Dexcom (DXCM)
NASDAQ:DXCM
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Dexcom
(NASDAQ:DXCM)
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Rating:73Outperform
Price Target:
$66.00
▲(3.16% Upside)
Action:ReiteratedDate:05/01/26
The score is driven by strong financial performance (higher profitability, accelerating free cash flow, and reduced leverage) and a positive earnings call with raised margin targets. These strengths are tempered by weak technical trends (below key moving averages with negative MACD) and a premium valuation (P/E ~31) that increases sensitivity to any growth or reimbursement timing disappointments.
Positive Factors
Recurring consumables business
Dexcom's core revenue is driven by regularly replaced sensors and periodic transmitters, creating a durable recurring-revenue base. High product replacement frequency and sticky usage underpin predictable revenue, support long-term cash flow visibility and reinvestment capacity.
Negative Factors
CMS coverage timing uncertainty
Medicare coverage would materially expand addressable market for CGM in older populations; uncertainty on timing leaves a substantial portion of durable U.S. adoption and reimbursement upside unresolved, increasing revenue visibility risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables business
Dexcom's core revenue is driven by regularly replaced sensors and periodic transmitters, creating a durable recurring-revenue base. High product replacement frequency and sticky usage underpin predictable revenue, support long-term cash flow visibility and reinvestment capacity.
Read all positive factors
Dexcom (DXCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.98B
Dividend YieldN/A
Average Volume (3M)4.07M
Price to Earnings (P/E)30.3
Beta (1Y)1.11
Revenue Growth16.15%
EPS Growth76.15%
CountryUS
Employees10,200
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.56
Shares Outstanding385,873,000
10 Day Avg. Volume4,543,346
30 Day Avg. Volume4,069,891
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)9.43
Price to Sales (P/S)5.56
P/FCF Ratio24.04
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue4.71
Enterprise Value/Gross Profit7.61
Enterprise Value/Ebitda17.55
Forecast
1Y Price Target
$81.58Price Target Upside27.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
EPS Forecast (FY)2.49
Revenue Forecast (FY)$5.23B
Dexcom Business Overview & Revenue Model
Company Description
DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company provides its systems for use by people with diab...
How the Company Makes Money
Dexcom primarily makes money by selling CGM hardware and related supplies on a recurring-use model. The core revenue stream is product revenue from (1) disposable CGM sensors that are replaced regularly, and (2) CGM transmitters and/or compatible ...
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 Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presents a largely positive view: strong revenue growth (15% reported, 12% organic), robust margin expansion (gross margin improvement of ~600 bps and large increases in operating income and EBITDA margins), record global new patient starts, solid cash generation (~$2.4B) and successful product and reimbursement catalysts (G7 15-day uptake, Prime Therapeutics coverage, international wins). Key risks and constraints—chiefly CMS timing uncertainty, a potential 50–100 basis point gross margin headwind from fuel/resin costs, reliance on tenders for international growth, and the need to sustain record new patient starts in the U.S.—temper but do not outweigh the positive operational and financial momentum communicated on the call.Positive Updates
Revenue Growth (Q1 2026)
Worldwide revenue of $1.19 billion, up 15% year-over-year (YoY) vs Q1 2025; organic revenue growth of 12% (organic excludes FX and recent M&A/divestitures).
Negative Updates
Gross Margin Headwind Risk from Fuel and Resin Costs
Management maintained gross margin guidance to account for a potential 50–100 basis point headwind due to geopolitical uncertainty impacting oil, fuel, and resin prices—this prevented an upward revision to gross margin guidance despite strong Q1 performance.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth (Q1 2026)
Worldwide revenue of $1.19 billion, up 15% year-over-year (YoY) vs Q1 2025; organic revenue growth of 12% (organic excludes FX and recent M&A/divestitures).
