Worldwide Revenue Growth Driven by Sensor Adoption
Total revenue grew 13.1% YoY to $1.31B in Q2 FY2026, supported by U.S. revenue of $933.4M and International revenue of $375.0M. Growth was primarily driven by higher sales volumes of disposable sensors across a expanding customer base and favorable payor mix per customer.
Gross Margin Expands to 63.4%
Gross profit increased 20.5% YoY to $830.0M, with gross margin widening to 63.4% from 59.5% in Q2 FY2025. Margins expanded due to G7 15 Day rollouts, improved manufacturing efficiencies, and fixed-cost absorption, despite charges related to the planned discontinuation of G6 manufacturing.
Operating Profitability Surges 49.7%
Operating income rose to $318.3M (up 49.7% YoY) as operating expenses grew only 7.5% YoY to $511.7M. SG&A increased 9.4% to $358.7M due to higher advertising and marketing investments, while R&D expenses remained flat at $153.0M due to project timing.