compared with 69.9%. Nine-month revenue reached $626.8 million, up 14%, and selling, general and administrative expense rose 7% to $132.5 million in the quarter, reflecting a larger surgeon base.

How Do Growth and Profit Drivers Differ Across the Five?

These figures are calculated from the reported numbers.

  • CareDx's 39% revenue growth is about 34.8 points above Illumina's 4.2% (calculated).
  • The $8.6 million tax benefit equals about 45% of CareDx's $19.3 million net income (calculated).
  • Dexcom's diluted share count fell about 5.9%, from 407.4 million to 383.5 million (calculated).
  • ResMed's non-GAAP diluted EPS rose about 14.1%, from $2.55 to $2.91 (calculated).
  • Illumina's non-GAAP EPS of $1.62 is $0.18 above the $1.44 figure that excludes tariff refunds (calculated).

Taken together, these figures show that profit growth rested on different drivers at each company: margin at Dexcom, refunds at Illumina, a tax item at CareDx and a divestment gain at ResMed.

What to Watch Next: Guidance, Buybacks and Dividend Dates

The dividend is payable December 17, 2026 to holders of record on November 12, 2026, and ResMed expects its $450 million accelerated share repurchase to settle by December 29, 2026. Dexcom's repurchase authorization lasts through December 31, 2027, while $1,250.0 million of its convertible notes mature in May 2028.

Illumina expects organic revenue growth above 4% for fiscal 2026, with a non-GAAP operating margin of 23.6%. Former Naveris holders at CareDx can earn up to $100.0 million more on revenue milestones for 2026 and 2027. Alphatec's filing points to continued Investment in its surgeon base and sales force.