Dexcom: 2026 Reset Year Sets Stage for Renewed Growth and Upside Potential

William Blair analyst Brandon Vazquez has reiterated their bullish stance on DXCM stock, giving a Buy rating yesterday.

Brandon Vazquez has given his Buy rating due to a combination of factors that, in his view, signal Dexcom is moving in the right strategic and financial direction. He notes that preliminary fourth-quarter results modestly exceeded consensus on both U.S. and international revenue, while margins are tracking in line with prior guidance, reinforcing management’s execution and credibility. He also points out that the 2026 revenue and margin outlook appears achievable, with room for potential upside as the year unfolds, even if the current guidance only loosely matches Street expectations.

Vazquez also frames 2026 as a reset year in which key headwinds should abate and several catalysts can support renewed growth. He highlights that prior supply and manufacturing challenges are expected to be resolved, a new CEO is in place with what he interprets as a conservative starting point for guidance, and the rollout of a 15‑day sensor should enhance profitability as adoption builds. While acknowledging competitive noise from Abbott’s ketone sensor, he believes it is unlikely to materially disrupt Dexcom’s trajectory, and he underscores that potential CMS expansion to broader Type 2 populations remains a significant, underappreciated growth opportunity. Together, these elements support his view that Dexcom shares offer attractive upside from current levels, warranting a Buy rating.

In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a $84.00 price target.

Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DXCM in relation to earlier this year.