Read all positive updates
Company Guidance
DexCom reaffirmed full‑year revenue guidance of $5.16–$5.20 billion (growth of 11%–13%) and held non‑GAAP gross profit margin guidance at 63%–64% while raising non‑GAAP operating profit margin to 23%–23.5% and adjusted EBITDA margin to 31%–31.5%; Q1 results that underpin this outlook included revenue of $1.19 billion (+15% reported, +12% organic), U.S. revenue $832 million (+11%), international $360 million (+26%, +17% organic), gross profit $757.4 million (63.5% of revenue vs. 57.5% LY), operating expenses $493 million, operating income $264.4 million (22.2% of revenue vs. 13.8% LY), adjusted EBITDA $364.5 million (36% of revenue vs. 22.2% LY), net income $216.3 million ($0.56 per share, +75% YoY), and cash & equivalents of about $2.4 billion (up >$400 million vs. year‑end 2025); management noted a 50–100 basis‑point potential gross‑margin headwind from fuel/resin price and shipping uncertainties, which is why gross‑margin guidance was held steady.Dexcom Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.82B | 4.66B | 4.03B | 3.62B | 2.91B | 2.45B |
| Gross Profit | 2.98B | 2.80B | 2.44B | 2.29B | 1.88B | 1.68B |
| EBITDA | 1.29B | 1.16B | 945.70M | 916.70M | 565.30M | 377.50M |
| Net Income | 930.40M | 836.30M | 576.20M | 541.50M | 341.20M | 216.90M |
Balance Sheet | ||||||
| Total Assets | 6.63B | 6.34B | 6.48B | 6.26B | 5.39B | 4.93B |
| Cash, Cash Equivalents and Short-Term Investments | 2.42B | 2.00B | 2.58B | 2.72B | 2.46B | 2.73B |
| Total Debt | 1.33B | 1.39B | 2.59B | 2.59B | 2.15B | 2.16B |
| Total Liabilities | 3.68B | 3.59B | 4.38B | 4.20B | 3.26B | 2.89B |
| Stockholders Equity | 2.96B | 2.75B | 2.10B | 2.07B | 2.13B | 2.04B |
Cash Flow | ||||||
| Free Cash Flow | 1.43B | 1.08B | 630.70M | 511.90M | 304.70M | 53.30M |
| Operating Cash Flow | 1.78B | 1.44B | 989.50M | 748.50M | 669.50M | 442.50M |
| Investing Cash Flow | 137.30M | 536.00M | -207.50M | -507.20M | -521.50M | -216.10M |
| Financing Cash Flow | -1.72B | -1.69B | -734.80M | -318.60M | -552.50M | 10.40M |
Dexcom Technical Analysis
Neutral
63.98
Price Trends
67.51
Negative
67.76
Negative
70.63
Negative
Market Momentum
-1.34
Negative
46.92
Neutral
26.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXCM, the sentiment is Neutral. The current price of 63.98 is above the 20-day moving average (MA) of 63.93, below the 50-day MA of 67.51, and below the 200-day MA of 70.63, indicating a neutral trend. The MACD of -1.34 indicates Negative momentum. The RSI at 46.92 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $48.14B | 30.46 | 10.61% | ― | 13.81% | 22.90% | |
73 Outperform | $22.98B | 30.31 | 32.44% | ― | 16.15% | 76.15% | |
72 Outperform | $13.17B | 22.70 | 11.79% | 2.28% | 6.30% | 52.96% | |
69 Neutral | $21.27B | 32.31 | 10.21% | 0.94% | 7.96% | 53.16% | |
67 Neutral | $11.92B | 80.92 | 17.36% | ― | 30.73% | -41.15% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
45 Neutral | $1.34B | -634.53 | -141.98% | ― | 7.93% | -108.60% |
* Healthcare Sector Average
DXCM
Dexcom
61.35
-20.27
-24.83%
EW
Edwards Lifesciences
83.98
8.33
11.01%
PODD
Insulet
175.04
-81.97
-31.89%
SNN
Smith & Nephew Snats
31.16
3.18
11.35%
STE
Steris
214.40
-8.18
-3.68%
TNDM
Tandem Diabetes Care
19.42
-2.06
-9.59%
Dexcom Corporate Events
Executive/Board Changes
Dexcom Executive Chairman Kevin Sayer Returns From Leave
Neutral
Mar 2, 2026
Dexcom announced that long-time leader Kevin R. Sayer, who had informed the board in July 2025 of his plan to retire as chief executive officer effective January 1, 2026, was appointed executive chairman of the board as of that same date to provid...
Business Operations and StrategyExecutive/Board Changes
Dexcom Adds Google Executive Rick Osterloh to Board
Positive
Feb 26, 2026
On February 26, 2026, Dexcom’s board expanded to twelve members and appointed Rick Osterloh, Google’s Senior Vice President for Platforms Devices, as an independent director with a term running until the 2026 annual shareholder meetin...
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.