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Dexcom
(NASDAQ:DXCM)
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Rating:79Outperform
Price Target:
$96.00
▲(34.19% Upside)
Action:Reiterated
Date:08/01/26
DXCM scores well on financial quality and the latest earnings update: strong and expanding profitability, solid free cash flow, reduced leverage, and raised FY26 guidance with improving margin targets. Technicals are supportive with the stock trading above all key moving averages. The primary offsets are a premium P/E (32.22) and management-flagged near-term headwinds (FX, Ireland ramp costs, tougher international comps, and Medicare timing uncertainty).
Positive Factors
Margin expansion & operating leverage
Scale-driven margin expansion reflects durable unit economics: high gross margins plus expanded EBIT margin show pricing power and operating leverage from recurring sensor volumes. Sustained margins support reinvestment in R&D, commercialization and long-term free cash flow generation.
Negative Factors
Revenue growth deceleration
A sustained slowdown in top-line growth risks undermining the leverage inherent in high-margin consumables: slower unit adoption or penetration can make it harder to meet long-range revenue targets and compress future operating margin and FCF expansion assumptions.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion & operating leverage
Scale-driven margin expansion reflects durable unit economics: high gross margins plus expanded EBIT margin show pricing power and operating leverage from recurring sensor volumes. Sustained margins support reinvestment in R&D, commercialization and long-term free cash flow generation.
Read all positive factors
Dexcom Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how revenue is distributed across different business segments, highlighting which areas are driving growth and which may need strategic attention.
Shows how revenue is distributed across different business segments, highlighting which areas are driving growth and which may need strategic attention.
Data provided by:
The Fly
The FlyDexcom (DXCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.49B
Dividend YieldN/A
Average Volume (3M)4.45M
Price to Earnings (P/E)32.2
Beta (1Y)1.03
Revenue Growth15.54%
EPS Growth77.43%
CountryUS
Employees11,100
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)2.59
Shares Outstanding377,360,780
10 Day Avg. Volume4,048,966
30 Day Avg. Volume4,445,572
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)9.43
Price to Sales (P/S)5.56
P/FCF Ratio24.04
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$90.52Price Target Upside26.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering23
EPS Forecast (FY)2.66
Revenue Forecast (FY)$5.23B
Dexcom Business Overview & Revenue Model
Company Description
DexCom, Inc. is a medical technology company primarily focused on innovating, developing, and marketing continuous glucose monitoring (CGM) systems. Operating across the United States and internationally, the firm provides its solutions for indivi...
How the Company Makes Money
Dexcom primarily makes money by selling its CGM systems, with revenue largely driven by recurring consumption of disposable sensors and, to a lesser extent, sales of durable hardware components. Key revenue streams include: (1) CGM sensors (consum...
Dexcom Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial message: double-digit revenue growth, substantial margin expansion (400 bps YoY), strong cash generation, successful product rollouts and encouraging clinical data (CONNECT) that is driving payer coverage momentum. Near-term headwinds include FX impact, Ireland manufacturing ramp costs, tougher international comps in the back half, and remaining uncertainties around Medicare coverage terms and timing. Overall, achievements and momentum on growth, margins, cash flow, product adoption and clinical evidence substantially outweigh the manageable near-term challenges.Positive Updates
Revenue Growth
Worldwide revenue of $1.31 billion in Q2 FY26, up 13% year-over-year (reported) and 12% organic; U.S. revenue $933 million (+11% YoY); International revenue $375 million (+19% reported, +16% organic).
Negative Updates
Foreign Exchange Headwind
Recent FX movement expected to reduce international revenue by roughly $15 million in H2 FY26 versus prior guidance; currency sensitivity noted (USD/EUR moves can affect reported results).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Worldwide revenue of $1.31 billion in Q2 FY26, up 13% year-over-year (reported) and 12% organic; U.S. revenue $933 million (+11% YoY); International revenue $375 million (+19% reported, +16% organic).
