Dexcom (DXCM)
NASDAQ:DXCM
Top Page
Dexcom
(NASDAQ:DXCM)
Select Model
Select Model
Rating:77Outperform
Price Target:
$71.00
▲(14.06% Upside)
Action:ReiteratedDate:02/27/26
DXCM scores well on financial performance (strong growth, profitability, and improved leverage) and is supported by upbeat 2026 guidance emphasizing margin expansion and product catalysts. The overall score is tempered by premium valuation (P/E ~35) and a mixed longer-term technical backdrop with the 200-day average slightly above the current price.
Positive Factors
Recurring revenue and scale
Dexcom's core business is disposable CGM sensors and periodic transmitters, producing a large installed base and recurring consumable demand. Multi-year revenue growth to $4.66B demonstrates durable adoption that supports predictable revenue, customer lifetime value and reinvestment capacity.
Negative Factors
Medicare coverage uncertainty
Unclear CMS timing and structure for type‑2 non‑insulin coverage affects the pace and scale of reimbursed adoption. Durable reimbursement uncertainty can slow expansion into large segments, compress margins via competitive bids or bargaining, and lengthen payback periods for adoption investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue and scale
Dexcom's core business is disposable CGM sensors and periodic transmitters, producing a large installed base and recurring consumable demand. Multi-year revenue growth to $4.66B demonstrates durable adoption that supports predictable revenue, customer lifetime value and reinvestment capacity.
Read all positive factors
Dexcom (DXCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.96B
Dividend YieldN/A
Average Volume (3M)4.22M
Price to Earnings (P/E)31.0
Beta (1Y)1.13
Revenue Growth14.21%
EPS Growth5.66%
CountryUS
Employees10,200
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.68
Shares Outstanding384,864,840
10 Day Avg. Volume4,253,837
30 Day Avg. Volume4,221,565
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 Cap1.03
Enterprise Value/Revenue5.31
Enterprise Value/Gross Profit8.83
Enterprise Value/Ebitda18.52
Forecast
1Y Price Target
$86.76Price Target Upside39.37% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
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:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational recovery, solid revenue and margin improvement, robust cash generation, and several product and commercialization catalysts (G7 15-day, Smart Basal, Stelo, EHR integration). Management acknowledged prior supply/sensor deployment issues but demonstrated clear remediation and sequential margin recovery. Near-term headwinds include ramp-related OpEx for the Ireland facility, Q1 cadence seasonality, and uncertainty around CMS timing and competitive/payer dynamics, but these are framed as manageable or temporary. Overall the positives (growth, margin expansion, cash, product momentum) materially outweigh the headwinds.Positive Updates
Revenue Growth (FY2025 & Q4)
Worldwide revenue of $1,260,000,000 in FY2025 vs $1,110,000,000 in 2024, representing reported growth of 13% (12% organic). Q4 US revenue $892,000,000 (+11% YoY); international revenue $368,000,000 (+18% YoY; +15% organic).
Negative Updates
Earlier 2025 Supply & Sensor Deployment Challenges
Management acknowledged sensor deployment issues and supply challenges earlier in 2025 that impacted performance (warranty/scrap/freight); although improvements were realized in Q4, these issues materially affected parts of 2025 results and required remediation.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth (FY2025 & Q4)
Worldwide revenue of $1,260,000,000 in FY2025 vs $1,110,000,000 in 2024, representing reported growth of 13% (12% organic). Q4 US revenue $892,000,000 (+11% YoY); international revenue $368,000,000 (+18% YoY; +15% organic).
Read all positive updates
Company Guidance
DexCom guided 2026 revenue of $5.16–$5.25 billion (growth of ~11%–13%), with non‑GAAP gross profit margin of 63%–64%, non‑GAAP operating profit margin of ~22%–23% and adjusted EBITDA margin of ~30%–31%; management expects gross margin expansion of 200–300 basis points in 2026 driven by lower freight, manufacturing efficiencies and growing contribution from G7 15‑day, while planning incremental hiring and spend (including bringing an Ireland manufacturing facility online late in the year) and assuming continued strong category growth, incremental contribution from Stelo and new product rollouts and a coverage landscape that remains predominantly unchanged (including expectations around Medicare type‑2 non‑insulin coverage).Dexcom Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.66B | 4.03B | 3.62B | 2.91B | 2.45B |
| Gross Profit | 2.80B | 2.44B | 2.29B | 1.88B | 1.68B |
| EBITDA | 1.16B | 945.70M | 916.70M | 565.30M | 377.50M |
| Net Income | 836.30M | 576.20M | 541.50M | 341.20M | 216.90M |
Balance Sheet | |||||
| Total Assets | 6.34B | 6.48B | 6.26B | 5.39B | 4.93B |
| Cash, Cash Equivalents and Short-Term Investments | 2.00B | 2.58B | 2.72B | 2.46B | 2.73B |
| Total Debt | 1.39B | 2.59B | 2.59B | 2.15B | 2.16B |
| Total Liabilities | 3.59B | 4.38B | 4.20B | 3.26B | 2.89B |
| Stockholders Equity | 2.75B | 2.10B | 2.07B | 2.13B | 2.04B |
Cash Flow | |||||
| Free Cash Flow | 1.08B | 630.70M | 511.90M | 304.70M | 53.30M |
| Operating Cash Flow | 1.44B | 989.50M | 748.50M | 669.50M | 442.50M |
| Investing Cash Flow | 536.00M | -207.50M | -507.20M | -521.50M | -216.10M |
| Financing Cash Flow | -1.69B | -734.80M | -318.60M | -552.50M | 10.40M |
Dexcom Technical Analysis
Negative
62.25
Price Trends
70.05
Negative
67.13
Negative
72.05
Negative
Market Momentum
-1.48
Positive
30.37
Neutral
33.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXCM, the sentiment is Negative. The current price of 62.25 is below the 20-day moving average (MA) of 67.71, below the 50-day MA of 70.05, and below the 200-day MA of 72.05, indicating a bearish trend. The MACD of -1.48 indicates Positive momentum. The RSI at 30.37 is Neutral, neither overbought nor oversold. The STOCH value of 33.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $23.96B | 30.97 | 32.44% | ― | 14.21% | 5.66% | |
75 Outperform | $46.08B | 46.44 | 10.39% | ― | 0.19% | 65.58% | |
72 Outperform | $13.50B | 22.70 | 11.79% | 2.28% | 5.78% | 61.52% | |
69 Neutral | $21.52B | 32.31 | 10.21% | 0.94% | 5.15% | 60.30% | |
68 Neutral | $14.66B | 80.92 | 17.36% | ― | 27.12% | -41.72% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
45 Neutral | $1.43B | -7.22 | -141.98% | ― | 17.87% | -57.03% |
* Healthcare Sector Average
DXCM
Dexcom
62.25
-6.04
-8.84%
EW
Edwards Lifesciences
79.34
6.86
9.46%
PODD
Insulet
208.22
-54.39
-20.71%
SNN
Smith & Nephew Snats
31.64
3.90
14.06%
STE
Steris
219.40
-5.01
-2.23%
TNDM
Tandem Diabetes Care
21.00
1.84
9.60%
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.