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Dexcom
(NASDAQ:DXCM)
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Rating:78Outperform
Price Target:
$80.00
▲(25.04% Upside)
Action:Reiterated
Date:05/29/26
The score is driven primarily by strong financial performance (high and improving margins, better leverage, and solid free cash flow) and a positive earnings outlook (reaffirmed growth guidance with raised margin targets). Technicals are supportive with price above key moving averages, though elevated stochastic suggests near-term froth. Valuation is the main offset given a ~30x P/E and no dividend yield.
Positive Factors
Recurring consumables revenue
Dexcom’s core business is a durable consumables model: regularly replaced sensors and periodic transmitters create annuity-like demand from an installed base. That structural recurring revenue supports predictable top-line, higher lifetime customer value, and resilience versus one-time device sales.
Negative Factors
Reimbursement and tender dependence
Durable growth depends on broad payer coverage; uncertain CMS timing leaves a large U.S. segment inaccessible for now. International expansion also relies on country tenders, which are lumpy. Both reimbursement and tender dynamics create sustained visibility risk for adoption and revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables revenue
Dexcom’s core business is a durable consumables model: regularly replaced sensors and periodic transmitters create annuity-like demand from an installed base. That structural recurring revenue supports predictable top-line, higher lifetime customer value, and resilience versus one-time device sales.
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
$25.99B
Dividend YieldN/A
Average Volume (3M)6.57M
Price to Earnings (P/E)28.3
Beta (1Y)1.10
Revenue Growth16.15%
EPS Growth76.15%
CountryUS
Employees10,200
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)2.40
Shares Outstanding385,873,000
10 Day Avg. Volume5,563,287
30 Day Avg. Volume6,567,410
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 Cap1.07
Enterprise Value/Revenue5.76
Enterprise Value/Gross Profit9.32
Enterprise Value/Ebitda18.80
Forecast
1Y Price Target
$83.60Price Target Upside30.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering22
EPS Forecast (FY)2.59
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 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 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 | 1.48B | 1.36B | 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 | 1.38B | 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
Positive
63.98
Price Trends
67.19
Positive
67.52
Positive
67.27
Positive
Market Momentum
0.38
Positive
48.69
Neutral
13.98
Positive
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 63.98 is below the 20-day moving average (MA) of 72.90, below the 50-day MA of 67.19, and below the 200-day MA of 67.27, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 48.69 is Neutral, neither overbought nor oversold. The STOCH value of 13.98 is Positive, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $25.99B | 28.34 | 33.83% | ― | 16.15% | 76.15% | |
75 Outperform | $20.52B | 26.48 | 11.05% | 0.94% | 8.73% | 26.55% | |
72 Outperform | $10.55B | 35.47 | 21.38% | ― | 31.93% | -24.86% | |
72 Outperform | $12.19B | 19.53 | 11.79% | 2.28% | 6.30% | 52.96% | |
71 Outperform | $52.09B | 47.71 | 10.55% | ― | 13.81% | 22.90% | |
53 Neutral | $1.03B | -10.82 | -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
67.35
-16.23
-19.42%
EW
Edwards Lifesciences
90.46
13.28
17.21%
PODD
Insulet
152.25
-147.74
-49.25%
SNN
Smith & Nephew Snats
28.81
-1.11
-3.71%
STE
Steris
210.57
-29.54
-12.30%
TNDM
Tandem Diabetes Care
15.09
-2.15
-12.47%
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...
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...
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.