Dexcom: Strong 2025 Outperformance, Durable CGM Growth Runway, and Upcoming Product Catalysts Support Buy Rating

Bank of America Securities analyst Travis Steed has maintained their bullish stance on DXCM stock, giving a Buy rating yesterday.

Travis Steed has given his Buy rating due to a combination of factors, including Dexcom’s stronger-than-expected 2025 performance and continued growth momentum into 2026. The company exceeded consensus revenue estimates in both U.S. and international markets, added a record number of new patients, and exited 2025 with a larger user base than previously modeled. Dexcom maintained solid profitability guidance with 2025 and 2026 margin targets that are at or above Street expectations, while also calling for roughly $1bn in free cash flow in 2026, implying an attractive valuation on a cash-yield basis relative to its growth profile.
Steed also points to a healthy 2026 outlook with double-digit revenue growth guidance and high utilization when coverage is available, even as the contribution from Stelo moderates versus 2025. The upcoming G8 sensor is expected to meaningfully improve accuracy and reliability and open additional clinical use-cases, while expanded reimbursement—now including coverage for all diabetes patients at the three largest PBMs—supports further penetration. Management’s view that the CGM market remains far from saturated, particularly in Type 2 non-insulin and other emerging segments such as gestational diabetes, inpatient dysglycemia, and prediabetes, underpins a long runway for growth. Combined with near-term catalysts like the 15-day G7 sensor and new manufacturing capacity in Ireland to support demand, these elements collectively support Steed’s conviction in maintaining a Buy rating.

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.