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Dexcom
(NASDAQ:DXCM)
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Rating:76Outperform
Price Target:
$94.00
▲(5.67% Upside)
Action:Reiterated
Date:09/14/26
DXCM scores well primarily on strong underlying financial quality (high margins, solid cash generation, and reduced leverage) and a constructive earnings update with raised guidance, margin expansion targets, and substantial buybacks. The score is held back by weaker near-term technical momentum (below the 20-day average with subdued RSI/Stoch signals) and a still-premium valuation (P/E ~32) that leaves less room for growth disappointments.
Positive Factors
Recurring CGM demand
Dexcom’s recurring-use sensor model can support durable revenue visibility because existing users regularly replace disposable sensors. That repeat demand, combined with multiple sales channels and reimbursement sources, can improve retention and reduce reliance on one-time device purchases.
Negative Factors
Revenue growth deceleration
The sharp slowdown in trailing revenue growth raises a durable execution concern because future earnings expansion depends on restoring stronger demand. If slower growth persists, it could limit operating leverage, reduce reinvestment capacity, and make margin progress harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring CGM demand
Dexcom’s recurring-use sensor model can support durable revenue visibility because existing users regularly replace disposable sensors. That repeat demand, combined with multiple sales channels and reimbursement sources, can improve retention and reduce reliance on one-time device purchases.
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
$32.69B
Dividend YieldN/A
Average Volume (3M)4.01M
Price to Earnings (P/E)33.5
Beta (1Y)1.11
Revenue Growth15.54%
EPS Growth77.43%
CountryUS
Employees11,050
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)2.59
Shares Outstanding377,360,780
10 Day Avg. Volume4,802,652
30 Day Avg. Volume4,006,147
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
$93.76Price Target Upside5.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)2.67
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 products and related supplies on a recurring-use model. Its core revenue stream is the sale of disposable CGM sensors that must be replaced regularly, creating repeat, ongoing demand from existing users....
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
88.96
Price Trends
85.33
Positive
77.90
Positive
72.67
Positive
Market Momentum
0.38
Positive
48.89
Neutral
44.63
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 88.96 is above the 20-day moving average (MA) of 87.37, above the 50-day MA of 85.33, and above the 200-day MA of 72.67, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 44.63 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $113.38B | 21.88 | 10.60% | 3.20% | 9.77% | 12.28% | |
76 Outperform | $32.69B | 33.47 | 36.19% | ― | 15.54% | 77.43% | |
73 Outperform | $175.27B | 32.47 | 10.52% | 2.46% | 8.06% | -61.33% | |
68 Neutral | $9.44B | 24.83 | 26.69% | ― | 29.41% | 59.39% | |
54 Neutral | $528.74M | -4.33 | -165.83% | ― | 90.63% | -11.42% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $1.09B | -17.68 | -45.97% | ― | 3.92% | 70.03% |
* Healthcare Sector Average
DXCM
Dexcom
86.68
20.22
30.42%
ABT
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100.98
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PODD
Insulet
133.11
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MDT
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89.50
-1.45
-1.60%
TNDM
Tandem Diabetes Care
16.42
4.63
39.27%
SENS
Senseonics Holdings
9.84
0.99
11.19%
Dexcom Corporate Events
Business Operations and StrategyExecutive/Board Changes
Dexcom Elevates Jereme Sylvain to COO and CFO
Positive
Sep 14, 2026
On September 10, 2026, Dexcom’s board appointed Executive Vice President and Chief Financial Officer Jereme Sylvain to the expanded role of Executive Vice President, Chief Operating Officer and Chief Financial Officer, effective September 14...
Business Operations and StrategyExecutive/Board Changes
Dexcom appoints Glenn Boehnlein to board of directors
Positive
Sep 10, 2026
On September 10, 2026, Dexcom’s Board of Directors expanded its size to thirteen members and appointed veteran medical technology finance executive Glenn S. Boehnlein as an independent director, effective immediately, with his term running u...
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.