Read all positive updates
Company Guidance
Dexcom raised full‑year 2026 guidance to revenue of $5.18–$5.25 billion (growth of ~11%–13% YoY), noting an expected ~ $15 million negative foreign‑exchange impact to international revenue in H2 and that, excluding FX, the midpoint implies >50 basis points of additional organic growth; they also lifted non‑GAAP margin targets to ~64% gross profit margin, 23.5%–24% non‑GAAP operating profit margin, and 31.5%–32% adjusted EBITDA margin. Management said the Nutrisense contribution to revenue is immaterial (millions) and its P&L was contemplated in the guide, and emphasized strong cash metrics—approximately $1.9 billion cash and equivalents, >$600 million free cash flow in 1H—and a $1 billion share‑repurchase authorization (about $600 million repurchased in Q2).Dexcom Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.97B | 4.66B | 4.03B | 3.62B | 2.91B | 2.45B |
| Gross Profit | 3.10B | 2.80B | 2.44B | 2.29B | 1.88B | 1.68B |
| EBITDA | 1.56B | 1.36B | 945.70M | 916.70M | 565.30M | 377.50M |
| Net Income | 999.70M | 836.30M | 576.20M | 541.50M | 341.20M | 216.90M |
Balance Sheet | ||||||
| Total Assets | 6.46B | 6.34B | 6.48B | 6.26B | 5.39B | 4.93B |
| Cash, Cash Equivalents and Short-Term Investments | 1.95B | 2.00B | 2.58B | 2.72B | 2.46B | 2.73B |
| Total Debt | 1.40B | 1.39B | 2.59B | 2.59B | 2.15B | 2.16B |
| Total Liabilities | 3.83B | 3.59B | 4.38B | 4.20B | 3.26B | 2.89B |
| Stockholders Equity | 2.62B | 2.75B | 2.10B | 2.07B | 2.13B | 2.04B |
Cash Flow | ||||||
| Free Cash Flow | 1.41B | 1.08B | 630.70M | 511.90M | 304.70M | 53.30M |
| Operating Cash Flow | 1.75B | 1.44B | 989.50M | 748.50M | 669.50M | 442.50M |
| Investing Cash Flow | 530.70M | 536.00M | -207.50M | -507.20M | -521.50M | -216.10M |
| Financing Cash Flow | -2.33B | -1.69B | -734.80M | -318.60M | -552.50M | 10.40M |
Dexcom Technical Analysis
Positive
71.54
Price Trends
74.18
Positive
68.90
Positive
68.12
Positive
Market Momentum
3.03
Negative
62.02
Neutral
78.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXCM, the sentiment is Positive. The current price of 71.54 is below the 20-day moving average (MA) of 76.90, below the 50-day MA of 74.18, and above the 200-day MA of 68.12, indicating a bullish trend. The MACD of 3.03 indicates Negative momentum. The RSI at 62.02 is Neutral, neither overbought nor oversold. The STOCH value of 78.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DXCM.
Dexcom Risk Analysis
Dexcom disclosed 75 risk factors in its most recent earnings report. Dexcom reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dexcom Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $31.49B | 32.22 | 36.19% | ― | 15.54% | 77.43% | |
77 Outperform | $22.26B | 28.73 | 11.27% | 1.18% | 8.73% | 26.55% | |
73 Outperform | $49.56B | 49.47 | 9.71% | ― | 14.55% | 15.09% | |
71 Outperform | $13.10B | 21.11 | 12.25% | 2.56% | 6.30% | 52.96% | |
67 Neutral | $11.45B | 38.36 | 26.69% | ― | 31.93% | -24.86% | |
54 Neutral | $1.34B | -13.94 | -68.29% | ― | 4.54% | 49.66% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
DXCM
Dexcom
83.02
6.62
8.66%
EW
Edwards Lifesciences
89.32
11.39
14.62%
PODD
Insulet
139.30
-164.25
-54.11%
SNN
Smith & Nephew Snats
29.69
-5.59
-15.84%
STE
Steris
231.78
-1.98
-0.85%
TNDM
Tandem Diabetes Care
18.79
7.27
63.11%
Dexcom Corporate Events
Executive/Board ChangesShareholder Meetings
Dexcom Shareholders Approve Board, Auditor and Compensation
Positive
May 28, 2026
Dexcom held its 2026 Annual Meeting of Stockholders on May 27, 2026, with 336.5 million shares present or represented by proxy out of 385.9 million eligible, establishing a quorum. Shareholders elected 12 directors to serve until the 2027 annual m...
Business Operations and StrategyStock BuybackFinancial Disclosures
Dexcom Unveils 2030 Targets and $1 Billion Buyback
Positive
May 15, 2026
On May 14, 2026, Dexcom held its 2026 Investor Day in Mesa, Arizona, where it outlined market opportunities, business strategy, innovation priorities, and a long-term financial outlook. The company set new long-range financial targets through 2030...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.